Track market-moving stories before they get noisy

Investors await next Thursday's results as strong prescription volumes face lower realized prices. -

Summary

Full-year revenue guidance stands at $85 billion–$87 billion.

Diabetes and obesity-drug maker Eli Lilly LLY traded at $1,284.51, down approximately 1.70% at 10.09am EST, on October 23. With earnings due next Thursday, according to Reuters' earnings preview, the key question is whether surging demand can keep overpowering weaker pricing.

Lilly's second-quarter results put that tension in numbers: revenue climbed 48% to $23 billion as volume increased 60%, while realized prices declined 13%. Mounjaro and Zepbound generated roughly $14.9 billion combined. Management raised its full-year revenue outlook to $85 billion–$87 billion, setting a demanding benchmark for the next report.

The valuation picture shows shares 19.01% below the GF Value estimate of roughly $1,590, suggesting potential upside against that model rather than a guaranteed bargain. Demand is powerful. Turning it into profitable growth remains the test. Investors should watch realized pricing, gross margin and manufacturing progress to judge whether higher prescription volumes are delivering enough earnings power.

Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Robinhood Markets (HOOD -1.56%) started with a simple idea: Make it easier for ordinary people to invest.

That sounds like a single business. But it isn't anymore. By the second quarter of 2026, Robinhood had 13 business lines generating at least $100 million of annualized revenue. That's up from just one in 2019 and nine in 2024.

At first, this might look like another impressive growth statistic. But digging deeper, I think it tells us something more important -- that Robinhood is getting better at turning one customer relationship into multiple sources of revenue.

Image source: Getty Images.

From one business to many Robinhood originally built its business around stock trading. But it didn't stop there. It kept adding products. Options became an important revenue stream. Crypto followed. Robinhood added margin lending, cash products, Gold membership subscriptions, securities lending, prediction markets, credit cards, etc. Each product gave Robinhood another way to make money from its customers.

That's an important strategy. A traditional broker might make money when a customer trades. Robinhood increasingly has opportunities to make money, whether that customer is trading, holding cash, paying for a subscription, using a card, borrowing against securities, or participating in other financial products.

The company doesn't need every product to become enormous. It needs enough of them to become meaningful. So far, that's happening.

HOOD Robinhood Markets$95.07-$1.51 (-1.56%)

NASDAQ · As of 4:00 PM ET 10/23/26

The customer matters more than the product This is where Robinhood's strategy is particularly important.

Imagine someone opens a Robinhood account to buy a few stocks. That customer might initially generate very little revenue. But over time, Robinhood can offer more products. The customer could subscribe to its Gold membership. Move more cash onto the platform. Trade options. Use the Gold Card. Buy crypto. Participate in prediction markets, and more. The customer doesn't need to find another financial company for each activity.

As for Robinhood, it can continue to expand the relationship, generating more revenue over time. Better still, it doesn't have to spend on customer acquisition costs, making growth highly efficient over time.

A few numbers show how customers are becoming more valuable. Robinhood ended the second quarter with 28.4 million funded customers, up 7% from a year earlier. Gold subscribers reached 4.8 million, up 39%, while average revenue per user increased 24% to $187.

That's an interesting combination. More customers. More products. More revenue per customer. If Robinhood can keep all three growing, the business could compound in ways that a simple trading platform cannot.

Diversification matters Another benefit of this strategy is that it reduces the volatility of Robinhood's traditional trading products. The idea is simple. Trading activity can be unpredictable. When markets become active, customers tend to trade more. When markets become quiet, transaction activity can slow.

Robinhood has gradually built other revenue streams that don't depend entirely on customers buying and selling stocks. In the second quarter, transaction-based revenue rose 44% year over year to $776 million. But Robinhood also generated $389 million of net interest revenue and $143 million of other revenue.

That mix gives the company more than one engine. If one product slows, another can potentially offset some of the weakness. That's especially valuable for a company whose original business depends heavily on market activity.

There's a catch that investors should understand, though. When Robinhood says a business has more than $100 million in annualized revenue, it doesn't mean the business generated $100 million in the past year. Robinhood calculates the figure by taking the relevant quarter's revenue and multiplying it by four. So, investors shouldn't treat the 13 businesses as 13 mature $100 million companies.

But the milestone still matters. It shows that Robinhood has created multiple products capable of reaching meaningful scale. Besides, the speed at which the company is building these products is remarkable, considering that it only had one $100 million product (options trading) in 2019.

What does it mean for investors? Robinhood has been in an expansion mode over the last few years, thanks to its strategy of building products that customers want to use. If it can continue to build products that customers want, the company could create a powerful flywheel: More customers give Robinhood a larger audience. More products give it more ways to monetize that audience.

Higher revenue gives Robinhood more resources to invest in new products. Successful products, in turn, make the platform more valuable to customers. That's how it can gradually become something much bigger.

In other words, the 13-business milestone doesn't prove Robinhood will become a great long-term compounder. But it gives investors an important clue on how the company is evolving, and that its long-term growth strategy is already gaining traction.

New York, New York--(Newsfile Corp. - October 23, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against DICK's Sporting Goods, Inc. ("Dick's Sporting Goods" or the "Company") (NYSE: DKS) on behalf of investors that purchased or otherwise acquired Dick's Sporting Goods common stock between September 8, 2025 and August 24, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in Dick's Sporting Goods 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 November 3, 2026 for an opportunity to be 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 September 8, 2025, the first day of the Class Period, Dick's Sporting Goods announced the completion of its acquisition of Foot Locker, Inc. ("Foot Locker") for approximately $2.5 billion in cash and stock.

The complaint alleges that throughout the Class Period, Defendants misled investors regarding the Company's acquisition of Foot Locker, touting the acquisition as a strategic opportunity to drive growth and profitability while assuring investors that Foot Locker's longstanding inventory and promotional challenges had been resolved. In reality, according to the complaint, those problems persisted, as Foot Locker remained heavily dependent on legacy footwear products that were exposed to intensifying promotional pressures across the athletic footwear industry.

The truth was allegedly revealed to investors before markets opened on August 25, 2026, when Dick's Sporting Goods reported disappointing second-quarter 2026 results, which included revenue of $1.73 billion from Foot Locker that fell well short of analysts' estimates of $1.81 billion. Dick's Sporting Goods also reduced its net sales guidance for full-year 2026 and disclosed that it expected Foot Locker's proforma comparable sales to yield a range of negative 2.0% to 0.0% for the year-down from Dick's prior forecast of 1.5% to 3% growth.

On this news, the price of Dick's Sporting Goods stock fell $55.02 per share, or 30.68%, to close at $124.31 per share on August 25, 2026.

CLICK HERE TO LEARN MORE

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

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/dicks-sporting-goods-inc-class-action-lawsuit-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320655

Source: Kaplan Fox & Kilsheimer LLP

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Key Takeaways CoStar Group expects Q3 revenues to grow 13% year over year at the midpoint.
CSGP's Q3 growth is likely to benefit from strong demand and rising subscriptions.
Improving margins may aid CSGP, while Ten-X weakness and pricing pressures pose risks.

CoStar Group (CSGP - Free Report) is slated to report third-quarter 2026 results on Oct. 27.

For the third quarter of 2026, CoStar Group expects revenues to be between $935 million and $945 million, representing a 13% year-over-year increase at the midpoint, and adjusted earnings of 31-34 cents per share.

The Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $950.99 million, suggesting growth of 14.08% from the year-ago quarter’s levels.

The consensus mark for third-quarter 2026 earnings has been unchanged at 34 cents per share over the past 30 days, suggesting a 47.83% increase from the year-ago quarter’s figure.

CoStar Group’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 21.17%.

Let us see how things have shaped up for CSGP before the announcement.

Factors to Note Ahead of CSGP’s Q3 ResultsCoStar Group’s third-quarter performance is likely to have been driven by strong demand for its commercial real estate information and analytics solutions, growing adoption of its residential marketplaces and improving operational efficiencies.

The company’s Commercial segment is expected to have benefited from increasing subscriptions to the CoStar platform, growing adoption of CoStar Debt Solutions and strong momentum in LoopNet’s paid listings. In the second quarter of 2026, CoStar Group’s revenues increased 9% year over year to $337 million, while LoopNet revenues rose 14% to $87 million. CoStar Group’s subscriber base expanded 19% to 327,000. For the third quarter of 2026, Commercial segment revenues are projected to be between $489 million and $494 million, indicating 7% year-over-year growth at the midpoint.

Residential segment performance is expected to have benefited from continued growth in Apartments.com, Homes.com and Domain. Apartments.com is likely to have gained from increasing paid property listings and strong customer retention, while Homes.com is expected to have benefited from expanding agent subscriptions and the introduction of its Platinum advertising tier. In the second quarter, Apartments.com revenues increased 9% to $318 million, while Homes.com revenues surged 66% to $28.5 million. For the third quarter, Residential segment revenues are expected to be between $446 million and $451 million, representing 20% year-over-year growth at the midpoint.

CoStar Group’s third-quarter profitability is expected to have benefited from disciplined expense management and improving residential operating leverage. The company expects adjusted EBITDA between $190 million and $210 million, implying an adjusted EBITDA margin of approximately 21% at the midpoint, up more than 700 basis points year over year. Commercial adjusted EBITDA is projected to be between $162 million and $172 million, while residential adjusted EBITDA is expected to be between $28 million and $38 million.

However, CSGP’s third-quarter 2026 results are expected to have been hurt by declining Ten-X transaction revenues, slower near-term growth at Homes.com due to sales-force restructuring and pricing pressures at Apartments.com amid intense competition and elevated multifamily vacancies.

What Our Model Says About CSGPOur proven model does not conclusively predict an earnings beat for CoStar Group this time. Per the Zacks model, 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. But that is not the case here.

CoStar Group presently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they report earnings with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Cadence Design Systems (CDNS - Free Report) , Seagate Technology (STX - Free Report) , and Amphenol (APH - Free Report) are some stocks with favorable combinations.

Cadence Design Systems has an Earnings ESP of +0.91% and carries a Zacks Rank #2 at present. CDNS is slated to report its third-quarter 2026 results on Oct. 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology has an Earnings ESP of +2.49% and sports a Zacks Rank #1 at present. Seagate Technology is set to report its first-quarter fiscal 2027 results on Oct. 27.

Amphenol has an Earnings ESP of +1.72% and a Zacks Rank #2 at present. Amphenol is set to report its third-quarter 2026 results on Oct. 28.

Archer Aviation Maps Out Ambitious Air Taxi Networks Across Three Texas Cities

Summary

Archer Aviation plans to develop electric air taxi networks across Austin, Dallas–Fort Worth and Houston, aiming to cut some road journeys from over an hour to as little as 10 minutes.

Archer Aviation ACHR shares slipped about 2% in Friday morning trading despite the company outlining plans for electric air taxi networks across Austin, Dallas–Fort Worth and Houston.

The proposed routes would connect major airports with commercial centers and popular destinations across the Texas Triangle, a region home to more than 20 million people. Archer sees the networks as a potential alternative to road travel in an area facing growing traffic congestion.

The company estimates its all-electric Midnight aircraft could reduce journeys that take 60 to 90 minutes by car to flights lasting just 10 to 20 minutes. The proposed service aims to make regional transportation faster while linking key business and travel destinations.

In Dallas–Fort Worth, the network would connect six airports with business locations, including Frisco Station. Houston routes would link three airports with a downtown hotel helipad and Galveston. In Austin, planned connections include two airports and the Circuit of The Americas racing venue.

Chief Executive Adam Goldstein said the proposed networks are designed to improve connections between major destinations and reduce time spent in traffic. The company did not provide a launch timeline in the supplied information.

Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Stocks for some of Europe’s most famous luxury brands are plummeting to their lowest level in years as Chinese customers cut back purchases and an industry revamp fails to launch.

Shares are down a jaw-dropping 40% so far this year for the continent’s fashion stalwarts — LVMH, parent company of Louis Vuitton, Gucci and more; Kering, which owns brands including Gucci and Bottega Veneta; and independent-minded Hermès.

A widely reported drop in demand for luxury products — particularly among Chinese customers and international social climbers, sometimes called “aspirational shoppers” in industry lingo — is to blame for Kering’s woes, the Wall Street Journal noted.

A Gucci storefront where men’s flip-flops can cost $900. JHVEPhoto – stock.adobe.com
“We know we have a lot of work to do in China,” the conglomerate’s finance chief Armelle Poulou said on an earnings call.

Kering sales dropped 1% in the third quarter. LVMH and Hermès each saw a 2% decrease. At Gucci alone, sales were down 6%.

The drop comes as the Chinese economy has been taken a beating. While unemployment is up, property values and household spending have been trending downward, according to the Journal. The country recently saw its slowest GDP growth since 2022.

“Despite the recent share ​price weakness, we expect some further pressure on the space as a whole today, with confirmation that the Chinese cluster seems ​to have taken a material (and bigger than feared) step down,” said JP Morgan analysts said in a note to investors about LVMH, according to Reuters. 

The stock decline has put a dent in LVMH kingpin Bernard Arnault’s fortune. He last topped Forbes’ list of billionaires in 2024, when he was worth $233 billion, but his wealth is listed at around $171 billion today, putting him in seventh place.

Meanwhile, LVMH-owned Zenith has started a consultation process that may lead to layoffs, according to Reuters.

Products display in 2024 at the Louis Vuitton fashion house at Marina Bay Sands shopping mall in Singapore. A mini bag can cost $2,000 or more. monticellllo – stock.adobe.com

A Hermes store in Munich in 2019. The brand’s coveted Birkin bag can sale for up to $53,000 auction price. EdNurg – stock.adobe.com
Customers in Asia, with China as the lead, account for a quarter of Kering’s sales. 

An Hermès finance exec said the Chinese market – the company’s largest – was “very difficult.” Eric du Halgouet told reporters that he still remained confident about the Asian market and would “continue to invest,” according to Reuters. 

There might be a shinier future for the prestigious brands. Analysts at Goldman Sachs Research are forecasting a 7% revenue increase for the luxury goods sectors as a whole for 2027.

“We view this as a solid recovery for an industry that has faced a prolonged period of sluggish performance,” wrote Erwan Rambourg, the group’s head of Europe luxury and lifestyle.

Smaller Gucci bags can go for around $900. However, Gucci heels can cost about $1,200. gpriccardi – stock.adobe.com
He expects more innovation and a reliance on different types of products. For instance, Gucci and L’Oréal have a 50-year exclusive beauty license that goes into effect in 2027.

Still, challenges include China’s property value woes, with new home prices losing 0.1% of their market value monthly, according to Reuters. Beijing recently announced subsidies for first-time mortgages to boost home sales, according to the Journal. 

The stock decline has put a dent in LVMH kingpin Bernard Arnault’s fortune. REUTERS
Last month, luxury credit card spending dropped 6% year over year, according to Citi.

Still, LVMH said it was good third-quarter growth in Europe and the US as Chinese customers looked elsewhere.

The single currency alternated gains and losses against the US Dollar (USD) this week, prompting EUR/USD to stabilise around the 1.1200 neighbourhood on Friday, while remaining unable to sustain its earlier bull run toward the 1.1260 zone. On the monthly chart, the second drop in a row appears almost unavoidable.

Furthermore, spot has given away around six big figures since its peak past 1.1700 in the summer, coming under increasing selling pressure since then in tandem with the strong bounce in the Greenback.

On the latter, the US Dollar has traded on the back foot this week, as the ongoing bullish move appears to have taken a breather alongside alternating moods regarding developments from the Middle East crisis. 

Next week could be critical for the pair in light of both the European Central Bank (ECB) and Federal Reserve (Fed) meetings, where both central banks are expected to keep a steady hand this month.

No news is hardly good newsGeopolitical tensions remain stubbornly elevated. The familiar US-Iran standoff over the Strait of Hormuz shows little sign of resolution, while the ongoing Russia-Ukraine conflict adds another layer of uncertainty, keeping risk aversion alive and safe-haven demand supported.

Energy prices put the ECB back on the defensiveThe geopolitical fallout is increasingly visible in energy markets. Crude Oil prices continue to climb, European fuel costs are rising, and gas price forecasts face repeated upward revisions. For the energy-dependent Eurozone, this represents more than another squeeze on household budgets: it threatens to turn an external price shock into a more persistent inflation problem.

That is precisely where the European Central Bank faces its biggest challenge. Policymakers can look through a temporary jump in energy prices, but not if higher costs spread into wages, services and inflation expectations. With growth already vulnerable to expensive energy imports, the ECB risks having to tighten policy into a weakening economy simply to prevent inflation from becoming entrenched. The longer the energy shock persists, the stronger the case for additional tightening becomes. Markets are already pricing in around 18 basis points of further rate hikes by year-end.

Now, about inflation…According to Friday’s ECB survey, Eurozone consumers’ inflation expectations rose slightly over the 12-month horizon in September, while longer-term expectations remained unchanged. The survey points to persistent upside risks for the ECB, although it does not yet suggest a fresh deterioration in medium-term expectations.

Inflation expectations for the next year increased to 3.1% from 3.0% in August. Expectations three years ahead held at 2.9%, while the five-year measure remained unchanged at 2.5%.

The latest survey is mildly hawkish for monetary policy. 

Near-term expectations remain elevated and above the bank’s 2% target, but the stability of the three- and five-year measures suggests that longer-term expectations have not materially de-anchored. The ECB will nevertheless remain alert to the risk that persistent energy and supply pressures may begin to influence broader price-setting behaviour.

Crowded shorts meet a surprising options divergenceEUR bearish positioning intensified in the week ending October 13, according to Commodity Futures Trading Commission (CFTC) data.

That said, non-commercial net shorts increased to around 137.6K contracts, while the weekly change deteriorated to -38,241 contracts from -36,076. The four-week change tumbled to around -110.6K contracts, confirming that bearish speculative positioning continues to deepen.

Also, open interest rose to around 874.6K contracts. The deeper net shorts, combined with a slightly higher participation, suggest a continued bearish positioning, though the modest increase in open interest implies the latest move was not accompanied by a significant expansion in overall market activity.

The speculative exposure plummeted to -15.73% (previously -11.41%), and its percentile dropped to 0 (from 0.7). The Net Position Percentile also remained at 0. Both measures are now at the most bearish levels in the five-year reference period, showing that EUR positioning is historically extreme both in absolute terms and relative to open interest.

However, the options market presents a contrasting picture. The one-month 25-delta Risk Reversal was -0.531 volatility points on October 22, implying that EUR puts are still priced higher than equivalent calls. But the reading is at the 30.7th percentile of its five-year distribution, indicating that the downside skew is quite moderate compared with the extremely bearish positioning in futures markets.

More importantly, option pricing has now become decidedly less bearish compared to EUR/USD spot performance. The pair has dropped 1.45% over the last month, but Risk Reversals were higher by 0.114 volatility points. Historically, a decline of such magnitude would have implied a deterioration of about 0.223 volatility points based on their history.

Instead, the positive deviation of 0.337 volatility points is at the 89.5th percentile of the out-of-sample distribution. This implies that options have repriced the EUR much more positively than spot moves would imply in isolation, creating a large divergence between speculative futures positioning and options sentiment.

That said, the latest weekly Risk Reversal change of -0.082 volatility points suggests that some demand on the downside has returned, meaning the improvement in options sentiment is not yet firmly established across all time horizons.

Overall, the positioning on the EUR remains decisively bearish, but the divergence between futures and options is something to watch. Speculative shorts are exceptionally extended, while options markets are displaying considerably less downside concern than the EUR’s recent weakness would normally suggest. This combination raises the risk of a short-covering rebound if bearish momentum begins to fade, although the continued deterioration in weekly futures positioning means that a sustained reversal remains unconfirmed.

What’s in store for EUR/USD?The coming week may be key for EUR/USD: preliminary inflation figures from Germany and the Euroland will provide fresh clues on whether the recent energy-induced price pressures are beginning to feed through to inflation expectations.

In addition, the ECB is widely anticipated to leave its policy rates unchanged at its meeting on Thursday, while the usual press conference by President Christine Lagarde is expected to highlight persistent energy-driven inflation.

Across the Atlantic, the focus will be on the FOMC gathering on Wednesday, with the Federal Reserve (Fed) also seen leaving its Fed Funds Target Range (FFTR) at 3.75%-4.00%. Data-wise, investors are also expected to keep their focus on inflation measured by the Personal Consumption Expenditure (PCE) and another estimate of the Q3 GDP Growth Rate.

Too bearish to fall, too weak to rally?While the Euro may be near a level where selling is becoming more difficult, that doesn’t necessarily mean the overall bearish trend is losing momentum. The pair stays close to 1.1200 after giving up some six big figures from summer highs. The short-term outlook is fragile, with the Greenback holding a bid amid relatively solid US fundamentals, higher Treasury yields and ongoing geopolitical uncertainty.

Still, positioning suggests the next move may not be entirely smooth. Speculative EUR shorts are at 5-year extremes, and options markets are showing much less conviction in the bearish theme than the recent decline in spot would imply. That divergence makes spot more and more susceptible to a short-covering rally if next week's Fed meeting turns out to be less hawkish than what investors are currently expecting.

However, a recovery driven primarily by position adjustment would hardly qualify as a genuine change in trend. The Eurozone remains particularly exposed to elevated energy prices, and while those pressures could keep the ECB leaning towards further tightening, they also threaten to undermine growth. That uncomfortable combination limits the extent to which a hawkish ECB can provide lasting support for the single currency.

Looking beyond next week's central bank meetings, the balance of risks therefore remains tilted to the downside. A sustained recovery would likely require a meaningful retreat in US yields, a broader improvement in risk appetite and convincing evidence that the Fed's tightening cycle is approaching its end. Without those catalysts, any rebound towards the 1.1260 area could struggle to attract sustained buying interest, leaving the 1.1000 psychological threshold as a plausible medium-term destination.

For now, the Euro may be due for a bounce, but the burden of proof remains firmly on the bulls.

Inflation FAQs

Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.

The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.

Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.

Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it.
Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.

Key Takeaways Planet Labs' new Berlin facility can produce up to 60 satellites annually to serve European sovereign demand.Defense and Intelligence revenues surged 93.3%, while EMEA revenues jumped more than 130% in Q2.PL expects $100-$115M in fiscal 2027 capex as weaker free cash flow raises concerns about returns.
Planet Labs PBC (PL - Free Report) is expanding its manufacturing footprint in Europe as sovereign satellite demand becomes a larger part of its growth story. The new Berlin facility adds capacity closer to European customers and could support faster regional execution.

The opportunity comes with a cost. Planet Labs is increasing capital spending while free cash flow has weakened, making utilization and returns on the new capacity important measures of whether the expansion creates durable value.

Planet Labs Adds Major European CapacityPlanet Labs opened its 5,700-square-meter Berlin satellite manufacturing facility in September. The site is designed to scale to as many as 60 satellites annually, with the first satellite expected before year-end.

The expansion also brings production closer to European sovereign customers, where Planet Labs has seen growing interest in satellite services and related capabilities.

PL Is Already Seeing Sovereign DemandIn August, Germany’s Federal Ministry of the Interior awarded Planet Labs a tender for dedicated-capacity satellite services. The award includes options and carries a maximum possible value of €25 million over five years, with Germany becoming the first civil government to procure Planet Labs’ dedicated Constellation Services.

The company is building a broader European presence around that demand. BlackSky Technology Inc. (BKSY - Free Report) , another space-based intelligence provider, is also pursuing international government opportunities through its high-revisit imaging and analytics platform. Satellogic Inc. (SATL - Free Report) serves defense, civil government and commercial customers with persistent Earth-observation monitoring, underscoring the competitive push for sovereign and regional space capabilities.

Planet Labs’ Defense Business Is Expanding FastDefense and Intelligence revenues reached nearly $81 million in the fiscal second quarter of 2027, up 93.3% year over year. The category represented about 70% of quarterly revenues, making it the company’s largest customer vertical during the period.

European demand has been especially strong. Revenues in Europe, the Middle East and Africa increased more than 130% year over year in the quarter. The growth reflects Planet Labs’ expanding sovereign satellite business and gives the Berlin investment a clear regional demand backdrop.

PL Must Fund Capacity Before Returns ImproveThe Berlin buildout is part of a wider investment program. Planet Labs expects fiscal 2027 capital expenditures of $100-$115 million as it expands manufacturing in San Francisco and Berlin, improves supply-chain resiliency and develops next-generation satellite fleets.

Liquidity provides room to invest, with roughly $865 million in cash, cash equivalents and short-term investments at the end of the fiscal second quarter. Still, first-half free cash flow fell to $21.3 million from $54.3 million a year earlier, while trailing 12-month return on invested capital was negative 39.1%. Higher utilization and operating leverage will be important if the new capacity is to improve returns.

PL’s Scores Reflect Opportunity and Execution RiskThe Berlin facility strengthens Planet Labs’ ability to address European sovereign demand, but the investment case still depends on execution. More manufacturing capacity can support growth only if contract wins translate into sustained revenues, improving margins and better capital efficiency.

PL currently carries a Zacks Rank #3 (Hold). It has a Momentum Score of A and Growth Score of B, but a Value Score of F and VGM Score of C. The stronger Momentum and Growth scores point to favorable characteristics in those styles, while the weak Value score argues for valuation discipline. Taken together, the signals support a measured view as investors watch how effectively Planet Labs converts its European expansion into higher-return growth.

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

Hydration, a leading Polkadot DEX, has launched Zcash ($ZEC) swaps with DCA and limit orders, with ZEC lending and borrowing markets due as early as Monday.

Hydration (@Hydration_net), one of the main decentralized exchanges on Polkadot (@Polkadot), has launched swaps for Zcash (@Zcash) $ZEC within its ecosystem. The move brings a leading privacy token into Polkadot's DeFi stack.

Users can trade ZEC pairs through Hydration's liquidity layer. The venue supports dollar-cost averaging (DCA), limit-order execution and instant swaps for the token.

Lending and borrowing nextHydration is also scheduled to activate $ZEC lending and borrowing markets as early as Monday. Together with the swaps, the rollout gives ZEC holders a way to trade and put the asset to work on-chain without leaving the Polkadot ecosystem. The lending launch date is a target and could change.

Hydration, formerly known as HydraDX, is built around an Omnipool automated market maker that concentrates liquidity in a single pool. According to the same overview, it also runs a money market for supplying and borrowing assets and a decentralized, over-collateralized stablecoin called HOLLAR. Coin Bureau describes the Omnipool as an AMM design that concentrates liquidity into one shared trading layer rather than splitting it across many isolated pools.

Why Zcash matters for DeFiZcash is a privacy-focused asset, and access to it has been expanding across decentralized venues. In October, cross-chain protocol THORChain said native ZEC swaps were live, letting users swap ZEC for assets such as Bitcoin, Ethereum and stablecoins without wrapped tokens or a centralized custodian. Hydration's launch adds another on-chain venue, this time within Polkadot.

Liquidity will be the key test. Newer ZEC markets elsewhere have started shallow, and THORChain's Zcash pool held just over $50,000 at launch, according to Chainwire. Depth on Hydration's ZEC pairs, and how quickly lending and borrowing markets attract users, will show how much demand exists for privacy assets in Polkadot DeFi.

For Hydration, the integration extends its all-in-one offering of trading, lending and stable-value products. For Zcash, it opens a new route to on-chain use beyond the venues where the token already trades.

SourcesPolkadot DeFi Dapps overview, Polkadot Ecosystem
Top Polkadot Projects in 2026, Coin Bureau
THORChain Launches Native Zcash Swaps, Chainwire

A top Wall Street analyst sees Tesla soaring while the rest of the Street keeps slashing estimates and the stock drifts further below its highs. The case for and against that bullish call comes down to one business that Tesla…

Tesla (NASDAQ:TSLA | TSLA Price Prediction) currently trades at $374.58. The average price target among analysts is $397.83, which implies 6.2% upside.

That consensus gap is small. The headline number comes from the top of the range. Wedbush Securities analyst Dan Ives holds a Street-high $600.00 target, which implies about 60.2% upside, a gap well above 40%. Tigress Financial’s Ivan Feinseth is right behind him at $550.00.

Tesla is valued at about $1.48 trillion. That price reflects an AI and robotics company, but most of the revenue still comes from cars. Its latest quarterly report tested which of those two stories investors believe, and the stock gave a mixed answer.

A Spending Cut Turned Tesla’s Earnings Beat Into a Selloff
The main blow was a surprise cut to capital spending. Tesla cut its annual capital expenditure forecast by a fifth, and shares fell 3.08% in the next session. That came even though adjusted EPS of $0.48 beat the $0.4511 estimate. Direxion’s Ryan Lee put the worry simply: “Lower capex suggests less of an ‘all-in’ approach to the AI arms race than one would expect from Elon.”

The details below were weak. Revenue of $28.05B was essentially flat year over year. GAAP operating income fell to $718M from $1.62B as R&D rose to $2.76B. Battery shortages limited deliveries to 486,532 vehicles, even with the largest order backlog in four years. Analysts have also cut their full-year 2026 EPS consensus to $1.7421, down from $2.1306 90 days ago.

The damage is mostly specific to Tesla. The stock sits 24.9% below its 52-week high of $498.83 and trades under its 200-day moving average of $386.94. The broader market, meanwhile, has kept rising.

Wedbush Is Valuing Tesla as an AI Company
Wedbush’s case is that Tesla is turning from an EV maker into an AI/autonomous software monopoly. The data supports parts of that story. Active FSD subscriptions grew to 1.74M from 1.04M a year earlier. Cybercab has joined the unsupervised Robotaxi fleet in Austin, and total unsupervised miles grew 8x quarter over quarter to nearly 2M.

Ives believes that scaled robotaxi fleets and recurring software revenue could create a $2T+ to $3T ecosystem valuation. He also points to Optimus. Production of the humanoid robot has started on high-volume lines in Fremont, and the Semi has entered volume production in Nevada. Tesla has $45.4B in cash to pay for all of it.

Most of Wall Street is less enthusiastic. Holds are the largest group with 21 ratings. Estimate revisions have mostly gone down, with 4 downward full-year EPS revisions over the past 30 days. Wedbush’s target covers 12 months. At a forward P/E near 159x, Tesla needs every one of those milestones to arrive on time (we reverse-engineered what the biggest tech winners looked like early and turned it into a free playbook you can grab here).

Detroit and Rivian Fell Harder but Offer More Upside
Several peers have posted sharp recent declines.

General Motors (NYSE:GM) lost 7.7% in a week to $77.22. Its average target of $101.22 implies 31.1% upside. No analysts rate GM a Sell, and 13 rate it a Buy.

Ford (NYSE:F) dropped 8.85% over the past month to $11.94. Its target of $15.56 implies 30.3% upside, although Holds (12) are the most common rating.

Rivian (NASDAQ:RIVN) is down 38.81% this year at $12.06. Its $19 target implies 57.5% upside, but analyst opinion is split.

Rivian has the largest consensus upside in the group. Tesla has the smallest. Like every target in this group, these are estimates that can change.

Tesla Is Lagging the S&P 500 This Year
Tesla is down 16.71% year to date, while the S&P 500 has gained 12.03%. Over the past year, Tesla has lost 14.67%, even after a 3.35% gain over the past week. Trailing P/E stands near 358x.

Here is how the 44 analysts covering the stock rate it:

Strong Buy: 4
Buy: 15
Hold: 21
Sell: 2
Strong Sell: 2

Tesla’s 60% Case Depends on Robotaxis Scaling Quickly
Tesla earns a closer look here if robotaxi service expands well beyond Austin, FSD subscriptions keep growing and battery supply improves enough to work through the backlog. But caution makes sense if the spending cut means Tesla is slowing down its AI plans, or if operating margins stay near 4.6%.

Jim Cramer has highlighted a structural risk, reasoning that a SpaceX listing would cost Tesla its scarcity value, and that the stock could “keep drifting lower until they either make more progress in robo taxis or the core business finally turns around”. Talk of a merger between Tesla and SpaceX makes that risk harder to judge.

I lean conservative. The consensus target says Tesla is about fairly priced already. Getting to Wedbush’s 60% upside would require nearly perfect execution while earnings estimates are still falling. Until robotaxi revenue shows up in the earnings report, consensus targets for Rivian and Detroit imply more upside than Tesla’s.

Got $1,000? Before You Buy TSLA, Read ThisIf you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And TSLA wasn't one of them.

They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- National securities litigation law firm Hagens Berman alerts investors in Bank of America Corporation (NYSE: BAC) to a securities class action lawsuit filed in federal court against Bank of America and certain senior executives alleging violations of federal securities laws. The firm urges investors with substantial losses to submit their trading information.

Class Period: Aug. 1, 2025 – Oct. 13, 2026
Lead Plaintiff Deadline: Dec. 15, 2026
Visit: www.hbsslaw.com/bac 
Contact Email: [email protected] 
Direct Firm Phone: 844-916-0895

Case Overview & Summary of Allegations

The securities class action lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements and failed to disclose material adverse facts regarding Bank of America's compliance controls and regulatory risk exposure. Specifically, Defendants failed to disclose that:

Deficient AML & BSA Compliance Controls: Bank of America maintained deficient Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) monitoring systems, underresourcing compliance functions in favor of revenue generation.
Underreported Suspicious Transactions: The Bank failed to detect, track, or report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), including over $1 billion tied to high-risk illicit finance.
Regulatory & Financial Exposure: As a result of these failures, Bank of America faced immense regulatory enforcement actions and multi-billion-dollar penalties, making its prior statements regarding regulatory compliance, risk management, and internal controls materially false and misleading.

The Disclosure & Market Impact

On October 13, 2026, the U.S. Department of the Treasury, FinCEN, and the Office of the Comptroller of the Currency (OCC) announced landmark enforcement actions requiring Bank of America to pay over $1.2 billion in penalties for widespread BSA/AML failures and backlog issues.

Following this disclosure, Bank of America's stock price fell sharply by over 4.8%, closing at $51.39 per share on October 14, 2026, wiping out billions of dollars in market value and causing substantial damages to shareholders.

What Can BAC Investors Do?

If you purchased Bank of America Corporation (NYSE: BAC) shares during the Class Period (August 1, 2025 – October 13, 2026) and suffered losses, you may move the Court to serve as Lead Plaintiff no later than December 15, 2026. A Lead Plaintiff is a representative party acting on behalf of other class members in directing the litigation.

Submit your losses now 
Learn More: Visit www.hbsslaw.com or contact Reed Kathrein at (844) 916-0895 or via email at [email protected].

"We're focused on the apparent disparity between the bank's assurances and the Treasury's revelations," said Reed Kathrein, a Hagens Berman partner.

Whistleblowers: Persons with non-public information regarding Bank of America should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.

SOURCE Hagens Berman Sobol Shapiro LLP

Altria sends nearly all of its earnings straight to shareholders, leaving almost nothing in reserve, yet the board just approved another dividend raise. Understanding what keeps that math from falling apart reveals everything about whether the 5.68% yield holds or…

Altria (NYSE:MO | MO Price Prediction) pays out 89.3% of its earnings as dividends. That payout ratio is simple math: dividends per share divided by earnings per share. It’s also the clearest way to see how Altria works today. The stock trades at $76.07, up 38.33% year to date, and yields 5.68%. The payout ratio shows how much of that income depends on a cigarette business that keeps shrinking.

Why This Number Tells You More Than the Headlines
The reported numbers say Altria is still growing. Adjusted diluted EPS rose 2.8% to $1.48 in the second quarter, and 2026 guidance calls for $5.61 to $5.72. The payout ratio shows how much cash remains after the dividend is paid. At 89.3%, the answer is very little. On the July 30 call, CFO Heather Newman said, “Historically, after we have the dividend, we have about $1 billion excess in cash.” That leftover cash has to pay for buybacks, debt maturities, and smoke-free products like on! PLUS and the Horizon heated tobacco joint venture.

Here’s an unusual detail: Altria’s book value per share is -$1.598. For years, Altria has sent more money to shareholders through dividends and buybacks than it kept as earnings. It returned about $8 billion in 2025 alone. That practice wiped out shareholder equity, which stood at -$2.6B in Q2. In plain terms, the company’s balance sheet shows more liabilities than assets. Altria continues to rely on steady cash flow and borrowing, with debt-to-EBITDA at 1.9x.

Where the Ratio Stands After the Latest Raise
The board raised the quarterly dividend to $1.11 from $1.06, a 4.7% increase. The new annualized rate is $4.44. Against 2026 adjusted EPS guidance, that rate works out to about 78% to 79% of adjusted earnings. The higher 89.3% figure shows how much one-time charges, like the $2.2B NJOY impairment in 2025, can eat into the buffer. Management targets mid-single-digit dividend growth through 2028, about the same pace as its 3.5% to 5.5% EPS growth outlook. So the ratio should hold roughly steady rather than fall.

What Bulls and Bears Should Track Next

Bearish: Domestic cigarette shipments fell 3.2% in Q2 after a 10.0% drop in 2025. Marlboro’s retail share slid to 39.5% while discount brands rose to 33.8%. Higher prices are carrying the business, with Marlboro’s retail price up about 7%. If smokers push back on those prices, EPS will miss guidance and the payout ratio will rise.
Bullish: Industry cigarette declines have slowed for the fourth consecutive quarter. on! Retail share rose 0.8 share points from the prior quarter to 8.6%. PLUS now reaches 120,000 stores, and contract-manufactured export volume jumped 54.9%.

Verdict on the 5.68% Yield
The 5.68% yield looks sustainable for now because adjusted earnings still cover it with room to spare. Still, an 89.3% payout ratio means Altria can grow its dividend only as long as Marlboro keeps its pricing power.

Contact [email protected] for any questions or corrections.

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.

Cash flow can come from bond interest, interest from other types of investments, and, of course, 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.

Based in Fairfield, Cincinnati Financial (CINF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 9.16%. The insurer is currently shelling out a dividend of $0.94 per share, with a dividend yield of 2.11%. This compares to the Insurance - Property and Casualty industry's yield of 0.88% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $3.76 is up 8% from last year. Over the last 5 years, Cincinnati Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.39%. 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. Cincinnati Financial's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for CINF for this fiscal year. The Zacks Consensus Estimate for 2026 is $8.44 per share, representing a year-over-year earnings growth rate of 6.16%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CINF presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

American Express is slashing 5% of its workforce as the credit card giant prepares to automate some of its internal processes using AI – the latest tech-driven layoffs to hit the financial sector.

The company on Friday announced a $336 million restructuring charge as part of the layoffs, which will impact thousands of the firm’s roughly 77,000 workers. 

Christophe Le Caillec, the firm’s chief financial officer, told CNBC after the firm reported its third-quarter earnings that the reorganization will make American Express “leaner, more agile, and also [able] to prepare for AI.”

American Express CEO Stephen Squeri speaks during an event in New York on Nov. 10, 2022. Bloomberg via Getty Images
“You don’t want to automate processes that are not optimally structured,” he added. “So what we’re doing here is to reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years.”

Shares of American Express slid 3.8% by about 1 p.m. ET as investors took the layoffs as the latest example of AI’s potential to eliminate jobs. 

British lender Barclays on Thursday announced 5,000 planned job cuts in its own AI push.

So far this year through September, AI has been cited in more than 120,000 job cut announcements, according to data from Challenger, Gray & Christmas. 

The financial sector and other white-collar professions have been among those most impacted by the new tech.

Despite record-low consumer sentiment readings and stubbornly high inflation, American Express reported a rise in profits as shoppers – especially wealthier ones – have shrugged off sky-high prices and continued to spend.

But during a post-earnings call Friday, CEO Stephen Squeri said the AI push and layoffs were necessary to improve efficiency and prepare for the future.

The company announced planned job cuts that will impact thousands of workers. JHVEPhoto – stock.adobe.com
“We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become [a] more agile and efficient organization,” he said.

He added that the company will use AI to personalize customer experiences and offers, but assured investors that American Express is “not going to let assistants run rogue through our system.”

Tech giants have reported a slew of concerning incidents in which AI agents broke out of their restraints or turned off safety systems. 

Industry leaders like Anthropic CEO Dario Amodei and OpenAI’s Sam Altman have called for more regulations and a development pause after a researcher last month sounded the alarm over the potential for AI to wipe out the human race.

The credit card giant also reported strong earnings. REUTERS
“We need to protect our customers [and] merchants, and we’re only going to allow agents to access our systems that are either approved through API or MCP channels,” Squeri said, referencing two external security systems.

On Friday, the credit card company reported adjusted earnings per share of $4.68 – beating expectations of $4.48.

Revenue jumped 9% to $20.06 billion, slightly missing estimates of $20.12 billion. 

American Express also hiked its full-year earnings forecast to $18.30 to $18.60 a share, up from a previous range of $17.30 to $17.90.

Its sale of the company’s stake in Global Business Travel Group helped boost its earnings prediction, according to Le Caillec.

Key Takeaways MGM Resorts is set to report Q3 earnings on Oct. 28, with EPS expected to fall 45.8% to 13 cents.Strong group bookings, premium gaming and entertainment events are likely to boost MGM's Las Vegas results.MGM's digital revenues are projected to rise to $207M, while regional revenues may decline to $870M.
MGM Resorts International (MGM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after the closing bell.

MGM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 24%.

Trend in Estimate Revision of MGMThe Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 13 cents, indicating a deterioration of 45.8% from 24 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $4.25 billion, suggesting growth of 0.1% from the prior-year quarter’s figure.

Let's look at how things have shaped up in the quarter.

Factors Likely to Shape MGM Resorts’ Quarterly ResultsMGM Resorts' third-quarter performance is likely to have benefited from continued momentum across its Las Vegas Strip Resorts, supported by group and convention bookings, premium gaming demand and an expanded entertainment calendar. Management highlighted a favorable group booking environment entering the quarter, alongside a larger calendar of sports and entertainment events compared with the year-ago period. These factors are expected to have supported casino activity, hotel demand and non-gaming spending.

The company's Las Vegas Strip Resorts are likely to have benefited from the recovery at MGM Grand, supported by renovated room inventory and favorable gaming trends. Continued demand for premium gaming experiences and investments in luxury offerings are expected to have aided performance. Management also highlighted encouraging trends in high-end customer spending, which may have supported gaming revenues and overall profitability in the quarter under review. The Zacks Consensus Estimate for third-quarter Las Vegas Strip revenues is pegged at $1.99 billion, compared with $1.98 billion reported in the prior-year quarter. Segment-adjusted property EBITDA is projected at $582 million, down from $601 million reported in the year-ago quarter.

MGM China's third-quarter performance is likely to have benefited from a recovery in gaming volumes following the temporary disruption caused by the World Cup in June. Continued investments in premium gaming facilities, renovated suites and luxury hospitality offerings are expected to have supported customer engagement and gaming activity. The recently upgraded suites at MGM Cotai and expanded premium gaming areas may also have strengthened the company's competitive position in Macao. However, higher intercompany branding fees may have weighed on segment profitability. MGM China’s adjusted property EBITDA is projected at $254 million, down from $284 million in the prior-year quarter.

Digital operations are likely to have supported revenue growth, driven by the launch of MGM Digital's proprietary sportsbook in Sweden and growing traction for BetMGM-branded offerings internationally. Encouraging trends in first-time deposits, active players and net gaming revenues in Brazil may also have aided performance. The consensus estimate for digital revenues is pegged at $207 million, up from $174 million a year ago.

However, softness in lower-end leisure demand may have weighed on Las Vegas hotel performance. Management acknowledged continued demand challenges at Luxor and Excalibur, despite some stabilization from value-oriented packages. Subdued international visitation, cautious spending among value-conscious consumers and seasonal fluctuations in leisure demand may also have constrained hotel revenues and gaming activity. Regional Operations' performance is likely to have reflected continued benefits from targeted capital investments and premium gaming upgrades. However, the absence of contributions from Northfield Park following its divestiture may have weighed on reported revenues and profitability. The consensus estimate for regional revenues is pegged at $870 million, down from $957 million reported in the prior-year quarter, while adjusted property EBITDA is expected to decline to $253 million from $296 million.

What Our Model Says About MGM StockOur proven model does not conclusively predict an earnings beat for MGM Resorts this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.

MGM’s Earnings ESP: MGM Resorts has an Earnings ESP of -22.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGM’s Zacks Rank: The company currently has a Zacks Rank #5 (Strong Sell).

Stocks Poised to Beat on EarningsHere are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Cinemark Holdings, Inc. (CNK - Free Report) currently has an Earnings ESP of +4.49% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cinemark’s earnings for the to-be-reported quarter are expected to increase 127.5%. CNK reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average miss being negative 11.4%.

Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +2.44% and a Zacks Rank of 2.

RSI’s earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%.

Marriott Vacations Worldwide Corporation (VAC - Free Report) has an Earnings ESP of +10.02% and a Zacks Rank of 3 at present.

Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, with the average surprise being 1.3%.

A month has gone by since the last earnings report for General Mills (GIS - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is General Mills due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

General Mills Q1 Earnings Beat Estimates on Pricing and Mix BenefitsGeneral Mills reported first-quarter fiscal 2027 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. However, both metrics declined year over year. The company posted adjusted earnings of 75 cents per share, down 13% year over year in constant currency but above the Zacks Consensus Estimate of 72 cents. Quarterly profitability was pressured by higher input costs and lower volume, partly offset by favorable net price realization and mix.

Net sales declined 3% year over year to $4,389.5 million, but topped the consensus estimate of $4,344 million. Organic net sales were essentially flat from the prior-year period. Adjusted gross margin contracted 90 basis points to 33.3% of net sales. Higher input costs drove the decline, while favorable net price realization and mix provided a partial offset. We expected an adjusted gross margin of 33.8%.

Adjusted operating profit fell 11% in constant currency to $634 million, and adjusted operating margin declined 130 basis points to 14.4%. We expected an adjusted operating margin of 14.3% for the quarter.

Decoding GIS’ Segmental PerformanceNorth America Retail sales declined 7% year over year to $2,451.8 million, including a 4-point headwind from the U.S. yogurt divestiture. Sales fell at a double-digit rate in Big G Cereal & Canada, including the divestiture impact, declined at a mid-single-digit rate in U.S. Snacks and were flat in U.S. Meals & Baking Solutions. Organic net sales decreased 3% and trailed Nielsen-measured retail sales by about 1 point due to changes in retailer inventory. Retail sales growth improved sequentially by 2 points, while dollar-share trends strengthened across most priority categories.

North America Pet sales were essentially flat at $612.8 million. Cat food sales increased at a double-digit rate and pet treats grew at a low-single-digit rate, while dog food sales declined at a high-single-digit rate. Organic net sales were flat and exceeded all-channel retail sales growth by about 1 point, aided by an extra month of Whitebridge Pet Brands results following the alignment of its calendar with General Mills' August fiscal quarter end.

North America Foodservice sales increased 1% to $523.1 million despite a 2-point headwind from the U.S. yogurt divestiture. Organic net sales advanced 4%, led by growth in cereal and frozen meals. The segment held or gained market share across all of its priority businesses.

International sales grew 4% to $794.3 million, including a 1-point benefit from foreign currency exchange. Organic net sales also increased 4%, driven by growth in distributor markets, India and China.

GIS Reaffirms Fiscal 2027 OutlookGeneral Mills reaffirmed fiscal 2027 organic net sales growth of down 1.5% to up 0.5%. Adjusted operating profit is expected to be down 8-13% in constant currency, while adjusted earnings are projected at $3-$3.20 per share. Free cash flow conversion is expected to be approximately 95% of adjusted after-tax earnings.

The company continues to target at least $750 million of savings from Holistic Margin Management, its global transformation initiative and other cost actions. It also expects roughly 9 points of operating-profit headwind and 11 points of earnings-per-share headwind from lapping the 53rd week, normalizing incentive expense and fiscal 2026 divestitures. The net impact of divestitures, foreign exchange and the 53rd week is expected to reduce reported sales growth by about 4%.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

VGM ScoresAt this time, General Mills has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, General Mills has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Palantir trades near all-time highs while Wall Street sees almost no room left to run, yet one number looming on the 2027 horizon suggests analysts may be thinking far too small.

Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) has grown into the operating system that both the Pentagon and corporate America use for AI. Gotham handles government work, Foundry runs commercial data, and AIP turns large language models into working agents.

Chief executive Alex Karp summed up the second quarter this way: “Demand for AI sovereignty has now been unleashed.”

The stock is up 12.17% year to date at $199.38. It has climbed 87% from its 52-week low of $106.37. The number I’m watching for 2027 is $300, and several catalysts could get Palantir there.

Wall Street Sees Little Upside, but Estimates Keep Rising
The consensus price target is $206.43, which implies only 3.5% upside. Analysts are split, with 19 Buy ratings against 9 Holds. Valuation explains the caution better than the fundamentals do.

For 2027, analysts expect revenue of $12.33 billion, up 50%. They see EPS of $2.3505, up 45%. Ninety days ago, the 2027 EPS forecast was $2.0945, so it has risen 12% since then.

Here’s the Math Behind a $300 Palantir
Today Palantir trades at about 85x estimated 2027 earnings. At $300, that multiple would rise to roughly 128x. That’s steep, but Palantir’s Rule of 40 score is 155% and its adjusted operating margin is 62%.

Few software companies have combined growth and profitability at this level. If 2027 earnings come in above forecasts, the multiple needed at $300 shrinks.

How might Palantir reach $300?

A long beat streak: Palantir has topped estimates for 10 straight quarters. In Q2, EPS of $0.41 beat the estimate by 46.43%.
Karp’s stretch goal: Karp said he is “driving the business to grow at a rate equal or above to what we have in U.S. commercial for the next 18 months.” U.S. commercial revenue grew 149% in Q2.
Backlog: Remaining deal value reached $13.1 billion, up 83%. Net dollar retention hit 157%.
Defense spending: The FY2027 Department of War budget request includes $46 billion for a sovereign AI toolkit. It also sets aside $2.3 billion for the Maven Smart System, a program Palantir already supports.

Palantir’s History Says 50% Gains Are Within Reach
Reaching $300 requires a gain of about 50%. Palantir has passed that bar several times. Shares rose 167% in 2023, 340% in 2024, and 135% in 2025.

Volatility cuts both ways, though. In 2022, the stock fell 65%. Its beta of 1.602 means a market pullback would hit Palantir harder than most stocks.

$300 Is a Stretch, but Here’s Why It’s Possible
Removing $300 means a gain of about 50%, far above what Wall Street’s target implies. Even so, the business is speeding up. Full-year 2026 revenue guidance calls for 82% growth, estimates are still climbing, and Palantir keeps beating them.

The main risks are the stock’s high valuation and its heavy reliance on U.S. customers. If AIP keeps converting pilot programs into large contracts and defense AI budgets come through, $300 is a reachable goal.

The traits that showed up early in past monster tech runs are the ones we cataloged in a free playbook on spotting the next Nvidia. Returns like this come unevenly from year to year, and this is the path for Palantir to post another outsized gain in 2027.

Contact [email protected] for any questions or corrections.

Guggenheim Just Raised Its ServiceNow Price Target by 40% as AI Demand Builds Summary

Guggenheim raised its ServiceNow price target to $175, citing steady customer demand and the potential for the software company to beat quarterly expectations

ServiceNow (NOW) received a higher valuation assessment from Guggenheim, which raised its price target to $175 from $125 and retained a Buy rating. The new objective relies on a valuation of roughly 10.5 times projected recurring revenue.

Feedback from five partners suggests customers are continuing to spend on ServiceNow's software, although demand has not broadly accelerated. One partner described business as better than anticipated, while four reported performance close to their expectations. Guggenheim believes this environment supports the company's prospects for meeting third-quarter estimates for growth in contracted work awaiting revenue recognition.

The brokerage also sees the company's core IT service-management business supporting sales momentum. Its partners reported healthy pipelines, while Guggenheim expects management's guidance for the following quarter to be at least in line with market forecasts.

ServiceNow's strategy of incorporating artificial intelligence features into product packages has received differing reactions. Some partners observed increased usage and said customers were finding it easier to assess potential returns. Others said the new pricing structure had caused dissatisfaction among buyers. Overall adoption of AI offerings remains at an early stage, though two partners reported growing interest in AI Control Tower.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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A massive crypto transfer from BlackRock's ETF wallets to Coinbase Prime set off alarm bells across crypto markets, but the real question is whether on-chain traders are misreading the signal entirely.

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Wallets tied to BlackRock’s (NYSE: BLK) spot ETFs moved 3,215 BTC, valued at $262.4 million, to Coinbase Prime, according to on-chain records from October 23, 2026. Coinbase Prime, Coinbase’s institutional trading desk (NASDAQ: COIN), also received another 38,882 ETH, worth $93.2 million, from those wallets. This brings the total transfer to about $355.6 million in just two hours.

The timing is concerning. On October 22, spot Bitcoin ETFs faced $635.6 million in net outflows, and Bitcoin (CRYPTO: BTC) dropped by 3.3% to $81,429. Crypto enthusiasts often interpret such large transfers to exchanges as a sign of significant selling ahead.

However, despite these transfers, Bitcoin trades at $81,858 as of October 23, up 0.3% over the past 24 hours, while Ethereum (CRYPTO: ETH) remains nearly unchanged near $2,408. This raises the question: does this transfer signal a fresh wave of selling, or is it just a paper trail for sales that already occurred?

What BlackRock’s $262 Million Coinbase Transfer Reveals

An on-chain transfer represents the movement of coins between two wallets, publicly recorded on the blockchain. Analytics firms label these wallets to help readers identify where the coins came from and where they’re going. A common trading principle is that when coins flow onto an exchange, traders can sell them, which can read as bearish. Conversely, coins moving off exchanges suggest long-term holding.

Coinbase Prime acts as a prime broker, holding, trading, and settling assets for major institutions through a single account. Because Coinbase is BlackRock’s primary custody and trading partner for its crypto funds, BlackRock moves coins between Coinbase-run wallets as standard fund-management practice.

Interestingly, this transfer aligns closely with an outflow from one of BlackRock’s funds. The $262.4 million in Bitcoin moved corresponds to the $254.1 million that exited the iShares Bitcoin Trust (NASDAQ: IBIT) on October 22, according to SoSoValue.

Why the Coinbase Prime Transfer Is Less Alarming Than It Looks

Most iShares Bitcoin Trust trades do not directly move Bitcoin. When an investor sells IBIT shares on the stock market, another investor buys them, and the fund’s coins remain intact. Coins transfer only when an Authorized Participant, such as a large bank or trading firm, redeems shares with the fund.

BlackRock’s iShares prospectus explains this clearly. In a redemption scenario, “an Authorized Participant deposits Creation Units with a Fund and receives from the Fund a redemption basket,” which can consist of assets or “a specified amount of cash.”

In a cash redemption, the fund sells Bitcoin to raise money through its prime broker, while in an in-kind redemption, the Authorized Participant receives the actual Bitcoin and may choose to hold, hedge, or sell them. In both instances, this recent transfer settles orders investors placed on October 22, already reflected in the published flow numbers. A trader interpreting the wallet movement as new selling could mistakenly count the same $254.1 million twice.

The Ethereum transfer follows the same logic, indicating redemptions from BlackRock’s Ethereum ETF, which is managed through the same account. Furthermore, the outflows are not solely attributable to BlackRock. The Fidelity Wise Origin Bitcoin Fund witnessed $217.5 million in outflows, the ARK 21Shares Bitcoin ETF had $109.4 million, and Grayscale’s and Bitwise’s funds saw outflows of $29.5 million and $27.4 million, respectively. However, BlackRock’s movements drew more attention because of greater scrutiny.

What Could Change the Direction of Bitcoin’s ETF Flows

Bitcoin’s price is closely linked with ETF flows, and October 22 marked a break in buying momentum. The funds had previously attracted $1.08 billion over the three preceding sessions, so after October 22’s outflow, they still brought in a net $442.7 million from October 19 to 22.

IBIT’s activity fueled much of this, drawing in $665.2 million on October 19 and $235 million on October 21. Overall, total net inflows across all spot Bitcoin ETFs stood at $57.32 billion as of October 22.

The funds have experienced other days of outflows this month that did not lead to a downward trend. On October 7, they posted $487.1 million in outflows, and on October 14, $261.5 million, but inflows followed both instances.

Bitcoin’s price has followed a similar pattern, down 0.3% over the past week, 3.7% over the month, and 7.2% year to date. Nevertheless, it remains up 26.3% over the past 90 days, suggesting buyers have maintained a rebound from summer lows. As of the morning of October 23, flow data had not yet been published, which could provide investors with clearer insights than any wallet alert.

Is More Bitcoin Selling Coming After BlackRock’s Transfer?
The transfer to Coinbase Prime appears to record transactions that have already occurred, closely matching the size of redemptions reported on October 22. This transfer alone does not suggest more sellers are queuing up, implying significant additional selling may not be on the horizon yet.

Two checks could change that view. Another outflow near October 22’s $635.6 million, or outflows that wipe out the $442.7 million net inflow from October 19 to 22, would point to wider selling. On price, a close below $81,429 would suggest buyers cannot absorb the redemptions, while a move above $84,378, its September 23 level, would show buyers back in control.

Contact [email protected] for any questions or corrections.

Key Takeaways Ventas is set to report Q3 2026 results Oct. 27, with revenues seen rising 18.3% and FFO per share 11.4%.Senior housing occupancy and long-term leases are expected to support rental revenues and quarterly growth.Triple-net rental income is projected to fall to $125.2M, while high interest expenses may weigh on results. Ventas, Inc. (VTR - Free Report) is scheduled to report third-quarter 2026 results on Oct. 27, after market close. The quarterly results are likely to show year-over-year growth in revenues and normalized funds from operations (FFO) per share.

In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 97 cents, beating the Zacks Consensus Estimate by a cent. The quarterly results reflected a year-over-year increase in same-store cash net operating income, driven by strong performance in the senior housing operating portfolio (SHOP) and outpatient medical research (OM&R) portfolio.

Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in three of the preceding four quarters and met once, with the average beat being 1.37%. The graph below depicts this surprising history:

Factors at Play for VTRIn the third quarter of 2026, Ventas’ SHOP is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than that of the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.

A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.

However, the triple-net leased properties are likely to have been affected during the to-be-reported quarter. Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.

VTR’s Q3 ProjectionsThe Zacks Consensus Estimate for third-quarter 2026 revenues is currently pegged at $1.76 billion, implying an 18.3% increase from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter resident fees and services is pegged at $1.39 billion, suggesting an increase from $1.09 billion reported in the year-ago period.

The consensus mark for OM&R portfolio rental income for the third quarter is pegged at $229.5 million, indicating an increase from $226.2 million reported in the year-ago period.

However, the Zacks Consensus Estimate for third-quarter triple-net leased properties' rental income is pegged at $125.2 million, suggesting a decrease from $160.1 million reported in the year-ago period.

Ventas’ activities during the soon-to-be-reported quarter have been inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for third-quarter FFO per share has decreased a cent to 98 cents over the past week. However, the figure implies an increase of 11.4% from the year-ago quarter’s reported number.

What Our Quantitative Model Predicts for VTROur proven model predicts a likely surprise in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Ventas currently has an Earnings ESP of +0.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a LookHere are two stocks from the broader REIT industry — BXP, Inc. (BXP - Free Report) and American Healthcare REIT (AHR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

BXP, which is scheduled to report third-quarter 2026 results on Oct. 27, has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.

American Healthcare REIT is slated to report third-quarter 2026 results on Nov. 5. AHR has an Earnings ESP of +0.60% and a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

It has been about a month since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Cintas’ Q1 Earnings & Revenues Beat Estimates on Margin GainsCintas reported first-quarter fiscal 2027 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.35 by 3.0%. The bottom line increased 15.8% from the year-ago quarter. Revenues of $3.01 billion surpassed the consensus estimate of $2.97 billion by 1.6% and rose 10.9% year over year.

The top line benefited from 8.9% organic revenue growth, reflecting growth after adjusting for acquisitions, foreign currency movements and workday differences. Record gross and operating margins were other key highlights in the quarter.

Cintas' Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses are included in All Other. Quarterly sales data are briefly discussed below.

Cintas' Uniform Rental and Facility Services segment generated revenues of $2.29 billion, up 9.7% year over year from $2.09 billion. Segment operating income rose to $575.09 million from $499.94 million.

The First Aid and Safety Services segment delivered revenues of $388.52 million, increasing 16.1% from $334.66 million in the prior-year quarter. Operating income climbed to $99.54 million from $80.33 million.

Revenues from the All Other segment totaled $330.73 million, up 13.1% from $292.40 million a year ago. Segment operating income increased to $51.67 million from $37.60 million.

Margin ProfileCintas' cost of sales totaled $1.46 billion compared with $1.35 billion in the year-ago quarter. Gross margin increased 13.7% to $1.55 billion, while gross margin as a percentage of revenue expanded to 51.5% from 50.3%.

Selling and administrative expenses were $827.24 million, up 10.5% year over year. The company also incurred $14.41 million of transaction expenses related to the proposed UniFirst Corporation acquisition. Operating income rose 15.2% to $711.89 million.

Operating margin improved to 23.6% from 22.7% in the prior-year quarter. Net income increased 12.3% to $551.71 million, while net income margin was 18.3% compared with 18.1%. The effective tax rate increased to 20.0% from 17.6%.

Cintas' Cash Flow TrendsIn the first quarter of fiscal 2027, Cintas generated $572.33 million in net cash from operating activities, up from $414.48 million in the year-ago period. Capital expenditures totaled $107.53 million compared with $101.96 million a year earlier.

Free cash flow increased to $464.80 million from $312.52 million. Net cash used in investing activities was $117.37 million, reflecting capital expenditures, purchases of investments and business acquisitions.

During the quarter, the company repurchased common stock worth $315.71 million and paid $180.70 million in dividends. Net cash used in financing activities totaled $500.17 million.

Balance SheetCintas exited the quarter with cash and cash equivalents of $243.60 million compared with $289.02 million at the end of fiscal 2026. Accounts receivable increased to $1.59 billion from $1.56 billion, while inventories declined to $433.29 million from $446.44 million.

Total current assets were $3.93 billion compared with $3.85 billion at May 31, 2026. Long-term debt was $1.43 billion, while debt due within one year totaled $999.29 million. Total shareholders' equity increased to $5.20 billion from $5.14 billion.

Cintas' Fiscal 2027 OutlookFor fiscal 2027, the company raised its revenue guidance to $12.15-$12.27 billion from the prior projection of $12.10-$12.25 billion. Adjusted diluted earnings per share are now projected in the range of $5.45-$5.54, up from $5.36-$5.50 previously.

The guidance excludes expected impacts from the proposed UniFirst acquisition and assumes no future acquisitions and constant foreign exchange rates. Fiscal 2027 also has one more workday than fiscal 2026.

Cintas expects net interest expense of approximately $103.00 million compared with $101.20 million in fiscal 2026, with the increase primarily tied to amortization of bridge loan financing expenses related to UniFirst. The company projects an effective tax rate of 20.4% for fiscal 2027.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM ScoresAt this time, Cintas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Key Takeaways FuelCell Energy's system earns a 99.873% capacity rating in PJM's 2028/2029 reliability assessment.PJM projects 32 GW of peak load growth by 2030, with about 30 GW expected from data centers.High capacity accreditation could raise eligible projects' revenue potential, subject to market outcomes.
FuelCell Energy, Inc. (FCEL - Free Report) has achieved a 99.873% capacity rating for its FuelCell Energy Block System in PJM Interconnection’s unit-specific Effective Load Carrying Capability (ELCC) assessment for the 2028/2029 Reliability Backstop Procurement process. The result highlights the potential reliability contribution of the company’s fuel cell technology as electricity demand rises, particularly from data centers and other large power consumers seeking dependable, on-site generation.

FuelCell Energy Secures Strong PJM Capacity AccreditationThe 99.873% rating indicates that PJM may recognize nearly all the evaluated system’s capacity as dependable under the applicable assessment. In practical terms, approximately 99.9 megawatts of every 100 megawatts evaluated could be counted as dependable capacity.

For comparison, PJM’s preliminary technology-class ratings for the same period recognize 96% of nuclear capacity, 93% of diesel utility or engine-based backup capacity and 67% of gas combustion turbine capacity. The assessment provides an important benchmark for customers evaluating the dependability of FuelCell Energy’s systems.

However, the rating applies specifically to the system evaluated for the 2028/2029 procurement process. It is not a technology-wide rating or a measure of operating uptime, and future assessments could differ.

Rising Data Center Demand Boosts Need for On-Site PowerGrowing electricity consumption from data centers is increasing pressure on power infrastructure and strengthening the need for dependable generation. PJM projects 32 gigawatts of peak load growth across its region between 2024 and 2030, with approximately 30 gigawatts expected to come from data centers.

Against this backdrop, large electricity users are increasingly considering generation solutions that can deliver power directly where it is needed. FuelCell Energy’s carbonate fuel cell technology provides continuous, on-site electricity generation, potentially helping data centers, industrial facilities and other large customers address their power requirements.

The company's latest capacity assessment could provide customers with an additional independent measure when evaluating on-site generation options.

Capacity Accreditation Could Support Market OpportunitiesThe strong accreditation also carries potential economic implications for FuelCell Energy and eligible projects using its systems within PJM. The grid operator uses ELCC assessments to evaluate the reliability contribution of power resources and convert installed capacity into accredited capacity.

A higher accredited capacity level may allow eligible projects to offer more capacity into PJM's capacity market, potentially increasing their revenue opportunities. However, actual participation and financial benefits remain subject to market requirements, procurement decisions and auction outcomes.

Future participation in the Reliability Backstop Procurement process would also depend on the applicable evaluation procedures. Following federal regulatory approval and delayed implementation of the procurement process, updated accreditation could be required using revised assumptions and study inputs.

FuelCell Energy emphasized that customers need to understand how much power they can depend on as they determine where and how quickly to expand. He noted that the assessment offers an independent measure of the platform's dependability and could have economic significance because accredited capacity influences the amount of generation that can potentially be monetized.

FuelCell Energy Targets Mission-Critical Power NeedsFuelCell Energy develops modular fuel cell systems designed to provide continuous, scalable baseload electricity for mission-critical applications. Its systems generate power at the point of use and serve data centers, industrial facilities, utilities and distributed-generation customers.

The 99.873% assessment result strengthens the company's case for consideration by customers seeking reliable on-site power amid rising electricity demand. It also highlights a potential avenue for eligible projects to participate in PJM's capacity market.

Nevertheless, the ultimate commercial benefit will depend on project eligibility, future accreditation assessments and applicable market outcomes. The latest result offers a positive reliability signal as FuelCell Energy seeks to address growing demand for dependable power solutions.

FCEL’s Zacks Rank & Key PicksFuelCell Energy is a clean energy company that develops and provides stationary fuel cell systems for on-site, continuous power generation. Currently, FCEL carries a Zacks Rank #3 (Hold).

Investors interested in the alternative energy sector may consider some top-ranked stocks like Montauk Renewables, Inc. (MNTK - Free Report) , Clearway Energy, Inc. (CWEN - Free Report) and Enlight Renewable Energy Ltd (ENLT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Montauk Renewables is a fully integrated renewable energy company that specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2026 earnings indicates 1100% year-over-year growth.

Clearway Energy, along with its subsidiaries, owns and operates a diversified portfolio of contracted renewable and conventional generation in the United States. The Zacks Consensus Estimate for CWEN’s 2026 revenues indicates 17.6% year-over-year growth.

Enlight Renewable Energy provides a renewable energy platform that develops, finances, constructs, owns and operates renewable energy projects. The Zacks Consensus Estimate for ENLT’s 2026 revenues indicates 40.2% year-over-year growth.

Key Takeaways MED's Q3 revenues are expected to fall 23.9% to $68 million, with a projected loss of 40 cents per share.Growing GLP-1 adoption and a shrinking active coach base likely pressured MED's sales and client acquisition.MED's better client retention, coach training and Catalyst cost-saving efforts might have eased Q3 pressures.
Medifast, Inc. (MED - Free Report) prepares to unveil its third-quarter fiscal 2026 results on Oct. 26, before market open. Investors are eager to see if the company can beat market expectations.

The Zacks Consensus Estimate for revenues is pegged at $68 million, implying a 23.9% decline from the prior year. Meanwhile, the consensus mark for earnings has been unchanged at a loss of 40 cents per share in the past seven days. This indicates a substantial decline from the year-ago period’s loss of 21 cents per share. MED has a trailing four-quarter negative earnings surprise of 462.2%, on average.

Key Factors to Note for MED's Q3 EarningsMedifast is likely to have faced challenges from the growing adoption of GLP-1 medications, which have been reshaping demand across the traditional weight-loss market. The company has previously highlighted that this shift has been affecting client acquisition and coach participation. These industry dynamics, along with continued competition in the weight-management category, might have remained meaningful headwinds in the to-be-reported quarter.

The continued decline in Medifast's active earning coach base might have pressured quarterly revenues. The company has previously indicated that coach numbers are likely to remain under pressure despite improvements in productivity. A smaller coach network might have limited customer reach and sales opportunities, partly offsetting benefits from higher revenue per coach. These factors are likely to have constrained overall business performance in the third quarter.

Profitability is also likely to have remained under pressure due to lower sales volumes and reduced leverage on fixed operating costs. The company has previously noted that declining revenues might have affected its ability to absorb fixed expenses, resulting in gross margin pressure. These factors might have continued to weigh on earnings performance in the quarter, despite ongoing efforts to streamline operations and control expenses.

However, Medifast's strategic initiatives are likely to have provided some support during the quarter. The rollout of its Trilivy brand and new Reset Fuelings, alongside an enhanced coach compensation structure and training platform, might have supported coach engagement and productivity. Meanwhile, improving client retention trends and the company's Catalyst cost-saving program, focused on facility rationalization and AI-related efficiencies, might have helped mitigate some operating pressures.

What the Zacks Model Says About MEDOur proven model doesn’t conclusively predict an earnings beat for Medifast 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, which is not the case here.

Medifast currently has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable CombinationHere are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.58% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sysco’s upcoming quarter’s earnings per share is pegged at $1.16, which implies a 0.9% increase year over year. The consensus estimate for Sysco’s quarterly revenues is pegged at $22.19 billion, which indicates a surge of 4.9% from the figure reported in the prior-year quarter. SYY delivered a trailing four-quarter earnings surprise of around 1%, on average.

Freshpet, Inc. (FRPT - Free Report) currently has an Earnings ESP of +1.41% and a Zacks Rank of 3. The Zacks Consensus Estimate for Freshpet’s upcoming quarter’s EPS is pegged at 36 cents, implying a 21.7% decrease from the year-ago period.

The consensus mark for Freshpet’s quarterly revenues is pegged at $309.2 million, which indicates an increase of 7% from the prior-year quarter. FRPT delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.12 per share, which implies a 63.1% increase year over year.

The consensus estimate for Hershey’s quarterly revenues is pegged at $3.25 billion, which calls for 2.3% growth from the figure reported in the prior-year quarter. HSY delivered a trailing four-quarter earnings surprise of 21.8%, on average.

Key Takeaways PPL upgrades transmission and distribution networks to improve reliability and meet rising power demand.PPL plans to invest $23 billion through 2029, targeting 10.3% annual rate-base growth.
PPL's grid upgrades and data center pipeline support capacity expansion and earnings growth.

PPL Corporation (PPL - Free Report) is modernizing its transmission and distribution network to improve grid reliability, reduce outages and accommodate rising electricity demand. The company is making strategic infrastructure investments to support growing power needs and strengthen long-term system performance.

Recently, PPL subsidiary Rhode Island Energy announced an $8.2 million project in Middletown to replace 65 aging wooden transmission structures with steel monopoles. The project aims to improve grid reliability, extend the life of critical electric assets and reduce long-term maintenance requirements.

PPL unit PPL Electric Utilities was selected to receive up to $71.5 million in U.S. Department of Energy funding for its Montour Grid Resilience and Advanced Reconductoring Project. The initiative will modernize 29.3 miles of existing transmission lines using advanced conductors and grid-monitoring technology, enhancing transmission capacity and reliability while helping manage infrastructure investment costs.

The company plans to invest $23 billion through 2029, including $8 billion for transmission and $7.2 billion for distribution infrastructure. The program focuses on system hardening, smart-grid technology, automation and network expansion. PPL expects these investments to drive 10.3% average annual rate-base growth and support 6-8% annual earnings per share (EPS) growth through 2029.

Meanwhile, rising demand from the data center pipeline and economic development across PPL’s service territories create opportunities for additional electricity demand. Modernizing existing infrastructure can help accommodate this growth while improving operational efficiency.

Overall, PPL’s infrastructure upgrades and substantial capital spending support grid reliability, capacity expansion and long-term earnings growth.

Grid Upgrades Strengthen Utilities’ Growth ProspectsGrid modernization enables utilities to improve operational efficiency and ease transmission congestion. These upgrades support renewable integration, expand rate bases and strengthen long-term earnings growth prospects. PPL is not alone in prioritizing grid modernization, as other utilities are investing heavily to strengthen infrastructure and reliability.

FirstEnergy Corp. (FE - Free Report) Energize365 program focuses on transmission and distribution upgrades, backed by $36 billion in planned investments through 2030, including more than $19 billion for transmission.

Eversource Energy (ES - Free Report) continues investing in grid modernization, with $26.5 billion planned through 2030, including $7.24 billion for transmission and $11.24 billion for electric distribution.

The Zacks Rundown on PPLPPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 7.18% and 8.77%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital currently stands at 57.46%, lower than the  Zacks Utility - Electric Power industry’s 62.33%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 9.1% compared with the industry’s 9% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

A new federal rule threatens penalties that could dwarf the price of any single home purchase, and the two biggest single-family landlords in America just watched their stocks climb on the day it dropped.

Starting January 7, 2027, a company could face a civil penalty. If it controls at least 350 single-family homes, the penalty could reach the greater of $1 million or three times the purchase price for each prohibited purchase. The Treasury Department proposed rules on October 22, 2026, that put this ban from the 21st Century ROAD to Housing Act into practice.

Invitation Homes (NYSE:INVH) and American Homes 4 Rent (NYSE:AMH) both sit far above that line, and both stocks rose on October 22. Invitation Homes gained 2.69% to close at $27.53, while AMH gained 3.10% to $31.90. The 10-year Treasury yield fell sharply that day, and that explains the move better than the rule does.

Congress already decided on the ban itself. Treasury’s proposal only defines its edges, and those edges will shape how these two landlords grow.

What the Law Bans and What Treasury Proposed
Section 1001 became law on July 11, 2026. Beginning 180 days later, a large institutional investor “generally may not buy, or contract to buy,” a single-family home unless the deal counts as an “excepted purchase.”

Treasury described the proposal as the first phase of a “phased rulemaking approach.” Publication in the Federal Register is scheduled for October 23, 2026, and comments are due 30 days after that. Later phases may cover compliance, reporting, and enforcement, so political risk remains.

How the $1 Million Penalty Math Works
The maximum fine is $1 million or three times the purchase price, whichever is greater, which makes $1 million the floor of the maximum and, on pricier homes, the multiple sets the ceiling.

Treasury can sue a violator, or the Justice Department can sue at Treasury’s request. A single purchase involving several related investors, such as a fund, its manager and its general partner, counts as one violation. Penalties apply only to prohibited purchases made on or after January 7, 2027, and no company has been fined.

Exemptions That Still Let Large Landlords Buy Homes
A build-to-rent home qualifies under three conditions. Nobody has lived in it as an owner, the investor buys it within 18 months of its certificate of occupancy, and renters are its first occupants. The renovate-to-rent exemption requires the investor to spend at least 15% of the price on improvements, or 10% under a safe harbor for spending on structural or core systems.

Purchases from another large investor that owned the home at enactment, or bought it legally, also qualify, so big landlords can still trade grandfathered rentals with each other, and with fewer eligible buyers, existing portfolios could rise in value. Treasury declined to extend build-to-rent to older rentals because that reading “appears to be inconsistent with the statutory text and purpose.”

What It Means for Invitation Homes and AMH
As of June 30, 2026, Invitation Homes owned 85,509 homes outright, held 8,069 in joint ventures and managed 15,639 for other owners. In the second quarter, it sold 657 wholly owned homes, many to owner-occupants, and acquired 196.

A landlord that sells more homes than it buys has little exposure to a purchase ban, and the law does not restrict its sales to families. Dallas Tanner, chief executive at the time of the July 30, 2026 earnings call, said: “Grandfathered scattered-site assets have a premium in the context of the new legislation.”

AMH owned more than 61,000 single-family properties and grows mostly by building its own homes. Industrywide, buying by large investors has fallen 31.8% in 2026.

Key Dates and Risks Investors in Invitation Homes and AMH Should Track
With a market value of $16.32 billion, Invitation Homes owns a grandfathered portfolio that the law protects from new big-buyer competition. The stock also trades below the $32.83 average analyst target.

AMH, worth $13.08 billion, has the growth model that depends least on Treasury’s final definitions. Building new homes involves no purchase of an existing house.

Invitation Homes is expected to report around October 28, and AMH around November 4. The case for both landlords weakens. That could happen if the final rule narrows the investor-to-investor or renovate-to-rent exemptions, or if Invitation Homes closes below its 52-week low of $23.45.

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