Track market-moving stories before they get noisy

While TSMC is racing ahead with next-generation technology, it’s also generating the kind of manufacturing profits that remain the envy of the semiconductor industry. And that’s the hurdle Intel ultimately has to clear if it wants its foundry business to compete with the world’s largest contract chipmaker.

A Manufacturing MachineTSMC reported a 67.7% gross margin and a 60.3% operating margin for the second quarter, alongside a 36% year-over-year increase in revenue and a 77.4% jump in net income. Even more striking, 77% of the company’s wafer revenue now comes from advanced process technologies—7-nanometer and below—highlighting how deeply the AI boom has reshaped its business.

The momentum isn’t slowing.

The company said its 2-nanometer process (which has Apple Inc (NASDAQ:AAPL) as a key customer) already accounted for 3% of wafer revenue during the quarter and expects a steep production ramp in the third quarter as demand for leading-edge chips continues to accelerate.

Those aren’t just technology milestones. They’re evidence of extraordinary pricing power and operational efficiency in a business where manufacturing complexity continues to rise.

Intel’s Bigger ChallengeBut matching TSMC isn’t simply about reaching the next manufacturing node.

It’s about producing cutting-edge chips while consistently generating industry-leading margins, filling factories with high-value customer orders and scaling advanced manufacturing without sacrificing profitability.

TSMC’s second quarter results show how difficult that equation has become. The foundry isn’t merely leading in advanced manufacturing—it is turning that leadership into exceptional financial performance, with profits growing more than twice as fast as revenue during the quarter.

The Next BenchmarkIntel’s upcoming foundry milestones will inevitably be measured against TSMC’s technology roadmap.

But investors may want to pay just as much attention to the financial metrics.

Winning customers is one thing. Building a manufacturing business capable of producing margins approaching 68% while ramping the industry’s most advanced chip technologies is another entirely.

TSMC’s latest quarter serves as a reminder that the foundry race isn’t just about making the smallest chips. It’s about building the most profitable manufacturing business in semiconductors—and that’s the benchmark Intel is ultimately chasing.

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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Taiwan Semiconductor Manufacturing (NYSE:TSM) sit on opposite ends of the same AI supply chain.

NVIDIA just posted $81.6 billion in Q1 FY27 revenue, and TSMC reported Q2 2026 today after flagging NT$442.68 billion in June alone. One designs the chips. The other builds them. Both are riding the same wave, on very different economics.

Blackwell Rules NVIDIA. AI Wafers Rule TSMC. NVIDIA’s Data Center segment reached $75.25 billion, up 92% year over year, with networking alone at $14.8 billion (+199%). That is InfiniBand, NVLink, and Spectrum-X pulling their weight next to GPUs.

Jensen Huang framed it plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Guidance for Q2 FY27 is $91 billion, and it excludes China entirely.

TSMC’s story is quieter but arguably deeper. Advanced nodes at 7nm and below made up 77% of wafer revenue in Q4 2025, with 3nm at 28% and 5nm at 35%.

High Performance Computing has become the dominant segment at NT$558.59 billion in Q3 2025, larger than smartphones. First-half 2026 revenue is already up 35.6% year over year. The June revenue report grew 67.9%, a number that would look wild anywhere else.

Designer Margins vs. Foundry Muscle The business models produce very different profiles. NVIDIA’s gross margin sits at 75% non-GAAP, a fabless designer collecting rent on CUDA and platform lock-in.

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TSMC’s gross margin came in at 62.3%, above its own guidance, which is remarkable given how capital-hungry the foundry business is. TSMC plans $52 billion to $56 billion in 2026 capex. NVIDIA, by contrast, just authorized $80 billion in fresh buybacks and lifted the dividend from $0.01 to $0.25.

Lens NVIDIA TSMC Core Bet AI platform (Blackwell, Vera Rubin) Leading-edge nodes (3nm, 2nm) Gross Margin 75.0% 62.3% Capital Priority Buybacks and dividends Fab expansion (Arizona, Japan, Germany) Key Vulnerability China export ban, customer concentration in hyperscalers (~50%) Top 10 customers = 85% of AR, geopolitical risk The relationship is symbiotic. The first Blackwell wafer produced on US soil rolled out of TSMC Arizona. If you want to see where NVIDIA’s supply commitments of $119 billion land, look at TSMC’s order book.

The Next Test Is Whether Demand Keeps Compounding NVIDIA’s Q2 guide assumes continued hyperscaler urgency and no China rebound. TSMC’s full-year 2026 outlook of near 30% USD growth depends on 3nm and 2nm ramps holding through H2.

Reddit chatter reflects the tension: NVDA sentiment swung sharply on DeepSeek and Meta custom-chip headlines, while TSM sentiment jumped to 78 on the June revenue release.

Why I Lean Toward TSMC on Valuation, NVIDIA on Momentum Personally, I find TSMC the more interesting name at these levels. Its forward P/E of 27 against NVIDIA’s 23 looks reasonable given TSMC serves NVIDIA, Apple, AMD, and Broadcom, and its stock is already up 78.95% over the past year versus NVIDIA’s 24.65%.

If you want the platform economics and the buyback cadence, NVIDIA still fits. If you want the pick-and-shovel exposure with a broader customer base, TSMC does. I would hesitate on both if China tensions escalate further, because that scenario dents demand at NVIDIA and complicates TSMC’s fab strategy at the same time.

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Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) declined in US trading on Thursday despite the company posting record second-quarter earnings and raising its long-term investment plans.

The decline suggests investors may be focused on higher capital spending and the potential impact of US manufacturing expansion on margins.

TSMC's US-listed shares fell more than 2.2%, while its Taiwan-listed stock ended the session over 1% higher after the earnings announcement.

The world's largest contract chipmaker, regarded as a key barometer for artificial intelligence demand, reported second-quarter net profit of T$706.6 billion ($22 billion), up 77% from a year earlier and well ahead of market expectations of T$632.6 billion.

It marked the company's ninth consecutive quarter of double-digit profit growth.

Revenue came in at T$1.27 trillion ($39.45 billion), slightly above analysts' expectations of T$1.264 trillion.

TSMC projected third-quarter revenue between $44.6 billion and $45.8 billion, comfortably ahead of Wall Street expectations of roughly $43.1 billion.

The company also guided for an operating profit margin of 56% to 58% during the third quarter.

However, investors appeared more concerned about management's revised spending plans than the earnings beat itself.

TSMC increased its 2026 capital expenditure forecast to between $60 billion and $64 billion, up from its previous guidance of the upper end of a $52 billion to $56 billion range.

The higher spending reflects continued investment in advanced manufacturing capacity to meet surging AI chip demand, but also raised concerns over near-term profitability.

The company simultaneously unveiled an additional $100 billion investment in Arizona, expanding its US manufacturing footprint as part of broader efforts to diversify production outside Taiwan.

Gytis Zizys, an analyst at Seeking Alpha, said the higher capital expenditure likely contributed to the stock's decline.

"Another reason might be that the company raised its capex forecast to over $60B, which is a lot; however, I think this is totally necessary to remain on top of the game and be the top foundry in the world," Zizys said.

"To be competitive in this day and age, companies like TSMC have to keep up with the spending that AI hyperscalers are doing right now; otherwise, they will go to the next foundry, which would be hard to do given the complete dominance of advanced processes by TSM."

He also noted that investors were reacting to the expected margin impact of the company's next-generation manufacturing nodes.

"As the more advanced nodes come online, specifically the 2-nanometer node, which is going to be done in the US, it is going to dilute its margins," he said.

"At first, the management said that it would be 2%-3%, and then it will widen to 3%-4% in the latter stages. I don't think this is such a bad outcome given the company's profitability and the overall demand for AI chips by all of the hyperscalers. The increase in overall revenue will more than offset the loss in margins, in my opinion."

Brokerages largely maintained their positive view on TSMC despite the market's muted reaction.

KGI Securities raised its price target on the stock to NT$3,200 from NT$3,000 while maintaining an Outperform rating, citing higher earnings expectations.

The stock currently trades at NT$2,470.

The brokerage based its revised valuation on 20 times forecast earnings per share for the second half of 2027 through the first half of 2028.

KGI analyst Michael Liu acknowledged that some investors may be disappointed by the lack of upside surprises in the quarterly results and may worry about margin dilution following the updated guidance.

However, he argued that the company's technology leadership remains its biggest competitive advantage.

"While investors may be somewhat deflated by the lack of upside surprises in 2Q26 results, and may even harbor concerns about margin dilution (particularly from gross margin guidance), we suggest investors focus on the company's sustained, outstanding technology leadership and how still-strengthening AI-related demand will drive a robust long-term earnings CAGR," Liu said.

Why Abbott Laboratories Stock Is Suddenly Winning Back Wall StreetAbbott Laboratories NYSE: ABT reported second-quarter 2026 comparable sales growth of 4.8% and adjusted earnings per share of $1.31, with Chairman and Chief Executive Officer Robert Ford saying results marked an acceleration from the prior two quarters.

The company reaffirmed its full-year comparable sales growth guidance of 6.5% to 7.5% and raised its adjusted EPS guidance range to $5.45 to $5.60. Chief Financial Officer Phil Boudreau said Abbott expects third-quarter adjusted EPS of $1.38 to $1.46.

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AbbVie Fires Healthy Trend-Following Signal: Is a Rebound Ahead?Ford said Abbott entered the second half of the year with “momentum building across the portfolio” and “clear line of sight” to the drivers behind expected sales growth acceleration. He said the company’s focus on gross margin expansion supported the higher earnings outlook.

Margins Improve as Sales Growth Accelerates Boudreau said second-quarter adjusted gross margin was 58.0% of sales, up 100 basis points from the prior year. He attributed the improvement to favorable business mix within Abbott’s legacy portfolio, the addition of Exact Sciences, operational improvements and disciplined execution of margin expansion initiatives.

Abbott Stock Crash: Rebound Could Be Coming FastAdjusted research and development expense was 6.9% of sales, while adjusted selling, general and administrative expense was 28.6% of sales. Foreign exchange had a favorable 0.8% year-over-year impact on second-quarter sales, slightly better than Abbott expected in April. Based on current rates, Boudreau said the company expects foreign exchange to have a positive impact of about 1% on full-year sales, including an expected negative impact of about 1% in the third quarter.

Diagnostics and Nutrition Show Mixed Trends In diagnostics, Ford said Abbott’s core laboratory business reflected strong demand for testing, which he described as a useful indicator of broader healthcare activity. U.S. core laboratory sales grew 7.5%, and Ford said the company continued to post strong performance in Latin America. During the question-and-answer session, he said hospital lab testing within Abbott’s U.S. core lab business was up 13% in the quarter.

Rapid and molecular diagnostics sales declined 8%, driven by an expected drop in respiratory virus testing following a weaker-than-normal season that ended during the quarter.

Cancer diagnostics sales grew 13%, supported by mid-teens growth in Cologuard, contributions from precision oncology and international growth. Ford said Abbott continues to expect cancer diagnostics growth in the second half to exceed first-half growth, helped by care gap programs, recently launched tests and international adoption. He also noted that the American Cancer Society updated its colorectal cancer screening guidelines in May, reaffirming Cologuard and Cologuard Plus as preferred screening options.

Nutrition sales came in slightly ahead of Abbott’s expectations for the second straight quarter, according to Ford. Sales increased sequentially by $125 million, supported by improving trends in both pediatric and adult nutrition. International pediatric nutrition returned to positive growth, rising 6.5% in the quarter. In the U.S. pediatric business, Ford said Abbott exited the quarter with the full benefit of recent WIC contract wins in its run rate and is now the market leader in both WIC and non-WIC segments.

In adult nutrition, Ford said the company continued to see positive volume trends after price actions taken late last year. U.S. retail consumption of Ensure rose by double digits compared with levels exiting last year. Abbott is also seeing contributions from new versions of Ensure featuring higher protein, lower sugar and updated labeling and packaging.

Medical Devices Growth Led by EP, Rhythm Management and Diabetes Care Medical devices sales grew 8.5%, with Abbott’s cardiovascular device portfolio also up 8.5%. Ford said growth was led by low-teens growth in electrophysiology and high-single-digit growth in rhythm management and heart failure.

In electrophysiology, Ford said the second quarter marked the beginning of an acceleration in the business. Abbott launched its next-generation Volt pulsed field ablation catheter, commonly called Volt 2.0, in the U.S. in May and expects to move from limited market release to full market release in the third quarter. Internationally, the rollout of Volt and TactiFlex Duo is gaining traction, with growth of more than 20% in Europe.

Rhythm management sales grew 9.5%, supported by expanded use of the AVEIR pacemaker across single- and dual-chamber segments and broader international adoption. Heart failure sales grew 9%, led by double-digit growth in the U.S. from Abbott’s heart assist devices.

In diabetes care, continuous glucose monitoring sales exceeded $2 billion and grew 9.5%. Abbott received CE mark in May for Libre Duo, which Ford described as the world’s first dual glucose-ketone wearable sensor. The company plans to begin the international rollout in the fall and bring the product to the U.S. after FDA approval.

Pipeline Updates Include New Launches and Clinical Trials Ford highlighted several pipeline milestones, including completion of patient enrollment in the TECTONIC coronary intravascular lithotripsy pivotal trial and completion of Abbott’s FDA submission for approval of its new Amulet 360 left atrial appendage device.

He said Abbott expects to launch Amulet 360, Libre Duo, its coronary IVL product and TactiFlex Duo PFA catheter in the U.S. over the next 12 months. The company also remains on track to begin patient enrollment in the fourth quarter for several clinical trials, including studies for a balloon-expandable TAVR valve, a leadless conduction system pacing device using the AVEIR platform, a mitral replacement valve developed after Abbott’s acquisition of Cephea Valve Technologies, a peripheral IVL device developed after the acquisition of CSI and a wearable continuous lactate monitoring sensor intended to reduce sepsis risk after hospital discharge.

Management Addresses Demand, CGM Reimbursement and 2027 Setup During the call’s Q&A session, Ford said Abbott is not seeing signs of weakening procedure volumes in its businesses, despite investor concerns tied to hospital-sector preannouncements and possible Medicaid disenrollment. He said Medicare, not Medicaid, is the larger payer for many medical device procedures, including more than two-thirds of Abbott’s U.S. cardiovascular business. He also said demand for high-acuity, life-saving products is “very inelastic.”

Ford said 80% of Abbott’s expected second-half growth acceleration is expected to come from four areas: nutrition, electrophysiology, core laboratory and cancer diagnostics.

On continuous glucose monitoring, Ford said Abbott remains bullish on the market, estimating that 75 million to 80 million people globally could realistically use CGM, compared with about 15 million today. He said reimbursement expansion is the most immediate driver of adoption, and Abbott is in discussions with about a dozen countries on introducing or expanding coverage. In the U.S., he said broader type 2 diabetes coverage could unlock about 10 million Medicare beneficiaries and accelerate commercial insurance coverage, though he did not provide a specific timing forecast.

Looking beyond 2026, Ford declined to provide specific 2027 guidance but said Abbott continues to target high-single-digit top-line growth and double-digit earnings growth. He described 7% sales growth as a sustainable target for the company, supported by its mix of nutrition, diagnostics, established pharmaceuticals and medical technology businesses.

About Abbott Laboratories NYSE: ABTAbbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.

In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.

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

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Wall Street analysts forecast that Danaher (DHR - Free Report) will report quarterly earnings of $1.84 per share in its upcoming release, pointing to a year-over-year increase of 2.2%. It is anticipated that revenues will amount to $6.09 billion, exhibiting an increase of 2.6% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

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

It is projected by analysts that the 'Total Sales- Diagnostics' will reach $2.33 billion. The estimate points to a change of +0.8% from the year-ago quarter.

According to the collective judgment of analysts, 'Total Sales- Life Sciences' should come in at $1.79 billion. The estimate indicates a year-over-year change of +0.9%.

The average prediction of analysts places 'Total Sales- Biotechnology' at $1.95 billion. The estimate indicates a change of +5.5% from the prior-year quarter.

The consensus among analysts is that 'Operating profit- Biotechnology' will reach $574.60 million. Compared to the present estimate, the company reported $531.00 million in the same quarter last year.

The consensus estimate for 'Operating profit- Diagnostics' stands at $521.81 million. Compared to the current estimate, the company reported $554.00 million in the same quarter of the previous year.

View all Key Company Metrics for Danaher here>>>

Danaher shares have witnessed a change of +13% in the past month, in contrast to the Zacks S&P 500 composite's +0.5% move. With a Zacks Rank #2 (Buy), DHR is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year increase in earnings on higher revenues when Union Pacific (UNP - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis railroad is expected to post quarterly earnings of $3.20 per share in its upcoming report, which represents a year-over-year change of +5.6%.

Revenues are expected to be $6.6 billion, up 7.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.22% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Union Pacific?For Union Pacific, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.34%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Union Pacific will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Union Pacific would post earnings of $2.85 per share when it actually produced earnings of $2.93, delivering a surprise of +2.81%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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

Expected Results of an Industry PlayerAmong the stocks in the Zacks Transportation - Rail industry, CSX (CSX - Free Report) , is soon expected to post earnings of $0.5 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.6%. This quarter's revenue is expected to be $3.82 billion, up 6.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for CSX has been revised 0.9% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.31%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that CSX will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Morgan Stanley's second-quarter 2026 delivered record wealth and institutional revenues.Record $148B in net new assets showed workplace ties feeding the advisory pipeline.A 14.8% CET1 ratio supported buybacks, a 15% dividend hike and organic investment. Morgan Stanley’s (MS - Free Report) second-quarter 2026 call centered less on the earnings beat and more on how management sees the firm extending its advantage across wealth, institutional trading and advisory activity. The company reported EPS of $3.46, which topped the Zacks Consensus Estimate of $2.89. It generated revenues of $21.35 billion, beating the Zacks Consensus Estimate of $19.6 billion.

The bigger message was about durability. Executives framed the quarter as proof that the integrated model is gaining traction while client activity, IPO issuance and AI-related capital needs keep expanding.

MS Leans Harder on the Wealth FunnelChairman and CEO Ted Pick said Wealth and Investment Management client assets reached $10 trillion, including $8 trillion in stand-alone wealth assets, as the firm pushes to deepen relationships across adviser-led and E*TRADE channels. Chief financial officer Sharon Yeshaya said Wealth Management posted record revenues of $8.9 billion and pretax profit of $2.7 billion.

The key operating metric was net new assets. Yeshaya said Morgan Stanley gathered a record $148 billion in NNA, with stock plan IPO flows contributing just over half of that total, underscoring how workplace relationships are feeding the advisory pipeline.

In Q&A, a BofA Securities analyst pressed on whether workplace-driven flows are near a peak. Yeshaya argued the opportunity remains broad because the firm serves about 70% of the top 100 unicorns by market cap in its workplace pipeline and is still investing in referrals, product capabilities and adviser matching tools to improve retention and conversion.

Morgan Stanley Sees Broader Market ActivityInstitutional Securities delivered record revenues of $11 billion and pretax profit of $4.3 billion, helped by a standout equities franchise and a firmer investment-banking backdrop. Yeshaya said investment-banking revenues rose 58% year over year to $2.4 billion, with strength across advisory, equity underwriting and fixed income underwriting.

Equities revenues reached a record $6.3 billion, while fixed income produced $2.5 billion. Management tied that performance to stronger client engagement across regions, especially in Asia, as well as multiyear investments in technology, risk management and franchise scale.

When asked by KBW about pipeline depth, Yeshaya said activity is broadening beyond the Americas, with Asia and other regions building. Pick added that improving regulatory conditions, a healthier IPO market and pent-up strategic demand are creating a more favorable backdrop for both M&A and capital raising.

MS Keeps Investing While Holding Margin DisciplineYeshaya said the firm’s year-to-date efficiency ratio was 65%, with operating leverage offsetting higher execution-related costs and continued strategic spending. She said technology-led expense growth reflects infrastructure investment, AI-enabled efficiencies and business expansion.

Within wealth, the pretax margin was 30.5%. Asked whether that level can move structurally higher, Pick said management is not resetting targets midyear and is more focused on driving pretax profit growth than solving for a specific margin number.

That answer carried an important signal. Even after surpassing the 30% benchmark multiple times, management still appears willing to absorb near-term investment costs if they support wallet share gains and extend the runway for fee-based asset growth.

Morgan Stanley Ties AI to Advisory DemandPick used the call to sharpen a broader strategic theme around AI and geopolitics. He said enterprise AI adoption and a more fragmented global order are reshaping supply chains, capital allocation and client demand for advice.

In response to a Wells Fargo analyst, Pick said Morgan Stanley research now sees data-center capital spending reaching about $850 billion in 2026, $1.3 trillion in 2027 and potentially $1.5 trillion in 2028. He said that could leave the industry only 10% to 15% through a much longer AI investment cycle.

His point was not that Morgan Stanley can call the exact size of the cycle, but that the firm expects a meaningful role as adviser, underwriter and capital allocator as companies finance that build-out across private and public markets.

MS Defends Its Competitive Position in the WorkplaceA Wolfe Research analyst asked about rising competition from smaller RIAs in workplace solutions. Yeshaya argued Morgan Stanley’s moat starts with corporate coverage and the integrated-firm model, then extends through financial wellness tools, adviser matching and a broader product set.

She also drew a line between Morgan Stanley’s workplace capabilities and its investment-banking franchise. The firm’s ability to win IPO-related corporate relationships, she said, gives it access to asset flows that smaller competitors cannot easily replicate.

That exchange reinforced a recurring message from the quarter: management views the workplace not as a narrow channel, but as the top of a long-duration acquisition funnel that links corporate relationships, employee assets and advice-based retention.

Morgan Stanley Enters the Back Half With FlexibilityThe other major theme was balance-sheet strength. Morgan Stanley ended the quarter with a standardized CET1 ratio of 14.8%, repurchased $1.5 billion of stock and raised its quarterly dividend 15% to $1.15 per share.

Pick said excess capital gives the firm room to support clients, invest organically and consider selective bolt-on deals, though he emphasized that the bias remains toward organic deployment. The tone throughout the call was confident but disciplined, with management repeatedly stressing higher highs and higher lows through the cycle.

Zacks Signals for MSMS carries a Zacks Rank #3 (Hold) at present, along with a Value Score of D, Growth Score of B, Momentum Score of A and VGM Score of B. That mix points to stronger growth and momentum characteristics than value support, while the VGM Score suggests a relatively balanced profile across styles.

The strongest setups typically pair a Zacks Rank #1 (Strong Buy) or 2 (Buy) with A or B Style Scores, while a Zacks Rank #3 can still be held, but is a less favorable signal. The current rank can also change as earnings estimate revisions adjust following the quarter’s results and management commentary. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wall Street Reassessment: Analyst Opinion Evolution on INTU — Sell-Side Price Targets Significantly Reduced Following Intuit's TurboTax Growth Guidance Cut

, /PRNewswire/ -- SueWallSt alerts investors in Intuit Inc. (NASDAQ: INTU) of a pending securities class action filed on behalf of shareholders who purchased INTU securities between August 22, 2025 and May 20, 2026. Find out if you might be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

INTU shares fell $76.86 per share, a 20.02% single-day decline, closing at $307.07 on May 21, 2026, after the Company cut its full-year TurboTax revenue growth guidance to 7% from 8% and disclosed weak tax season results. The lead plaintiff deadline is September 8, 2026.

Initial Analyst Optimism

For much of the Class Period, coverage indicated confidence in Intuit's tax-related business and its AI-driven growth narrative. Sell-side price targets sat well above where shares would eventually land, with several firms carrying targets in the $600.00 range or higher as management reaffirmed 8% TurboTax growth.

The Downgrades Begin

After the May 20, 2026 disclosures, analysts noted a sharp reassessment. The lawsuit maintains that once TurboTax weakness surfaced, sell-side coverage turned negative and price targets were cut across the board.

Analyst Coverage Timeline

Susquehanna lowered its price target to $550.00 from $640.00, noting that while high-end assisted tax "looked great, the low-end fell apart" and could be sourced to a specific competitor. KeyBanc Capital Markets reduced its target to $450.00 from $520.00, citing "TurboTax DIY headwinds and a pricing evolution across TurboTax." RBC Capital Markets cut its target to $500.00 from $600.00, noting "TurboTax disappoints" and revised FY26 guidance of roughly 7% versus a prior 8%. Truist Securities lowered its target to $410.00 from $500.00, citing weakness in price-sensitive DIY filers earning under $50,000 and an unexpected 30 basis point contraction in IRS filers. At least one analyst pointed to "renewed fears around AI automation displacing tax software" as a driver of the after-hours decline. Why Analyst Shifts Matter for Investors

When coverage repriced INTU downward, it reflected a rapid gap between prior expectations and the results the Company ultimately reported. The complaint charges that this repricing tied directly to information investors were allegedly not told during the Class Period.

"When analyst expectations are based on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm. The resulting price target reductions reflected a significant shift in Wall Street's view of Intuit's TurboTax business following the Company's reduced guidance." -- Joseph E. Levi, Esq.

Click here to submit your information and learn more about the case or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the INTU Lawsuit

Q: What is the INTU class action lawsuit about? A: A securities class action has been filed against Intuit Inc. (NASDAQ: INTU) alleging materially false and misleading statements between August 22, 2025 and May 20, 2026. Shares fell approximately 20.02% after the Company disclosed weak tax season results and cut its full-year TurboTax revenue growth guidance to 7% from 8%. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.

Q: How much did INTU stock drop? A: Shares fell approximately 20.02%, a decline of $76.86 per share, after the Company disclosed weak Q3 2026 tax season results and reduced its TurboTax growth guidance. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What is the INTU lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is September 8, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What if I already sold my INTU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.

Q: What do INTU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

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, /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Intuit Inc. (NASDAQ: INTU) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/INTU.

Intuit Case Details

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

they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and as a result, Defendants' public statements were materially false and misleading at all relevant times. What's Next for Intuit Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/INTU. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Intuit you have until September 8, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Intuit Investors

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

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

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

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

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Prior results do not guarantee similar outcomes.

Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]

SOURCE Bronstein, Gewirtz & Grossman, LLC

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It’s easy to forget about Broadcom (NASDAQ:AVGO | AVGO Price Prediction) as its momentum slows to a pace such that it can’t keep up with all of the “new new” AI stocks out there, from Elon Musk’s Space Exploration Technologies (NASDAQ:SPCX) to South Korean memory chip heavyweight SK Hynix (NASDAQ:SKHY). With more AI IPOs with potential to command valuations well north of the $1 trillion mark, 2026 really is the year of the mega AI IPO. And size doesn’t seem to be a limiting factor when it comes to growth in these early days of the AI boom.

Just because there are a lot of new and more exciting names in the mega-cap tech scene doesn’t mean it’s time to forget about the old firms that have been firing on all cylinders. Of course, these massive IPOs, with Anthropic on the way, are going to cause significant capital flows from elsewhere in the market.

Much of the capital could flow out of the wrong areas. Broadcom stands out as a terrific value for investors looking to play the other side of the trade, as investors rotate away from proven firms towards something that’s a bit more exciting.

Broadcom stock’s starting to get cheap again Now down more than 18% after suffering a quarterly result that saw AI guidance come in a bit lighter than expected, I do think there’s a golden opportunity in the AI bargain bin when it comes to Broadcom, especially after extending a long-term deal with Apple (NASDAQ:AAPL) — a firm that’s quietly rising up the ranks of AI with minimal spend.

Add uncertainties surrounding the rise of competitors, including Taiwan’s MediaTek, into the equation, and it feels like there are more exciting, less concerning names riding the AI tailwind to bet on these days.

Despite the growing list of reasons to sell or hold off on buying more, one big-name analyst over at Morgan Stanley (NYSE:MS) recently had encouraging things to say about the now-underperforming semiconductor stock, going as far as to call it a “core” AI winner. These are big words at a time when some Broadcom shareholders might be on the fence about whether or not it’s time to take gains after the weak relative performance in 2026.

Could $502 be in the cards? This pro seems to think so With a $502 price target, Morgan Stanley’s Joseph Moore sees “continued strength” while also noting that the narrative surrounding the “eventual displacement [from MediaTek for Google’s business] as premature.” I couldn’t agree more. While MediaTek ought to be on the radar, I still view Broadcom as having what it takes to keep moving at high speed.

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Looking into the second half, it’s going to be exciting to see how OpenAI’s Jalapeno inference chips do as the custom silicon effort picks up traction. As more hyperscalers allocate a greater portion of their budgets towards custom silicon in a bid to cut GPUs out of the equation, one has to think that Broadcom is positioned to land on its feet as the AI boom moves ahead.

Of course, Broadcom’s AI narrative might be nothing new, but it’s one that’s working and could overshoot expectations that were recently lowered following that post-earnings plunge earlier in the year.

Given Broadcom’s history of guiding fairly conservatively, I do like the firm’s chances as it looks to overdeliver after underpromising and being punished harshly for it, following a quarter that was actually quite decent.

The bottom line The custom silicon boom is still on the table, and as more firms get serious about investing in more efficient inference chips, perhaps the setup couldn’t be much better for Broadcom.

At this juncture, I view Joseph Moore’s $502 target, which entails close to 28% in upside from here, as entirely realistic.

At this juncture, the big question should be whether the firm can make a run past the $600 mark (a 52% gain), a level that some of the bigger bulls are setting their sights on. If VMWare powers margins and OpenAI’s Jalapeno is a hit, maybe investors will start bidding up the stock again as they look to diversify away from Google.

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Contact [email protected] for any questions or corrections.

In its upcoming report, The Charles Schwab Corporation (SCHW - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.53 per share, reflecting an increase of 34.2% compared to the same period last year. Revenues are forecasted to be $6.84 billion, representing a year-over-year increase of 16.9%.

The current level reflects an upward revision of 2.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

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

The collective assessment of analysts points to an estimated 'Net Revenues- Other' of $266.56 million. The estimate points to a change of +2.5% from the year-ago quarter.

Analysts expect 'Net Revenues- Bank deposit account fees' to come in at $313.67 million. The estimate indicates a year-over-year change of +27%.

Analysts forecast 'Net Revenues- Net interest revenue' to reach $3.28 billion. The estimate indicates a year-over-year change of +16.1%.

Analysts' assessment points toward 'Net Revenues- Asset management and administration fees' reaching $1.81 billion. The estimate indicates a year-over-year change of +15.4%.

The consensus among analysts is that 'Total client assets' will reach $12434.78 billion. The estimate is in contrast to the year-ago figure of $10757.30 billion.

The average prediction of analysts places 'Clients? Daily Average Trades (DATs)' at 9.84 million. Compared to the current estimate, the company reported 7.57 million in the same quarter of the previous year.

Analysts predict that the 'Average Interest Earning Assets' will reach $446.13 billion. The estimate is in contrast to the year-ago figure of $422.73 billion.

It is projected by analysts that the 'Average Client Assets - Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)' will reach $840.56 million. Compared to the present estimate, the company reported $661.79 million in the same quarter last year.

Based on the collective assessment of analysts, 'Average Client Assets - Total managed investing solutions' should arrive at $847.44 million. The estimate compares to the year-ago value of $715.93 million.

According to the collective judgment of analysts, 'Average Client Assets - Schwab money market funds' should come in at $702.69 million. Compared to the current estimate, the company reported $644.81 million in the same quarter of the previous year.

The consensus estimate for 'Average Client Assets - Mutual Fund OneSource and other no-transaction-fee funds' stands at $467.70 million. Compared to the present estimate, the company reported $350.49 million in the same quarter last year.

The combined assessment of analysts suggests that 'Assets in client accounts - Fixed income securities' will likely reach $810.91 billion. Compared to the present estimate, the company reported $788.00 billion in the same quarter last year.

View all Key Company Metrics for Charles Schwab here>>>

Over the past month, Charles Schwab shares have recorded returns of +8.8% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #1 (Strong Buy), SCHW will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Republic Services (RSG - Free Report) Republic Services is a leading provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. As of Dec 31, 2024, the company operated through 367 collection operations, 248 transfer stations, 208 active landfills, 75 recycling centers, two treatment, recovery and disposal facilities, 23 treatment, storage and disposal facilities, 14 deep injection wells, 1 polymer center and 5 saltwater disposal wells, across the United States and Canada.

RSG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Business Services stock. RSG has a Momentum Style Score of A, and shares are up 4.8% over the past four weeks.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $7.29 per share. RSG boasts an average earnings surprise of +5.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RSG should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Rockwell Automation (ROK - Free Report) Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a wide network spanning more than 100 countries. The United States generates around 50% of the company’s total sales. Outside the United States, the company’s primary markets are Canada, China, Mexico, Italy, and the United Kingdom.

ROK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. ROK has a Momentum Style Score of A, and shares are up 0.7% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.26 to $13.06 per share. ROK also boasts an average earnings surprise of +10.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROK should be on investors' short list.

Prologis (PLD - Free Report) came out with quarterly funds from operations (FFO) of $1.63 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to FFO of $1.46 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +6.54%. A quarter ago, it was expected that this industrial real estate developer would post FFO of $1.48 per share when it actually produced FFO of $1.5, delivering a surprise of +1.35%.

Over the last four quarters, the company has surpassed consensus FFO estimates three times.

Prologis, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $2.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.68%. This compares to year-ago revenues of $2.03 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Prologis shares have added about 12.4% since the beginning of the year versus the S&P 500's gain of 10.6%.

What's Next for Prologis?While Prologis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Prologis was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $1.57 on $2.16 billion in revenues for the coming quarter and $6.17 on $8.58 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, InvenTrust Properties Corp. (IVT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.

This company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +11.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

InvenTrust Properties Corp.'s revenues are expected to be $79.56 million, up 8.2% from the year-ago quarter.

Key Takeaways AvalonBay entered Q2 with occupancy above 96% and improving leasing momentum across its markets.AVB benefited from strong demand, low turnover and firmer renewal pricing as new supply slowed.Higher interest expense is expected to rise 8.9% in Q2, offsetting some operating improvements. AvalonBay Communities, Inc. (AVB - Free Report) , a leading real estate investment trust (“REIT”) specializing in the development, acquisition and management of multifamily properties, is set to announce its second-quarter 2026 results after the closing bell on July 22.

In the last reported quarter, this residential REIT delivered a positive surprise of 1.07% in terms of core funds from operations (“FFO”) per share. Results reflected higher same-store occupancy at 96.1%, underscoring steady demand heading into the peak leasing season. However, higher interest expenses undermined the performance to an extent.

Over the past four quarters, AvalonBay’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other. The graph below depicts the surprise history of the company:

As we approach the release of AvalonBay's second-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.

U.S. Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.

According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.

Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin, Charleston, Savannah, Huntsville, Salt Lake City and Colorado Springs recorded some of the largest quarterly vacancy declines.

Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, Toledo, Reno and Boise also posted strong gains.

High-supply markets remained softer, with rents still declining in Austin and Sarasota, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.

Factors to Consider Ahead of AVB's Q2 ResultsAgainst this improving industry backdrop, AvalonBay is expected to benefit from healthy occupancy, resilient demand and stronger pricing power in its predominantly coastal markets.

The company reported same-store residential occupancy of 96.1% in the first quarter, and occupancy remained above 96% entering the peak leasing season. Asking rents have increased in the high-4% range since the beginning of the year, supported by low resident turnover and a limited number of available units. Leasing trends also strengthened through the quarter, with April blended rent growth approaching 2% and renewal offers during May and June ranging between 5% and 5.5%.

A favorable supply environment should remain a key tailwind. New apartment deliveries across AvalonBay's core markets are projected to have remained near historically low levels, while elevated homeownership costs continue to keep many households in the rental market, limiting move-outs and supporting occupancy. In addition, recently completed development communities are expected to have contributed meaningfully to property-level earnings as leasing activity accelerates.

However, elevated borrowing costs remain a headwind. Higher interest expenses are likely to have partially offset operating gains, with our estimate calling for an 8.9% year-over-year increase in interest expense during the second quarter of 2026.

Projections for AVBWe expect second-quarter same-store revenues to increase 1.7% year over year, while same-store net operating income is estimated to have grown marginally. Physical occupancy is expected at 96.2%.

The Zacks Consensus Estimate of $778.72 million for second-quarter revenues indicates a 2.44% year-over-year increase. For the second quarter of 2026, the company projected core FFO per share in the range of $2.72-$2.82.

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unchanged at $2.80 over the past two months. It implies a year-over-year marginal decline.

Here Is What Our Quantitative Model Predicts for AVB:Our proven model does not conclusively predict a beat in terms of FFO per share for AvalonBay 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 not the case here.

AvalonBay currently carries a Zacks Rank of 4 (Sell) and has 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 That Warrant a Look

Here are two stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.

SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.

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.

SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX) today announced Build, a new mobile-first creation tab within the Roblox app, and a new suite of AI-powered tools for creators of every level. Build allows anyone to turn a text prompt into a basic game directly in the Roblox app. A creator could type: "Let's make a cozy adventure game set in a dense forest with environmental obstacles." Build would then create a playable starting point for the creator to iterate on, playtest,.

PITTSBURGH--(BUSINESS WIRE)--The Board of Directors of PPG (NYSE:PPG) today approved a 3-cents-per-share increase in the company's dividend, declaring a regular quarterly dividend of 74 cents per share, payable Sept. 11 to shareholders of record Aug. 10. This marks the company's 512th consecutive dividend payment. Through the ongoing dedication and engagement of its workforce, the company has paid uninterrupted annual dividends since 1899. “We are proud of our heritage of rewarding shareholders.

Analysts on Wall Street project that Chubb (CB - Free Report) will announce quarterly earnings of $6.60 per share in its forthcoming report, representing an increase of 7.5% year over year. Revenues are projected to reach $15.89 billion, increasing 7.3% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Chubb metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Net premiums written- North American Personal P&C Insurance' will likely reach $2.04 billion. The estimate suggests a change of +5.3% year over year.

It is projected by analysts that the 'Adjusted Net investment income- Overseas General Insurance' will reach $308.52 million. The estimate suggests a change of +11% year over year.

Analysts expect 'Adjusted Net investment income- Global Reinsurance' to come in at $95.41 million. The estimate suggests a change of +12.2% year over year.

Based on the collective assessment of analysts, 'Net premiums written- Total P&C' should arrive at $13.01 billion. The estimate indicates a change of +5% from the prior-year quarter.

The consensus among analysts is that 'Loss and loss expense ratio' will reach 58.5%. Compared to the present estimate, the company reported 59.0% in the same quarter last year.

According to the collective judgment of analysts, 'Combined ratio' should come in at 85.6%. Compared to the present estimate, the company reported 85.6% in the same quarter last year.

The collective assessment of analysts points to an estimated 'North America Agricultural Insurance - Combined ratio' of 89.3%. Compared to the current estimate, the company reported 89.1% in the same quarter of the previous year.

Analysts predict that the 'North America Agricultural Insurance - Loss and loss expense ratio' will reach 82.1%. Compared to the current estimate, the company reported 80.8% in the same quarter of the previous year.

The average prediction of analysts places 'North America Commercial P&C Insurance - Combined ratio' at 84.9%. Compared to the present estimate, the company reported 83.5% in the same quarter last year.

The consensus estimate for 'North America Commercial P&C Insurance - Loss and loss expense ratio' stands at 64.0%. The estimate is in contrast to the year-ago figure of 62.9%.

Analysts' assessment points toward 'Overseas General Insurance - Combined ratio' reaching 87.2%. Compared to the present estimate, the company reported 90.3% in the same quarter last year.

Analysts forecast 'Overseas General Insurance - Loss and loss expense ratio' to reach 51.2%. Compared to the current estimate, the company reported 54.2% in the same quarter of the previous year.

View all Key Company Metrics for Chubb here>>>

Over the past month, Chubb shares have recorded returns of +2.9% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #3 (Hold), CB will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

State Street has surged ~80% in the past year, driven by cost discipline, market appreciation, and a favorable rate environment. Q2 earnings exceeded expectations, with revenue up 17% and EPS at $3.65, but shares dipped post-earnings amid valuation concerns. STT's fee revenue growth lags AUC due to compression, but strong ETF flows, FX trading, and securities lending offset weaknesses in software services.

Key Takeaways State Street beat Q2 earnings estimates as record revenues, AUC/A and AUM supported strong results.STT's fee revenues rose 17.2% y/y and NII increased 18%, while no credit-loss provision boosted earnings.State Street's AUC/A reached a record $57.86T and AUM hit $6.28T, driven by market gains and inflows. State Street’s (STT - Free Report)  second-quarter 2026 earnings of $3.65 per share surpassed the Zacks Consensus Estimate of $3.30. The bottom line increased 68.2% from the prior-year quarter.

Results were aided by year-over-year growth in net interest income (NII) and fee revenues, along with nil provisions. Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a spoilsport.

Net income available to common shareholders (GAAP basis) was $1.03 billion, surging 62.9% from the year-ago quarter.

STT’s Revenues Improve, Expenses RiseTotal revenues were a record $4.05 billion, which increased 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $3.89 billion.

NII was $860 million, up 18% year over year.

The net interest margin expanded 17 basis points year over year to 1.13%.

Total fee revenues increased 17.2% year over year to $3.19 billion. The rise was driven by an increase in all fee income components, except for software services fees.

Non-interest expenses were $2.66 billion, up 5.1% from the prior-year quarter. The rise was due to an increase in all cost components, except for occupancy costs.

The company did not record any provision for credit losses in the quarter, as against $30 million in the prior-year quarter.

The Common Equity Tier 1 ratio was 10.8% as of June 30, 2026, compared with 10.7% in the corresponding period of 2025. The return on average common equity was 16.7% compared with 10.8% in the year-ago quarter.

Asset Balances Increase for State Street to Record LevelsAs of June 30, 2026, the total AUC/A was a record $57.86 trillion, up 18.1% year over year. The rise was driven by higher quarter-end equity market levels, client flows and net new business.

AUM was a record $6.28 trillion, up 22.7% year over year, led by higher quarter-end market levels and net inflows.

STT’s Share Repurchase UpdateIn the reported quarter, State Street repurchased shares worth $400 million.

Our Take on State StreetSTT’s strategic buyouts, rising AUM balance and solid business servicing wins are expected to keep supporting its financials. However, persistently rising expenses and concentrated fee-based revenues are concerning.

State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other BanksThe Bank of New York Mellon Corporation’s (BNY - Free Report) second-quarter 2026 adjusted earnings of $2.46 per share handily surpassed the Zacks Consensus Estimate of $2.20. The bottom line increased 26.8% from the year-ago quarter.

BNY’s results primarily benefited from a rise in fee revenues and NII. Also, the company recorded a provision benefit in the quarter, which was a tailwind.

Bank of America’s (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year.

BAC recorded an improvement in trading numbers for the 17th straight quarter. The company’s investment banking performance was solid this time as well. These, along with higher NII, drove Bank of America’s total revenues. While provisions declined in the quarter on a year-over-year basis, non-interest expenses increased, which hurt the results to some extent.

Southern Copper (SCCO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this miner have returned -5.3% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Mining - Non Ferrous industry, to which Southern Copper belongs, has lost 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Southern Copper is expected to post earnings of $1.97 per share, indicating a change of +61.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.3% over the last 30 days.

The consensus earnings estimate of $7.68 for the current fiscal year indicates a year-over-year change of +46.6%. This estimate has changed +5.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $7.05 indicates a change of -8.2% from what Southern Copper is expected to report a year ago. Over the past month, the estimate has changed +7.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Southern Copper is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Southern Copper, the consensus sales estimate of $4.37 billion for the current quarter points to a year-over-year change of +43.3%. The $16.99 billion and $14.88 billion estimates for the current and next fiscal years indicate changes of +26.6% and -12.4%, respectively.

Last Reported Results and Surprise HistorySouthern Copper reported revenues of $4.25 billion in the last reported quarter, representing a year-over-year change of +36.2%. EPS of $1.92 for the same period compares with $1.19 a year ago.

Compared to the Zacks Consensus Estimate of $4.26 billion, the reported revenues represent a surprise of -0.11%. The EPS surprise was +8.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Southern Copper is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Southern Copper. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Plug Power (PLUG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this alternative energy company have returned -16.6%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Electronics - Miscellaneous Products industry, which Plug Power falls in, has lost 11.6%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Plug Power is expected to post a loss of $0.08 per share, indicating a change of +50% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.4% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of -$0.36 points to a change of +74.7% from the prior year. Over the last 30 days, this estimate has changed +6.1%.

For the next fiscal year, the consensus earnings estimate of $0.17 indicates a change of +52.5% from what Plug Power is expected to report a year ago. Over the past month, the estimate has changed -7.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Plug Power is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Plug Power, the consensus sales estimate of $167.74 million for the current quarter points to a year-over-year change of -3.6%. The $814.34 million and $991.61 million estimates for the current and next fiscal years indicate changes of +14.7% and +21.8%, respectively.

Last Reported Results and Surprise HistoryPlug Power reported revenues of $163.51 million in the last reported quarter, representing a year-over-year change of +22.3%. EPS of -$0.08 for the same period compares with -$0.21 a year ago.

Compared to the Zacks Consensus Estimate of $142.52 million, the reported revenues represent a surprise of +14.73%. The EPS surprise was +11.11%.

Over the last four quarters, Plug Power surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Plug Power is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Plug Power. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

For the quarter ended June 2026, ABB (ABBNY - Free Report) reported revenue of $9.48 billion, up 6.5% over the same period last year. EPS came in at $0.66, compared to $0.63 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $9.34 billion, representing a surprise of +1.46%. The company delivered an EPS surprise of -16.46%, with the consensus EPS estimate being $0.79.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how ABB performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Orders received: $12.04 billion compared to the $10.64 billion average estimate based on two analysts.Orders received - Electrification Products: $7.23 billion compared to the $6.13 billion average estimate based on two analysts.Orders received - Industrial / Process Automation: $2.45 billion versus the two-analyst average estimate of $2.49 billion.Orders received - Corporate and Other: $-235 million versus the two-analyst average estimate of $-348.15 million.Book-to-bill -Total: 1.3% versus the two-analyst average estimate of 1.1%.Book-to-bill - Electrification: 1.4% compared to the 1.2% average estimate based on two analysts.Book-to-bill - Industrial Automation: 1.1% compared to the 1.2% average estimate based on two analysts.Book-to-bill - Motion: 1.2% versus 1% estimated by two analysts on average.Revenues- Electrification Products: $5.2 billion versus the two-analyst average estimate of $5.14 billion.Revenues- Motion: $2.22 billion compared to the $2.28 billion average estimate based on two analysts.Revenues- Corporate: $-135 million versus the two-analyst average estimate of $-204.6 million.Revenues- Industrial / Process Automation: $2.19 billion compared to the $2.16 billion average estimate based on two analysts.View all Key Company Metrics for ABB here>>>

Shares of ABB have returned -2.1% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

2.17K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SLB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

SLB (SLB - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this world's largest oilfield services company have returned -5.5% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Technology Services industry, to which SLB belongs, has lost 6.3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

SLB is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -31.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.5%.

For the current fiscal year, the consensus earnings estimate of $2.56 points to a change of -12.6% from the prior year. Over the last 30 days, this estimate has changed -2.3%.

For the next fiscal year, the consensus earnings estimate of $3.34 indicates a change of +30.7% from what SLB is expected to report a year ago. Over the past month, the estimate has changed -2.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SLB is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of SLB, the consensus sales estimate of $8.71 billion for the current quarter points to a year-over-year change of +1.9%. The $36.51 billion and $39.31 billion estimates for the current and next fiscal years indicate changes of +2.2% and +7.7%, respectively.

Last Reported Results and Surprise HistorySLB reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $0.52 for the same period compares with $0.72 a year ago.

Compared to the Zacks Consensus Estimate of $8.63 billion, the reported revenues represent a surprise of +1.09%. The EPS surprise was +1.96%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

SLB is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SLB. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.