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Trail Ridge Investment Advisors LLC lifted its stake in shares of Amazon.com, Inc. (NASDAQ: AMZN) by 39.0% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 13,759 shares of the e-commerce giant's stock after acquiring an additional 3,861

Sustainable Growth Advisers LP lessened its holdings in Amazon.com, Inc. (NASDAQ: AMZN) by 9.2% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 2,072,028 shares of the e-commerce giant's stock after selling 209,301 shares during the period. Amazon.com comprises approximately 5.6% of Sustainable

SummaryAmazon.com, Inc. is in a transitional phase, ramping capital spending to accelerate AWS backlog conversion and drive durable AI-led growth.Q3 ’26 earnings are a critical inflection point; AWS revenue conversion, backlog growth, and private label retail performance are key catalysts.I reiterate a Strong Buy rating with a $376/share price target, supported by AWS margin-accretive growth, custom silicon adoption, and expanding backlog.AMZN trades at 16.22x EV/EBITDA, below its 3-year midpoint, offering an attractive entry as scale and AI adoption should drive long-term earnings growth. luza studios/E+ via Getty Images

Amazon.com, Inc. (AMZN) is operating in a transitional phase as the company increases its capital spending in order to pull forward AWS backlog conversion. With enterprise AI adoption slowly expanding, Amazon should realize durable growth

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

Microsoft MSFT is due to report its fiscal first-quarter 2027 results on Wednesday, with investors watching whether cloud growth can justify the company's expanding artificial intelligence infrastructure costs, according to the company's earnings schedule.

Wall Street expects revenue of about $90.6 billion to $90.7 billion for the quarter, within Microsoft's forecast of $89.85 billion to $90.95 billion. The company's outlook implies annual revenue growth of 16% to 17%. Analysts also expect adjusted earnings of $4.71 per share.

Azure is another key focus, with analysts projecting growth of 44% to 45% on a constant-currency basis. The estimate uses Microsoft's updated reporting definition for the cloud business, making the segment's performance important to assessing demand for its cloud and AI services.

Spending could remain a central concern. Microsoft is expected to invest more than $50 billion in capital expenditures during the quarter as it expands infrastructure to support AI workloads. The results, scheduled after the U.S. market closes, will be followed by a conference call at 5:30 p.m. Eastern time, where investors may look for further details on cloud demand and investment plans.

Microsoft reports earnings this week and AI spending will be focus. Microsoft is one company that Wall Street is comfortable with spending big on AI.

On October 26, 2026, we delve into the DCF analysis for Alibaba Group Holding Ltd BABA, a company that has seen significant price fluctuations recently. The stock has experienced a year-to-date decline of 31.4% and a staggering 41.5% drop over the past year, raising questions about its valuation amidst these challenges.

DCF Earnings-based intrinsic value of $69.52 vs current price of $99.64 (margin of safety: -43.3%) DCF FCF-based intrinsic value: not available GF Score™ of 81/100 indicates a relatively strong reliability of the DCF inputs What Is BABA Worth? DCF Earnings-Based Model To assess Alibaba's intrinsic value, we employ a two-stage DCF model. The first stage considers a growth phase where earnings per share (EPS) is projected to grow at a rate of 8.4% annually for the next ten years, followed by a terminal phase with a reduced growth rate of 4% for the subsequent ten years. The discount rate applied is 11%, which accounts for the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $4.83 10-Year Growth Rate 8.4% 10-Year Treasury Rate 4.99% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 8.4%, discounted at 11% $42.45 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $27.07 Intrinsic Value Growth + Terminal $69.52 With the current price at $99.64, the intrinsic value of $69.52 indicates that Alibaba is significantly overvalued, presenting a margin of safety of -43.3%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than with free cash flow. For further details, visit the BABA DCF Calculator.

What Does the Free Cash Flow DCF Say? The DCF model based on free cash flow (FCF) is not available for Alibaba at this time. In the absence of FCF data, we rely on the earnings-based DCF and the GF Value™ to form a more comprehensive view of the company's valuation. The earnings DCF suggests significant overvaluation, while the FCF-based model remains unavailable for comparison.

How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for Alibaba stands at $123.07, indicating that the stock is undervalued by 19.0%. This proprietary measure is derived from historical trading multiples, past business growth, and future performance estimates. The discrepancy between the GF Value™ and the earnings-based DCF intrinsic value suggests a divergence in valuation perspectives, with the GF Value™ indicating a more favorable outlook compared to the DCF models. For more insights, check out the GF Value™.

What Does BABA's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum, providing a holistic view of its investment quality. Alibaba's GF Score™ is 81 out of 100, reflecting a strong overall assessment. However, its predictability rank is notably low at 0 out of 5 stars, suggesting that the DCF model's reliability may be compromised due to the company's unpredictable earnings performance.

Metric Rating GF Score™ 81/100 Financial Strength 7/10 Profitability 7/10 Growth 8/10 Valuation 10/10 Momentum 2/10

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Alibaba, tend to yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—a clear tension emerges. The earnings-based DCF indicates that Alibaba is significantly overvalued, while the GF Value™ suggests a more favorable valuation perspective. This divergence highlights the uncertainty surrounding Alibaba's future performance. Additionally, the guru ownership signal shows that 17 gurus currently hold the stock, with 6 adding to their positions and 10 trimming their holdings, while insiders have net sold $60.2 million over the past year. This mixed signal from both gurus and insiders adds another layer of complexity to the investment narrative. For a deeper dive into the DCF analysis, visit the BABA DCF Calculator.

Frequently Asked Questions What is BABA's intrinsic value based on DCF?

According to the earnings-based DCF, the intrinsic value is $69.52, while the FCF-based intrinsic value is not available.

Is BABA overvalued or undervalued?

The earnings-based DCF indicates that BABA is overvalued, while the GF Value™ suggests it is undervalued at $123.07.

How reliable is the DCF model for BABA?

The DCF model's reliability is questionable due to a predictability rank of 0 out of 5 stars.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Boeing needs one quarter to prove its turnaround is real, while Coca-Cola needs to justify a 35% run against the toughest comparisons of the year. Both report October 27, and the macro backdrop could not be more complicated.

Boeing (NYSE:BA | BA Price Prediction) and Coca-Cola (NYSE:KO) both report third-quarter results on October 27, 2026. One is a turnaround, and the other is a defensive staple. Both report after the October 22 selloff, which was linked to Middle East tensions and rising oil prices.

On Mad Money on September 24, 2026, Jim Cramer said Boeing and Coca-Cola were among 17 stocks that, per Hendrik Bessembinder’s research, delivered cumulative returns of more than 5 million percent from 1925 to 2023. That record helps explain the long-term investor interest in both names.

Turnaround Progress Meets a Defensive Rally
Boeing’s second quarter showed progress, but it came at a cost. Revenue rose 8.0% to $24.56 billion, deliveries reached 171, and free cash flow turned positive at $631 million. Still, the core loss of $0.76 per share was well short of the $0.34 loss analysts expected. A $280 million VC-25B charge did much of the damage. Shares are down 12.8% year to date.

Coca-Cola beat EPS estimates for the fifth consecutive quarter, making $0.97 against the $0.93 consensus. It then raised its full-year comparable EPS growth outlook to 9% to 10%. The stock is up 35.7% year to date. Watch for results before the New York Stock Exchange opens, and the investor call follows at 8:30 a.m. ET.

Third-Quarter Consensus Estimates

Metric
Boeing
Boeing YoY
Coca-Cola
Coca-Cola YoY

Q3 EPS
−$0.201
Loss narrows from −$7.47
$0.8809
7.4%

Q3 Revenue
$24.37B
4.7%
$12.93B
3.7%

FY2026 EPS
−$1.101
N/A
$3.3039
10.1%

FY2026 Revenue
$97.50B
N/A
$49.83B
3.9%

Max 10 Certification and Oil Will Frame Boeing’s Morning
Secretary of Transportation Sean Duffy noted the 737 Max 10 certification on October 20, 2026: “This has been almost a ten-year process getting to this day of certification, which, by the way, is huge.” According to Marketplace Morning Report, major airlines have ordered more than 1,400 of the jets. The program also reported that regulators found a software glitch this year and determined it was not a flight safety issue. Watch for confirmation of 2027 first deliveries and progress on the 737 ramp to 47 per month. Boeing also guided to third-quarter free cash flow in the low hundreds of millions, despite a $700 million DOJ payment.

Oil adds pressure, with benchmark West Texas Intermediate (WTI) crude at $107.89 a barrel on October 20. Cramer once quipped, “Every time crude goes up a dollar, Boeing stock goes down a dollar,” but he called that logic flawed, arguing that airlines actually need more fuel-efficient planes as oil rises. RTX (NYSE:RTX) CEO Chris Calio made a similar point: “There’s the concern around jet fuel and airline health and pricing, but the demand is still there.”

Coca-Cola Must Prove Volume Holds Against Tougher Comparisons
Second-quarter unit case volume rose 5%, and Zero Sugar grew 16%. The World Cup and an easier prior-year comparison both helped. Management warned that the second half brings a tougher year-over-year comparison and six fewer selling days in the fourth quarter. Watch Asia Pacific, where price/mix fell 9%.

On GLP-1 weight-loss drugs, Cramer argued that PepsiCo (NASDAQ:PEP) is more exposed because of its snack business: “Live by junk food, die by junk food.” In June, after Coca-Cola hit a new high on a down day for the market, he said: “I want you to reach for Coca-Cola and then just keep buying.”

What a Winning October 27 Looks Like for Each Stock
For Boeing, a good morning means positive free cash flow despite the DOJ payment, plus a firm Max 10 delivery schedule. Free cash flow is the number that matters most. For Coca-Cola, success means volume growth that holds up against the tougher comparison and reaffirmed guidance. The key figure is organic revenue growth against the about 5% full-year target. Boeing must earn back investor trust. Coca-Cola must justify its premium valuation after a 35.7% run.

Contact [email protected] for any questions or corrections.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced the voting results from its annual general and special meeting of shareholders convened on September 25, 2026, and adjourned to and reconvened on October 23, 2026 (the “Meeting”). A total of 154,837,897 common shares of the Company (the “Shares”), representing 36.60% of.

Elon Musk just predicted mass death for GPU rental companies, and CoreWeave's cratering stock price and distressed bond market suggest lenders may already agree with him.

Kingswood Wealth Advisors LLC lifted its holdings in Netflix, Inc. (NASDAQ: NFLX) by 13.1% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 69,917 shares of the Internet television network's stock after acquiring an additional 8,113 shares during the quarter. Kingswood Wealth

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From can't-miss deals to unexpected “Who Knew?” discoveries brought to life by Disney and The Muppets Studio, Walmart is helping customers find more to love, spend less and focus on the moments that matter this holiday season.

BENTONVILLE, Ark.--(BUSINESS WIRE)--The holidays should be about making memories, not making compromises. But with budgets stretched, busy schedules and growing shopping lists, customers are looking for ways to make the season special without added stress. Walmart is making it easier with three major holiday shopping events from November 12 through December 2, bringing savings on gifts, seasonal favorites and everyday essentials – plus a new holiday marketing campaign.

Walmart research shows that 60% of shoppers say the price of gifts and holiday purchases affects how they feel about the season, while 70% say lower prices would make holiday shopping easier. Whether customers are searching for a gift that feels just right, getting ready to host or tackling a growing shopping list, Walmart is helping them find more to love for less — and enjoy more of the season.

“This season, we're bringing customers and members incredible savings across three major shopping events, along with the brands they love, exciting new discoveries and easier ways to shop, and even a few ‘who knew’ moments along the way,” said Julie Barber, chief merchandising officer, Walmart U.S. “It's all about helping our customers save more, discover more and make more room for what matters.”

Walmart Deals are Back with More Ways to Save.

Customers will have three opportunities to shop incredible savings on thousands of items across top brands, trending gifts and holiday must-haves. And this year, Walmart+ members have even more chances to get a head start on the savings with early access to some of the most sought-after toys and gifts of the season!

November 12 - 15: Early Black Friday Deals on Walmart.com beginning at 12:01 a.m. ET and in stores at 6 am local time. Walmart+ early access to hot Deal drops also begins at 12:01 a.m. ET on November 12. Any remaining hot Deal drop items will open to all customers at 12:01 a.m. ET on November 13. November 23–29: Black Friday begins at 12:01 a.m. ET on Walmart.com and in stores at 6 am local time. Walmart+ early access to hot Deal drops also begins at 12:01 a.m. ET on November 23. Any remaining hot Deal drop items will open to all customers at 12:01 a.m. ET on November 24. November 30 - December 2: Cyber Monday only on Walmart.com beginning at 12:01 a.m. ET. There’s something for every kind of holiday list. Customers can explore thousands of gifts under $20, discover the season’s most-wanted toys and find elevated fashion, beauty and home favorites at Walmart prices. Walmart’s Top Toys list also makes gift hunting easier, with 25 toys on this year’s list priced under $25. Whether it’s a thoughtful surprise, a new holiday outfit or the finishing touches for a gathering, customers can find inspiration and value in one place.

More Reasons to Love Walmart+ This Holiday

This year, there's even more to love about membership. Just in time for the holidays, customers can now get both Walmart+ and Sam's Club Plus together for just $120 a year1 - bringing together more ways to save time and money on the things that matter most, from 2% Sam’s Cash® back2 on everyday essentials to free delivery3 on holiday gifts - and even streaming4 a holiday favorite on movie night. It's twice the membership, with more opportunities to make the most of every moment throughout the season.

During both the Early Black Friday and Black Friday events at Walmart, select online-only Deals will be reserved exclusively for Walmart+ members for the first 24 hours, while supplies last, giving members an early opportunity to score incredible savings on holiday gifts.

A Holiday Classic Gets a Walmart Twist

Beyond incredible savings, Walmart is giving customers plenty of reasons to be surprised by what they discover this holiday season. Bringing that spirit to life is “A Who Knew Carol,” Walmart's new holiday campaign inspired by the classic holiday film, “The Muppet Christmas Carol.”

The campaign brings together an iconic ensemble of Muppets, including Kermit the Frog, Miss Piggy, The Great Gonzo, Rizzo the Rat and Pepé the King Prawn, alongside Walton Goggins as Ebenezer Scrooge and Stephanie Beatriz as Scrooge's niece. Together, they bring a fresh twist to the holiday classic, showing that even the biggest humbug can be delightfully surprised by Walmart's exciting gifts, favorite brands and incredible value.

“‘A Who Knew Carol’ brings Walmart’s holiday campaign to life in a way that's playful, memorable and full of unexpected surprises all season long," said William White, chief marketing officer. “By pairing the enduring charm of The Muppets with Walton Goggins’ humor, we’re showing that Walmart can surprise customers with the brands, gifts, deals and convenience they need to make the season even more joyful.”

The campaign kicks off with “A Who Knew Carol” followed by a series of videos and social content throughout the holiday season bringing Walmart’s holiday assortment to life – from must-have gifts and exciting finds to quality that makes shoppers stop and say, “Who Knew?”

It's one more way Walmart is helping customers discover more to love, spend less and make more room for what matters this holiday season.

About Walmart

Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

More News From Walmart Inc.

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Massachusetts Wealth Management decreased its position in shares of JPMorgan Chase and Co. (NYSE: JPM) by 13.6% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 17,632 shares of the financial services provider's stock after selling 2,773 shares during

Vest Financial LLC boosted its stake in JPMorgan Chase and Co. (NYSE: JPM) by 8.3% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 276,446 shares of the financial services provider's stock after purchasing an additional 21,084 shares during

Root Financial Partners LLC boosted its stake in Johnson and Johnson (NYSE: JNJ) by 32.9% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 12,364 shares of the company's stock after buying an additional 3,063 shares during the quarter. Root Financial Partners LLC's

Royal Fund Management LLC boosted its holdings in shares of Johnson and Johnson (NYSE: JNJ) by 5.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 39,807 shares of the company's stock after purchasing an additional 2,076 shares during the period.

SeaCrest Wealth Management LLC lessened its position in shares of Johnson and Johnson (NYSE: JNJ) by 50.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 9,992 shares of the company's stock after selling 10,130 shares during the quarter. SeaCrest Wealth Management LLC's

Amazon.com Inc. NASDAQ: AMZN has given its shareholders little to cheer this year.

Amazon.com Today

$248.00 0.00 (0.00%)

As of 10/23/2026 04:00 PM Eastern

$196.00▼

$287.2019.95

$325.12

Despite the tech giant printing record revenues, the stock has managed a gain of barely 10% so far in 2026 and sits roughly where it stood 12 months ago. It’s safe to say investors have been feeling a bit hard done by and are due for some good news.

Earlier this week, it arrived—or at least appeared to. On Monday, Oct. 19, Morgan Stanley named Amazon its Top Pick, laying out a path in which Amazon Web Services (AWS) grows to $1 trillion in revenue—a scenario that, if it materializes, could more than double Amazon’s current share price.

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Dodgy TimingUnfortunately, the timing proved awkward. While the stock initially popped on the news, it had given back nearly all those gains by the close of trading on Thursday, Oct. 22. It seems Amazon, like most of its tech peers, has been swept up in a broad market pullback over higher oil prices and fresh jitters about AI spending. For context, the stock is back trading around $250, about 12% below the record high it set in July.

Amazon.com, Inc. (AMZN) Price Chart for Monday, October, 26, 2026

There’s some interesting tension at play here. Bulls like Morgan Stanley clearly see massive long-term potential, while the market is clearly nervous about the stock’s near-term trajectory. With earnings due next week on Oct. 29, the question is whether to buy into the latter’s optimism before the report or wait for proof.

The Bull Case Behind the UpdateMorgan Stanley’s call rests on a simple idea: that Amazon’s most profitable engines are all firing at once. In his update, analyst Brian Nowak argued the cloud unit is becoming a rare “Rule of 90” business, where growth and margins combine for exceptional returns. Alongside the reiterated Overweight rating, Nowak raised his near-term price target to $350, pointing to about 40% upside from the current share price.

The upside potential looks real, not just hoped-for. AWS reportedly has a cloud backlog of nearly $500 billion, suggesting the constraint is how fast it can build capacity, not whether customers will show up. Morgan Stanley’s bull case isn’t just about cloud, either. Nowak noted that Amazon’s high-margin advertising keeps growing, Prime membership is deepening customer loyalty, and a fast-expanding fleet of warehouse robots is set to squeeze billions in annual savings out of fulfillment. Add it up, and it’s easy to see why so many other analysts have also been raising their price targets.

Why the Stock Won’t CooperateSo why aren’t the shares trending up? Part of the answer is the background music. A jump in oil prices has driven the latest pullback, while the broader caution reflects mounting worries about the sheer sums the AI hyperscalers, Amazon chief among them, are pouring into their data centers.

Amazon is on track to spend around $220 billion this year, a bill so large it has pushed the company’s free cash flow into the red. Investors are essentially being asked to fund an enormous build-out now on the promise of profits later, and after a year of the stock going almost nowhere, their patience is clearly wearing thin.

What the Report Has to ShowThis all makes Amazon’s Oct. 29 earnings an important test, and the headline figure will matter far less than the details beneath it. Investors will watch closely to see whether AWS growth beats the already-high bar, whether that giant backlog is still expanding, and whether Amazon’s cloud margins are holding up despite the high costs of all those new data centers.

Just as important will be the spending plans. The market will want to see Amazon hold the line on future capital spending and provide some sign that free cash flow can recover, rather than signaling that the cash drain will keep running for years to come. Reassurance there would likely do more for the stock than any single beat on earnings or revenue.

Buy Now? Or Wait?So is there a case for stepping in before the report? Yes, and a reasonable one at that. The long-term story is compelling: AWS looks to be reaccelerating, its vast backlog all but locks in years of growth, and Amazon’s other businesses are serious profit machines in their own right. Wall Street’s growing enthusiasm, capped by Morgan Stanley’s Top Pick call, isn’t built on thin air.

But the recent price action is hard to ignore. The jitters now swirling around the broader AI trade have raised the bar for Amazon’s report, and with so much suddenly in question across the sector, anything less than a convincing quarter could sting. For investors who believe in the AI build-out, the smarter stance into next week’s report may be cautious optimism: bullish on where Amazon is heading, but alert to just how bumpy the road to get there could be.

Should You Invest $1,000 in Amazon.com Right Now?Before you consider Amazon.com, you'll want to hear this.

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Gibbs Wealth Management increased its position in ExxonMobil Corporation (NYSE: XOM) by 22.5% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 16,496 shares of the oil and gas company's stock after purchasing an additional 3,035 shares during

BRIA Capital Group LLC trimmed its position in shares of ExxonMobil Corporation (NYSE: XOM) by 7.3% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 35,140 shares of the oil and gas company's stock after selling 2,784 shares

Zoom Communications, Inc. (NASDAQ: ZM - Get Free Report) Director Santiago Subotovsky sold 717 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $96.63, for a total transaction of $69,283.71. Following the transaction, the director directly owned 118,350 shares in the company,

Verizon Communications Inc. (NYSE:VZ) reports third-quarter earnings Monday, days after a report that Elon Musk's SpaceX (NASDAQ:SPCX) is negotiating access to at least 80,000 U.S. cell sites to build a nationwide mobile network.

Verizon boosted its full-year outlook again as it continues to attract new customers. The mobile carrier also signed an AI deal valued at more than $2 billion with Amazon.

A fat yield on a screen means nothing if the dividend collapses the moment you own it. These four S&P 500 names sit near the top of the yield table and still generate enough cash to back every payment up.

The top of the S&P 500 yield table is where income investors go looking first, and it is also where the market prices in its worries. A big yield often signals a share price that has fallen because investors expect a dividend cut. The four index members below clear a stricter test: each funds its dividend from cash the business generates, with a balance sheet that can carry it. The group’s highest payer, Verizon Communications (NYSE: VZ | VZ Price Prediction), yields 6.18%, and its free cash flow covers that payout with room to spare.

Verizon Communications: Free Cash Flow Covers the Biggest Yield Here
Verizon is one of the largest U.S. wireless and broadband carriers and a component of the Dow Jones Industrial Average. At 6.18%, it is the only ultra-high-yield name on this list. That yield comes with a rising share price: the stock trades at $44.78, up 24.56% over the past year, and still trades at about 9 times forward earnings.

Coverage: In the second quarter, Verizon generated $6.43 billion of free cash flow, up 27.1% year over year, against $2.954 billion in dividends paid. For full-year 2025, operating cash flow of $37.137 billion minus capital spending of $17.461 billion left $19.676 billion of free cash flow, against $11.481 billion in dividends. Even after the payout, the company completed $3.5 billion of buybacks through the first half.

Track record: The quarterly dividend is now $0.7075 per share. It has risen every year since 2019, climbing in steps from $0.6025.

Why the payout holds: The business is gaining momentum. Verizon added 184,000 postpaid phone subscribers in the second quarter, compared with a loss of 9,000 a year earlier, and its fiber broadband base reached 10.9 million. The shares were rising in premarket trading Monday after a subscriber surge impressed Wall Street. Adjusted EBITDA margin widened to 40.1% from 37.1%.

Risk: The Frontier acquisition added debt. Total unsecured debt stands at $136.5 billion, and net unsecured debt to adjusted EBITDA rose to 2.5x from 2.2x at the end of last year. Paying that down will compete with dividend growth for cash, so expect small raises.

Realty Income: A Monthly Check That Rising Rates Have Discounted
Realty Income (NYSE: O) is a real estate investment trust (REIT) that owns free-standing, single-tenant commercial properties in the United States, Puerto Rico, and the United Kingdom on net leases, where tenants cover most property costs. It pays monthly and yields 5.67%, which makes it a high-yield name.

Part of that yield comes from a lower share price. The stock sits at $56.91, below its 52-week high of $66.25 and its 200-day average of $61.69. The pullback followed a rise in Treasury yields that raised the cost of capital for rate-sensitive landlords. Over the same stretch, occupancy held at 98.8%.

Coverage: REITs measure dividend capacity with adjusted funds from operations (AFFO), a cash-earnings figure that adds back depreciation. Second-quarter AFFO was $1.09 per share, against monthly dividends that totaled $0.8115 for the quarter. Full-year AFFO guidance of $4.44 to $4.45 per share sits well above the $3.252 annualized dividend. On a market-price basis, the 7.18% runs ahead of the dividend yield.

Track record and balance sheet: The second-quarter raise was the company’s 115th consecutive quarterly dividend increase, and the next monthly payment is $0.2715. Realty Income carries a Fitch “A” rating with a stable outlook, and net debt runs at 5.4x annualized pro forma adjusted EBITDAre.

Why the payout holds: Thousands of leases spread the risk, rent recapture on re-leased properties came in at 102.7%, and new growth channels include a $6 billion hyperscale data center joint venture.

Risk: Tenant credit. About 65.7% of annualized base rent comes from non-investment-grade tenants, and credit-loss provisions reached $46.4 million in the first half. A retail downturn would show up here first.

Altria Group: Tobacco Cash Flow That Keeps Funding Raises
Altria Group (NYSE: MO) sells Marlboro cigarettes in the U.S. and a growing line of smoke-free products, including on! nicotine pouches and NJOY vapes. It yields 5.57%, a high yield that has held up even as the stock climbed 35% this year to $74.24.

Coverage: Tobacco needs very little reinvestment. In 2025, operating cash flow of $9.29 billion minus capital spending of $216 million left $9.074 billion of free cash flow, against $6.96 billion in dividends. Quarterly cash flow swings with tax and settlement timing. Second-quarter operating cash flow was $719 million, following the same seasonal dip as a year earlier at $205 million, so the full year is the right lens. Second-quarter adjusted EPS of $1.48 also cleared the $1.06 quarterly dividend paid at the time.

Track record and balance sheet: Altria has raised its quarterly dividend every year since 2009, from $0.32 to the current $1.11, with the latest increase from $1.06. Stockholders’ equity is negative at -$2.62 billion, a result of years of buybacks and dividends, while cash stands at $2.37 billion.

Why the payout holds: Pricing power, the smokeable segment runs an adjusted operating margin of about 65%, and Altria returned nearly $3.9 billion to shareholders in the first half.

Risk: Shrinking volume. Domestic cigarette industry volumes are falling about 5%, and Marlboro’s retail share slipped to 39.5%. Price increases can offset that for years, but not forever.

Kinder Morgan: The Lowest Yield With the Strongest Momentum
Kinder Morgan (NYSE: KMI) is one of the largest energy infrastructure companies in North America, moving natural gas through pipelines and charging fees that work like tolls. It yields 3.51%, the lowest here, because the stock gained 35.86% over the past year to $34.28. A rising price pulls the yield down, which is the healthy way for a yield to shrink.

Coverage: Second-quarter free cash flow of $978 million covered $665 million in dividends. For 2025, operating cash flow of $5.917 billion minus capital spending of $3.026 billion left $2.891 billion, above the $2.604 billion paid out.

Track record and balance sheet: The quarterly dividend has risen every year since 2019, from $0.25 to the current $0.2975, which the board declared again for the next payment. Net debt to adjusted EBITDA sits at 3.6x, and Moody’s upgrade to Baa1 puts the company at a BBB+ equivalent across all three agencies.

Why the payout holds: Demand for gas is climbing. The $9.6 billion project backlog is 92% natural gas, with more than 60% tied to power generation and utility demand, including data centers and LNG exports. Cheap natural gas could benefit pipeline operators like Kinder Morgan by encouraging more use.

Risk: Construction spending is eating into the cushion. In the third quarter, operating cash flow of $1.59 billion minus capital spending of $1.045 billion left $545 million, short of the $665 million dividend. Full-year coverage remains intact, but watch whether new projects start producing cash on schedule.

Where These Four Fit in a Retirement Income Plan
Each pays out less cash than it brings in, and each has raised its dividend steadily for years. Verizon offers the most current income, Realty Income the most frequent paycheck, Altria the fastest raises, and Kinder Morgan the most growth behind a smaller yield. Together, they suit retirees and near-retirees who want reliable, rising checks from businesses that pay dividends from operating cash rather than borrowed money. They don’t suit anyone hunting for the highest number on a yield screen.

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During its most recent fiscal quarter (Q2 2026, ended Aug. 2), Home Depot (HD -2.41%) collected $47.9 billion in net sales. This makes it the biggest home improvement chain in the world. Comparatively, smaller rival Lowe's generated $26 billion in revenue in its latest fiscal quarter.

This level of scale plays to the company's advantage. It supports brand recognition. A footprint of more than 2,300 stores results in unmatched distribution. And inventory availability is robust, driving demand from professional customers, an important group to cater to.

These traits help Home Depot report consistent profits, which directly benefits income investors. If you want to make $10,000 in yearly dividends from this retail stock, you need to own 1,073 shares. But is the company's payout safe?

Image source: The Motley Fool.

Home Depot's real story is dividend growth
In September, Home Depot paid its investors $2.33 per share. On an annualized basis, this amounts to $9.32. Therefore, you'd need 1,073 shares to bring in $10,000 in annual passive income. Based on the current stock price of $328, this would set you back about $352,000.

At 2.84%, the current yield is strong. This is a much better yield than what the S&P 500 (^GSPC -0.52%) offers. Some income investors want a bigger yield. After all, plenty of stocks pay more. And the 10-year U.S. Treasury yield is just under 5%, having surged over the past 12 months (as of Oct. 22).

But yield is only the starting point. Investors should also consider growth. Home Depot's payout has soared, putting more money in shareholders' pockets over time. The dividend has increased by 238% over the last 10 years, going from $0.69 per quarter to the current distribution of $2.33. And it's been 158 consecutive quarters that the business has made a payout.

If you bought the stock exactly 10 years ago, you would've captured a starting dividend yield of 2.1%. Patience paid off, though. On that same cost basis, Home Depot now generates a substantially better dividend yield of 7.1%. During that entire period, investors didn't have to do anything except sit still.

$319.83-$7.90 (-2.41%)

NYSE · As of 4:00 PM ET 10/23/26

The payout is on solid ground
In the past decade, Home Depot's stock has climbed 150%. As mentioned, the dividend has risen by 238% over the same period. Investors might wonder whether the latter's higher growth rate is a sign that this isn't a blue chip dividend stock. It's important to figure out whether the payout is safe.

Home Depot historically has had no issue reporting positive earnings. This is true even though occasionally, industry or macroeconomic conditions deteriorate. During the great financial crisis, for example, perhaps the worst housing meltdown ever, management continued to pay dividends. However, the leadership team temporarily paused implementing any payout hikes, which was the correct financial strategic move.

The current environment is also worth exploring. Following a post-pandemic growth spurt that pushed double-digit revenue gains in fiscal 2020 and fiscal 2021, Home Depot has experienced a slowdown. Revenue growth has been in the low single digits. And same-store sales are expected to rise by just 1% (at the midpoint) this fiscal year.

Less accommodative macroeconomic conditions, such as stubborn inflation and elevated interest rates, have pressured operations. Housing turnover has been at historic lows for years now. And more customers might be waiting to tackle expensive renovation projects and upgrades.

Even in this unfavorable environment, Home Depot is generating sizable free cash flow. And it has continued to raise the dividend payout. This should give investors confidence.

Nothing is guaranteed in the future, of course. But it's hard to argue with the track record. Home Depot should be viewed by investors as a high-quality business that offers a safe dividend payout.

On October 26, 2026, we delve into the DCF analysis for The Goldman Sachs Group Inc GS . The stock has shown mixed performance recently, with a slight decline of 0.6% over the past week and a more significant drop of 6.5% in the last month. However, it has gained 1.1% year-to-date and 18.9% over the past year. Here are some key points to consider:

DCF Earnings-based intrinsic value of $980.61 compared to the current price of $875.68, indicating a margin of safety of 10.7%. DCF Free Cash Flow (FCF)-based intrinsic value stands at $4308.93, suggesting a significantly undervalued status with a margin of safety of 79.7%. GF Score™ of 87/100 indicates a strong overall performance, but the predictability rank of 2/5 stars suggests caution in relying solely on the DCF inputs. What Is GS Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of GS. The first stage accounts for a high growth rate over the initial ten years, while the second stage reflects a more conservative terminal growth rate. Below are the assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $52.91 10-Year Growth Rate 12.2% 10-Year Treasury Rate 4.99% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS is projected to grow at 12.2% annually, discounted at an 11% rate. The terminal phase (Years 11-20) assumes a 4% growth rate, also discounted at 11%. The summary of the calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.2%, discounted at 11% $561.61 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $419.00 Intrinsic Value Growth + Terminal $980.61 With the current price at $875.68, the intrinsic value of $980.61 indicates that GS is modestly undervalued, with a margin of safety of 10.7%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research suggests that stock prices correlate more closely with earnings than with free cash flow. For a more detailed analysis, you can visit the GS DCF Calculator.

What Does the Free Cash Flow DCF Say? The DCF based on Free Cash Flow (FCF) presents an intrinsic value of $4308.93, which is significantly higher than the earnings-based estimate. This indicates a substantial margin of safety of 79.7%. The stark difference between the two models suggests a disagreement in valuation perspectives. While the earnings-based model shows GS as modestly undervalued, the FCF model indicates a much stronger undervaluation. This discrepancy highlights the need for caution in interpreting these results.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for GS is calculated at $862.99, suggesting that the stock is slightly overvalued by 1.5%. This proprietary measure takes into account historical trading multiples, past business growth, and future performance estimates. The divergence between the GF Value™ and the DCF models adds another layer of complexity to the valuation discussion, as it indicates that not all models align on GS's current valuation. For further insights, you can explore the GF Value™.

What Does GS's GF Score™ Tell Us? The GF Score™ evaluates a company's overall performance across various metrics, providing a comprehensive view of its financial health. GS has a GF Score™ of 87/100, indicating strong performance in several areas, particularly in growth, as evidenced by its 10/10 growth rank. However, the predictability rank of 2/5 stars suggests that the DCF model's reliability is limited for this stock. Below is a summary of GS's scores:

Metric Rating GF Score™ 87/100 Financial Strength 2/10 Profitability 8/10 Growth 10/10 Valuation 7/10 Momentum 10/10 For more details on GS's performance, visit the GS stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as GS's 2/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a notable tension. The earnings-based DCF suggests GS is modestly undervalued, while the FCF model indicates a significantly undervalued status. In contrast, the GF Value™ suggests a slight overvaluation. This divergence highlights the uncertainty surrounding GS's valuation, particularly given the low predictability rank. Furthermore, the guru ownership signal shows that 15 gurus currently hold the stock, with 5 adding and 9 trimming their positions in recent quarters, while insiders have sold $146.6M worth of shares over the past year. This mixed signal from both gurus and insiders suggests a cautious approach. For a deeper understanding of GS's valuation, check out the GS DCF Calculator.

Frequently Asked Questions What is GS's intrinsic value based on DCF?

According to the DCF analysis, the earnings-based intrinsic value is $980.61, while the FCF-based intrinsic value is $4308.93.

Is GS overvalued or undervalued?

The earnings-based DCF indicates GS is modestly undervalued, while the FCF DCF suggests it is significantly undervalued. The GF Value™ indicates a slight overvaluation.

How reliable is the DCF model for GS?

The DCF model's reliability for GS is limited, as indicated by its predictability rank of 2/5 stars.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].