Johnson & Johnson čeká v druhé polovině roku několik klíčových katalyzátorů, včetně možného schválení Imaavy pro teplou autoimunitní hemolytickou anémii. Icotrokinra má potenciál stát se největším produktem firmy s prodejním potenciálem 10 miliard USD.
Key Takeaways J&J's pipeline features catalysts across oncology, immunology and neuroscience.Icotyde's oral psoriasis treatment could become J&J's largest product, with $10 billion in sales potential.Several approvals & data readouts, plus MedTech innovation, could support growth through the rest of the year. Johnson & Johnson’s (JNJ - Free Report) pipeline is becoming an increasingly important growth driver as the company looks to offset future pressure from mature products such as Stelara and eventually Darzalex. The company has a particularly strong set of catalysts in oncology, immunology and neuroscience, with several potential approvals, label expansions and important phase III readouts scheduled.
In the past year, it has gained approval for new products like Inlexzo/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer, Imaavy (nipocalimab) for treating generalized myasthenia gravis and Icotyde (icotrokinra), an oral targeted peptide inhibitor of the IL-23 receptor, for treating moderate-to-severe plaque psoriasis (PsO). J&J markets Icotyde in partnership with Protagonist Therapeutics (PTGX - Free Report) .
On the second-quarter conference call, J&J said that it is seeing strong launches of Inlexzo, Icotyde, as well as Imaavy.
Nipocalimab, an FcRn blocker, is also being evaluated for various immune-mediated conditions. It is under priority review in the United States for warm autoimmune hemolytic anemia, in late-stage studies for hemolytic disease of the fetus and newborn, systemic lupus erythematosus and Sjogren’s disease, and in mid-stage studies for idiopathic inflammatory myopathy. J&J believes that nipocalimab has pipeline-in-a-product potential.
J&J believes that Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-daily pill, whereas most currently available effective options for treating plaque psoriasis are injectables, such as AbbVie’s (ABBV - Free Report) popular injection, Skyrizi, and J&J’s own injection, Tremfya.
Icotyde offers a compelling advantage over existing plaque psoriasis treatments by combining biologic-level precision with the convenience of an oral pill. Unlike injectable IL-23 biologics, such as AbbVie’s Skyrizi and Tremfya, it eliminates the need for injections, improving patient comfort and adherence. Icotrokinra is also being evaluated in phase III studies for ulcerative colitis and psoriatic arthritis and in phase II for Crohn’s Disease. It has the potential to be J&J’s largest product ever, with $10 billion in sales potential.
One might wonder whether, with three new drug approvals recently, J&J’s pipeline progress could slow down in the next few months. That might not be the case.
J&J expects several meaningful pipeline catalysts in the second half of the year, including potential FDA regulatory approval for Imaavy for warm autoimmune hemolytic anemia. In July, J&J announced positive top-line data from the phase III MonumenTAL-6 study evaluating Tecvayli plus Talvey in patients with relapsed or refractory multiple myeloma who had received one to four prior lines of therapy. The combination regimen reduced the risk of disease progression or death by 89% versus investigator’s choice of standard care while reducing the risk of death by 62%.
Other important data readouts expected later this year include Inlexzo in high-risk bladder cancer, Icotyde in psoriatic arthritis and Caplyta in bipolar mania.
A key pipeline candidate is JNJ-4804, a co-antibody therapeutic being developed in phase III studies for ulcerative colitis and Crohn's disease. The company is also working on expanding labels of currently marketed products like Darzalex, Tremfya, Carvykti, Erleada, Rybrevant/Lazcluze and others.
As regards its MedTech segment, a key product approved recently in the United States was the OTTAVA robotic surgery system, J&J’s next-generation soft-tissue surgical robot. It was approved in July. VARIPULSE Pro, an advanced Pulsed Field Ablation platform, is expected to be approved by the FDA later this year. VARIPULSE Pro was launched in the EU in April.
Overall, J&J’s robust pipeline and a steady stream of clinical and regulatory catalysts should support growth in the second half of 2026 and beyond. The potential expansion of newer drugs, strong late-stage candidates and continued MedTech innovation provide multiple avenues for J&J to offset patent pressures and sustain long-term growth.
JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 30.6% year to date compared with 18.2% appreciation of the industry.
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From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.84 forward earnings, higher than 19.50 for the industry. The stock is also trading above its five-year mean of 15.65.
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The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
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J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The ocean cruising industry can use a lifeboat. All three of the largest players are currently sporting double-digit percentage declines over the past year. Royal Caribbean (RCL -0.54%) -- the second-largest operator by revenue but the largest by market cap -- is faring the best with its 14% decline. The stock is also down 20% from last summer's all-time high.
The overall market is naturally higher at that time. The industry that seemed so resilient a year ago -- one of the more impressive turnaround stories in the travel sector -- is starting to take on water.
Let's take a look at the momentum reversal at Royal Caribbean and then head to the port of potential opportunity.
Image source: Getty Images.
Crashing waves Royal Caribbean led the way out of the COVID-19 crisis. After having to shut down most of its operations for more than a year -- and a gradual ramp-up of its sailings -- Royal Caribbean became the first to achieve full-year profitability in 2023. It was also the first cruise line to reinstate its quarterly dividend.
The initial surge in pent-up demand would eventually cool down. It happened to other travel stocks that didn't face the same regulatory obstacles the cruise lines did.
However, this year's war with Iran has hurt Royal Caribbean in two substantial ways. The biggest culprit is the rise in oil prices, a major cost component on sailings. Harder to quantify, a second obstacle is the rising concern about safety. The lion's share of Royal Caribbean's sailings takes place in the sunny Caribbean, far from the contentious Strait of Hormuz, but it's still a potential detriment to bookings.
Royal Caribbean's latest quarter was a mixed bag. Revenue rose a modest 6%, its second-weakest top-line growth since resuming operations five years ago. Adjusted earnings declined for the first time since returning to profitability, held back by an 11% jump in operating expenses. Higher fuel prices, as well as rising food and labor costs, led to a contraction in margins.
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Opportunity is knocking on your cabin door The quarter wasn't as bad as it could've been. Royal Caribbean actually raised its earnings guidance following the report. It did pare back its full-year revenue target, but demand remains buoyant. Bookings for next year remain ahead of historical levels.
Royal Caribbean's outlook for all of 2026 calls for revenue to climb 9%. Even after the step back on the bottom line in the second quarter, Royal Caribbean is targeting adjusted earnings per share between $17.73 and $17.87, a 14% increase at the midpoint.
The growth forecast is impressive, especially heading into the third quarter, seasonally the strongest for the industry. The business keeps growing, notching record highs even if the stock can't. Trailing revenue is up 71% from its pre-pandemic 2019 peak. Net income has more than tripled.
You can buy Royal Caribbean for 16 times the midpoint of this year's adjusted earnings guidance. The stock's dividend -- raised four times since being reinstated -- yields a respectable 1.7%. Capital appreciation remains the ultimate goal, but the quarterly distributions will help patient investors ride out the current correction storm.
PepsiCo letos očekává, že mezinárodní tržby přesáhnou 40 miliard USD a že zahraniční byznys bude ziskový. Firma říká, že právě zahraničí může být v příštích 5 až 10 letech jejím největším zdrojem růstu.
Key Takeaways PEP expects international revenues to top $40 billion this year, with overseas operations profit-accretive.International beverages are roughly two-thirds of volumes, while foods represent more than half. Lower per-capita consumption and market-share could make overseas markets the biggest growth source. PepsiCo, Inc. (PEP - Free Report) is increasingly leaning on its international operations as a key engine of growth, adding greater geographic balance to a business historically anchored by North America. The company’s overseas operations have gained considerable scale after several years of sustained investment, with international beverage volumes now accounting for roughly two-thirds of companywide volumes and international foods representing more than half. PepsiCo expects the international business to cross $40 billion in revenues this year while describing it as profit accretive and an increasingly important source of long-term diversification.
The strength is also broad-based geographically. PepsiCo noted resilient trends across markets, including Vietnam, Thailand, China and the Middle East, despite pressure from elevated fuel costs. Europe has remained healthy, supported in part by World Cup-related activation, while Latin America continues to trend positively despite growing somewhat slower than other international markets. Category expansion and market-share gains, particularly in beverages, are supporting the momentum, while PepsiCo’s global procurement capabilities and operating agility are helping the company navigate inflation and raw-material availability across markets.
More importantly, the international shift appears structural rather than temporary. PepsiCo sees significant runway from lower per-capita consumption and market-share opportunities across many overseas markets and expects international operations to remain a major growth driver in the coming years. The company is also intent on maintaining capital, marketing and talent investments internationally even as it works to revive North American growth. PepsiCo believes international markets could become its biggest source of growth over the next five to 10 years, reinforcing the view that the company’s growth profile is becoming increasingly global.
International Growth Trends at KDP and Coca-ColaKeurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) are benefiting from stronger overseas momentum, highlighting the growing importance of international markets to their broader growth strategies.
Keurig is seeing its international business become a more meaningful contributor to growth, supported by improving momentum across Mexico and Canada. KDP International’s second-quarter 2026 net sales increased 12.4% on a constant-currency basis, reflecting a balanced contribution from higher volumes and pricing. Mexico returned to volume growth as the impact of the beverage tax moderated, while brands such as Peñafiel, Ades and Twist benefited from distribution expansion and stronger execution. Canada also delivered broad-based growth across carbonated soft drinks, alcohol alternatives, energy and ready-to-drink tea. The addition of JDE Peet’s further broadens KDP’s geographic exposure, although its U.S. beverage operations remain an important growth driver.
Coca-Cola continues to demonstrate the advantages of its broad international footprint, with overseas markets playing an important role in driving systemwide volume growth. In the second quarter of 2026, unit case volume advanced across Europe, the Middle East and Africa, Latin America and Asia Pacific, with Asia Pacific delivering particularly strong growth. India, China and Brazil were among the markets contributing to Coca-Cola’s global volume expansion, while Trademark Coca-Cola posted growth across all geographic operating segments. Continued momentum across emerging and developed markets, alongside strength in categories such as sparkling beverages, water and sports drinks, underscores how Coca-Cola’s diversified international presence remains central to its overall growth profile.
PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 4.7% in the past three months against the industry’s rise of 5.7%.
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From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 16.22X, below the industry’s average of 20.05X.
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The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.3% and 4.9%, respectively. The company’s EPS estimates for 2026 and 2027 have moved southward in the past 30 days.
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PEP stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intel a AMD v pondělí klesly, protože investoři před výsledky společnosti Nvidia prodávali polovodiče. Intel byl pod tlakem kvůli 20miliardovému zvýšení kapitálu a výdajům na foundry.
Semiconductor sell-off is being driven by positioning ahead of Nvidia, not by AMD fundamentals. AMD has clear catalysts: Helios rack-scale AI platform shipments starting in September and customer commitments (OpenAI, Meta, Anthropic). If Nvidia’s results confirm AI infrastructure demand, AMD should re-rate as the credible “alternative to Nvidia” across GPUs/CPUs/networking/racks.
Key Risk: Helios slips or fails to convert commitments into meaningful revenue, so AMD can’t capitalize on any Nvidia-driven AI demand rebound.
Sell Intel (INTC)
Intel’s stock is being hit by two thesis-damaging issues: dilution from the $20B upsized secondary equity raise (210.5M new shares) and near-term free-cash-flow pressure from >$20B foundry expansion. Even if the foundry plan is right long term, the market is punishing the next 6–18 months, and the stock is trading below the offering price.
Key Risk: Foundry spending fails to produce credible progress (cost, yields, or customer traction), forcing even more dilution or delaying returns.
Intel and AMD shares fell on Monday as semiconductor stocks came under heavy selling ahead of Nvidia's closely watched quarterly results.
The decline was concentrated in chip stocks, with the iShares Semiconductor ETF falling more sharply than broader technology funds.
The iShares Semiconductor ETF (SOXX) fell more than 3% in trading, while the iShares US Technology ETF declined about 1%.
The sharper move in semiconductors suggested that investors were reducing exposure to the sector rather than broadly selling technology stocks.
The selling came two sessions before Nvidia reports what is expected to be one of its most important quarters of the year. Investors are likely reassessing positions across the semiconductor sector ahead of the results.
Intel INTC shares were among the biggest decliners, falling as much as 5.47% to $85.14.
The stock remained below the $95 offering price of the company's recently completed $20 billion secondary equity raise.
The upsized offering involved approximately 210.5 million new shares, increasing the potential dilution for existing shareholders.
The stock's decline below the offering price has added to selling pressure as investors assess the impact of the larger share count.
Intel is also facing questions over its near-term free cash flow as it plans to spend more than $20 billion on foundry expansion.
Analysts, including UBS, have reduced their price targets to account for the expanded share count and near-term earnings outlook.
AMD shares also declined on Monday.
BMO initiated coverage of AMD with an Outperform rating and a $550 price target in the previous week. Analyst Harsh Kumar said AMD is moving beyond individual processors toward a broader AI infrastructure offering.
A key part of that strategy is Helios, AMD's rack-scale AI platform, which is expected to begin shipments in September. The platform is intended to compete with Nvidia's comparable rack-scale systems.
AMD has already secured customer commitments involving OpenAI, Meta and Anthropic.
BMO sees those relationships as a potential source of additional AI infrastructure revenue as deployments expand.
The company's broader portfolio includes GPUs, CPUs, networking and rack-level systems.
BMO expects AMD could gain additional market share in AI infrastructure as customers seek alternatives to Nvidia.
Nvidia's upcoming results remain a central focus for the semiconductor sector. The company is scheduled to report earnings on Wednesday, making Monday's selling particularly notable as investors adjust their positioning ahead of the report.
For Intel, the focus remains on the impact of its recent equity raise, dilution and heavy foundry spending.
For AMD, investors are assessing whether its expansion into rack-scale AI infrastructure can translate into additional revenue and market share.
Meanwhile, Nvidia's results could provide a fresh indication of the strength of AI-related demand and influence sentiment across the wider chip sector.
Uber v Dubaji spustil plně bezřidičové robotaxi Baidu Apollo Go pro cestující ve vybraných částech města. Jde o první spuštění v rámci víceleté dohody, která má nasadit tisíce vozů po celém světě.
Key Takeaways Uber now offers fully driverless Apollo Go robotaxis to riders in select areas of Dubai. The Dubai rollout begins a multi-year partnership targeting thousands of Apollo Go vehicles worldwide. Uber's partnership-led robotaxi strategy avoids massive R&D costs of developing autonomous systems in-house. Uber Technologies (UBER - Free Report) announced that Chinese company Baidu’s (BIDU - Free Report) fully autonomous Apollo Go vehicles are available to riders through the former’s platform in Dubai, with New Horizon Luxury Transport operating the fleet. The rollout strengthens Uber’s position in the autonomous-vehicle market and represents an important step in the global expansion of driverless transportation. Dubai is the first launch location under the companies’ multi-year strategic partnership, which aims to deploy thousands of Apollo Go vehicles across Uber’s worldwide network.
Dubai riders booking an UberX or Uber Comfort trip may now be matched with a fully driverless Apollo Go vehicle. Customers can also choose the “Autonomous” option in the Uber app to improve their chances of securing a robotaxi. Initially, the service will operate in select areas of Umm Suqeim and Jumeirah, with coverage expected to expand over time.
Uber’s global head of autonomous, Sarfraz Maredia, described the Dubai launch as a significant step in its efforts to expand autonomous mobility worldwide. Baidu’s vice president Nan Yang said the rollout represents an important milestone in its partnership, with Dubai serving as the starting point for the broader expansion. Dubai is also the first international market where Baidu has introduced both self-operated and partner-operated autonomous ride-hailing services.
The service uses Apollo Go’s sixth-generation RT6, a purpose-built, fully electric robotaxi developed for completely driverless operations. Each vehicle can accommodate up to three passengers and is equipped with more than 30 sensors that monitor its surroundings and process data onboard in real time.
Apollo Go has established operations across 28 cities worldwide. Its fleets have traveled more than 350 million autonomous kilometers, including over 240 million kilometers in fully driverless mode.
Uber emphasized that safety remains a central priority. Baidu’s Apollo Go vehicles, like all autonomous vehicles operating through Uber’s network, must comply with its safety guidelines before entering service.
Uber currently works with more than 30 autonomous-vehicle partners and facilitates millions of autonomous trips annually. The company is developing a hybrid transportation network in which driverless vehicles and human drivers operate alongside one another to make mobility more affordable, sustainable and accessible.
Uber aims to gain a stronghold in the robotaxi market through strategic partnerships. By adopting this approach, Uber has avoided the massive R&D costs of developing autonomous systems in-house. In 2020, Uber sold the self-driving division but retained its focus on becoming the ultimate ride-hailing super app.
In line with its partnership-driven strategy, Uber, in collaboration with another Chinese company, WeRide (WRD - Free Report) , announced earlier this year plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have gained in low double digits (% wise) over the past three months. Consequently, UBER’s shares outperformed the Zacks Internet-Services industry over the same time frame.
3-Month Price ComparisonImage Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.52X. UBER trades at a discount compared with its industry.
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See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
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UBER's Zacks RankUBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deere zvýšil spodní hranici výhledu čistého zisku pro fiskální rok 2026 na 4,75–5 miliard USD po silném 3. čtvrtletí. Tržby Construction and Forestry vzrostly meziročně o 18 % na 3,62 miliardy USD.
Key Takeaways Deere's Construction and Forestry sales rose 18% y/y, driven by higher shipment volumes and favorable pricing.Construction and Forestry sales are expected to rise 20% in FY26.Infrastructure, data centers and energy projects are supporting construction equipment demand. Deere & Company (DE - Free Report) raised the lower end of its fiscal 2026 net income forecast to $4.75-$5 billion from the earlier $4.5-$5 billion. The updated guidance reflects strong results delivered in the third quarter of fiscal 2026.
Net sales from Deere’s equipment operations were $11 billion in third-quarter fiscal 2026, up 6.2% from the year-ago quarter’s $10.36 billion. This reflects strength in Small Agriculture and Turf and Construction and Forestry despite weakness in Production and Precision Agriculture. Construction and Forestry net sales were $3.62 billion, up 18% year over year, primarily on higher shipment volumes and favorable price realization. Operating profit surged 84% year over year to $436 million, aided mainly by favorable price realization, partially offset by higher selling, administrative, general and R&D costs.
Deere is gaining from strong growth in both its precision construction technologies and construction portfolio. The company expects the Construction and Forestry segment to be an increasingly important contributor to Deere's long-term growth strategy, driven by solid end market demand, healthy customer backlogs and the rising adoption of Deere’s technology solution.
Deere expects Construction and Forestry sales to increase 20% in fiscal 2026. The segment’s operating earnings are expected to be 10.5-11.5%, marking an increase of 9% from that reported in fiscal 2025.
The company expects industry sales for earthmoving equipment in the U.S. and Canada construction equipment to increase 5-10% in fiscal 2026, and compact construction equipment to increase 5%. The upside will be driven by solid demand from large-scale infrastructure, data center and energy-related projects. Even though global forestry sales are expected to be down 10% in the year, it will be offset by a 10% rise in global roadbuilding market sales.
The company continues to view 2026 as the bottom of the current agriculture equipment cycle. Early order program trends, improving used-equipment inventories and increased customer adoption of advanced technologies underpin its confidence in the company's longer-term positioning.
Recent Performance & Outlook of Deere’s PeersAGCO Corp.’s (AGCO - Free Report) net sales declined 1% year over year to $2.61 billion in the second quarter of 2026. Adjusted operating income fell 21.1% to $172 million. AGCO Corp’s adjusted operating margin declined 170 basis points to 6.6% due to weaker sales and factory absorption in Latin America, along with tariff-related costs.
AGCO Corp expects adjusted earnings of $5.50-$5.75 per share compared with the prior stated $6.00. It anticipates 2026 net sales between $10.1 billion and $10.2 billion, while the adjusted operating margin is expected to be 7.5%.
Lindsay Corporation’s (LNN - Free Report) sales were $160.8 million, down 5% year over year in the third quarter of 2026. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.
Lindsay expects the irrigation market conditions in the United States to remain soft as growers await greater trade certainty and an improvement in commodity prices. Brazil is expected to return to growth, supported by secular demand for irrigation investments. Lindsay also expects to recognize $70 million in revenues from the MENA irrigation project in fiscal 2026. In Infrastructure, the company anticipates continued growth in road safety products.
DE’s Price Performance, Valuations & EstimatesDeere shares have gained 34.4% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 28.1% growth. In comparison, the broader Zacks Industrial Products sector has returned 20.4% and the S&P 500 has rallied 22.9%.
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Deere is currently trading at a forward 12-month price/earnings of 30.06X, a premium compared with the industry’s 27.55X. It is also higher than DE’s five-year median of 27.53X.
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The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 1.5%. The same for fiscal 2027 indicates growth of 22.4%. The Zacks Consensus Estimate for 2026 sales implies 8.9% growth. The same for fiscal 2027 suggests growth of 9.1%.
EPS estimates for 2026 and 2027 have moved south over the past 60 days.
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Deere currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Globe Life ve 2. čtvrtletí 2026 zvýšila výnosy ze zdravotního pojištění o 16 % meziročně, tažené United American a Family Heritage. Zdravotní pojištění už tvoří 34 % celkových pojistných výnosů, proti 31 % před rokem.
Key Takeaways Globe Life's health premium revenue rose 16% in Q2 2026, led by United American and Family Heritage.Health insurance grew to 34% of total premium revenue, up from 31% a year earlier.Approved rate increases are expected to generate about $65 million of additional premium. Globe Life Inc. (GL - Free Report) is benefiting from strong momentum in its health insurance business. Rising healthcare spending, strong Medicare Supplement demand, rate increases and expanding distribution are driving growth and creating a foundation for higher earnings.
Health premium revenues increased 16% year over year in the second quarter of 2026. United American's health premiums rose 29%, while Family Heritage's increased 9%. Health insurance accounted for 34% of total premium revenues, up from 31% a year earlier, highlighting its growing contribution to Globe Life's business.
Rising healthcare spending could further support demand for supplemental health coverage. The Centers for Medicare & Medicaid Services projects national health expenditures to grow 5.4% annually through 2034. Strong Medicare Supplement sales are supporting Globe Life's health premium growth, while approved rate increases on individual health products are expected to generate approximately $65 million of additional premium.
Globe Life's distribution network provides another growth driver. In the second quarter of 2026, Family Heritage's average producing agent count increased 7%, supporting broader customer reach and health sales.
However, medical inflation remains a challenge for Accident & Health insurers. Higher medical costs can pressure claims and underwriting margins, although Globe Life's rate increases should help offset some of this pressure.
Overall, strong demand, favorable rates and expanding distribution should support Globe Life's health business. The Health Insurance segment is becoming an important contributor to GL's premium growth, underwriting profitability and earnings momentum.
What About Its Peers?Aflac Incorporated's (AFL - Free Report) supplemental health business remains a key driver of its growth, with products designed to help customers cover expenses not fully paid by major medical insurance. The company is benefiting from demand for supplemental coverage as healthcare costs rise, while its broad distribution network supports policy sales and premium growth. Net earned premiums increased 2.3% in the second quarter of 2026.
CNO Financial Group's (CNO - Free Report) health business provides supplemental health and Medicare Supplement products to middle-income Americans. Health collected premiums increased 5.5% year over year to $432 million in the second quarter of 2026. Its health business benefits from demand for products that help customers manage healthcare expenses and financial protection needs.
GL’s Price PerformanceShares of GL have gained 22.7% in the past year compared with the industry’s growth of 10.9%.
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GL’s Discounted ValuationThe stock is undervalued compared with its industry. It is currently trading at a price-to-earnings value multiple of 10.54, lower than the industry average of 13.13X. It has a Value Score of B.
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Favorable Estimate Movement for GLThe Zacks Consensus Estimate for Globe Life’s 2026 earnings per share (EPS) indicates a year-over-year increase of 8.2%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 5.1% and 6.1%, respectively, from the corresponding 2026 estimates.
The Zacks Consensus Estimate for 2026 earnings moved 0.4% north, while 2027 earnings have moved 0.6% south over the last 30 days.
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GL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco uvedla, že provoz z AI vyhledávání ve 3. fiskálním čtvrtletí 2026 rostl trojciferným tempem, i když objem zůstává nízký, a má nejvyšší konverzi ze všech zdrojů návštěvnosti webu. Digitálně podpořené srovnatelné tržby vzrostly o 21,5 % a návštěvnost e-shopu a aplikace stoupla o 37 %.
Key Takeaways Costco's AI search traffic grew at a triple-digit pace in fiscal Q3 2026, though volume remains low.AI search delivers Costco's highest conversion rate across all traffic directed to its website.Digitally enabled comparable sales rose 21.5%, while e-commerce site and app traffic climbed 37%. Costco Wholesale Corporation (COST - Free Report) is seeing signs that artificial intelligence could become a meaningful new traffic source for its e-commerce business. In the third quarter of fiscal 2026, traffic from AI search grew at a triple-digit pace, though the company noted that volume remains low. This activity boasts the highest conversion rate of all traffic directed to the company’s website.
Costco is working to improve how its merchandise is understood and surfaced by large language models. The aim is to make Costco’s combination of price, quality and included services more visible when consumers use AI tools to compare products. This could be particularly useful for merchandise where the full value is difficult to communicate through a conventional search result.
Costco highlighted appliances and tires as examples. Appliance pricing can include delivery, installation and haul-away, while tires can come with installation, road-hazard protection and nitrogen. AI search can potentially capture these added benefits more effectively and give shoppers a fuller view of the total offer.
The broader digital backdrop also supports the initiative. Digitally enabled comparable sales increased 21.5% in the third quarter, while e-commerce site and app traffic rose 37%.
Costco remains in the initial stages of this effort. If AI-driven traffic continues to scale while maintaining strong conversion, it could become an increasingly important contributor to digital sales growth.
How Does Costco Stack Up Against Its Industry?Costco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 7.8% over the past three months compared with the industry’s 3% decline. While Dollar General shares have risen 16.8%, Target has jumped 31.7% over the same period.
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What Does Costco’s Current Valuation Suggest?From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.19, higher than the industry’s ratio of 30.14. However, the stock is trading below its 12-month median level of 45.72, indicating some moderation in valuation.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 17.08) and Dollar General (15.96).
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What Do Earnings Estimates Signal for Costco?The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.7% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Dollar General's Q2 consensus sees $11.17B in revenues and $2.00 EPS, up 4.2% and 7.5% year over year.Value-seeking traffic, merchandising gains and shrink reduction may support DG's sales and margins.DG trades at 15.96 times forward earnings, below the industry, S&P 500 and its 12-month median. Dollar General Corporation (DG - Free Report) is set to report second-quarter fiscal 2026 earnings results on Aug. 27, before the opening bell. Investors will closely assess the discount retailer’s ability to drive traffic and sales growth in a still-challenging consumer environment, along with signs of sustained margin improvement and its outlook for the remainder of the year.
The Zacks Consensus Estimate for second-quarter revenues stands at $11.17 billion, indicating a 4.2% increase from the prior-year reported figure. On the earnings front, the consensus estimate has been stable at $2.00 per share over the past 30 days and implies a year-over-year jump of 7.5%.
Dollar General has a trailing four-quarter earnings surprise of 21%, on average. In the last reported quarter, DG surpassed the Zacks Consensus Estimate by 5.8%.
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What the Zacks Model Predicts for DGAs investors prepare for Dollar General's second-quarter announcement, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Dollar General this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of DG’s Q2 EarningsDollar General’s second-quarter performance is likely to have benefited from continued customer traffic and growing demand for value. The company entered the quarter with sales trends holding up, while trade-in activity from higher-income households was accelerating as inflation and elevated fuel costs encouraged consumers to seek lower-priced alternatives. Dollar General’s convenient store footprint, competitive everyday pricing and targeted promotions should have helped it attract both its core customer and shoppers trading down from other retail channels. Its emphasis on affordability and convenience is likely to have attracted customers looking to stretch household budgets.
The traffic backdrop is likely to have been reinforced by Dollar General’s merchandising and customer-experience initiatives. The company has been strengthening its entry-price-point assortment, private brands and Value Valley offering while maintaining momentum in non-consumables. At the same time, delivery has been fortifying Dollar General’s convenience proposition, as customers using the service tend to place larger orders and shop with the company more frequently. Continued investments in store remodels through Project Renovate and Project Elevate also appear positioned to improve the shopping experience and support productivity across the mature store base.
Beyond sales, ongoing gross-margin initiatives are likely to have supported profitability. Dollar General entered the quarter with momentum in shrink reduction and lower inventory damages, while category-management efforts, supply-chain productivity, non-consumables merchandising and the DG Media Network remained important margin drivers. The company also ended the first quarter of fiscal 2026 with inventory at a level it considered appropriate to support sales growth and improved in-stock availability. Together, better inventory discipline, shrink improvement and greater supply-chain efficiency may have helped offset some cost pressures and supported the earnings picture.
Even so, the operating backdrop remained challenging. Dollar General’s core customers continued to face pressure from inflation and reduced government assistance, prompting some shoppers to cut back on household spending and manage budgets more tightly. Such pressure can increase trip frequency while constraining basket size, particularly among lower-income customers. Higher promotional activity and any SG&A deleverage could have tempered the benefit from the company’s margin-improvement initiatives during the quarter.
Dollar General Stock Price PerformanceDollar General, which competes with Target Corporation (TGT - Free Report) and Costco Wholesale Corporation (COST - Free Report) , has seen its shares gain 9.9% over the past year compared with the industry’s rise of 11.5%. Shares of Target and Costco have advanced 0.7% and 70.3%, respectively.
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Does DG Present a Strong Case for Value Investing?Dollar General is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.96. This valuation reflects a discount compared to the industry’s average of 30.14 and the S&P 500's P/E of 20.43. The stock also appears undervalued compared to its 12-month median P/E level of 16.21.
Dollar General is trading at a discount to Target (with a forward 12-month P/E ratio of 17.08) and Costco (42.19).
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Final Words on Dollar General StockDollar General enters its second-quarter earnings release with several encouraging fundamentals, including resilient traffic trends, growing appeal among value-seeking consumers and continued progress on merchandising, inventory and margin initiatives. However, pressure on its core customer, higher promotional activity and lingering cost headwinds warrant some caution, while the earnings setup does not provide a clear signal of a beat this time. The stock’s discounted valuation adds some support to the investment case. Current shareholders may consider holding their positions, while prospective investors could wait for the earnings release before taking a fresh position.
PDD uvedla, že během příštích tří let buduje „další PDD“ zaměřené na přestavbu dodavatelského řetězce a rozvoj značek výrobců. Firma tvrdí, že program podpory v hodnotě 100 miliard RMB už začíná přinášet výsledky.
PDD Holdings Inc. (NASDAQ:PDD) says its biggest long-term growth initiative isn’t another overseas expansion or a major acquisition. Instead, management says it is executing a three-year plan to build what it calls “another PDD” by transforming supply chains, helping manufacturers develop brands, and strengthening the company’s commerce ecosystem.
The ambitious goal emerged as one of the clearest strategic themes from PDD’s latest earnings call, with both Co-CEO Jiazhen Zhao and Co-CEO Lei Chen repeatedly returning to the initiative while outlining the company’s next phase of growth.
‘Building Another PDD’ Is The Next Three-Year GoalOpening the call, Zhao said the company has already moved beyond the initial rollout phase of its new strategy.
“Our 100 billion RMB ($14.5 billion) support program has entered a phase in which our sustained investment is beginning to yield tangible results,” Zhao said. “The positive effects across our platform and industry are being unlocked at a faster pace, with improvements in both the quality and efficiency across the supply and demand sides.”
He then laid out the company’s headline objective.
“At the same time, we continue to make steady progress on our strategic goal of building another PDD over the next three years,” Zhao said.
Rather than describing a new consumer app or another Temu-style international platform, management presented the initiative as a long-term effort to deepen the company’s supply-chain capabilities and create new sources of growth across its merchant ecosystem.
The Focus Is On Supply Chains, Not Just E-CommercePDD said it is investing heavily in upgrading traditional manufacturing and agricultural supply chains rather than simply expanding its marketplace.
Zhao said the company will “commit fully to transforming the supply chain for higher-quality growth, drive the upgrading of traditional industries, and continue to unlock the supply chain’s new growth potential from within.”
To support that effort, PDD said it has established “a dedicated company in the Xiong’an New Area” to focus on opportunities created by intelligent technologies while also setting up data processing and integrated service centers to help traditional manufacturers pursue higher-quality development.
Management also highlighted examples of manufacturers shortening production cycles, improving fulfillment capabilities and launching higher-value branded products with the platform’s support.
Supply Chain Investment Is Becoming PDD’s Growth EngineChen reinforced that message later in the call, describing supply-chain investment as the centerpiece of the company’s long-term strategy.
He said PDD “continue[s] to work towards our three-year initiative of building another PDD” and has “stepped up supply chain investments and helped supply chain partners build and develop their own brands.”
According to Chen, those investments are already beginning to improve the platform ecosystem.
During the quarter, he said, “our long-term investment in the 100 Billion Support Program started to materialize into gains in a healthier platform ecosystem.”
He added that the company has gone beyond simply supporting merchants financially.
“Our teams delved into the industrial belts of different product categories and started early-stage cooperations with high-quality suppliers,” Chen said.
By “setting clear standards for products, production processes, and quality control,” he said PDD is helping manufacturers “develop a range of higher-quality products with higher margins” while “driving the manufacturing sectors up the value chain.”
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A Different Way To Measure GrowthFor investors, one of the biggest takeaways from the earnings call was that PDD increasingly appears to be measuring success differently.
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Rather than emphasizing quarterly profitability or short-term monetization, management repeatedly framed investments in merchants, manufacturing capabilities and logistics as the foundation for the company’s next decade.
Chen said the company remains “laser-focused on our core e-commerce business,” but believes deeper supply-chain investment will allow it to “empower our merchants and broader industry, delivering a wider range of high-quality products and services.”
He concluded by reiterating management’s confidence that the strategy will produce measurable results.
“We are confident in our ability to translate our three-year initiative of building another PDD into tangible, verifiable results,” Chen said.
For shareholders, that phrase may become one of the company’s most closely watched strategic milestones over the next three years—not because PDD is launching another marketplace, but because management believes strengthening the ecosystem behind its existing platforms can create the next engine of long-term growth.
PDD varuje, že nová cla EU zvýší náklady Temu a v krátkodobém horizontu zhorší efektivitu vyřizování přeshraničních objednávek na dotčených trzích. Firma proto zrychluje budování lokálních skladů a podporu více kvalitních místních obchodníků.
PDD Holdings Inc. (NASDAQ:PDD) warns that Temu is facing fresh margin pressure from upcoming European Union tariffs, threatening to hike costs and slow shipping times just months after U.S. trade policy shifts disrupted its cross-border model.
Co-CEO Lei Chen said the company is now adapting its operations to a rapidly changing global regulatory environment to preserve Temu’s long-term growth. The comments, made on PDD’s second-quarter earnings call, come as Temu faces mounting trade barriers in two of its largest overseas markets.
Europe Becomes Temu’s Next Trade ChallengeResponding to a question about the EU’s new customs duties on low-value imports, Chen acknowledged that the changes will pressure Temu’s cross-border business.
“On the changes to the EU customs duties that you mentioned, our team is actively assessing and adapting to them,” Chen said.
He added that, “Drawing on the experience that we have gained over the years, we have adjusted our supply chain and we are optimizing our fulfillment processes.”
Even so, management expects the policy changes to create meaningful near-term disruption.
“In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business,” Chen said.
The comments mark one of PDD’s clearest acknowledgments that Europe is becoming the next major regulatory hurdle for Temu after changes to U.S. trade rules forced the company to rethink parts of its cross-border shipping model.
Temu Is Changing How It OperatesRather than signaling a retreat from international markets, PDD said the latest trade headwinds are accelerating changes already underway.
Chen said the company will “continue to onboard and support more high-quality local merchants to broaden the supply of local products.”
PDD is also accelerating the build-out of local warehousing and fulfillment infrastructure, Chen added.
The goal is to reduce reliance on direct cross-border shipments while building stronger local operations that can better withstand future policy changes.
“Through these investments, we hope to integrate more deeply into every market we serve, strengthen the foundation and resilience of our supply chain, and better navigate changes and volatility in the environment,” Chen said.
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Compliance Is Becoming A Competitive PriorityManagement also made clear that adapting to global regulation involves more than logistics.
Chen said PDD will continue investing in “compliance capabilities and platform governance” alongside supply-chain improvements.
The company has also “developed systematic IP protection capabilities,” which Chen said has been reinforced by “our recent favorable ruling in the IP litigation involving an industry peer.”
According to management, those investments are intended to strengthen trust with consumers, merchants and regulators as Temu expands internationally.
A More Challenging Global Growth StoryIn addition to the fickle nature of U.S. trade policy, PDD must also contend with Europe’s introducing another layer of costs and operational complexity that could pressure the economics of cross-border e-commerce.
Still, management emphasized that the long-term strategy remains unchanged.
“We are confident in our execution capabilities and organizational resilience,” Chen said. “Short-term volatility will not change the long-term direction of our global business.”
PDD will continue advancing its investments across “supply chain, fulfillment, compliance, and consumer service,” with the goal of providing consumers around the world “with a shopping platform that remains stable over the long term and offers compelling prices and reliable quality—a platform that they can count on, trust, and enjoy using.”
PDD Holdings Inc. (PDD) Q2 2026 Earnings Call August 24, 2026 7:30 AM EDT
Company Participants
Jiazhen Zhao - Co-CEO & Co-Chairman of the Board
Lei Chen - General Counsel, Co-CEO & Co-Chairman of the Board
Jun Liu - Vice President of Finance
Conference Call Participants
Thomas Chong - Jefferies LLC, Research Division
Alicis a Yap - Citigroup Inc., Research Division
Joyce Ju - BofA Securities, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today.
Sir, please go ahead.
Unknown Executive
Thank you, operator, and hello, everyone, and thank you for joining us today. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through the GlobeNewswire services. Before we begin, I'd like to refer you to our safe harbor statement in the earnings press release, which applies to this call as we'll make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Joining us today on the call are Mr. Chen Lei, our Co-Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Co-Chairman and Co-Chief Executive Officer; as well as Mr. Liu Jun, our Financial Director. Lei and Zhao Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then walk us through our financial results for the second quarter ended June 30, 2026. On today's call, certain management remarks will be in Chinese and we will help translate. Please kindly note that English translation is for reference only. And in case of any discrepancy, statements in the original language
Micron otevřel v Boise 60 000čtverečních stop školicí centrum pro školení pracovníků v polovodičích a posílení přísunu talentů v USA. Spolu s U.S. Department of Commerce a College of Western Idaho na něj poskytl 3 miliony USD.
New 60,000-square-foot training center, delivering hands-on technical training and semiconductor career pathwaysMicron and the U.S. Department of Commerce provide $3 million to the College of Western Idaho for educator pay, equipment and classroom spaceMicron’s registered apprenticeship program welcomes its largest cohort to date and is building toward triple-digit enrollment by the end of fiscal 2027
BOISE, Idaho, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Micron Technology Inc. (Nasdaq: MU), the only U.S.-based manufacturer of memory and storage solutions, today opened a 60,000-square-foot Micron Training Center (MTC) in Boise, a strategic investment to strengthen the skilled talent pipeline, support advanced semiconductor manufacturing and expand education and apprenticeship pathways in Idaho.
Located near Micron’s Boise campus, this unique, collaborative training facility accelerates new-hire readiness through an intensive onboarding boot camp and hands-on training in fab operations and manufacturing systems. The center also serves as a site for community college students and career seekers pursuing semiconductor pathways through the College of Western Idaho (CWI).
The MTC supports Micron’s broader commitment to invest more than $250 billion in U.S. semiconductor manufacturing, building the workforce needed to support high-volume production of advanced memory technologies. Those efforts are expected to create more than 90,000 American jobs.
“Our community invests in our people, and the Micron Training Center is proof of that promise. This center is built to skill up the next generation of Idahoans, whether they’re just starting out or making a career pivot,” said Boise Mayor Lauren McLean. “With strong partners standing beside us, we’re filling today’s jobs and preparing our workforce for the future. That’s what it means to build a city where everyone has the opportunity to grow right here at home.”
Strategic collaboration and unique approach for workforce development
The MTC houses up to 20 semiconductor process tools that replicate a fab environment — the same equipment trainees will use on Micron’s fab floor. Industry partners including Applied Materials, Lam Research, SCREEN, Kokusai Electric, Tokyo Electron and others have supported the installation of equipment that will also be used for hands-on vendor training, helping both their teams and Micron’s ramp up faster on the tools that drive production.
The center also expands Micron’s long-standing partnership with CWI to bring semiconductor training directly into the education pipeline. Starting this fall, CWI will deliver its Advanced Mechatronics Engineering Technology (AMET) and Semiconductor Manufacturing Technology (SMT) programs at the MTC, alongside its Nampa campus offerings. The MTC will serve as the new location for the technical instruction component of Micron’s Registered Apprenticeship Program, while continuing to host CWI coursework for the broader student community.
To support this partnership, Micron and the U.S. Department of Commerce have provided $3 million to CWI for educator pay, equipment and classroom space.
“CWI and Micron have built a training environment where students learn on the same equipment they’ll operate in a world-class fab,” said Gordon Jones, president of the College of Western Idaho. “This is what a decade of partnership looks like — a shared facility, tools, and commitment to building careers that matter for Idaho.”
“A strong semiconductor industry depends on a strong talent pipeline,” said April Arnzen, executive vice president and chief people officer, Micron Technology. “The Micron Training Center is a strategic investment in workforce development, helping build the skilled talent needed to support advanced manufacturing and sustain U.S. leadership in semiconductor innovation. By combining state-of-the-art facilities with degree programs, certifications, apprenticeships and clear career pathways, we are creating opportunities for Idahoans while strengthening the workforce that will power Micron’s growth and the future of the industry.”
“America’s ability to lead the world in semiconductor manufacturing depends on building a highly skilled workforce ready to support the factories and technologies of the future,” said Bill Frauenhofer, executive director of semiconductor investment & innovation at the U.S. Department of Commerce. “Micron’s new Boise training center is an example of what is possible when federal investment, private-sector leadership, and education partners work together to meet that challenge. As Micron executes on its more than $250 billion commitment to U.S. manufacturing and R&D, the CHIPS Program Office is proud to support Micron’s new training center and help build the talent pipeline needed to create meaningful pathways into essential careers, strengthen our domestic talent pipeline, and ensure this country remains at the forefront of innovation and advanced manufacturing.”
“Micron’s training center and their investment in apprenticeships and career pathways are helping keep Idaho’s workforce and economy at the forefront. This exciting announcement builds on the investments we’ve made to strengthen Idaho’s workforce, including Idaho LAUNCH. Together, we’re helping Idahoans gain the skills and training they need to succeed in high-demand careers. We challenged Idaho employers to step up and partner with us, and Micron has answered that call,” Governor Brad Little said.
At today’s event, Micron celebrated Cohort 6 of its registered apprenticeship program — its largest Boise cohort to date and is building toward triple-digit enrollment by the end of fiscal year 2027. Developed with CWI and the Idaho Manufacturing Alliance, the earn-and-learn model directly supports Gov. Brad Little’s goal to double Idaho’s registered apprentices statewide by 2029.
For more information visit: Idaho | Micron Technology Inc.
About Micron Technology, Inc.
Micron Technology, Inc. is a global leader in semiconductor memory and storage, powering AI and compute-intensive applications from cloud to edge. With a relentless focus on our customers, technology and product leadership, and manufacturing and operational excellence, Micron’s comprehensive portfolio of high-performance DRAM, NAND and NOR solutions delivers the speed, efficiency and scale today’s workloads demand, accelerating intelligence to enrich life for all. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
Akcie výrobců paměťových čipů v pondělí prudce klesly kvůli obavám z toho, že Apple by mohl částečně využít čínské čipy CXMT a YMTC. Samsung zároveň zklamal tím, že v roce 2026 očekává vrátit akcionářům mezi 90 a 110 biliony korejských wonů.
Memory stocks fell sharply on Monday as investors weighed concerns over Apple’s potential use of Chinese memory chips, a disappointing capital-return announcement from Samsung and broader profit-taking across semiconductor shares.
Micron Technology MU fell about 7%, while SK Hynix dropped roughly 5%. SanDisk declined around 9%, while Seagate Technology and Western Digital each fell about 7%.
The selling came as investors digested reports that the Trump administration could allow Apple to source DRAM from China's ChangXin Memory Technologies, or CXMT, and NAND flash from Yangtze Memory Technologies, or YMTC.
The reports added to concerns that major US memory suppliers could eventually lose some Apple-related business to Chinese competitors.
However, analysts cautioned that the immediate market reaction may have overstated the threat.
Wccftech reported that the Trump administration could allow Apple to procure memory chips from CXMT and YMTC following Chinese President Xi Jinping's expected US visit in September.
The report suggested that allowing Apple access to Chinese memory suppliers could form part of a broader effort to ease tensions between Washington and Beijing while also helping Apple address supply-chain constraints.
The possibility was enough to pressure memory stocks, particularly Micron, which has been closely associated with Apple's memory supply chain.
But KC Rajkumar of Lynx Equity Research argued that investors may be overestimating CXMT's ability to disrupt the market.
CXMT has reportedly been qualified for only a single, low-volume Mac product, with production still constrained by poor yields. Rajkumar said the company's LPDDR5X yields make it unlikely to supply Apple at meaningful scale.
"CXMT supply is unlikely to dent the shortage Apple is facing in DRAM, nor could CXMT supply improve Apple’s negotiation position at traditional suppliers such as MU," he wrote.
That suggests the immediate threat to Micron may be limited, even if Washington ultimately allows Apple to expand its relationship with Chinese memory manufacturers.
Washington's stance remains uncertainThe latest reports also appear to conflict with recent comments from US Commerce Secretary Howard Lutnick.
The Wall Street Journal reported last week that Lutnick said the Trump administration does not want Apple to use memory chips manufactured in China.
“The Trump administration is not in favor of that,” Lutnick said in an interview after touring an Apple manufacturing facility in Houston, according to the newspaper.
The comments came as Micron lobbied Washington against Apple using Chinese memory chips.
The company has argued that allowing such imports could undermine US semiconductor manufacturing and run counter to the administration's efforts to bring more chip production onto American soil.
The conflicting signals have therefore added another layer of uncertainty for investors trying to assess how US technology policy could affect memory suppliers.
Another catalyst came from South Korea, where Samsung shares fell about 9% after the company announced its 2026 shareholder-return plans.
Samsung said it expects to return between 90 trillion and 110 trillion Korean won to shareholders in 2026.
Investors, however, had hoped for clearer commitments to immediate share buybacks and share cancellations.
JPMorgan analysts viewed the lack of an immediate buyback and the unchanged return framework as potential disappointments after expectations had risen ahead of the announcement.
Samsung is one of the world's largest memory-chip manufacturers, making its share-price decline significant for the broader sector.
Still, the announcement does not fundamentally alter the demand outlook for Micron's high-bandwidth memory or SanDisk's NAND business.
Instead, it may have provided a catalyst for investors to take profits across a sector that has already enjoyed substantial gains.
Memory stocks were also caught in a broader retreat across semiconductor shares ahead of Nvidia's earnings later this week.
Nvidia fell about 3% on Monday, while the Philadelphia Semiconductor Index declined roughly 4%.
That suggests the weakness in Micron and its peers is not entirely the result of company-specific concerns.
Investors appear to be reducing exposure to semiconductor stocks ahead of one of the most closely watched earnings reports of the quarter.
The broader market was also under pressure as the Trump administration prepared new tariffs on Canadian goods and additional economic sanctions against Iran.
BetterHelp u Teladoc těží z rostoucí poptávky po pojištěné terapii, protože asi 70 % zájemců preferuje pojištění před platbou z vlastní kapsy. Tržby z pojištění ve 2. čtvrtletí 2026 dosáhly 22 milionů USD, asi o 9 milionů USD více než v předchozím čtvrtletí.
Key Takeaways TDOC's BetterHelp sees insurance demand surge as users shift from paying out of pocket.More than 8,000 mental health professionals are credentialed as Teladoc expands insurance capacity.Insurance revenues hit $22 million in Q2 2026, up about $9 million sequentially. Teladoc Health, Inc.’s (TDOC - Free Report) lower revenue outlook may look alarming at first glance, but the underlying BetterHelp story is different. Demand has not disappeared; it has just shifted. Around 70% of prospective users prefer insurance over paying out of pocket, reaching as much as 80% in certain markets, creating a sharp increase in demand for covered therapy.
The problem is provider capacity. Insurance requires therapists to be credentialed with specific payers and available in the right states, making supply harder to scale than cash pay. As demand shifted faster than capacity, cash-pay revenues declined more rapidly than expected, while insurance revenues were not yet sufficient to offset the decline.
The company is prioritizing therapist recruitment, retention and credentialing, with more than 8,000 mental health professionals already credentialed. Company-wide advertising and marketing spending fell 12.2% in the first half of 2026 as resources shifted toward insurance. Meanwhile, insurance revenues reached $22 million in the second quarter of 2026, up roughly $9 million sequentially, while insurance users grew more than 70% sequentially.
The next phase depends on how quickly Teladoc can convert this demand into completed therapy visits. The company expects the insurance business to reach an annualized revenue run rate of nearly $140 million by the end of the fourth quarter of 2026, with further growth anticipated in 2027. If capacity catches up with demand, BetterHelp could reduce its reliance on costly customer acquisition, while the insurance model could support more durable economics and make customer lifetime value more reflective of patient need.
How Are Competitors Faring?Some of Teladoc’s key peers across digital health include Hims & Hers Health, Inc. (HIMS - Free Report) and American Well Corporation (AMWL - Free Report)
Hims & Hers Health operates a consumer-centric digital healthcare model, with mental health offered alongside a broader range of cash-pay wellness and personalized treatments. By relying heavily on direct-to-consumer engagement and marketing, HIMS provides a useful benchmark for customer acquisition efficiency, digital consumer access and the economics of cash-pay healthcare.
American Well takes a more enterprise-oriented approach, partnering with employers, and health systems to deliver digital care infrastructure. With exposure to behavioral health and insurance-covered care, AMWL provides a useful reference point for payer integration, clinical network scaling, and the economics of in-network virtual care.
Teladoc Health’s Price Performance, Valuation & EstimatesShares of TDOC have lost 16.7% over the past year compared to the industry’s 13.3% growth.
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From a valuation standpoint, TDOC trades at a forward price-to-sales ratio of 0.48X, down from the industry average of 0.54X. TDOC carries a Value Score of B.
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The Zacks Consensus Estimate for TDOC’s 2026 loss is pegged at 89 cents per share,implying a 21.9% increase from the year-ago period’s level.
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The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMV společnosti MercadoLibre v Brazílii ve 2. čtvrtletí meziročně vzrostla o 39 % na FX-neutrální bázi a prodané kusy o 56 %. Prodané kusy na jednoho aktivního kupujícího dál rostly o 19 %.
Key Takeaways MercadoLibre's Brazil GMV rose 39% year over year on an FX-neutral basis, while items sold jumped 56%.Buyer engagement deepened as items sold per active buyer rose 19%.Newer Brazil buyer cohorts are buying more items across more categories and showing higher retention. MercadoLibre, Inc.’s (MELI - Free Report) Brazil business remained a standout in the second quarter of 2026, with marketplace growth holding at a high level, even as the company began lapping last year’s reduction in its free-shipping threshold. Gross merchandise volume in Brazil increased 39% year over year on an FX-neutral basis, slightly ahead of the 38% growth recorded in the first quarter of 2026 and substantially ahead of the 29% growth registered in the second quarter last year. Items sold jumped 56% compared with 26% growth a year earlier.
The strength goes beyond transaction volume. Items sold per unique active buyer in Brazil rose 19% year over year, while conversion improved 1.1 percentage points. Daily active users have also continued to grow faster than monthly active users in every quarter since MercadoLibre lowered its free-shipping threshold in June 2025. At the same time, the share of users purchasing three or more categories per month has increased by 10 percentage points since the change.
Newer buyer cohorts are also purchasing more items across more categories and showing higher retention than earlier cohorts. Ecosystemic user growth in Brazil accelerated to almost 50% year over year in the quarter, up from 35% before the shipping-threshold change.
MercadoLibre is supporting this momentum with PIX discounts for buyers and lower take rates for sellers in selected categories and price ranges. Active sellers grew 29% year over year, helping improve selection and price competitiveness. Together, the trends show that Brazil’s growth continues to be supported by stronger engagement, broader supply and sustained marketplace activity.
How Does MercadoLibre Stack Up Against Its Industry?MercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares gain 15.5% over the past three months against the industry’s 0.6% decline. While Amazon shares have fallen 2.9%, Sea Limited has rallied 34.7% in the aforementioned period.
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What Does MercadoLibre's Current Valuation Suggest?From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio is 38.41, higher than the industry average of 21.88. The stock is also trading above its 12-month median level of 34.46.
MercadoLibre is trading at a premium to Amazon (forward 12-month P/E of 22.59) and Sea Limited (24.24).
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What Do Earnings Estimates Signal for MercadoLibre?The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales implies year-over-year growth of 44.6%, while the consensus estimate for earnings per share suggests a decline of 0.7%. For the next fiscal year, the consensus estimate indicates a 28.9% rise in sales and 43.3% growth in earnings.
The Zacks Consensus Estimate for earnings per share has declined by $1.89 to $39.11 for the current fiscal year and by $3.13 to $56.05 for the next fiscal year.
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MELI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Philip Morris won FDA marketing authorization for 11 ZYN ULTRA nicotine pouch products in the United States.ZYN ULTRA approvals cover all 9mg variants and one 11mg Smooth variant, with more 11mg products under review.PM's smoke-free products span 109 markets and generated roughly 42% of second-quarter 2026 net revenues. Philip Morris International Inc. PM continues to advance its smoke-free transformation, with regulatory progress in the United States adding another potential growth lever. The FDA has authorized Swedish Match USA, Inc., a U.S. affiliate of Philip Morris International, to market 11 ZYN ULTRA moist oral nicotine pouch products following scientific review, broadening the company’s presence in the U.S. nicotine pouch category.
The authorizations cover all 9mg ZYN ULTRA variants and one 11mg Smooth variant, while additional 11mg products remain under FDA review. ZYN ULTRA, which has higher moisture content than the flagship ZYN range, is free of tobacco leaf. The latest action builds on earlier FDA authorizations for ZYN’s 3mg and 6mg variants and broadens Philip Morris’ portfolio of smoke-free alternatives for legal-age nicotine consumers.
The development broadens Philip Morris’ ability to serve legal-age nicotine consumers with a wider range of smoke-free alternatives. ZYN ULTRA also extends the brand into higher-strength offerings, potentially improving its reach across different consumer preferences. Philip Morris began commercializing ZYN ULTRA in June 2026 under recent FDA guidance, making the latest authorization an important regulatory step for the expanded range.
The decision adds to a series of FDA actions involving Philip Morris’ smoke-free portfolio. Earlier, 20 ZYN nicotine pouch variants received Modified Risk Tobacco Product authorizations. Versions of IQOS devices and consumables, along with General snus, have also received FDA marketing authorizations, highlighting the company’s growing regulatory footprint across smoke-free categories.
Overall, the ZYN ULTRA authorization reinforces Philip Morris’ long-term push to shift its portfolio toward smoke-free products. With the smoke-free products available across 109 markets and its smoke-free business accounting for roughly 42% of second-quarter 2026 net revenues, continued regulatory progress in the United States could support broader portfolio expansion and strengthen the company’s position in the smoke-free category.
Philip Morris’ Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have fallen 2.5% over the past month against the broader Consumer Staples sector and the S&P 500 index’s growth of 2.2% and 3.8%, respectively. PM has outperformed the industry’s decline of 5.2% in the same period.
PM Stock's Past Month Performance
Image Source: Zacks Investment Research
Is PM a Value Play Stock?Philip Morris currently trades at a forward 12-month P/E ratio of 21.22, which is up from the industry average of 15.16 and the sector average of 17.32. This valuation positions the stock at a premium relative to both its direct peers and the broader consumer staples sector.
PM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the year-ago reported numbers.
Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients holds a Zacks Rank of 2 (Buy). DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 11.5% and 926.5%, respectively, from the year-ago figures.
Abbott Laboratories ve 2. čtvrtletí zaznamenala pokles tržeb divize Rapid and Molecular Diagnostics o 8 % kvůli slabšímu testování respiračních virů. Divize Cancer Diagnostics naopak vzrostla o 13 % díky Cologuard a onkologii.
Key Takeaways Abbott's Rapid and Molecular Diagnostics sales fell 8% as respiratory virus testing declined. ABT's Cancer Diagnostics sales rose 13%, driven by mid-teens Cologuard growth and oncology gains. Respiratory testing variability may keep Abbott's quarterly Diagnostics growth uneven. Abbott Laboratories’ (ABT - Free Report) Diagnostics business continues to face some near-term variability from the seasonal nature of respiratory testing, even as its underlying routine-testing and cancer franchises remain healthy. In the second quarter of 2026, Rapid and Molecular Diagnostics sales declined 8% on a comparable basis, driven by the anticipated falloff in respiratory virus testing following a weaker-than-normal respiratory season. This creates a difficult mix dynamic because fluctuations in flu, COVID-19 and other respiratory testing volumes can meaningfully affect quarterly growth despite relatively stable demand elsewhere in the Diagnostics business.
However, the Cancer Diagnostics arm helped offset the weakness in respiratory testing. The segment’s sales grew 13% in the second quarter, driven by mid-teens growth in Cologuard. Growth also came from new and repeat Cologuard users, along with contributions from precision oncology and international markets. Accordingly, Abbott’s Diagnostics outlook is increasingly supported by Cancer Diagnostics rather than respiratory testing.
Thus, even with solid routine laboratory demand and expanding oncology testing, the segment’s quarterly growth rate can remain uneven because the timing and severity of respiratory outbreaks are difficult to forecast.
Peer UpdateRespiratory testing remains a swing factor for QuidelOrtho’s (QDEL - Free Report) revenues, mix and cash conversion. For the first six months of 2026, respiratory products accounted for 9% of total revenues compared with 13% in the prior-year period, as weaker flu and COVID-19 demand weighed on results. Although second-quarter 2026 Point of Care revenues increased 16% year over year, management said respiratory positivity rates remained markedly below 2025 levels.
Softness in the molecular diagnostics business due to sluggish demand for respiratory disease tests has been weighing on the performance of the Danaher’s (DHR - Free Report) Diagnostics segment. Volume-based procurement and increased reimbursement changes in China are concerning as well. The segment’s core revenues declined 4% on a year-over-year basis in the first quarter of 2026. However, solid momentum in the clinical diagnostics businesses, led by growth in the Beckman Colter Diagnostics unit, has been buoying the segment.
ABT Price PerformanceIn the past year, Abbott shares have plunged 11.6% compared with the industry’s 22.9% decline.
Image Source: Zacks Investment Research
Expensive ValuationABT currently trades at a forward 12-month Price-to-Sales (P/S) of 3.81X compared with the industry’s median of 2.81X.
Image Source: Zacks Investment Research
ABT Stock Estimate TrendIn the past 30 days, ABT’s EPS estimate for 2026 has remained unchanged.
Image Source: Zacks Investment Research
ABT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Eli Lilly (NYSE:LLY | LLY Price Prediction) is trading at $1,255.40, and management has guided fiscal 2026 revenue between $85 billion and $87 billion. That puts the $100 billion revenue mark within reach.
Our 24/7 Wall St. price target for Lilly is $1,480.01, implying 17.89% upside over the next 12 months. Our recommendation is buy, with confidence level 90%.
Metric Value Current Price $1,255.40 24/7 Wall St. Price Target $1,480.01 Upside 17.89% Recommendation BUY Confidence Level 90% Why Lilly’s Stock Looks Different in August 2026 Lilly is up 6.38% over the past week, 8.1% over the past month, and 77.98% over the past year, trading just under its 52-week high of $1,292.65.
Q2 2026 drove the rerating: revenue of $22.97 billion grew 47.67% year over year and beat consensus by 11.06%. EPS of $8.38 beat by 27.27%. Mounjaro delivered $9.94 billion (+91%) and Zepbound another $4.93 billion. In May, Lilly became the first drugmaker to hit a $1 trillion market value, and it now sits above that at $1.12 trillion.
Why Bulls See a Breakout Ahead The bull case rests on three engines. First, the incretin franchise generated nearly $14.87 billion in a single quarter, with Mounjaro international sales growing 172%.
Second, orforglipron (Foundeo), the approved oral GLP-1, is rolling out globally in 2027, with prescriber adoption jumping from approximately 8,000 to 36,000.
Third, retatrutide, whose TRIUMPH-1 trial showed weight loss approaching bariatric surgery levels, is on track for a Q1 2027 BLA.
CEO David Ricks called “Lilly’s future, after 150 years, has never been brighter.” Our bull-case scenario points to $1,704.19, a 35.75% total return, consistent with 5 strong-buy and 17 buy consensus ratings.
What Could Go Wrong Realized U.S. prices fell roughly 9% ex-rebate, and Lilly took $2.78 billion in IPR&D charges from heavy M&A activity. Bulls counter that these charges reflect deliberate pipeline investment in Verve, Ataibeckley, and Kelonia, and that non-GAAP performance margin expanded to 54.8%.
Concentration is another risk: Mounjaro and Zepbound represent more than half of revenue, and Novo Nordisk’s Wegovy pill launch will contest the oral category. Our bear case implies $1,222.27, a -2.64% return.
How Lilly Compares to Novo Nordisk and Merck Novo Nordisk (NYSE:NVO) is the only true incretin peer, with Q1 2026 adjusted sales falling 4% at constant exchange rates as U.S. pricing eroded. Novo trades at a market cap of $156.4 billion, roughly one-seventh of Lilly’s, despite a comparable GLP-1 franchise. That valuation gap reflects the market’s premium for Lilly’s growth trajectory.
Merck (NYSE:MRK) provides the large-cap pharma valuation floor. Merck guides FY2026 non-GAAP EPS of $5.04 to $5.16 on revenue of $65.8 billion to $67 billion, roughly comparable to Lilly with a fraction of the growth.
Merck’s market cap of $376.4 billion versus Lilly’s $1.12 trillion reflects the growth premium. Against that field, Lilly’s forward P/E of 35 looks rich but defensible, and our 24/7 Wall St. price target of $1,480.01 reads as reasonable.
Eli Lilly Price Prediction 2026-2030 I’m sticking with the buy call and the 24/7 Wall St. price target of $1,480.01 at 90% confidence. The tipping factor is retatrutide readouts stacked against a raised revenue guide and margin expansion of nine percentage points.
I’d be a buyer if the Q1 2027 retatrutide BLA lands on schedule and Foundayo international launches track UAE uptake. I would stay on the sidelines if U.S. price erosion accelerates past management’s guided offset.
Here is where our model projects Lilly could trade, assuming current trajectories hold.
Year 24/7 Wall St. Price Target 2026 $1,324 2027 $1,480 2028 $1,673 2029 $1,823 2030 $1,988 These projections assume Lilly continues executing on its incretin franchise and pipeline. Meaningful upside or downside could result from retatrutide’s regulatory outcome, orforglipron’s international ramp, and U.S. GLP-1 pricing policy.
Contact [email protected] for any questions or corrections.
Morgan Stanley za poslední rok vzrostla o 45,1 % a překonala sektor i S&P 500. Tahounem je hlavně Wealth and Investment Management, který v roce 2025 tvořil téměř 54 % čistých výnosů.
Key Takeaways Morgan Stanley shares gained 45.1% in a year, outperforming industry peers and the S&P 500.MS' Wealth and Investment Management contributed nearly 54% of net revenues in 2025, up from 26% in 2010.Trading business cyclicality and rising expenses could put pressure on Morgan Stanley's results. Shares of Morgan Stanley (MS - Free Report) have jumped 45.1% in the past year, outperforming the industry’s 22.9% growth. In the same time frame, the S&P 500 has rallied 21.3%.
Also, the company’s shares have fared better than its close peers like Goldman Sachs (GS - Free Report) and Citigroup (C - Free Report) . In the past year, Goldman and Citigroup shares have gained 40.7% and 38.6%, respectively.
One-Year Price Performance
Image Source: Zacks Investment Research
Does MS stock have more upside left despite recent strength in price? Let us find out by looking at its fundamentals and growth prospects.
Key Factors Supporting Morgan StanleyBroadening Revenue Base: Morgan Stanley’s strategy of reducing reliance on capital markets remains a key long-term growth driver, supported by the expansion of Wealth and Investment Management divisions and acquisitions, including Eaton Vance, E*Trade Financial, Shareworks and EquityZen. These businesses have diversified revenues and deepened client relationships across advisor-led, self-directed and workplace channels. Wealth and Investment Management segments’ contribution to total net revenues surged to nearly 54% in 2025 from 26% in 2010.
Wealth Management (WM) client assets and Investment Management (IM) assets under management (AUM) recorded five-year compound annual growth rates (CAGRs) of 13% and 19.4%, respectively. As of June 30, 2026, combined client assets reached $10 trillion.
Financial Flexibility and Capital Returns: Morgan Stanley has a solid balance sheet and capital position, providing flexibility to support client activity, invest in technology, and return capital to shareholders. As of June 30, 2026, long-term debt outstanding was $383.16 billion, with $34.3 billion maturing over the next 12 months. Average liquidity resources were $404.1 billion. The company ended the second quarter of 2026 with a standardized CET1 ratio of 14.8%, maintaining a 300-350 basis point capital cushion above requirements. It has accreted $18 billion of CET1 capital over the last 10 quarters, further strengthening its financial flexibility.
Following the clearance of the 2026 stress test, Morgan Stanley increased its quarterly dividend by 15% to $1.15 per share in the third quarter of 2026 and reauthorized a multi-year share repurchase program of up to $20 billion without an expiration date. Management continues to prioritize organic investment, capital returns, and selective bolt-on acquisitions, positioning the company to support growth while maintaining disciplined capital allocation.
Improving Investment Banking Trends: After the deal slowdown in 2022 and 2023, Morgan Stanley’s investment banking (IB) franchise continues to recover as issuance and strategic activity improve. IB fees rose 35% in 2024 and 23% in 2025, with momentum accelerating in the first half of 2026 as fees jumped 47% year over year. A robust and diversified pipeline across regions, improving M&A and IPO activity, and Morgan Stanley’s strong competitive position will likely support further growth as deal-making conditions improve.
Expanding Global Footprint: Morgan Stanley’s alliance with Mitsubishi UFJ Financial Group strengthens its competitive position in Japan through integrated research, sales, execution and underwriting capabilities. Asia revenues rose 23% year over year to $9.42 billion in 2025, with momentum continuing into the first half of 2026, driven by stronger client engagement and prime brokerage activity. Its expanding regional presence across Japan, India, China, Korea, Taiwan and Hong Kong positions the company to capture further capital markets and wealth management opportunities.
Morgan Stanley’s Near-Term HeadwindsTrading Cyclicality: Morgan Stanley’s significant reliance on trading revenues remains a concern given the business’s inherently cyclical nature. Trading activity has rebounded sharply following weakness in 2023, supported by favorable market conditions, elevated volatility, and strong client engagement. However, management has cautioned about potential frothiness in equity markets, particularly AI-related stocks. A normalization in volatility, issuance activity or client risk appetite could make current trading levels difficult to sustain, increasing quarterly revenue variability across market-sensitive businesses.
Rising Expense Base: Morgan Stanley’s expenses have continued to rise despite restructuring and cost-efficiency efforts, increasing at a 7.4% CAGR over the five years ended 2025. As shown in the chart, total expenses have accelerated since 2023 and reached approximately $57.7 billion on a trailing-twelve-month (TTM) basis in 2026. The trend is likely to persist as management increases spending on technology, AI, and data infrastructure. While these investments could support long-term growth, a higher cost base is likely to put pressure on operating leverage if revenue growth moderates.
Expense Trend
Image Source: Zacks Investment Research
Should You Invest in Morgan Stanley Stock Now?The company has surpassed consensus earnings expectations in recent quarters, and the Zacks Consensus Estimate implies continued earnings growth through 2026 and 2027. The consensus estimate for 2026 earnings of $12.79 per share and 2027 earnings of $13.06 implies a rise from $10.21 in 2025. This reinforces the earnings power of its broader franchise and management’s expectations of steady improvement in its core operations.
Earnings Estimates
Image Source: Zacks Investment Research
Morgan Stanley’s diversified revenue base, improving IB activity, strong capital position, and expanding global footprint are expected to support its long-term growth. The continued expansion of wealth and investment management businesses, along with improving deal-making activity, should help the company capitalize on favorable market conditions. Moreover, strong capital levels provide flexibility to invest in growth initiatives while supporting shareholder returns through dividends and share repurchases.
In terms of its valuation, Morgan Stanley stock is currently trading at a trailing 12-month price-to-earnings (P/E) ratio of 17.32, compared with the industry average of 15.78. This indicates that MS is currently trading at a premium to its industry.
P/E TTM
Image Source: Zacks Investment Research
Morgan Stanley trades at a premium to Citigroup, while it is inexpensive compared with Goldman Sachs. At present, Citigroup has a trailing 12-month P/E of 12.83X, while Goldman Sachs trades at a trailing 12-month P/E of 16.04X.
Despite its strong fundamentals and improving earnings outlook, it does not seem a wise idea to invest in MS stock now. The company remains exposed to the cyclical nature of trading and capital markets activity, while persistent expense growth could weigh on operating leverage if revenue growth moderates.
Nevertheless, those who already own MS stock can hold on to it for long-term gains. Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Intuit expects Q4 revenue growth of 11-12%, with non-GAAP EPS projected at $3.56-$3.62.QuickBooks, payments, payroll, Credit Karma and TurboTax Live are expected to support Q4 growth.AI expansion, mid-market efforts offer growth potential, while competition and softer tax trends pose risks. Intuit Inc. (INTU - Free Report) is set to report its fourth-quarter 2026 results on Aug. 25, after market close.
The financial technology company expects fourth-quarter revenues to increase approximately 11-12% year over year. Management projects non-GAAP earnings of $3.56-$3.62 per share, while GAAP earnings are expected in the range of 73-79 cents per share. The sharp difference between GAAP and adjusted earnings primarily reflects restructuring and other non-GAAP adjustments.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.27 billion, indicating an increase of 11.5% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pinned at $3.59 per share and remains unchanged over the past two months. It indicates growth of 30.6% from the figure reported in the year-ago quarter.
Image Source: Zacks Investment Research
The company’s EPS surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.87%. The graph below depicts this surprising history:
Image Source: Zacks Investment Research
Q4 Earnings Whispers for INTUOur proprietary model does not conclusively predict an earnings beat for Intuit this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuit has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Likely to Shape Intuit’s Q4 ResultsIntuit is set to report fourth-quarter results, with solid business momentum and continued progress across its consumer and small-business platforms.
Growth is likely to have been supported by continued strength in QuickBooks and the broader Online Ecosystem. Higher customer engagement, increased adoption of payments and payroll services and expansion of Intuit’s money offerings are expected to have remained key drivers.
Credit Karma and TurboTax Live are also likely to have contributed to the quarter. Strength in personal loans and insurance has supported Credit Karma, while greater adoption of assisted tax offerings continues to benefit the TurboTax franchise. However, softer tax-unit trends could have partly offset these positives.
Intuit’s AI-driven strategy and ongoing expansion into mid-market solutions is expected to have provided an additional boost. Continued adoption of AI-powered tools across its platform, along with efforts to deepen customer relationships and improve operating efficiency, may have helped support durable growth over the longer term.
For the fourth quarter of fiscal 2026, the Zacks Consensus Estimate for Intuit’s Global Business Solutions revenues is pegged at $3.39 billion, suggesting year-over-year growth of 12.4%. The consensus mark for Intuit’s Consumer revenues is pegged at $884.5 million, significantly up from the year-ago period.
INTU’s Price Performance & ValuationIntuit shares have gained 20.8% over the past month. The Zacks Computer Software Market industry has risen 22.6%, while the S&P 500 has gained 3.7% for the same period. Tax preparation and financial services provider like H&R Block (HRB - Free Report) and fintech like Block (XYZ - Free Report) continue to expand their tax-preparation, small-business and financial-service offerings, intensifying competition for Intuit across areas such as consumer tax, payments and broader financial management. HRB shares rallied 26.9%, while XYZ shares have gained 1.2% over the same timeframe.
Image Source: Zacks Investment Research
From a valuation standpoint, even after the stock’s recent rally, INTU shares are trading cheaply in terms of forward 12-month P/E. INTU stock is trading at 13.39X compared with the Zacks Computer Software Market industry’s 22.86X.
Image Source: Zacks Investment Research
Shares of HRB and XYZ are currently trading at P/E of 8.9X and 17.4X, respectively.
Image Source: Zacks Investment Research
INTU: Buy, Sell or Hold?Intuit continues to strengthen its position as a broad financial technology platform by integrating QuickBooks, TurboTax, Credit Karma and its expanding AI-powered services. Continued momentum in online accounting, payments, payroll, assisted tax offerings and consumer finance is likely to support long-term growth, while its AI-driven expert platform could deepen customer engagement across both consumer and small-business markets. However, competitive pressure, softer tax-unit trends, restructuring-related disruption and broader macroeconomic uncertainty remain key risks.
Given these growth opportunities alongside near-term execution risks, the stock is best viewed as a hold at present. Long-term investors may prefer to wait for greater clarity on fiscal 2027 growth, margin improvement and the benefits of Intuit’s restructuring before adding to positions.
Prologis uvádí, že po akvizici SEGRO čeká sloučený podnik v prvním celém roce po dokončení převážně neutrální až minimálně ředící dopad na Core FFO na akcii a AFFO na akcii. Současně už srpnová emise akcií zvýšila počet akcií o 17,25 milionu, tedy o 1,85 %.
The PrintPrologis, Inc. (NYSE:PLD) is heading toward its recommended $18.8 billion acquisition of SEGRO plc (OTC:SEGXF) with a 68.4% dividend payout against the midpoint of its current 2026 Core FFO guidance. The $1.07 quarterly dividend annualizes to $4.28, while the midpoint of the $6.22 to $6.30 Core FFO range is $6.26.
That payout ratio is a useful standalone snapshot, but it is not the main analytical issue created by the transaction. The more important relationship is between Prologis’ expanding equity base and the per-share earnings the combined company will need to produce after closing.
Prologis sold 15 million common shares in August, and the underwriters exercised their option for another 2.25 million. The company’s issued-and-outstanding share count increased from 933,083,372 at Aug. 3 to 950,333,372 at Aug. 7, a 17.25 million-share, or 1.85%, increase by DFB calculation.
At the current $4.28 annualized dividend rate, those additional shares correspond to about $73.8 million of annualized common-dividend payments if the rate is maintained. That does not change the 68.4% per-share payout calculation today, but it does increase the aggregate cash required to support the same dividend rate.
The August Offering Expanded The Equity Base Before ClosingPrologis entered into the underwriting agreement for the 15 million-share base offering on Aug. 4. The offering closed Aug. 5 and generated approximately $2.1 billion of net proceeds after estimated expenses.
The underwriters then exercised the option for another 2.25 million shares. Prologis estimated approximately $312.2 million of additional net proceeds after the underwriting discount but before estimated transaction expenses. Its Aug. 10 Rule 2.9 announcement reported 950,333,372 common shares issued and outstanding at the close of business Aug. 7.
Prologis said the offering proceeds would be contributed to Prologis, L.P., its operating partnership, for general corporate purposes, including potential acquisitions such as SEGRO. The company did not earmark a specific amount of the proceeds to the acquisition.
The equity raise therefore has two observable effects before SEGRO closes: more cash available for capital allocation and a larger common-equity base. The second matters for the dividend because maintaining the same per-share payment across more shares requires a larger aggregate cash outlay.
SEGRO Will Add Another Layer Of Share ConsiderationThe recommended SEGRO acquisition is itself structured primarily around Prologis shares. SEGRO shareholders who do not elect the partial cash alternative are set to receive 0.0920 new Prologis shares for each SEGRO share.
A shareholder taking only the basic cash entitlement would receive 258 pence in cash plus 0.0690 new Prologis shares for each SEGRO share. The aggregate partial cash alternative is capped at approximately GBP 3.5 billion.
If that alternative is fully taken up, Prologis said the transaction would result in approximately 93.9 million new Prologis shares, representing about 8.9% of the enlarged issued share capital under the assumptions in the transaction announcement. Lower cash participation would leave more consideration payable in Prologis shares.
The cash component has separate funding channels, including a committed term-loan facility, existing liquidity and other available sources. Prologis reported approximately $7.6 billion of available liquidity at June 30 and debt-to-Adjusted EBITDA of 4.7x.
The point is not that Prologis lacks funding capacity. It is that the acquisition combines debt capacity, existing liquidity and a materially larger equity base, making per-share execution central to how the transaction ultimately affects dividend coverage.
What The Larger Equity Base Means For Dividend CoveragePrologis expects the combination to have a broadly neutral to minimally dilutive impact on Core FFO per share and AFFO per share in the first full year after completion, assuming annualized run-rate synergies.
That forward-looking expectation now matters more than the standalone 68.4% payout ratio. The current ratio is based on 2026 guidance for Prologis before SEGRO is consolidated. The transaction is expected to close in the first half of 2027, and no post-close Core FFO guidance range exists today.
For investors, the relationship between the dividend, the August equity raise and the SEGRO consideration is straightforward. The equity raise has already increased the share count and aggregate dividend cash requirement at the current rate. The acquisition is expected to add another substantial block of Prologis shares. The combined business then has to generate enough Core FFO and AFFO per share to absorb that larger denominator.
That does not establish that the dividend is protected, nor does it establish that the acquisition will be accretive. The analytical point is that Prologis’ funding mix shifts the dividend question away from the current standalone payout ratio and toward post-close per-share earnings.
If the combined company delivers the broadly neutral to minimally dilutive per-share outcome Prologis currently expects, the larger equity base would be supported by the earnings and synergies of the combined platform. If that outcome differs, the post-close payout relationship will differ with it. That is the connection the current 68.4% ratio alone cannot show.
Source: Prologis second-quarter 2026 results, July 16, 2026; Prologis quarterly common dividend announcement, April 28, 2026; Prologis recommended SEGRO acquisition announcement and Rule 2.7 materials, Aug. 4, 2026; Prologis common-stock offering Form 8-K, Aug. 4-5, 2026; Prologis Form 8-K reporting exercise of the underwriters’ additional-share option, Aug. 6, 2026; Prologis Rule 2.9 announcement reporting issued and outstanding shares at Aug. 7, released Aug. 10, 2026. Dividend payout, share-count increase and annualized dividend calculations by Dividend Forensics Bureau from company-reported figures.
The author holds no position in any security mentioned. Structural research, not personalized investment advice.
Further dividend structure research is published at dividendforensics.com
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
Coinbase vybral Chainlink jako oficiální oracle infrastrukturu pro tokenizované akcie na Base. To má milionům uživatelů umožnit půjčovat si, půjčovat a obchodovat tokenizované americké akcie onchain.
Chainlink is delivering continuous pricing for Coinbase Tokenized Stocks as its official oracle infrastructure, enabling millions of Base users to lend, borrow, and trade the largest publicly traded U.S. equities onchain.
, /PRNewswire/ -- Coinbase, the largest publicly traded digital asset exchange in the United States, has selected Chainlink as its official oracle infrastructure powering its newly launched Tokenized Stocks, unlocking utility and distribution across the Base DeFi ecosystem.
Through Chainlink Data Feeds, builders across the Base ecosystem have access to continuous pricing for Coinbase’s tokenized stocks, including NVDAc, METAc, AAPLc, GOOGLc, and more. Through Chainlink Data Feeds, builders across the Base ecosystem have access to continuous pricing for Coinbase's tokenized stocks, including NVDAc, METAc, AAPLc, GOOGLc, and more. This data enables leading DeFi protocols, including lending markets, decentralized exchanges, and structured product platforms, to support tokenized equities as collateral, transforming tokenized equities from standalone tokens into fully composable building blocks.
Coinbase Tokenized Stocks are real equity securities issued as standard B20 tokens on Base. Each token is backed 1:1 by an underlying share held in regulated custody with Alpaca under the Abu Dhabi Global Market (ADGM) framework. With Coinbase as the issuer, Chainlink delivers the essential market data infrastructure required to unlock onchain utility and distribution across the Base ecosystem.
Tokenized equities represent one of the fastest-growing categories of real-world assets, reaching a record $2.3 billion by mid-July 2026. However, without institutional-grade market data, the utility of tokenized equities are limited to simple transfers and swaps. By selecting Chainlink as its official oracle solution, Coinbase is unlocking advanced 24/7 collateral management use cases, enabling millions of Base users to earn yield and borrow against U.S. stocks.
"Base has built one of the most vibrant DeFi ecosystems out there, and Chainlink's oracle infra unlocks new utility for tokenized assets. With institutional-grade market data now live onchain, we're giving millions of users access to financial primitives that, until now, were locked behind traditional gatekeepers. This is the kind of move that positions Base as the go-to chain for real-world assets." — Antonio Garcia-Martinez, Head of Growth, Base.
"Tokenized assets only reach their full potential when the broader ecosystem can build with them across DeFi. We're excited to see Coinbase select Chainlink as its official oracle infrastructure for Coinbase Tokenized Stocks. With Chainlink, Coinbase leverages the secure, reliable pricing data required to unlock the utility and distribution of tokenized stocks across DeFi, while accelerating the convergence of TradFi and DeFi." — Johann Eid, Chief Business Officer, Chainlink Labs
This development marks a major milestone in the convergence of traditional capital markets and onchain finance. As one of the world's most trusted digital asset platforms bringing equities onchain at scale, Coinbase is accelerating mainstream access to the onchain economy, with Chainlink providing the critical infrastructure required to unlock utility and distribution for tokenized stocks across DeFi.
Coinbase Tokenized Stocks are only available in eligible jurisdictions outside of the U.S.
About Coinbase
Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom in the world. The most trusted crypto platform, Coinbase stores more digital assets than any other company and is building the everything exchange — one place to access crypto, equities, derivatives, prediction markets, and more. Coinbase serves consumers through its suite of financial apps, institutions through Coinbase Prime, and developers through the Coinbase Developer Platform. Every experience runs on Coinbase's full-stack platform powering the future of finance: secure custody, deep exchange liquidity, stablecoin infrastructure, and global settlement rails — all built on a decade-plus foundation of security and compliance.
About Chainlink
Chainlink is the industry-standard oracle platform bringing the capital markets onchain and the market leader powering the majority of DeFi. The Chainlink stack provides the essential data, interoperability, compliance, and privacy standards needed to power advanced blockchain use cases for institutional tokenized assets, lending, payments, stablecoins, and more. Since inventing decentralized oracle networks, Chainlink has enabled tens of trillions in transaction value and now secures the vast majority of DeFi.
Many of the world's largest financial services institutions have also adopted Chainlink's standards and infrastructure, including Swift, Euroclear, Mastercard, Fidelity International, UBS, S&P Dow Jones Indices, FTSE Russell, WisdomTree, ANZ, and top protocols such as Aave, Polymarket, Lido, Lighter, and many others. Chainlink leverages a novel fee model where offchain and onchain revenue from enterprise adoption is converted to LINK tokens and stored in a strategic Chainlink Reserve. Learn more at chain.link.
About Base
Base is a blockchain built by Coinbase to power the global onchain economy. Designed for trading, payments, and agents, Base delivers sub-second settlement and sub-cent transaction costs at scale. It is the #1 onchain venue for BTC and ETH spot trading, the leading chain for stablecoin volume, and the dominant rail for agentic payments via the x402 standard. EVM-compatible and trusted by leading institutions, Base is used by millions of people worldwide.
Halliburton získal od společnosti Petrobras zakázku na vrtání a dokončení čtyř onshore vrtů pro pilotní projekt São Tomé CCS v Brazílii. Projekt má ročně zachytit až 100 000 tun CO2 po dobu tří let.
Key Takeaways Halliburton won a Petrobras contract to drill and complete four wells for the Sao Tome CCS pilot.The project will capture up to 100,000 metric tons of CO2 annually for three years.Halliburton gains CCS experience while strengthening its relationship with Petrobras in Brazil. Halliburton (HAL - Free Report) and Petrobras (PBR - Free Report) are expanding their long-standing relationship through a new contract focused on carbon capture and storage (“CCS”) infrastructure in Brazil. The company has won a contract from Petrobras to drill and complete four onshore wells at the Barra do Furado Station in Quissamã, Rio de Janeiro, for the São Tomé CCS Pilot Project.
The contract covers one vertical injection well and three directional monitoring wells. The project is expected to strengthen its position in Brazil while allowing the oilfield services company to participate in an emerging carbon-management market.
Halliburton to Support Petrobras' São Tomé CCS ProjectUnder the contract, Halliburton, a Houston, TX-based oil and gas equipment and services company, will provide drilling and completion services for the four wells required for the pilot project. The wells will form an important part of the infrastructure needed to inject and monitor carbon dioxide (CO2) in a saline reservoir.
According to Petrobras’ press release, it expects drilling, well completion and associated infrastructure to be finished by 2028. The company plans to begin the operational phase in 2029, followed by three years of CO2 injection and another three years of reservoir monitoring.
The pilot is designed to capture up to 100,000 metric tons of CO2 annually for three years. Petrobras said the project will test the full chain of technologies involving CO2 capture, pipeline transportation and geological storage in a saline reservoir.
The São Tomé project is particularly significant because Petrobras describes it as the first project in Latin America to integrate CO2 transport by pipeline with storage in a saline reservoir.
New Contract Adds to Halliburton's Brazil OpportunitiesThe latest award adds to Halliburton's growing activity with Petrobras. In January 2025, Halliburton announced a major three-year contract to provide integrated drilling services across several offshore fields in Brazil. The agreement includes drilling services for development and exploration wells and uses technologies such as the iCruise intelligent rotary steerable system and LOGIX automation and remote operations platform.
Petrobras also awarded Halliburton multiple deepwater contracts in 2025 for vessel stimulation, intelligent completions and safety valves in the Búzios, Séepia and Atapu fields. These contracts are expected to begin in 2026.
Halliburton has also secured a multi-year Petrobras contract for integrated well interventions and plug-and-abandonment services. The 2024 agreement covers nearly two-thirds of Petrobras' intervention and plug-and-abandonment work, further highlighting the importance of Brazil’s market to Halliburton.
CCS Could Create a New Growth AvenueThe São Tomé contract is relatively small compared with large offshore drilling and completion programs, but its strategic importance could be greater than the immediate financial contribution. The project gives Halliburton exposure to CCS infrastructure and technologies at a time when energy companies are seeking ways to reduce emissions from industrial operations.
For Halliburton, participation in the project also complements its traditional oilfield services business. The company has extensive experience with drilling, well construction, completion and reservoir-related technologies, capabilities that can be applied to emerging carbon-storage projects.
Halliburton's experience in technically challenging Brazilian operations could also support its role in the project. The company has previously highlighted its ability to integrate drilling, cementing, fluids, formation evaluation and other services to improve well-construction efficiency in Brazil.
What It Means for HAL StockThe new Petrobras contract is a positive development for Halliburton because it strengthens an established customer relationship. This also expands the company's participation in Brazil beyond conventional oil and gas activity. However, investors should not expect the four-well CCS project alone to materially change Halliburton's near-term financial results.
The bigger takeaway is the potential for Halliburton to establish an early position in carbon-storage projects. Successful execution of the São Tomé pilot could provide valuable experience in drilling, completing and monitoring wells used for CO2 storage. This may help Halliburton compete for similar projects as CCS infrastructure expands across Latin America and other markets.
At the same time, Halliburton remains heavily exposed to conventional oil and gas activity. Its financial performance will continue to depend largely on drilling and completion activity, customer capital spending and commodity-price trends.
Overall, the Petrobras award represents another positive development for Halliburton in Brazil. While the direct financial impact of the four-well project is likely to be limited, the contract strengthens Halliburton's relationship with one of the world's major energy producers and provides exposure to the growing CCS market. For investors, the project adds another potential long-term growth avenue to Halliburton's established oilfield services business.
HAL's Zacks Rank & Key PicksCurrently, HAL has a Zacks Rank #3 (Hold), while PBR carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR - Free Report) and Delek US Holdings (DK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific is valued at $3.96 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.
Delek US Holdings is valued at $4.38 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Corning ve 2. čtvrtletí zvýšil tržby divize Optical Communications o 32 % na 2,07 mld. USD a čistý zisk o 77 % na 438 mil. USD. Tahounem byl růst poptávky tažený AI po vysokorychlostní optické konektivitě v datových centrech.
Key Takeaways Corning's Optical Communications sales rose 32% to $2.07B, while net income jumped 77% to $438M.Enterprise Networks sales climbed 65% as AI data centers drove demand for high-speed optical connectivity.Corning expects Scale-Up systems and tech partnerships to create further growth for its optical portfolio. Corning Incorporated (GLW - Free Report) is witnessing solid momentum in the Optical Communications segment. In the second quarter, the segment’s sales increased 32% year over year to $2.07 billion, while segment net income jumped 77% to $438 million.
AI-driven data center investment is the biggest catalyst. The expansion of generative AI is increasing the amount of high-speed optical connectivity needed inside and between data centers. This is driving strong demand for Corning’s GenAI-related enterprise products. Within the optical communications segment, Enterprise Networks sales increased 65% year over year.
The company disclosed that its current growth is primarily driven by Scale-Out infrastructure. In Scale-Out infrastructure, operators connect large numbers of servers and GPUs leveraging high-bandwidth optical links. Beyond the current Scale-Out opportunity, the company expects significant potential from Scale-Up systems. In Scale-Up systems, high-bandwidth connections are needed between GPUs and other computing components. This will likely create another major growth opportunity for Corning’s optical connectivity portfolio in upcoming years.
Its growth prospect is strengthened by strategic relationships with major tech organizations. Amazon announced a multiyear, multibillion-dollar agreement with Corning. Per the deal. Amazon will utilize Corning’s optical fiber, cable and connectivity solutions for its U.S. data center infrastructure. NVIDIA and Corning are also collaborating for expansion of U.S. optical connectivity manufacturing capacity. Such collaborations bode well for sustainable growth.
How Are Competitors Faring?Corning faces competition from Amphenol Corporation (APH - Free Report) and Ciena Corporation (CIEN - Free Report) in this domain. Amphenol’s high-speed copper, fiber optic and power interconnect portfolio gives it exposure across multiple AI data-center architectures. In second-quarter 2026, Communications Solutions revenues jumped 85% year over year to $5.38 billion. The segment remained Amphenol’s largest business, benefiting from strong demand for high-speed connectivity applications, particularly in the IT datacom market.
Ciena is witnessing encouraging demand trends as AI applications drive higher network traffic and bandwidth consumption across cloud and service provider environments. Customers are prioritizing investments in network infrastructure to support AI model training, data ingestion and inference workloads. Networking Platforms remained the largest contributor for Ciena, generating $1.27 billion in revenues and representing 81.1% of total sales. Within the segment, Optical Networking revenues increased to $1.10 billion from $773.6 million a year ago.
Corning's Price Performance, Valuation & EstimatesCorning has gained 124.4% compared to the communications components industry’s growth of 193.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, GLW is currently trading at a discount compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 38.22 forward 12-month earnings, higher than 37.41 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for Corning for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Corning currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mondelez ve 2. čtvrtletí roku 2026 zvýšil organické čisté tržby v biscuits a pečených snackech o 2,5 %, tažené růstem objemu/mixu o 1,3 procentního bodu. Značky Oreo a Ritz rostly, zatímco Severní Amerika zůstala beze změny.
Key Takeaways Mondelez's biscuits and baked snacks posted 2.5% organic growth in Q2, with volume/mix up 1.3 points. Oreo, Ritz and other brands grew, while U.S. biscuit share gains improved Mondelez's overall share trend. Europe stayed solid, and Emerging Markets accelerated, while North America was flat with soft frequency. Mondelez International, Inc. (MDLZ - Free Report) is seeing solid momentum in biscuits and baked snacks, with broad-based brand growth, positive volume/mix and improving share trends providing a favorable backdrop. The category remains an important part of the company’s snacking portfolio, while innovation, pack formats, distribution and new consumption occasions offer additional avenues to sustain growth.
Biscuits and baked snacks delivered 2.5% organic net revenue growth in the second quarter of 2026, with volume/mix increasing 1.3 percentage points. Oreo, Ritz, Chips Ahoy!, Give & Go, LU, Grenade, Perfect, Zbar and Builders all posted growth. U.S. biscuit share gains were also a key contributor to the sequential improvement in Mondelez’s overall share performance from the first quarter.
Regional trends were encouraging. In North America, the biscuit category remained flat, while Mondelez gained share and maintained stable penetration. Frequency, however, remained soft. Europe delivered solid biscuit growth, with Mondelez holding share. Emerging Markets also showed signs of accelerating biscuit growth as snacking spending continued to expand.
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Mondelez is also working to broaden consumption occasions and product formats. Ritz Minis and Ritz Drizzled supported on-the-go occasions and helped Ritz deliver a 0.2 percentage-point year-to-date value share gain. In India, the Biscoff biscuit launch contributed significantly to growth and was ahead of internal projections. The company is also expanding single-serve, variety and club packs, particularly in North America.
Mondelez has several levers to build on the 2.5% growth in biscuits and baked snacks, including broad brand gains, positive volume/mix, improving share trends and continued innovation. Growth in Europe and signs of acceleration in Emerging Markets add support, while the flat North American biscuit category and soft purchase frequency remain key watchpoints.
Shares of this Zacks Rank #3 (Hold) company have rallied 19.7% year to date compared with the industry’s growth of 6.5%.
Better-Ranked Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
The Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Western Digital ve 4. čtvrtletí zvýšila výnosy o 44 % na 3,75 miliardy USD a překonala odhady zisku i marže. Na 1. čtvrtletí fiskálního roku 2027 čeká výnosy kolem 4,1 miliardy USD, plus minus 100 milionů USD.
Key Takeaways Western Digital posted 44% Q4 revenue growth, an earnings beat and a 54.4% non-GAAP gross margin.WDC sees Q1 fiscal 2027 revenue near $4.1B, with a non-GAAP gross margin of 55%-56% and EPS near $4.Western Digital's 40TB ePMR is in volume production, with 44TB and 50TB HAMR ramps planned for 2027. Western Digital Corporation (WDC - Free Report) ended fiscal 2026 with a fourth-quarter earnings beat, 44% revenue growth and sharply higher margins. The results give the company a strong starting point for fiscal 2027. The next test is execution. Higher-capacity drives must ramp on schedule if WDC is to translate rising cloud and artificial intelligence storage demand into sustained revenue, margin and earnings growth.
WDC's Q4 Beat Shows Demand and Pricing StrengthFourth-quarter revenues reached $3.75 billion, up 44% year over year and above the Zacks Consensus Estimate of $3.70 billion. Non-GAAP earnings of $3.56 per share topped the consensus mark of $3.35 and increased 109%.
Non-GAAP gross margin expanded 1,310 basis points year over year to 54.4%. A richer mix of higher-capacity drives, favorable pricing and manufacturing discipline helped lift profitability, while blended price per terabyte increased by the high teens.
Image Source: Zacks Investment Research
Western Digital Guides to Another Growth StepFor the first quarter of fiscal 2027, management expects revenues of $4.1 billion, plus or minus $100 million. At the midpoint, that represents about 45% year-over-year growth.
Western Digital also projects non-GAAP gross margin of 55%-56% and earnings of $4 per share, plus or minus 15 cents. The outlook implies another step up from fourth-quarter profitability if demand and pricing remain favorable.
WDC's 40TB ePMR Ramp Moves Into VolumeWestern Digital began shipping next-generation energy-assisted perpendicular magnetic recording drives with capacities up to 40 terabytes in the fiscal fourth quarter. The company has entered volume production with two customers.
Management expects the platform to account for about half of nearline bits by the third quarter of fiscal 2027. Higher capacity per drive should allow WDC to deliver more exabytes without a corresponding increase in unit volumes.
Western Digital's HAMR Timeline Becomes the Next TestThe roadmap calls for 44-terabyte heat-assisted magnetic recording products in the first half of calendar 2027 and 50-terabyte products in the second half. Customer qualification and manufacturing execution therefore remain central to the fiscal 2027 setup.
UltraSMR adoption is advancing as well. Western Digital expects the technology to represent about 60% of nearline exabyte shipments as fiscal 2027 ends, making the sequencing of multiple product transitions important to capacity and cost gains.
WDC's AI Storage Demand Broadens the OpportunityManagement sees inference, agentic artificial intelligence and physical artificial intelligence as persistent storage drivers because these workloads continuously create and retain data. High-bandwidth drives are also sampling with five customers, potentially extending HDD economics into higher-throughput workloads.
The theme is broader than WDC. Seagate Technology Holdings plc (STX - Free Report) reported fiscal fourth-quarter 2026 revenues of $3.6 billion as a mass-capacity storage provider, while Sandisk Corporation (SNDK - Free Report) said fiscal 2026 Datacenter revenues increased 437%, illustrating demand across different storage technologies.
Growth Scores Reinforce WDC's Execution SetupWDC's fiscal 2027 opportunity is substantial, but the product roadmap raises the execution bar. The company must sustain pricing, qualify new platforms and convert higher-capacity drives into the exabyte growth and margin expansion embedded in its outlook.
The stock currently carries a Zacks Rank #2 (Buy), along with a Growth Score of A and Momentum Score of A. Those scores favor growth and momentum characteristics, while the Value Score of F and VGM Score of C point to a less attractive value profile and a mixed combined reading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Western Digital ve fiskálním roce 2026 zvýšil tržby o 36 % a non-GAAP EPS o 104 %. Pro 1. čtvrtletí fiskálního roku 2027 čeká tržby 4,1 mld. USD v polovině rozpětí, EPS 4 USD a non-GAAP hrubou marži 55 %–56 %.
Key Takeaways Western Digital's fiscal 2026 revenues rose 36%, while non-GAAP EPS increased 104% year over year.WDC expects Q1 fiscal 2027 revenues of $4.1B at the midpoint, $4 EPS and a 55%-56% gross margin.Western Digital trades above industry multiples as key ePMR, UltraSMR and HAMR ramps raise execution risk. Western Digital Corporation (WDC - Free Report) enters fiscal 2027 with sharply higher earnings expectations. Fiscal 2026 revenues rose 36% and non-GAAP earnings per share increased 104%, providing a strong base for the next leg of growth.
The trade-off is valuation. WDC trades above its industry on several common multiples, leaving less room for weaker demand, pricing or product execution.
WDC's Earnings Growth Is AcceleratingNear-term guidance supports that trajectory. For the first quarter of fiscal 2027, management expects $4.1 billion of revenues at the midpoint, earnings of $4 per share and a 55%-56% non-GAAP gross margin.
Western Digital's AI Exposure Supports DemandCloud generated $3.3 billion, or 89% of fourth-quarter fiscal 2026 revenues, and grew 43% year over year. Management sees AI inference, agentic AI and physical AI increasing retained data volumes and expects exabyte demand growth of more than 25%.
Seagate Technology Holdings plc (STX - Free Report) also cited cloud data-center demand and AI-driven data growth as mass-capacity storage drivers. Sandisk Corporation (SNDK - Free Report) reported fiscal 2026 Datacenter revenues up 437%, showing that data-infrastructure spending is benefiting multiple storage technologies.
WDC's Roadmap Could Extend Margin GainsWestern Digital expects its 40-terabyte ePMR platform to represent about half of nearline bits by the third quarter of fiscal 2027. UltraSMR is expected to reach about 60% of nearline exabyte shipments as fiscal 2027 ends.
Cost per terabyte declined about 8% year over year in the fiscal fourth quarter. Management continues to target roughly 10% annual reductions over the medium to long term as higher-capacity products scale, supporting further margin expansion.
Western Digital's Valuation Raises the BarWDC trades at 22.9X forward earnings versus 10.3X for its industry. Its price-to-sales multiple is 12.3X versus 5.4X for the industry, while its 17.9X price-to-book multiple exceeds the industry's 15.0X.
That premium can be supported by rapid growth, but it leaves less valuation protection if demand, pricing or technology transitions fall short of expectations.
WDC's Risks Complicate the Buy DecisionCustomer concentration remains a source of volatility because Cloud accounts for 89% of revenues and large customers do not purchase on a linear schedule. Different product mixes can also create quarter-to-quarter swings in exabyte growth.
Execution risk runs through the roadmap. The 40-terabyte ePMR ramp, wider UltraSMR adoption and 44-terabyte HAMR introduction must progress on schedule for Western Digital to capture the expected capacity and cost benefits.
Strong Growth Signals Offset WDC's Weak Value ScoreWDC still presents a favorable growth case, but the premium valuation makes the setup less forgiving. Investors must weigh rapid earnings expansion and rising storage demand against the execution required to support those expectations.
The stock currently carries a Zacks Rank #2 (Buy). Its Growth Score of A and Momentum Score of A indicate favorable growth and momentum characteristics, supporting the near-term profile.
The Value Score of F signals a weaker value profile, while the VGM Score of C reflects a mixed combined reading across value, growth and momentum. The balance remains constructive, but valuation discipline is warranted. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rocket Lab se připojil k programu NITE-STAR amerických Vesmírných sil s kontraktem až na 981 milionů USD. Má soutěžit o zakázky na testovací a tréninkovou infrastrukturu pro vesmírné operace.
Key Takeaways Rocket Lab joins NITE-STAR to support space test and training infrastructure for the U.S. Space Force.RKLB's satellite, software and mission operations capabilities align with NITE-STAR requirements.RKLB's vertically integrated model supports satellite design, manufacturing, launch and on-orbit operations. Rocket Lab Corporation (RKLB - Free Report) is broadening its role in the space industry by participating in the U.S. Space Force's NITE-STAR program. On Aug. 17, 2026, the company announced that it had been onboarded to the NITE-STAR IDIQ contract, which has a $981 million ceiling and is designed to advance space test and training infrastructure. The program provides Rocket Lab with an opportunity to compete for task orders supporting future U.S. Space Force requirements.
NITE-STAR is focused on developing a distributed test and training architecture to prepare space operators for contested scenarios. The program covers several areas, including the development and integration of space-based systems, deployment of ground systems, creation of digital environments and sustainment of operational systems. This gives Rocket Lab an opportunity to apply its space systems expertise beyond launch activities.
Rocket Lab's capabilities in satellite development, space software, space systems engineering and mission operations align with the program's requirements. Its vertically integrated model, which spans satellite design, manufacturing, launch and on-orbit operations, provides capabilities across multiple stages of space missions. This could help it compete for a broader range of NITE-STAR task orders.
The program also provides Rocket Lab with another avenue to deepen its involvement in U.S. government and defense space activities. As space readiness becomes increasingly important, demand for integrated test environments, ground infrastructure and operational systems could create opportunities for specialized space companies. Rocket Lab's participation in NITE-STAR expands its potential addressable market while strengthening its position across the space infrastructure ecosystem.
Companies Expanding Space Test and Training CapabilitiesThe growing focus on space readiness is encouraging defense and aerospace companies to expand capabilities that support space testing, training and mission operations. Companies like L3Harris Technologies, Inc. (LHX - Free Report) and Northrop Grumman Corporation (NOC - Free Report) are also developing technologies and infrastructure for U.S. government space missions.
L3Harris provides space systems, mission technologies and related capabilities that aid government and defense space operations.
Northrop Grumman develops space systems and mission solutions that support satellite operations, space-domain awareness and national security missions.
Earnings Estimates for RKLB StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 81.48% and 240%, respectively.
Image Source: Zacks Investment Research
RKLB Stock Is Trading at a PremiumRocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 36.61X compared with the industry average of 8.32X.
Image Source: Zacks Investment Research
RKLB Stock Price PerformanceOver the past year, RKLB shares have surged 53.7% compared with the industry’s 7.7% growth.
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RKLB’s Zacks RankRocket Lab currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Williams-Sonoma's Q2 revenues are expected to rise 4.1% year over year to $1.91 billion.Pottery Barn and West Elm are projected to grow revenues 2.3% and 5.4%, respectively.WSM's EPS is expected to increase 2.5% as supply-chain savings and lower costs support margins. Williams-Sonoma, Inc. (WSM - Free Report) is scheduled to release its second-quarter fiscal 2026 results on Aug. 26, before the opening bell.
In the last reported quarter, the company’s earnings and net revenues topped the Zacks Consensus Estimate by 7.2% and 0.1%, respectively. Year over year, the metrics grew 4.3% and 4.4%, respectively.
Williams-Sonoma reported better-than-expected earnings in each of the last four quarters, the average surprise being 7.2%.
How are Estimates Placed for WSM Stock?For the fiscal second quarter, the Zacks Consensus Estimate for earnings per share (EPS) has moved upward to $2.05 from $2.04 over the past 30 days. The estimated figure indicates an improvement of 2.5% from $2.00 per share reported in the year-ago quarter.
The consensus mark for net revenues is pegged at $1.91 billion, indicating year-over-year growth of 4.1% from $1.84 billion.
Factors at Play for Williams-Sonoma’s Q2 ResultsRevenues
Williams-Sonoma’s top-line performance is expected to have improved year over year because of its diversified brand portfolio, strategic collaborations, focus on global expansion and digital upgrades. Moreover, incremental sales trends in furniture and non-furniture business lines, robust performance across its retail and e-commerce channels and integration of AI across digital platforms are expected to have supported growth in the upcoming period.
During the fiscal second quarter, WSM’s Pottery Barn (39.2% of the first quarter of fiscal 2026 net revenues) and West Elm (26.1% of the first quarter of fiscal 2026 net revenues) brands are likely to have gained on the back of refurbished holiday décor items and notable collaborations, alongside expansion in seasonal products and accessories. The home-furnishing company’s namesake brand, Williams-Sonoma (15% of the first quarter of fiscal 2026 net revenues), is expected to have witnessed demand growth across kitchen and related products, with the Pottery Barn Kids and Teen (13.3% of the first quarter of fiscal 2026 net revenues) brand likely to have gained on back-to-school sales.
Although the challenging environment because of continued weakness in the U.S. housing market is concerning, WSM’s in-house capabilities have more than offset these headwinds.
Segment-wise, our Zacks model predicts fiscal second-quarter revenues in the Pottery Barn and West Elm brands to be $741.2 million and $493.7 million, up 2.3% and 5.4%, respectively, from the prior-year quarter level. Revenues for the namesake brand and the Pottery Barn Kids and Teen brand are also expected to be up year over year by 5.8% to $263.4 million and 4.9% to $300.8 million, respectively.
Margins
In the quarter to be reported, Williams-Sonoma’s bottom line and margins are likely to have improved year over year because of supply-chain efficiencies and cost savings. Also, WSM’s efforts in clearing its inventory and minimizing marketing and promotional costs are expected to have aided the metric. However, tariff-related costs and ongoing geopolitical uncertainties are expected to have somewhat restricted the profitability prospects in the fiscal second quarter.
Our model expects selling, general and administrative expenses (as a percentage of net revenues) to contract 40 basis points year over year to 28.8% during the quarter to be reported.
Comps
Favorable impact from diversified product lines, new product introductions and collaborations is expected to have boosted comps growth across all Williams-Sonoma’s key brands.
We expect Pottery Barn’s comps to grow 2.3% year over year. The same inched up 1.1% a year ago and 1% in the previously reported quarter. Our model predicts West Elm’s comps to increase 5.8% year over year in the fiscal second quarter. The metric witnessed a 3.3% increase a year ago, with an 8.5% surge in the last reported quarter.
We expect the namesake brand’s comps to be up 6.1% year over year. The metric witnessed 5.1% growth a year ago and a rise of 5% in the previously reported quarter. Our model expects Pottery Barn Kids and Teen’s comps growth to be 4.9%. The metric witnessed a 5.3% increase a year ago and a rise of 4.5% in the previously reported quarter.
What Our Model Says for Williams-SonomaOur proven model conclusively predicts an earnings beat for Williams-Sonoma this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
WSM’s Earnings ESP: The company has an Earnings ESP of +3.05%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
WSM’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With the Favorable CombinationsAccording to our model, the following peer companies also possess the right combination of elements to post an earnings beat in the upcoming quarter.
Macy's, Inc. (M - Free Report) has an Earnings ESP of +20.8% and a Zacks Rank of 2 at present.
Macy's reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 211%. The company’s earnings for the second quarter of fiscal 2026 are expected to be down year over year by 9.8%.
Wayfair Inc. (W - Free Report) currently has an Earnings ESP of +2.40% and a Zacks Rank of 3.
Wayfair’s earnings for the third quarter of 2026 are expected to increase 15.7% year over year. The company reported better-than-expected earnings in three of the last four quarters and met on the remaining occasion, the average surprise being 21.5%.
RH (RH - Free Report) currently has an Earnings ESP of +127.49% and a Zacks Rank of 3.
RH reported better-than-expected earnings in one of the trailing four quarters and missed on the remaining three occasions, the average negative surprise being 12.8%. The company’s earnings for the second quarter of fiscal 2026 are expected to decline year over year by 85.7%.
UWM Holdings Corporation čelí hromadné žalobě po zveřejnění ztráty z hedgingu ve výši více než 603 milionů USD a 34% propadu akcií 6. srpna 2026. Firma zároveň oznámila silně ředící rekapitalizační plán.
, /PRNewswire/ -- UWM Holdings Corporation (NYSE: UWMC) faces a securities class action lawsuit after the price of their shares cratered 34% on August 6, 2026 in response to revelations that the company suffered over a $603 million hedge loss associated with its failed bid to acquire Two Harbors Investment Corp. and, as a result, agreed to a plan to massively dilute existing shareholders.
Hagens Berman is investigating the alleged claims and encourages UWM investors who suffered substantial losses to submit your losses now.
Key Details
Class Period: Mar. 9, 2026 – Aug. 5, 2026
Lead Plaintiff Deadline: Oct. 13, 2026
Visit: www.hbsslaw.com/cases/uwm
Contact the Firm Now: [email protected]
844-916-0895
UWM Holdings Corporation (UWMC) Securities Class Action:
The suit centers on UWM's disclosures about its hedging strategy in connection with its attempt to acquire Two Harbors.
On December 17, 2025, mortgage lender UWM announced that it and mortgage servicing rights ("MSR") company Two Harbors entered into a merger agreement pursuant to which UWM would acquire Two Harbors for about $1.3 billion in UWM stock. Two Harbors was free to receive proposals superior to UWM's.
In connection with the proposed acquisition, UWM entered into significant hedging transactions against Two Harbors' MSR portfolio whose value typically and rapidly changes based on interest rates and homeowner refinancing speeds.
The complaint alleges that UWM did not disclose that it over-hedged in connection with its attempt to take over Two Harbors. The danger to this is that if an acquisition falls through the massive hedge left behind can turn into a speculative gamble.
Over four months ago, on March 27, 2026, Two Harbors announced that it entered a definitive merger agreement with CrossCountry Mortgage in a cash transaction and that it terminated its previous deal with UWM and would pay UWM the termination fee.
Although UWM had disclosed certain information about having hedged the transaction before March 27, investors did not learn the truth of the company's exposure until August 6, 2026. That day UWM reported three important things.
First, the company reported a massive $451 million net loss and roughly a $603 million hedging loss. Management revealed, apparently for the first time, that "we were over-hedged" and "obviously, the Two Harbors transaction went away."
Second, UWM disclosed that its total equity sequentially plunged by about $615 million, or a whopping 38%.
On top of that and third, UWM told shareholders in essence that, as a result of the foregoing, it entered into a massively dilutive recapitalization plan.
The market swiftly reacted, sending the price of UWM shares sharply lower that day. Between December 17, 2025, the day of the Two Harbors acquisition announcement, and August 6, 2026, the price Of UWM shares has declined by about $3.65 or 75%.
Hagens Berman's Investigation
"We're focused on UWM's explanations for why it refrained from unwinding its hedges months ago and why management seemingly went virtually silent on the naked hedging risks until recently," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in UWM and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now »
Whistleblowers: Persons with non-public information regarding UWM should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Akamai ve 2. čtvrtletí 2026 zvýšil tržby CIS o 39 % na 99 milionů USD díky poptávce po AI a kapacitě GPU. Firma čeká, že CIS v roce 2026 poroste alespoň o 50 % v konstantní měně.
Key Takeaways Akamai's CIS revenues rose 39% year over year to $99 million in Q2 2026.Rising demand for AI workloads and GPU capacity is driving growth in Akamai's cloud infrastructure business.Akamai signed more than $2.8 billion in multi-year CIS commitments and expects at least 50% 2026 growth. Akamai Technologies, Inc. (AKAM - Free Report) is benefiting from solid demand in the Cloud Infrastructure Services (CIS) segment. The segment generated $99 million of revenues in the second quarter of 2026, up 39% year over year.
Its CIS business is benefiting primarily from the rapid expansion of artificial intelligence (AI) workloads. AI adoption is moving beyond model training toward inference and AI-agent applications. These enterprises increasingly need computing resources to ensure low latency. Akamai is positioning its distributed infrastructure to process these workloads closer to end users. Rather than relying on centralized data centers, this approach is boosting responsiveness while reducing latency.
Strong demand for GPU (Graphics Processing Unit) capacity for AI inference and compute-intensive applications is another growth driver. Akamai reported that its existing GPU capacity was completely sold out, prompting the company to expand its infrastructure to accommodate other customers. AKAM expects to invest up to $500 million in additional capital expenditure to support the growing demand.
In fiscal 2026, the company has signed more than $2.8 billion in multi-year CIS commitments, including a more than $600 million, four-year agreement with a U.S. tech company for robotics-related infrastructure. These large, multi-year enterprise contracts will likely ensure long-term sustainable growth in this segment.
Akamai’s global and distributed infrastructure footprint is a major advantage. The company has infrastructure deployed across more than 700 cities in 130 countries. This allows it to combine core cloud capacity with edge computing. The company expects CIS revenues to grow at least 50% in constant currency for full-year 2026.
Other Tech Companies in Cloud Infrastructure DomainCoreWeave (CRWV - Free Report) is emerging as a major player in AI-focused cloud infrastructure. In the second quarter of 2026, the company generated record revenues of $2.6 billion, representing 112% year-over-year growth, while its revenue backlog reached $104 billion. The company is witnessing solid demand for its GPU capacity. Managed inference is becoming an increasingly important growth vertical for CoreWeave as AI moves from experimentation and development to production and inference. In 2026, CRWV expects to generate at least $250 million of managed inference average recurring revenue.
Oracle Corporation's (ORCL - Free Report) cloud infrastructure business is experiencing solid momentum, with multi-cloud database services gaining significant traction across enterprise customers. Its end-to-end technology stack, spanning database, applications, and infrastructure, creates unique value for enterprise customers seeking simplified vendor relationships and seamless integration. The company's ability to deliver complete solutions reduces implementation complexity and total cost of ownership, strengthening customer loyalty and increasing wallet share. In the fourth quarter, Oracle’s cloud revenues (SaaS plus IaaS) increased 47% in USD and 46% in constant currency to $9.9 billion.
AKAM’s Price Performance, Valuation & EstimatesAkamai shares have rallied 44.3% over the past year compared with the industry’s 57.6% growth.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 15.79 forward earnings, lower than 20.41 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined, while those for 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Akamai stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways AMC posted record revenues and EBITDA, but leverage remains above its long-term target.Cinemark's record EBITDA and 27.1% margin show strong conversion of box-office gains into profits.CNK's premium formats, younger audiences and merchandise rise provide additional growth avenues. The movie theater industry is showing signs of resilience as audiences return to the big screen and studios deliver a stronger lineup of major releases. Against this backdrop, AMC Entertainment Holdings, Inc. (AMC - Free Report) and Cinemark Holdings, Inc. (CNK - Free Report) are competing to capture improving box-office demand while navigating high operating costs and evolving consumer preferences.
Both stocks offer exposure to a potential recovery in theatrical entertainment, but differences in financial strength, growth prospects and valuation could make one a more attractive investment than the other.
The Case for AMCAMC Entertainment delivered a record-breaking second quarter, with revenues climbing 14.2% year over year to $1.6 billion and adjusted EBITDA surging 70% to $321.4 million. Attendance rose 13.5% to more than 71 million guests, while U.S. admissions revenues increased 11.4%, ahead of domestic box-office growth. The strong performance shows that AMC is benefiting not only from a healthier movie slate but also from improved execution and higher spending per customer.
Another positive is AMC's ability to translate revenue growth into stronger profitability and cash generation. Adjusted EBITDA margin expanded to 20.1% from 13.6% a year ago, supported by cost controls and operating leverage. Food, beverage and merchandise revenues increased 15.3%, while total revenue per patron reached record levels in both its U.S. and international businesses. AMC also generated $190.1 million in free cash flow during the quarter, highlighting the improving economics of its operations.
It also has several avenues to sustain growth as the theatrical market improves. The company expects 2026 to be its strongest post-pandemic year for the domestic and global box office, with a strong film lineup ahead. Its premium-format footprint is a major advantage, with IMAX, Dolby and other enhanced screens commanding higher prices and generating a disproportionate share of ticket revenues. Meanwhile, AMC's loyalty programs, including more than 1.1 million A-List members, provide a recurring customer base and help drive theater visits.
The biggest concern remains AMC's balance sheet. Although the company has reduced debt substantially and pushed significant maturities beyond 2029, management said leverage is still above its long-term target of around 3x, with the current level below 6.5x. AMC also raised capital through equity offerings during the quarter, strengthening liquidity but carrying the risk of shareholder dilution. The company still needs sustained box-office growth and further debt reduction to improve its financial position fully.
The Case for CNKCinemark delivered a record second quarter, with worldwide revenues surpassing $1 billion for the first time. Adjusted EBITDA reached an all-time high of $294 million, while the 27.1% margin was near the company's historical peak. Strong admissions, concession sales, premium-format performance and loyalty activity helped drive the results, showing that Cinemark is effectively converting stronger box-office trends into improved profitability.
Cinemark also has several growth levers beyond traditional ticket sales. Management sees further room to expand premium offerings such as XD, IMAX, ScreenX and D-BOX, which can support higher per-patron spending. The company added 112 D-BOX auditoriums, 12 ScreenX screens, seven XDs and two IMAX screens during the first half of 2026, while management said additional opportunities remain. Its international business is another potential contributor, with market-share gains, higher ticket prices and concession spending supporting record adjusted EBITDA and margins in Latin America.
The company is also benefiting from changing moviegoing habits, particularly among younger audiences. Cinemark said movie frequency among consumers under 25 was up roughly 20% year over year, while creator-led, anime, foreign and other nontraditional films are bringing new audiences into theaters. Its marketing efforts increasingly use social, digital and influencer channels to reach these moviegoers. In addition, Cinemark's merchandise business posted record quarterly sales of $25 million, providing another avenue to lift per-capita revenues and deepen engagement with major film releases.
A key risk is that Cinemark's strong performance remains closely tied to the quality and timing of movie releases. Management noted that periods of concentrated film launches can create capacity constraints, while the eventual performance of individual movies remains difficult to predict. In addition, rising electricity costs, particularly in markets such as Texas, are expected to pressure expenses in the second half of 2026. These factors could limit margin expansion if box-office momentum weakens or operating costs rise faster than revenues.
How Does the Zacks Consensus Estimate Compare for AMC & CNK?The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS implies year-over-year growth of 13.3% and 77.1%, respectively. In the past 30 days, loss estimates for 2026 have widened but have narrowed for 2027.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cinemark's 2026 sales and EPS indicates a year-over-year increase of 14.1% and 126.9%, respectively. Earnings estimates for 2026 and 2027 have witnessed upward revisions in the past 30 days.
Image Source: Zacks Investment Research
Price Performance & ValuationAMC stock has surged 119.8% in the past six months, against the S&P 500’s 10.2% decrease. Conversely, CNK’s shares have gained 40.7% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
AMC is trading at a forward 12-month price-to-sales ratio of 0.41X, above its median of 0.24X over the past year. CNK's forward sales multiple is 1.17X, above its median of 0.93X over the same time frame.
P/S (F12M)
Image Source: Zacks Investment Research
Wrapping UpCinemark appears slightly better positioned than AMC at this stage. CNK’s advantage stems from its stronger profitability profile, improving earnings outlook and upward estimate revisions, while premium formats, growing engagement among younger audiences and expanding merchandise sales provide additional growth avenues.
AMC has delivered impressive operating growth and stronger stock performance, but its elevated financial leverage and reliance on equity raises remain notable concerns. Although AMC offers a lower sales multiple, CNK presents a more balanced combination of financial strength, earnings momentum and growth prospects. Overall, CNK has a slight edge over AMC at present. Both AMC and CNK carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acadia získala v EU schválení pro Daybu k léčbě neurobehaviorálních příznaků Rettova syndromu u dospělých a pediatrických pacientů od pěti let věku. Jde o první a jedinou schválenou léčbu pro tuto indikaci.
Key Takeaways Acadia gained EU approval for Daybu, the first and only approved Rett syndrome treatment in the EU.Daybu is approved for neurobehavioral symptoms of Rett syndrome in adults and children aged five and older.The LAVENDER study showed meaningful improvements in Rett syndrome behavior and global impression. Acadia Pharmaceuticals (ACAD - Free Report) announced that the European Commission (EC) has granted marketing authorization for Daybu (trofinetide) to treat neurobehavioral symptoms of Rett syndrome in adults and pediatric patients aged five years and older. The nod marks a major regulatory milestone for the therapy as it is now the first and only treatment approved for this indication in the EU.
The EU approval enables Acadia to expand Daybu’s commercial footprint across all 27 EU member states, as well as Iceland, Liechtenstein and Norway, strengthening the long-term growth potential of its rare disease franchise. As a next step, Acadia will now begin pricing and reimbursement negotiations with relevant national authorities to potentially bring Daybu to patients across the EU.
The EC approval was expected as the advisory committee to the European Medicines Agency adopted a positive opinion in June 2026 recommending the approval of Daybu for Rett Syndrome. It is a rare, neurodevelopmental disorder marked by developmental regression, severe motor impairment and lifelong care needs. The FDA approved trofinetide as the first and only treatment for Rett syndrome in adults and pediatric patients aged two years and older in 2023. The drug is marketed under the brand name Daybue in the United States. Daybue is also marketed (and available) in Canada and Israel for the same indication.
The EC approval is primarily supported by data from the pivotal phase III LAVENDER study, which demonstrated statistically significant and clinically meaningful improvements in key measures of Rett syndrome. The study met its co-primary endpoints, showing benefits on the Rett Syndrome Behavior Questionnaire and the Clinical Global Impression-Improvement scale, indicating that Daybu can improve some of the core neurobehavioral manifestations of the disease that substantially affect patients' daily functioning and caregiver burden.
Year to date, Acadia shares have gained 10.5% compared with the industry’s 11.1% growth.
Image Source: Zacks Investment Research
ACAD's Marketed Drugs Expected to Aid GrowthAcadia’s long-term growth is anchored by its two marketed products, Nuplazid and Daybue. The company continues to target approximately $1.7 billion in combined annual net sales by 2028, including roughly $1 billion for Nuplazid and $700 million for Daybue.
Nuplazid is the first and only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis in the United States. The drug enjoys patent protection in the United States until 2038, giving it a long runway for revenue generation by protecting against generic erosion. In the first half of 2026, Nuplazid generated $350.1 million in net product sales, up 7% from the year-ago period. The increase was primarily driven by higher unit sales, highlighting continued underlying demand for the drug.
Since its launch in 2023, Daybue has witnessed encouraging sales uptake. The therapy generated $226 million in net product sales in the first half of 2026, up 25% year over year, with the increase primarily reflecting higher unit sales. The EU approval of the drug is expected to further boost sales in the upcoming quarters.
Meanwhile, Daybue STIX, a dye- and preservative-free powder formulation of trofinetide, was broadly launched in the United States in the second quarter of 2026. The formulation provides patients and caregivers greater flexibility while maintaining the same efficacy and safety profile as the original oral solution. Its strong uptake contributed to Daybue’s 30% year-over-year sales growth in the second quarter.
Overall, Acadia’s commercial portfolio remains on a solid growth trajectory. Following second-quarter results, the company raised its 2026 Daybue sales projection to $480-$510 million from the previous guided range of $460-$490 million while maintaining Nuplazid sales guidance of $760-$790 million.
ACAD's Zacks Rank & Stocks to ConsiderAcadia currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Amneal Pharmaceuticals (AMRX - Free Report) , Repligen (RGEN - Free Report) and AC Immune (ACIU - Free Report) . AMRX and RGEN currently sport a Zacks Rank #1 (Strong Buy) each, while ACIU carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, earnings estimates for Amneal Pharmaceuticals have increased from $1.00 to $1.02 for 2026. Over the same period, earnings estimates increased from $1.12 to $1.21 for 2027. AMRX shares have risen 42.1% year to date.
Amneal Pharmaceuticals beat earnings in each of the trailing four quarters, delivering an average surprise of 32.82%.
Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.61. RGEN shares have gained 10.6% year to date.
Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.
Over the past 60 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU shares have lost 7.7% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
EOG ve 2. čtvrtletí zvýšil upravený zisk o 118,5 % na 5,07 USD na akcii a tržby o 57,4 % na 8,62 miliardy USD. Produkce vzrostla o 24,4 % na 1 410,4 Mboe/d.
Key Takeaways EOG's Q2 2026 earnings rose 118.5%, while production increased 24.4% to 1,410.4 Mboe/d.EOG estimates 12 BBoe/d of resource potential, supporting targeted production growth in 2026.EOG generated $2.8 billion of free cash flow and returned $1.83 billion through dividends and buybacks. EOG Resources, Inc. (EOG - Free Report) shares have gained 14.8% in the past 12 weeks. The move has been backed by a stronger second quarter, higher production and a 4.2% increase in the Zacks Consensus Estimate for the current fiscal year's earnings over the past four weeks.
The rally has also raised the bar. EOG's valuation is slightly above its five-year median, while the Zacks Consensus Estimate points to lower earnings in 2027.
EOG's Q2 Strength Supports the Rally CaseSecond-quarter 2026 adjusted earnings increased 118.5% to $5.07 per share and topped the Zacks Consensus Estimate of $5.01 by 1.2%. Revenues rose 57.4% to $8.62 billion and beat the consensus mark by 9.6%.
Total production increased 24.4% to 1,410.4 thousand barrels of oil equivalent per day (Mboe/d). Crude oil and condensate volumes rose 8.8%, while their composite realized price increased 51.4% to $98.15 per barrel.
EOG Resources Has More Inventory to Extend GrowthEOG estimates about 12 billion barrels of oil equivalent (BBoe/d) of resource potential across its multi-basin portfolio and cites direct after-tax returns above 100% at $55 WTI. That depth supports flexibility as EOG targets 5% oil production growth and 14% total production growth in 2026.
The Encino acquisition expanded EOG's Utica position to about 1.1 million net acres. Roughly 60,000 net Austin Chalk acres add about one year of inventory at current activity levels, while two initial UAE wells each produced more than 25,000 barrels during their first 30 days.
EOG's Free Cash Flow Adds Support for ShareholdersSecond-quarter free cash flow reached $2.8 billion, up from $973 million a year earlier, as adjusted cash flow from operations increased to $4.39 billion. That gives EOG room to fund development while maintaining shareholder distributions.
EOG paid $540 million in regular dividends and repurchased $1.29 billion of shares during the quarter. The company targets returning at least 70% of annual free cash flow to shareholders, with $11.7 billion remaining under its repurchase authorization at June-end.
EOG Valuation Signals Higher Expectations AheadEOG's forward 12-month price-to-sales ratio is 2.82, slightly above its five-year median of 2.76 but below 3.60 for the Zacks sub-industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings is $16.87 per share for 2026 before falling to $14.12 in 2027, increasing the importance of execution.
Image Source: Zacks Investment Research
Devon Energy Corporation (DVN - Free Report) operates across several U.S. oil and gas plays, including the Delaware Basin and Eagle Ford, making it a relevant diversified shale comparison. Diamondback Energy, Inc. (FANG - Free Report) focuses primarily on unconventional oil and gas reserves in the Permian Basin in West Texas, providing a more concentrated Permian peer.
EOG's Style Mix Keeps the Setup BalancedThe rally still has operating and cash-flow support, but the setup is less one-sided after the recent advance. Deep inventory, production growth and cash returns remain positives, while valuation and the lower 2027 earnings estimate leave less room for disappointment.
EOG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
It has a Growth Score of A, Momentum Score of A, Value Score of B and VGM Score of A. Those grades indicate favorable growth, momentum and blended style characteristics, but the Style Scores complement rather than override the Zacks Rank. The combination points to a balanced near-term setup rather than an aggressively bullish signal.
Marvell v 1. čtvrtletí fiskálního roku 2027 zvýšil tržby o 27,57 % na 2,418 mld. USD a datacentrové tržby dosáhly 1,8327 mld. USD. Firma zároveň zvýšila výhled a čeká ve fiskálním roce 2028 tržby kolem 16,5 mld. USD.
I keep hitting the buy button on Marvell Technology (NASDAQ:MRVL | MRVL Price Prediction), and the loudest bear argument against it, customer concentration, is the exact reason I keep buying more. Anyone telling you Marvell is one hyperscaler decision away from a cliff is working off a story that stopped matching the receipts a year ago.
What Actually Sits Inside That 76% Data Center Number Yes, the data center segment produced 76% of total revenue in Q1 FY2027. Management describes custom AI design activity at an all-time high, with “over 50 new opportunities across more than 10 customers”. Marvell ships DCI solutions to all five major US hyperscalers and secured design wins with three Tier 1 US hyperscalers on its Golden Cable AEC program. That reads as broad platform participation across the entire buyer pool.
The piece that pushed me to a conviction position is the Google commercial agreement, a warrant tied to 240 distinct revenue tranches at $500 million each through 2033, incentivizing up to $120 billion in custom product purchases. When one of the world’s most disciplined buyers hands you a contract running almost a decade, that is an institutional moat wearing the mask of concentration. Layer on the Celestial AI acquisition, closed February 2, 2026, and XConn Technologies, closed February 10, 2026, and Marvell now owns photonic fabric and chiplet connectivity assets that carry it end-to-end from XPU to switch.
Numbers That Keep My Money Flowing In Fiscal 2026 closed with revenue of $8.195 billion, up 42.09% and non-GAAP EPS of $2.84, up 81%. Q1 FY2027 followed with revenue of $2.418 billion, up 27.57% YoY, data center revenue of $1.8327 billion, a non-GAAP operating margin of 35.0%, and free cash flow of $483.1 million, up 126.81%. Cash and equivalents sit at $3.8436 billion, up 333.86% year over year.
Capital return backs the growth. Marvell repurchased $2,040.1 million of stock in fiscal 2026 and another $200 million in Q1 FY2027, while paying a $0.06 quarterly dividend. Management raised the outlook for both fiscal 2027 and fiscal 2028, guiding total-company fiscal 2028 revenue of approximately $16.5 billion with custom revenue more than doubling year over year.
Why I Pass on Broadcom and NVIDIA Broadcom (NASDAQ:AVGO) is the closest custom silicon peer, and NVIDIA (NASDAQ:NVDA) is the default AI reflex trade. I own neither in the size I own Marvell. A forward P/E of 58 against a fiscal 2028 custom business expected to more than double year over year and a custom revenue target of over $10 billion in fiscal 2029 is math I am happy to keep funding. Marvell’s numbers describe that ramp more directly than either alternative.
Risk I Am Not Waving Away Q1 FY2027 net income came in at $34.5 million, down 80.61% YoY, driven by a $331.8 million contingent consideration fair-value charge and stock-based compensation rising to $207.6 million from $142.1 million. Integrating Celestial AI and XConn carries execution risk that will take quarters to work through. The stock carries a beta of 2.246 and a 52-week range from $61.31 to $329.80, so I size for volatility. Operating cash flow still printed a record $638.8 million, up 91.89%, and the design win pipeline funding fiscal 2028 was “already won and locked” before the quarter started.
What Keeps the Buy Button Active Marvell told the market revenue growth will accelerate each quarter of fiscal 2027, custom will more than double in fiscal 2028, and the fiscal 2029 target sits above $10 billion in custom alone. As long as those receipts keep landing on schedule, my orders keep landing with them.
Contact [email protected] for any questions or corrections.
JPMorgan ponechává Marvell mezi svými nejlepšími čipovými tipy a čeká silné výsledky za 2. fiskální čtvrtletí i vyšší výhled tržeb na 3. čtvrtletí. Důvodem je rostoucí poptávka po AI a čipech pro datová centra.
Marvell Technology Inc. (NASDAQ:MRVL) remains one of JPMorgan’s top semiconductor picks as the firm expects solid fiscal second-quarter results and a stronger-than-expected third-quarter outlook.
JPMorgan analyst Harlan Sur reiterated an Overweight rating on Marvell in a Monday note. The firm said Marvell’s data center growth story has strengthened over the past 90 days, helped by demand for optical chips, switching products and custom silicon.
The company will report its second-quarter fiscal 2027 earnings on Thursday, August 27, 2026, after the market close.
AI Chip Demand Drives OutlookJPMorgan expects Marvell to report fiscal second-quarter results in line with or slightly above consensus. The firm cited strong demand for optical DSPs used in 1.6T and 800G programs, as well as traction for Teralynx 10 switching products.
The analyst also expects Marvell’s custom silicon business to benefit from the early ramp of Amazon.com Inc.’s (NASDAQ:AMZN) next-generation AWS Trainium 3 XPU ASIC program. Volumes are expected to build more meaningfully in the second half of the year.
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For the fiscal third quarter, JPMorgan expects revenue guidance above the Street estimate of $3.03 billion. The firm said guidance could come closer to $3.1 billion, implying 13% to 14% sequential revenue growth.
Data Center Forecast In FocusThe bigger question for investors may be Marvell’s outlook for calendar 2027 and 2028 data center growth.
JPMorgan said current expectations call for 55% year-over-year data center growth in calendar 2027. The firm sees upside to that forecast, driven by optical strength, Trainium 3 volumes, Microsoft Corp.’s (NASDAQ:MSFT) Maia program and broader XPU-attach opportunities.
Marvell’s expanded partnership with Alphabet Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google also supports the bull case, JPMorgan said. The firm said the deal validates Marvell’s role in silicon used around AI accelerators, including storage controllers, networking chips, memory-interface controllers and AI inference offload engines.
JPMorgan said the setup could give Marvell a clearer path toward calendar 2028 earnings power near $11 per share, above the current Street estimate of $9.64.
MRVL Price Action: Marvell Technology shares were down 4.08% at $227.36 at the time of publication on Monday, according to Benzinga Pro data.
Photo via Shutterstock
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Coca-Cola ve 2. čtvrtletí 2026 zvýšila objem značky Coca-Cola o 5 %, což je nejsilnější růst za 17 let mimo období po covidu. Fairlife vzrostla o 18 %.
Key Takeaways Coca-Cola is adapting to shifting tastes with growth across flagship, hydration, dairy and juice brands.Trademark Coca-Cola volume rose 5% in Q2'26, its strongest growth in 17 years, excluding COVID recovery.Fairlife grew 18% in Q2 as capacity ramped, while Coca-Cola Zero Zero expanded globally after Europe gains. The Coca-Cola Company (KO - Free Report) continues to adapt its beverage portfolio as consumer preferences evolve, reducing the risk that changing tastes could materially undermine its core business. While management does not specifically identify health-conscious consumption as a threat, Coca-Cola emphasizes its ability to respond quickly to changing consumer needs and remain relevant across different drinking occasions.
Recent performance suggests that the company’s traditional brands continue to hold consumer appeal. Trademark Coca-Cola volume grew 5% in the second quarter of 2026, marking its strongest growth in 17 years, excluding the COVID recovery period. At the same time, Powerade volume increased 8% globally.
Coca-Cola is also broadening participation across beverage categories. In North America, volume growth was supported by several brands beyond traditional sparkling beverages, including fairlife, Powerade, Gold Peak, smartwater and Simply. This breadth underscores Coca-Cola’s ability to participate across different beverage categories and consumption occasions rather than relying solely on its flagship carbonated brands.
Fairlife remains an important part of this diversification. The brand grew 18% in the second quarter, with demand remaining strong as Coca-Cola continued ramping up capacity at its Webster facility. The company is currently prioritizing availability of its core fairlife products, while additional innovation is expected as production flexibility improves.
The company is simultaneously extending existing brands into new occasions. Coca-Cola Zero Zero is being expanded globally following encouraging initial performance in Europe, highlighting efforts to keep the trademark relevant across more occasions and consumer needs.
Overall, Coca-Cola appears well-positioned to respond to evolving beverage preferences through portfolio breadth and innovation. Taken together, growth across flagship and diversified beverage brands suggests that the company is addressing shifting demand without relying on a single category.
How Consumer Health Trends Are Working for Peers: PEP & MNSTPepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) are also reshaping their portfolios and innovation strategies to capture evolving consumer demand for beverages aligned with health, wellness and functional benefits.
PepsiCo is navigating shifting consumer health preferences by expanding functional, zero-sugar and permissible offerings across beverages and snacks. Gatorade Lower Sugar, Propel, Pepsi Zero Sugar and other better-for-you products performed well, while the company is adding protein, fiber and simpler-ingredient options. Still, North America beverage volumes remained subdued, showing that portfolio evolution has not fully offset broader category softness. PepsiCo plans continued innovation and investment to align with changing demand.
Monster Beverage is adapting well to shifting consumer health preferences, with zero-sugar products emerging as a major growth engine. Its zero-sugar portfolio remained a significant contributor to U.S. growth, while the Ultra family grew 19% in the second quarter. In Europe, zero sugar accounted for most category growth, and Monster led the segment. The company is also using smaller can sizes and innovation to attract broader, younger and female consumers.
Zacks Rundown for Coca-ColaKO shares have rallied 11.8% in the past three months compared with the industry’s o 5.7% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 26.47X, higher than the industry’s 20.05X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 9.7% and 7.1%, respectively. Earnings estimates for 2026 and 2027 have moved up 0.92% and 1.1% in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zillow ve 2. čtvrtletí zvýšil tržby o 18 % na 772 mil. USD, tažený růstem Rentals o 31 % a Mortgages o 75 %. Tržby Opendooru naopak meziročně klesly o 43,7 % na 883 mil. USD.
Key Takeaways Zillow's Q2 revenues rose 18%, led by 31% growth in Rentals and a 75% surge in Mortgage revenues.Opendoor's Q2 revenues fell 43.7% to $883M as housing weakness constrained acquisition and resale activity.ZG's 9.85% ROE exceeds OPEN's negative average, highlighting stronger shareholder returns. Real estate technology companies Opendoor Technologies Inc. (OPEN - Free Report) and Zillow Group, Inc. (ZG - Free Report) are currently operating in a rocky housing market. With the 30-year fixed mortgage rate hovering above 6% since March 2026, per Freddie Mac, the residential market in the United States is experiencing muted demand as homebuyers are staying away from homeownership.
Nonetheless, these two housing-tech companies are undergoing several initiatives to keep up their profitability and revenue streams.
Opendoor operates a technology-driven residential real estate platform that simplifies home buying and selling by purchasing homes directly from sellers, renovating and reselling them, while using AI to automate pricing, underwriting and operations. Meanwhile, Zillow operates a digital residential real estate marketplace and increasingly an end-to-end real estate transaction platform, connecting buyers, sellers, renters and agents while monetizing through agent partnerships, mortgage lending, rentals, listing products and professional software.
Let’s closely compare the fundamentals of the two real estate stocks for a better investment decision.
The Case for Opendoor StockOpendoor is operating against a difficult U.S. housing backdrop, with elevated mortgage rates, affordability pressures and weak transaction volumes limiting housing market activity. Existing home sales remain near a 30-year low of around 4 million units annually, roughly 20% below the pre-pandemic decade average. Home prices were broadly flat year over year as of June 2026, while seller-buyer disconnect remained evident, with delistings at record levels. These conditions can constrain both acquisition and resale activity, potentially extending inventory holding periods and pressuring margins. Opendoor’s second-quarter 2026 revenues fell 43.7% year over year to $883 million.
Opendoor’s ambitious turnaround depends heavily on successfully scaling AI, mortgage, new transaction models and other technology initiatives. While AI is improving underwriting and operational productivity, the company is increasing fixed operating expenses to fund engineering and AI investments. Cash also declined as OPEN deployed more than $700 million to rebuild inventory, leaving the business exposed to financing and housing-market risks. Its mortgage product remains relatively early-stage, with licensing still progressing across states and management acknowledging that it has more work to do despite strong early adoption. The planned transition toward capital-light 2P and marketplace-based 3P transactions also remains unproven.
OPEN’s second-quarter 2026 net loss also widened to $162 million from $29 million a year earlier. The company’s third-quarter 2026 outlook anticipates contribution margin falling to 4-4.5% amid seasonal weakness, with a prolonged housing slowdown remaining a key overhang on sustainable growth and profitability. Management described the current market as the weakest housing market in a generation, creating uncertainty around future homebuyer and seller demand.
However, Opendoor is broadening its service platform through acquisitions and strategic partnerships, potentially creating additional revenue opportunities beyond buying and selling homes. It completed its acquisition of Doma’s closing and escrow operations in July 2026, strengthening its ability to provide a more integrated real estate transaction experience. Besides, OPEN is demonstrating meaningful progress in controlling costs while improving its unit economics. The combination of higher volumes, lower variable costs and faster inventory turnover provides a stronger foundation for Opendoor’s targeted adjusted net income profitability by year-end 2026.
The Case for Zillow StockZillow is successfully reducing its dependence on housing transaction volumes by expanding Rentals, Mortgages and agent-focused services. Its second-quarter 2026 revenues rose 18% year over year to $772 million, while Rentals revenues climbed 31% and Mortgages revenues surged 75%. The company’s shift toward the Preferred agent model is also increasing revenue per connection. Zillow is expanding its rental reach through Google Gemini’s connected apps ecosystem. Meanwhile, the company is integrating mortgage pre-approval, agent services and transaction tools into its platform. This end-to-end strategy allows ZG to capture revenues across multiple stages of the housing journey, helping sustain mid-teens growth despite an uncertain housing environment.
Besides, Zillow is using AI mode to make its platform more personalized and increase consumer engagement. AI users spend more than three times longer on ZG, view more than twice as many homes and contact agents at nearly three times the rate of non-AI users. The company is also integrating AI into agent tools through Follow Up Boss and Likely to List. By connecting search, financing, agents and transactions, Zillow aims to increase monetization even when overall housing-market activity remains subdued.
However, higher mortgage rates and affordability pressures are increasingly weighing on purchase activity. Zillow expects industry purchase mortgage originations to decline low- to mid-single digits for the remainder of 2026 compared with its previous expectation of flat growth. The company expects third-quarter 2026 For Sale revenue growth of only 5-7% year over year, while Residential revenues are expected to remain flat. ZG’s diversified model provides some protection, but a prolonged housing slowdown could constrain lead volumes, agent connections and mortgage originations.
Despite Zillow’s market-share gains, average monthly unique users fell 2% year over year to 239 million, while visits declined 2% to 2.5 billion. Higher lead acquisition and mortgage processing costs also pressured expenses, while second-quarter 2026 results showed a $4 million net loss. Zillow is simultaneously restructuring its workforce to improve efficiency. Although AI, Rentals and integrated transactions offer growth avenues, execution risks, higher costs, mortgage volatility and regulatory/legal pressures could challenge profitability if housing conditions deteriorate further.
Stock Performance & ValuationAs witnessed from the chart below, over the past three months, the share price performance of Zillow has been above Opendoor’s performance and the Computer and Technology sector, even though they all reflect declining trends.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Zillow has been trading above Opendoor on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that ZG stock offers a diminishing growth trend but with a premium valuation, while OPEN stock offers a declining growth trend with a discounted valuation.
Comparing EPS Estimate Trends: OPEN vs. ZGThe Zacks Consensus Estimate for OPEN’s 2026 and 2027 bottom line indicates a loss per share. Over the past 30 days, the loss per share has widened to 15 cents and three cents, respectively. Nonetheless, the estimated figures for 2026 and 2027 indicate year-over-year growth of 42.3% and 82.2%, respectively.
OPEN's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZG’s 2026 and 2027 earnings has trickled down in the past 30 days to $2.22 and $2.69 per share, respectively. However, the estimates for 2026 and 2027 imply year-over-year improvements of 35.4% and 21.3%, respectively.
ZG's EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of OPEN & ZG StocksZillow’s trailing 12-month ROE of 9.85% significantly exceeds Opendoor’s negative average, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Should Investors Choose ZG Stock or OPEN Stock?Zillow’s growth is being led by strong growth in Rentals and Mortgages, helping reduce its dependence on housing transaction volumes. Its AI-powered search, Preferred agent model and integrated mortgage and transaction offerings could further expand monetization as housing activity remains subdued. Yet, the company is not without risks. Falling user engagement, higher costs, mortgage-market weakness and downward earnings-estimate revisions could limit near-term upside. Its premium valuation also leaves less room for disappointment.
In contrast, Opendoor remains more exposed to home-price trends, transaction volumes and inventory financing. Although AI-driven underwriting, capital-light transaction models, mortgage expansion and the Doma acquisition could improve long-term economics, these initiatives still carry considerable execution risk.
Still, Zillow’s positive ROE, diversified revenue streams and stronger operating resilience outweigh Opendoor’s discounted valuation and turnaround potential. With ZG stock carrying a Zacks Rank #3 (Hold) compared with OPEN’s Zacks Rank #4 (Sell), Zillow stock appears to be the better choice for investors seeking relatively lower housing-market risk and more sustainable revenue growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delek US Holdings vykázala ve 2. čtvrtletí provozní peněžní tok 262,9 mil. USD i přes nepříznivý vliv pracovního kapitálu 137,9 mil. USD. Firma čeká zlepšení volného peněžního toku nejméně o 220 mil. USD ročně.
Key Takeaways Delek generated $262.9M in Q2 operating cash flow despite a $137.9M working-capital drag.DK targets at least $220M in annual free-cash-flow improvement from its Enterprise Optimization Plan.Delek ended June with $3.19B of long-term debt as renewable-fuel relief remains uncertain. Delek US Holdings, Inc. (DK - Free Report) is showing better cash generation as refining margins improve and its optimization program gains traction. Second-quarter results also benefited from higher throughput and improved reliability at Big Spring.
The investment case is not one-sided. DK still carries meaningful consolidated leverage, remains exposed to crack-spread volatility and faces uncertainty around renewable-fuel obligations. That mix makes valuation, execution and risk tolerance central to the buy-or-wait decision.
DK’s Cash Flow Story Is Getting StrongerCash provided by operating activities reached $262.9 million in the second quarter, even after $137.9 million of unfavorable working-capital changes. That performance suggests the underlying business converted a favorable operating environment into meaningful cash despite a sizable working-capital drag.
The Enterprise Optimization Plan gives investors another measurable cash-flow target. Management expects the program to deliver at least $220 million of annual free-cash-flow improvement, with most of the gains tied to margin enhancement across refining, logistics and wholesale operations.
Delek’s Valuation Still Looks Competitive
Image Source: Zacks Investment Research
DK trades at a forward price-to-earnings ratio of about 7.1 and a forward 12-month price-to-sales ratio of 0.36. The latter sits well below 1.61 for the Zacks sub-industry and 1.41 for the broader Zacks energy sector.
Those discounts strengthen the value argument, but they should not be read in isolation. Refiners can look inexpensive near periods of high profitability because earnings can fall quickly when crack spreads or crude differentials move against them.
DK’s Catalysts Depend on ExecutionBig Spring has performed better since its first-quarter turnaround, with management citing improved reliability, crude-slate flexibility, product yields, octane and blending capability. Delek also has no planned refinery turnarounds for the rest of 2026, which supports higher system availability.
Delek Logistics is another execution lever. The segment delivered record adjusted EBITDA of $143.5 million in the second quarter, and management reaffirmed 2026 EBITDA guidance of $520-$560 million as its integrated sour-gas solution moves closer to completion.
Delek Still Faces Refining and Regulatory RisksRefining remains the biggest source of variability. DK’s benchmark crack spreads rose 136% year over year in the second quarter as refining adjusted EBITDA climbed to $566.2 million from $114.8 million, underscoring how quickly earnings can change with market conditions.
Image Source: Delek US Holdings, Inc.
That industry sensitivity is visible elsewhere. Valero Energy Corporation (VLO - Free Report) reported second-quarter 2026 refining operating income of $4.5 billion amid stronger refining economics. Marathon Petroleum Corporation (MPC - Free Report) reported $6.7 billion of Refining & Marketing adjusted EBITDA and said higher crack spreads were the primary driver.
Balance-sheet and regulatory risks add another layer. Delek ended June with $3.19 billion of consolidated long-term debt and $2.56 billion of consolidated net debt. Second-quarter adjusted EBITDA also included a $148.6 million benefit from a 50% Renewable Volume Obligation adjustment, while the timing and outcome of additional small-refinery relief remain uncertain.
DK’s Strong Buy Signal Supports the Bull CaseDK’s improving cash generation, low valuation and better refinery reliability support a constructive investment case, but the stock remains best suited to investors comfortable with refining-cycle swings and regulatory uncertainty.
The stock currently sports a Zacks Rank #1 (Strong Buy), along with a Value Score of A, Growth Score of A and VGM Score of A. Those readings align with favorable value and growth characteristics and are strongest when paired with a top Zacks Rank.
The Momentum Score of C is less supportive, signaling that the stock’s momentum profile is not as favorable as its value and growth profiles. Even so, the combination of a top Zacks Rank and A-rated Value, Growth and VGM Scores keeps the bull case intact without eliminating the need for discipline around cycle risk. You can see the complete list of today’s Zacks #1 Rank stocks here.
Guardant Health musí zaplatit více než 245,2 milionu USD za úmyslné porušení dvou patentů Duplex Sequencing a dál odvádět 6% licenční poplatek až do března 2033.
A Delaware federal judge finalized a ruling ordering Guardant Health (NASDAQ:GH) to pay over $245.2 million to TwinStrand Biosciences and the University of Washington, cementing a November 2023 jury verdict that found Guardant willfully infringed on two Duplex Sequencing patents.
Financial PenaltyThe penalty covers willful infringement across 11 products and services that generated roughly 90% of Guardant Health’s revenue during the period. The total award includes an initial $83.4 million jury verdict through mid-2023, $19.5 million in post-trial damages through early 2024, $119.4 million from a 6% court-ordered royalty rate through May 2026, and $22.9 million in calculated interest.
Future Royalties And Validity AssuredMoving forward, the court mandates that Guardant Health submit quarterly accounting reports and pay an ongoing 6% royalty on the contested products until the patents officially expire in March 2033.
Any unpaid judgment balances will also continue accruing interest. Earlier in the litigation process, the judge rejected all counterclaims and dismissed the defense’s attempts to secure a new trial.
The final legal order explicitly upheld the validity of the two disputed patents. While separate administrative reviews remain active at the U.S. Patent and Trademark Office, neither patent is currently under review for invalidation.
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GH Stock Price Activity: Guardant Health shares were down 3.29% at $165.07 at the time of publication on Monday,
according to Benzinga Pro data.
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Ubiquiti ve 4. čtvrtletí překonala odhady zisku i výnosů, ale hrubá marže klesla mezikvartálně o 120 bazických bodů kvůli vyšším nákladům na komponenty a dopravu. Výnosy segmentu Service Provider Technology spadly o 13 %.
Key Takeaways UI beat Q4 earnings and revenue estimates as Enterprise Technology sales jumped 27.7%.Higher component and shipping costs cut Ubiquiti's gross margin 120 basis points sequentially.Service Provider Technology revenue fell 13% in Q4, increasing Ubiquiti's reliance on Enterprise Technology. Ubiquiti Inc. (UI - Free Report) delivered an impressive fourth-quarter fiscal 2026 performance, with both earnings and revenues comfortably surpassing the respective Zacks Consensus Estimate. Robust demand for the company’s Enterprise Technology products, particularly the UniFi ecosystem, continued to fuel top-line expansion.
However, the strong headline numbers fail to offset several concerns surrounding the stock. Rising component and logistics costs, persistent weakness in the Service Provider Technology business and the likelihood of growth moderation could limit upside from current levels. The company’s concentrated ownership structure and an unfavorable industry backdrop add to the headwinds.
Let us dig a little deeper into the underlying pros and cons of investing in the stock.
UI's Q4 Results ImpressUbiquiti reported non-GAAP earnings of $4.73 per share for the fiscal fourth quarter, beating the Zacks Consensus Estimate by 27.8%. The bottom line increased 33.6% from $3.54 reported in the prior-year quarter. Revenues climbed 23.5% year over year to a record $937.3 million and surpassed the consensus mark by 12.6%. The company topped both earnings and revenue estimates in each of the past four quarters.
Enterprise Technology remained the primary growth driver, with revenues surging 27.7% year over year to $868.3 million. For fiscal 2026, total revenues increased 27.2% to $3.27 billion, while non-GAAP earnings rose to $15.95 per share.
Ubiquiti exited the year with solid liquidity. Cash and cash equivalents plus short-term investments totaled $611.2 million as of June 30, 2026, while cash generated from operating activities reached $928.7 million during the fiscal year.
Margin Pressure Could Weigh on UI's ProfitabilityDespite these positives, several factors warrant caution. An immediate concern is the emerging pressure on gross margin. Although Ubiquiti’s fourth-quarter GAAP gross margin of 45.8% improved 70 basis points (bps) year over year, it contracted 120 bps sequentially from 47%.
Management attributed the sequential contraction primarily to higher component and shipping costs. Ubiquiti revealed that certain component costs increased during the quarter and could continue to rise, while component availability could remain constrained. If the company is unable to fully offset these increases through pricing and other measures, gross margin is likely to come under additional pressure in the near term. Supply constraints could also restrict Ubiquiti’s ability to meet demand.
Service Provider Technology: UI’s Achilles' HeelUbiquiti’s growth is becoming increasingly dependent on Enterprise Technology, while its Service Provider Technology portfolio continues to lose momentum. Service Provider Technology revenues declined to $69 million in the fiscal fourth quarter from $79 million a year earlier, representing a fall of roughly 13%. For fiscal 2026, revenues from the business decreased 5% to $301.9 million. In contrast, Enterprise Technology revenues surged 32% during the year and accounted for 91% of total revenues.
The growing dependence on Enterprise Technology exposes Ubiquiti to greater product-mix concentration. Continued weakness in its Service Provider portfolio could also make it more difficult to sustain the recent companywide growth rates if momentum in Enterprise Technology moderates.
Price PerformanceUbiquiti has gained 7.6% over the past year compared with the industry’s growth of 29.7%. It has outperformed peers like Comtech Telecommunications Corp. (CMTL - Free Report) but lagged InterDigital, Inc. (IDCC - Free Report) . While InterDigital has gained 29.2%, Comtech is down 12.8% over this period.
One-Year UI Stock Price Performance
Image Source: Zacks Investment Research
The Road AheadUbiquiti’s strong Enterprise Technology portfolio, expanding UniFi ecosystem, healthy cash generation and consistent earnings surprises remain encouraging. The fourth-quarter fiscal 2026 results reinforce the strength of underlying demand.
However, these positives should be weighed against emerging margin pressure from component and shipping costs, ongoing supply constraints, weakness in Service Provider Technology, slowing growth expectations and a premium valuation.
Ubiquiti currently carries a Zacks Rank #4 (Sell). Moreover, the Zacks Wireless Equipment industry is positioned in the bottom 24% of more than 250 Zacks industries, adding another reason for caution.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With increasing operational headwinds and unfavorable Zacks Rank, investors would be better off avoiding UI stock for now and waiting for a more attractive entry point or clearer evidence that strong growth and margins can be sustained in fiscal 2027.
AJG čeká v roce 2026 organický růst celofiremně kolem 6 %, tažený novým byznysem, udržením klientů a růstem expozice. Zároveň vykázala 25. čtvrtletí v řadě dvouciferný růst upraveného EBITDAC.
Key Takeaways AJG expects 6% total-company organic growth in 2026, led by new business and client retention. New business, exposure growth and diverse offerings support organic growth across Gallagher's businesses. AJG posted its 25th straight quarter of double-digit adjusted EBITDAC growth amid margin expansion. Arthur J. Gallagher & Co. (AJG - Free Report) appears well positioned to sustain around 6% organic growth and continue expanding underlying margins even as insurance pricing moderates. However, the mix of growth is likely to shift away from rate-driven growth toward new business, client retention, exposure growth, productivity and acquisitions.
AJG witnessed another solid quarter of organic growth across each business and geography. AJG projects a total company organic outlook of 6%, brokerage at 5.5% and risk management at 9% for 2026. AJG expects 2026 will be another year of excellent organic growth.
For the combined Brokerage and Risk Management segments, growing both organically and through acquisitions delivered total revenue growth of 24% in the second quarter of 2026. Organic growth was 6%, reflecting continued strength across each of the businesses.
The bigger drivers of Organic growth remain new business, strong client retention, exposure growth and the diversity of the model across P/C, benefits, reinsurance and claims. AJG is also gaining from activity across construction, infrastructure, energy and data centers. These areas create new, more complex client needs, requiring more advice, broader capabilities and deeper expertise, which play directly into Arthur J. Gallagher's advisory strengths.
Arthur J. Gallagher recorded its 25th consecutive quarter of double-digit adjusted EBITDAC growth, while management highlighted continued underlying margin expansion. Productivity and quality improvement are among AJG's four long-term strategic pillars.
The acquisition of AssuredPartners is now nearly a year into integration, with management reporting strong retention and good collaboration between teams. As integration progresses, cost synergies and greater scale could support margins.
What About Its Peers?Brown & Brown, Inc. (BRO - Free Report) experienced a moderation in organic growth in the second quarter of 2026, reflecting a softer insurance pricing environment and weakness in its Specialty Distribution business. Organic revenues declined 0.7% year over year, while organic revenues, including contingent commissions, increased 0.7%. Despite the near-term pressure, BRO expects organic growth to improve in the second half of 2026, with management targeting 1.5-2.5% growth in Retail and 2-4% in Specialty Distribution, excluding contingents.
Willis Towers Watson Public Limited Company (WTW - Free Report) delivered 5% organic revenue growth in the second quarter of 2026, supported by broad-based momentum across its businesses. WTW achieved this growth despite a competitive insurance pricing environment, with rates declining across most lines. The company's specialization, recurring revenue streams, new-business wins and strong client retention should help sustain mid-single-digit organic growth, while operating leverage and expense discipline provide further support for profitability.
AJG’s Price PerformanceShares of Arthur J. Gallagher have gained 1.9% year to date against the industry’s decline of 1.2%.
Image Source: Zacks Investment Research
AJG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 18.43, higher than the industry average of 16.83.
Image Source: Zacks Investment Research
Estimate Movement for AJGThe Zacks Consensus Estimate for AJG’s third-quarter 2026 and fourth-quarter 2026 EPS has moved up 1.3% and 0.3%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 0.3% and 0.5%, respectively, in the past 30 days.
The consensus estimate for AJG’s 2026 and 2027 EPS and revenues indicates year-over-year increases.
Image Source: Zacks Investment Research
AJG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trane Technologies zvýšila výhled na rok 2026 díky rekordnímu backlogu 12,1 mld. USD, který je zhruba o 70 % meziročně vyšší. Očekává hlášený růst tržeb o 11,5 % a upravený zisk na akcii 15,20 až 15,30 USD.
Key Takeaways Trane Technologies raised 2026 guidance as backlog hit a record $12.1B, up roughly 70% year over year.TT expects 11.5% reported revenue growth and adjusted continuing EPS of $15.20-$15.30 in 2026.TT's Q2 adjusted margin fell 60 bps to 19.7% as inflation and higher investment offset pricing and volume. Trane Technologies plc (TT - Free Report) raised its 2026 outlook after a second quarter marked by accelerating orders and record backlog. Commercial heating, ventilation and air conditioning (HVAC) demand remains the main driver, giving the company greater visibility into second-half revenues.
The question is whether that order strength can offset inflation, reinvestment and regional pressure. Management’s higher targets assume stronger revenue conversion in the second half while EMEA remains a drag on profitability.
TT’s Q2 Beat Reinforces Demand MomentumAdjusted earnings of $4.31 per share topped the Zacks Consensus Estimate by 0.9% and increased 11.1% year over year. Revenues of $6.35 billion beat the consensus mark by 2.9% and rose 10.6% from the prior-year quarter.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Organic bookings increased 37% and reported bookings rose 39% to $7.82 billion. The enterprise book-to-bill ratio reached 123%, with every operating segment above 100%, while backlog climbed to a record $12.1 billion, up roughly 70% year over year.
Trane’s Record Backlog Extends Revenue VisibilityAmericas Commercial HVAC bookings advanced 50%, including a 130% increase in applied equipment orders. The business exited the quarter with backlog up about 90%, supported by demand across data centers, schools, offices, warehouses and high-tech industrial projects.
Carrier Global Corporation (CARR - Free Report) is also investing in commercial HVAC and data-center thermal-management capabilities, making it a relevant reference point for cooling demand. Johnson Controls International plc (JCI - Free Report) provides commercial HVAC equipment and building automation systems, offering another industry read-through on building-efficiency spending.
TT Lifts 2026 Guidance After a Strong First HalfManagement now expects full-year reported revenue growth of approximately 11.5%, up from 9.5%, and organic revenue growth of roughly 9%, up from about 7%. Adjusted continuing earnings guidance increased to $15.20-$15.30 per share from $14.75-$14.95.
For the third quarter, Trane expects organic revenue growth of approximately 10% and adjusted earnings of about $4.70 per share. Management also projects second-half organic revenue growth of approximately 11.5%, supported by record backlog and accelerating Commercial HVAC revenues.
Trane’s Margin Pressure Tests the OutlookThe higher revenue outlook must convert through a tougher cost environment. Second-quarter adjusted operating margin declined 60 basis points to 19.7% as inflation and increased business investments more than offset volume growth and positive pricing.
Management expects price versus total inflation to remain unfavorable in the second half. EMEA adds another headwind, with the Middle East conflict expected to reduce second-half 2026 revenue by about $100 million and operating income by about $30 million, or roughly 10 cents per share.
TT’s Growth Signals Temper the Event TakeawayTT’s raised outlook is supported by record backlog and substantial order visibility, but the margin path remains the key execution test. Backlog supports the revenue-growth case, yet inflation, reinvestment and EMEA weakness could limit profit conversion.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TT also has a Momentum Score of A, Growth Score of B, VGM Score of B and Value Score of D. The stronger momentum and growth characteristics are constructive, while the weaker value profile and Hold rank favor a measured stance rather than treating the guidance increase alone as a fresh buy signal.
Papa Johns oznámil, že KM Capital se stává novým franšízovým partnerem v Mexiku a převezme vedení 44 stávajících restaurací. Partnerství má podpořit další růst značky na tomto prioritním trhu.
Papa Johns today announced that KM Capital has joined the Papa Johns brand as the new franchise partner in Mexico. KM Capital will assume leadership of 44 existing franchised restaurants across the country, bringing a renewed focus on commercial growth, operational excellence, innovation and delivering on the brand’s Better Ingredients. Better Pizza. Promise.
Mexico is a priority growth market for Papa Johns International and an important part of the company's long-term expansion strategy. As the world's third-largest pizza market and one of the largest consumer markets in Latin America, Mexico offers compelling opportunities for growth. Through its partnership with KM Capital, Papa Johns will expand its presence across the country through continued investment in restaurant operations, brand development and future restaurant growth.
"Mexico is an important market for Papa Johns, and KM Capital brings the local expertise, commercial discipline and strategic growth mindset needed to support the brand's next phase," said John Matter, Global Chief Development Officer at Papa Johns. "Together, we are focused on enhancing the customer experience, growing our presence in the market and building a stronger Papa Johns brand for consumers across Mexico."
KM Capital's executive leadership team recently met with Papa Johns executives to align on growth plans, market priorities and long-term development opportunities for Mexico.
“We are proud to join the Papa Johns system and excited by the opportunity to build on the brand's strong foundation in Mexico,” said Enrique Ruiz Mandujano, Founding Partner and CEO of KM Capital. “Mexicans have a strong passion for pizza, and we see an opportunity to grow the Papa Johns brand by delivering great pizzas and expanding our reach to serve more communities across the country.”
Papa Johns Mexico will continue to bring consumers a combination of global favorites and locally relevant menu innovations. Every pizza is crafted using Papa Johns signature fresh dough made from six simple ingredients, tomato sauce made from real tomatoes and not from concentrate, and premium toppings, reflecting the brand's commitment to quality and craftsmanship.
The partnership reinforces Papa Johns international growth strategy and its mission to bring premium-quality pizza experiences to customers in every market it enters.
About Papa Johns
Papa John’s International, Inc. (Nasdaq: PZZA) opened its doors in 1984 with one goal in mind: BETTER INGREDIENTS. BETTER PIZZA.® Papa Johns believes that using high-quality ingredients leads to superior quality pizzas. Its original dough is made of only six ingredients and is fresh, never frozen. Papa Johns tops its pizzas with real cheese made from mozzarella, pizza sauce made with vine-ripened tomatoes that go from vine to can in the same day and meat free of fillers. It was the first national pizza delivery chain to announce the removal of artificial flavors and synthetic colors from its entire food menu. Papa Johns is co-headquartered in Atlanta, Ga. and Louisville, Ky. and is the world’s third-largest pizza delivery company with approximately 6,000 restaurants in approximately 50 countries and territories. For more information about the Company or to order pizza online, visit www.papajohns.com or download the Papa Johns mobile app for iOS or Android.
About KM Capital
KM Capital is a Mexico-based private investment and advisory firm focused on building long-term value through strategic investment, operational improvement, and financial discipline. The firm works alongside entrepreneurs, boards of directors, and management teams to support business growth and transformation. For more information, visit www.kmcapital.com.mx.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260824912589/en/
MP Materials ve 2. čtvrtletí zvýšila tržby na zhruba 108 milionů USD a upravená EBITDA se otočila ze ztráty 12,5 milionu USD na zisk 28,5 milionu USD. Firma už neprodává koncentrát a více vydělává na zpracovaném NdPr.
MP Materials (MP -4.50%) was America's favorite rare earth mining stock last year -- or, at least, one of the Trump administration's favorite rare earth miners.
Indeed, MP stock tripled in 2025, with much of those gains occurring after the Pentagon's public-private partnership with MP was announced last July. At one point last year, MP was up more than 400%, before giving back much of those gains last October. Fast forward to today, and MP Materials is trading about 45% lower than its 52-week high.
But don't let that red number fool you: Despite the stock's sell-off, which was really just a valuation correction, MP is growing stronger and healthier. The stock might not repeat last year's performance. Yet if its recent earnings tell us anything, it's that MP deserves a second look. Here's what you should know.
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MP is getting more value from Mountain Pass The big takeaway from MP's second quarter was revenue growth. MP managed to pull in about $108 million last quarter, a roughly 89% positive change year-over-year, while adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) swung from a $12.5 loss to positive $28.5 million.
The company also reported $17.6 million in Pentagon-related price-protection income. Remember how the Department of Defense agreed last year to a price floor of $110 per kilogram for MP's neodymium-praseodymium (NdPr)? Well, market prices for this vital rare earth compound apparently fell below that level, and the government made up the difference in a roughly $18 million payment.
Doubling quarterly revenue was impressive, but it's not the reason this quarter left a strong impression on me. That's owed to the fact that MP is now selling a much more refined NdPr product, while subsequently profiting more from the NdPr that it's selling. That might sound confusing, so let me put it into perspective.
Image source: MP Materials.
For much of its life, MP sold rare-earth concentrate to Chinese companies, which would then use chemicals to free the rare-earth elements from the ore. Rare-earth concentrate has valuable rare earth elements, but since they need to be freed, the concentrate is worth less than selling those rare-earth elements outright.
Starting last April, however, MP began to cease selling concentrate, due mainly to the trade war between the U.S. and China. The benefit of that is that MP is now processing the concentrate in-house. This requires more work, but the resulting product is worth more money.
Just consider this: In Q2 2025, MP earned about $25 million in NdPr oxide and metal revenue, with about $12 million from concentrate revenue. This last quarter, it had zero revenue from concentrate sales, and $95 million from oxide and metal revenue. Big jump right? And in the right direction, too.
MP Material's economics are improving, and its raking in more revenue. For me, the next test is whether its second magnet factory (10X) is on track for commissioning in 2028, as well as prove later that it can scale magnets production significantly. I would not buy MP with the expectation that it will triple in 12 months like it did in 2025, but opening a position at today's price could be worthwhile if you want exposure to American rare-earth mining.
Na Smartsheet Inc. byla podána hromadná žaloba kvůli údajnému zpětnému odkupu akcií v době, kdy firma věděla o formální nabídce na převzetí od Blackstone a Vista Equity Partners. Akcionáři mohou usilovat o status vedoucího žalobce do 5. října 2026.
New York, New York--(Newsfile Corp. - August 24, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Smartsheet Inc. ("Smartsheet" or the "Company") (NYSE: SMAR) on behalf of sellers of the common stock of Smartsheet between June 1, 2024 and September 23, 2024 (the "Class Period").
CLICK HERE TO JOIN THE CASE
If you sold Smartsheet shares during the Class Period, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than October 5, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
The complaint alleges that throughout the Class Period, Smartsheet was repurchasing Smartsheet stock at the same time that Defendants knew that Smartsheet had received a formal acquisition offer from Blackstone Inc. and Vista Equity Partners Management, LLC (the "Consortium") to purchase all outstanding shares of Smartsheet common stock at prices significantly above the then-current market prices of Smartsheet common stock, and therefore significantly above the prices at which Smartsheet was repurchasing Smartsheet common stock from unsuspecting Class members. Further, according to the complaint, Smartsheet had an obligation to disclose that it had received a formal acquisition offer from the Consortium, or abstain from purchasing Smartsheet stock from unsuspecting investors.
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Comfort Systems USA má podle článku navrch díky rekordnímu backlogu ve výši 14,06 mld. USD, silnému cash flow a více než 1,8 mld. USD čisté hotovosti. Sterling sice roste rychleji, ale Comfort Systems je celkově silnější sázka na AI infrastrukturu.
Key Takeaways Comfort Systems gets the edge with record backlog, strong cash flow and broad AI infrastructure exposure.Sterling offers faster 2026 growth, a lower valuation and more than $7B in potential work visibility.Comfort Systems' modular expansion and $1.8B-plus net cash strengthen its growth visibility. Sterling Infrastructure, Inc. (STRL - Free Report) and Comfort Systems USA, Inc. (FIX - Free Report) are emerging as major beneficiaries of the artificial intelligence infrastructure buildout. Sterling provides site development and mission-critical electrical services for data centers, semiconductor facilities and other large projects, while Comfort Systems provides mechanical, electrical, HVAC and modular solutions for technology and other industrial customers.
Their overlap has become increasingly relevant as hyperscalers and other technology customers invest heavily in data center capacity. Sterling is gaining from the need for large-scale site preparation and electrical infrastructure, while Comfort Systems is benefiting from demand for electrical, cooling, mechanical and prefabricated modular systems.
Both companies also enter the second half of 2026 with record or sharply higher backlogs and strong earnings momentum. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Sterling StockSterling's growth story is increasingly centered on E-Infrastructure Solutions. Second-quarter 2026 revenues jumped 90% year over year to $1.17 billion, including roughly 50% organic growth, while adjusted earnings per share (EPS) surged 116% to $5.80. E-Infrastructure revenues soared 192%, driven by strong organic performance and contributions from CEC and Stone Ridge. Mission-critical projects, including data centers, manufacturing and semiconductor facilities, accounted for 92% of E-Infrastructure backlog.
Visibility is particularly compelling. Sterling ended June with $4.3 billion of signed backlog and $5.6 billion of combined backlog, up 116% and 150%, respectively. High-probability future-phase opportunities exceeded $1.4 billion, taking total visibility into potential work above $7 billion. Data center projects are becoming larger, lasting longer and spreading into additional markets, while expansions of existing projects are creating opportunities not yet captured in backlog. CEC also broadens Sterling's ability to combine site development with electrical work.
Management raised its 2026 outlook, with revenues now projected at $4-$4.15 billion and adjusted EPS at $19.70-$20.30. At the midpoint, adjusted EPS is expected to grow 84%. Sterling also has considerable financial flexibility. It finished the quarter with $464 million of cash versus $284 million of debt, leaving it in a net cash position, while first-half operating cash flow reached $328 million.
Still, Sterling has some weak spots. Building Solutions continues to face housing-affordability pressures, while Transportation revenues are expected to decline as resources shift toward higher-margin E-Infrastructure projects. Strong project burn and uneven award timing could also cause backlog volatility despite healthy underlying demand.
The Case for Comfort Systems StockComfort Systems offers even broader exposure to the physical infrastructure needed to support AI computing. Second-quarter revenues increased 50% year over year to $3.27 billion, while EPS jumped 92% to $12.53. Backlog reached a record $14.06 billion, up from $12.45 billion sequentially and $8.12 billion a year earlier. Same-store backlog climbed to $13.70 billion.
Technology has become the company's dominant growth engine. It represented roughly 58% of first-half revenues, up sharply from 40% a year earlier. Comfort Systems is also expanding its Modular operations and customer base, including frontier labs and colocation providers. Modular represented 17% of year-to-date revenues, and dedicated capacity is expected to rise from more than 3.5 million square feet currently to more than 4 million by year-end and approximately 5 million by late summer 2027.
Importantly, the expansion is supported largely by existing demand. Management said much of the new modular capacity is intended for existing customers and orders, suggesting further customer wins could require additional capacity. Hunt Electric adds another growth lever, strengthening Comfort Systems' electrical capabilities and contributing an expected $250 million of annualized revenues.
Comfort Systems also has an exceptionally strong financial position. Second-quarter free cash flow approached $1 billion, and despite acquisitions and elevated capital investment, the company had more than $1.8 billion of net cash. Management expects capital expenditures of approximately 5% of revenues as it expands production capacity.
The main concern is concentration. Technology accounted for nearly three-fifths of revenues, increasing dependence on continued data center investment. Rapid expansion also requires significant spending on facilities and people, while labor availability, project execution and customer concentration remain risks. Nevertheless, record backlog and strong pipelines support management's optimism for the rest of 2026 and into 2027.
FIX Leads the Stock-Market RaceBoth stocks have substantially outperformed the broader market in 2026. Sterling shares have climbed 68.7% year to date, while Comfort Systems has surged 77.4%. By comparison, the broader Zacks Construction sector has gained 7%, while the S&P 500 has risen 11.8%.
STRL vs FIX Price Performance (YTD)
Image Source: Zacks Investment Research
Thus, Comfort Systems holds the edge on share-price momentum. Both have also outpaced major U.S.-listed infrastructure peers such as Quanta Services, Inc. (PWR - Free Report) and EMCOR Group, Inc. (EME - Free Report) , underscoring investors' enthusiasm for companies positioned around data centers, electrification and AI infrastructure.
Sterling Offers the More Attractive ValuationValuation shifts the advantage toward Sterling. STRL currently trades at 21.77X forward 12-month earnings compared with 30.9X for FIX and 19.59X for the Zacks Construction sector.
Sterling therefore commands only a modest premium to the sector despite its faster expected 2026 earnings and revenue growth. Comfort Systems' premium reflects its record backlog, superior cash generation and powerful technology exposure, but also leaves less room for execution disappointments.
STRL vs FIX Valuation (P/E F12M)
Image Source: Zacks Investment Research
Rising Estimates Keep Both Earnings Stories StrongAnalyst revisions are encouraging for both companies. Over the past 30 days, the Zacks Consensus Estimate for Sterling's 2026 EPS has increased to $20.07 (as shown below), implying 84.5% year-over-year growth, while the revenue estimate indicates 65.2% growth. For 2027, EPS is projected to rise another 28.3% on revenue growth of 19.5%.
STRL EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Comfort Systems' consensus estimate for EPS has also increased, reaching $45.86 for 2026 and $57.81 for 2027 (as shown below). The 2026 estimate implies 58.8% growth, alongside expected revenue growth of 38.3%. For 2027, earnings and revenues are projected to increase 26.1% and 20%, respectively.
FIX EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Sterling consequently has the edge in expected 2026 growth and slightly stronger projected 2027 EPS expansion, although both companies' upward estimate revisions indicate improving analyst confidence.
Which AI Infrastructure Stock Wins?Sterling offers an impressive combination of faster near-term growth, rapidly expanding mission-critical backlog, strong data center exposure and a considerably lower valuation. Its net cash position and rising E-Infrastructure margins further strengthen the long-term case. However, housing weakness, the planned contraction in Transportation and the potential lumpiness of large project awards introduce some uncertainty.
Comfort Systems looks stronger overall. Its much larger record backlog, dominant technology exposure, expanding modular platform, exceptional free cash flow and substantial net cash position provide a powerful combination of growth visibility and financial flexibility. Its valuation is clearly richer, but strong execution and rising earnings estimates help support that premium.
Comfort Systems, with a Zacks Rank #1 (Strong Buy), appears to offer better upside potential right now. Sterling, carrying a Zacks Rank #3 (Hold), arguably wins on valuation and near-term growth expectations, but Comfort Systems' stronger stock momentum, deeper backlog, cash-generation capacity and broader participation across the mechanical, electrical and modular infrastructure required for AI data centers give FIX the edge for investors seeking exposure to the AI infrastructure boom. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Digital má zhruba 1,4 GW smluvně zajištěného IT workloadu a asi 36 miliard USD ve výnosech z pronájmu, což mu může posílit AI náskok nad WULF a CRWV. Klíčové ale bude včas proměnit přístup k elektřině v provozní kapacitu.
Key Takeaways APLD's power access could strengthen its AI infrastructure edge over WULF & CRWV amid industry constraints.APLD has 1.4 GW of contracted IT load tied to about $36B in lease revenues and 1.2 GW in planned generation.APLD must execute power & campus expansions to translate AI opportunities into expected FY27 revenue growth. Applied Digital (APLD - Free Report) could strengthen its AI infrastructure edge over TeraWulf (WULF - Free Report) and CoreWeave (CRWV - Free Report) by leveraging its access to large-scale, cost-competitive power, a critical constraint and competitive differentiator in the AI data-center market.
APLD has secured roughly 1.4 GW of contracted critical IT load, representing about $36 billion in contracted lease revenues, while its North Dakota strategy is designed to expand access to reliable, low-cost power. The company is also working with Base Electron on approximately 1.2 GW of natural-gas-fired generation, which could unlock additional capacity at existing campuses and support future AI Factory development.
This power position could become increasingly valuable as AI workloads require higher-density infrastructure and the industry faces significant power constraints. APLD has already demonstrated its ability to convert power into operating capacity, bringing 175 MW at Polaris Forge 1 online while continuing to develop additional campuses.
However, the advantage carries execution risks. Base Electron is an independent power producer, meaning APLD does not directly control the project that could provide additional power. Moreover, Applied Digital competes with other power-advantaged developers, making timely conversion of power access into operational AI capacity critical to sustaining its competitive position.
According to the Zacks Consensus Estimate, revenues are projected to grow by 49.7% in fiscal 2027; therefore, the successful execution of APLD’s power and campus expansion plans is crucial for realizing this expected growth. Overall, the company’s power advantage could strengthen its AI edge over WULF and CRWV, provided it can execute these plans on schedule and convert its scarce power access into revenue-generating AI capacity.
How Are APLD's Competitors Positioned?TeraWulf competes with APLD by controlling power-advantaged sites, interconnection and electrical infrastructure to convert scarce electricity into AI/HPC capacity. TeraWulf’s Lake Mariner and Kentucky projects pair grid access with phased, long-term leases, while its 250-500 MW annual contracting target challenges APLD’s expansion pipeline. TeraWulf therefore competes directly for power, customers and AI capacity.
CoreWeave competes with APLD by aggressively securing power and converting it into AI cloud capacity at scale. CoreWeave reached 1.5 GW of active power and 4.2 GW contracted, with a goal of at least 8 GW by 2030. Its powered-land and self-build strategy directly contests APLD for scarce power, sites and AI workloads.
APLD’s Share Price Performance, Valuation & EstimatesAPLD shares have surged 70.6% in the past year, outperforming the broader Zacks Computer and Technology sector’s 12.1% growth.
APLD’s 1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, APLD appears overvalued, trading at a trailing 12-month price/book (P/B) ratio of 4.51, above the industry average of 3. The company carries a Value Score of F.
APLD’s Valuation
Image Source: Zacks Investment Research
The fiscal 2027 bottom-line outlook remains challenging, with the consensus estimate currently pegged at a loss of $1.09 per share, widening by 9 cents over the past 30 days and compared with a loss of 91 cents in fiscal 2026.
CoreWeave ve 2. čtvrtletí zvýšila tržby na 2,6 miliardy USD a objem nevyřízených zakázek na 104 miliard USD, což ukazuje, že poptávka po AI infrastruktuře dál sílí. To je pozitivní signál pro Nvidia, jejíž GPU CoreWeave nakupuje.
One of the hottest debates on Wall Street concerns the future of artificial intelligence (AI) infrastructure spending and its potential impact on industry leaders, such as Nvidia (NVDA -2.50%). Some investors believe that the AI tailwind won't last much longer, and as it slows, Nvidia's shares will plunge. Others think the semiconductor specialist is still looking at a large growth runway. Who is right?
Earnings season has given us more evidence for the bull thesis. Consider, for instance, CoreWeave's (CRWV -3.35%) second-quarter results, released on Aug. 11. The AI-focused cloud computing company's update gave us more reasons to believe Nvidia's run is far from over. Here's what investors need to know.
Image source: The Motley Fool.
CoreWeave is firing on all cylinders CoreWeave operates data centers tailored for AI workloads. Since Nvidia's GPUs (Graphics Processing Units) are still arguably the most effective hardware for training and running AI applications, CoreWeave buys racks of them. As demand for the company's services increases, CoreWeave will need to expand its capacity and purchase additional GPUs. That seems to be what will continue happening for the foreseeable future, as evidenced by CoreWeave's second-quarter results.
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The company's revenue was $2.6 billion, up 112.5% year over year. CoreWeave's revenue backlog as of the end of the period was $104 billion, up 245.5% from the year-ago quarter. CoreWeave's operating and net losses widened compared to the prior-year quarter, but this reflects the company's continued investment in the business, which seems more than justified considering its revenue and backlog growth. Management pointed out that CoreWeave's capacity is sold out in the near-term, while demand continues to intensify.
What it means for Nvidia's future CoreWeave's excellent second-quarter results signaled that AI infrastructure spending hasn't peaked yet and were unquestionably a bullish sign for Nvidia. Does that mean investors should buy Nvidia's stock ahead of its upcoming earnings update? On Aug. 26, Nvidia will release its financial results for the second quarter of its fiscal year 2027, which ended on July 26.
However, the company is unlikely to impress the market, even if it beats on revenue and earnings, which it has done more often than not in recent years. Wall Street has ceased to be impressed by that. That said, Nvidia's shares may still be a buy ahead of Aug. 26 for investors focused on the long game.
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The company's lead in the GPU market remains impregnable, partly thanks to its CUDA ecosystem, which provides a wide moat from switching costs. Nvidia is also tapping into new opportunities. It estimates a $200 billion addressable market in the CPU (Central Processing Unit) industry, driven by the rise of agentic AI systems that run on CPUs. Nvidia is well-positioned to capture a corner of that space as well.
Lastly, the stock remains fairly valued. Nvidia is trading at 24.8x forward earnings, versus an average of 21.1x for information technology stocks. At the rate at which Nvidia's earnings continue to grow -- and given sustained demand for its products -- that seems more than fair. For all those reasons, the stock is still a buy.
