For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Adobe Systems (ADBE - Free Report) San Jose California-based Adobe Inc. is a leading technology company offering personalized digital experience through the infusion of artificial intelligence (AI) in its solutions.
ADBE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. ADBE has a Momentum Style Score of A, and shares are up 6.5% over the past four weeks.
For fiscal 2026, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.80 to $24.31 per share. ADBE boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ADBE should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Travelers (TRV - Free Report) Established in 1853 and is based in New York, NY, The Travelers Companies Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.
TRV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Finance stock. TRV has a Momentum Style Score of B, and shares are up 9.5% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.28 to $28.31 per share. TRV boasts an average earnings surprise of +40.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TRV should be on investors' short list.
Key Takeaways TRV is expected to benefit from pricing, renewal strength and premium growth across its business segments. TRV's investment income is projected to rise on higher fixed-maturity investments and long-term yields. Severe U.S. storms may pressure the combined ratio despite prudent underwriting. The Travelers Companies, Inc. (TRV - Free Report) is expected to register a decline in its bottom line but an improvement in its top line when it reports second-quarter 2026 results on July 17, before the opening bell.
The Zacks Consensus Estimate for TRV’s second-quarter revenues is pegged at $12.28 billion, indicating 1.3% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $5.14 per share. The Zacks Consensus Estimate for TRV’s second-quarter earnings has moved north 5.5% in the past 30 days. The estimate suggests a year-over-year decrease of 21%.
What the Zacks Model Unveils for TRVOur proven model predicts an earnings beat for Travelers this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
TRV’s Earnings ESP: Travelers has an Earnings ESP of +6.09%. This is because the Most Accurate Estimate of $5.45 is pegged higher than the Zacks Consensus Estimate of $5.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TRV’s Zacks Rank: The stock carries a Zacks Rank #3 at present.
Factors to ConsiderBetter performances across all three segments are likely to aid Travelers’ second-quarter results.
Premiums are likely to have benefited from better pricing, a solid renewal rate change, strong retention and exposure growth. The Zacks Consensus Estimate is currently pegged at $10.9 billion, indicating an increase of 0.3% from the year-ago reported number.
A higher average level of fixed maturity investments and higher long-term average yields are likely to aid investment results in the to-be-reported quarter. Management estimates fixed income NII, including earnings from short-term securities, of approximately $810 million after tax in the second quarter. The Zacks Consensus Estimate is currently pegged at $1 billion, implying an increase of 9.5% from the year-ago reported number.
The Personal Insurance segment is likely to have benefited from strong retention rates, increased new business premiums and positive renewal premium change, particularly in the Homeowners business. The Zacks Consensus Estimate is currently pegged at $4.1 billion, indicating a decrease of 4% from the year-ago reported number.
The Bond & Specialty Insurance segment is likely to have benefited from strong retention rates, positive renewal premium changes and increased new business premiums, as well as increases in the United Kingdom and broader Europe. The Zacks Consensus Estimate is currently pegged at $1 billion, indicating an increase of 5.9% from the year-ago reported number.
Strong retention rates, positive renewal premium changes and increased new business premiums are likely to have aided premiums at Business Insurance. The Zacks Consensus Estimate is currently pegged at $5.7 billion, indicating an increase of 2.3% from the year-ago reported number.
An increase in net written premiums, coupled with higher net investment income and other revenues, is likely to have aided the top line in the to-be-reported quarter.
Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is expected to have led to an improvement in the combined ratio. However, losses from severe convective storms in the United States are likely to have affected the insurer. The Zacks Consensus Estimate is currently pegged at 96, indicating a deterioration of 600 basis points from the year-ago reported number.
However, expenses are expected to have risen due to higher claims and claim adjustment expenses, amortization of deferred acquisition costs, general and administrative expenses, and interest expenses.
Continued share buybacks are anticipated to have provided an additional boost to the bottom line.
Other Stocks to ConsiderHere are three other P&C insurance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +8.84% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.77, indicating a year-over-year decrease of 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
Chubb Limited (CB - Free Report) has an Earnings ESP of +4.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $6.60, indicating a year-over-year increase of 7.4%.
CB’s earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +23.32% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $4.92, indicating a year-over-year decrease of 17.1%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Diane King Hall breaks down this morning's biggest movers at the opening bell, including BlackRock's (BLK) record assets under management driving second quarter earnings beat, Aehr Test Systems (AEHR) rallying after an earnings beat, and IBM Corp. (IBM) falling after Oppenheimer downgrade following its worst ever single day percentage decline. ======== Schwab Network ======== Empowering every investor and trader, every market day.
IBM (IBM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis technology and consulting company is expected to post quarterly earnings of $3.02 per share in its upcoming report, which represents a year-over-year change of +7.9%.
Revenues are expected to be $17.85 billion, up 5.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.06% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for IBM?For IBM, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that IBM will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that IBM would post earnings of $1.81 per share when it actually produced earnings of $1.91, delivering a surprise of +5.52%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
IBM doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
IBM (NYSE:IBM | IBM Price Prediction) currently trades at $214.46 after a brutal reset, while Wall Street’s consensus price target sits at $294.94. That gap implies roughly 37% upside to the average target, one of the widest dislocations in large-cap tech.
IBM is the century-old hybrid cloud, mainframe, consulting, and enterprise software franchise that spent the last two years re-rating higher on AI traction. The company’s generative AI book of business crossed $12.5 billion and IBM Z mainframe revenue kept posting double- and triple-digit growth quarter after quarter. That narrative just fractured.
Analysts have not blinked. The Street still sees a stock that should trade meaningfully higher, even as retail sentiment has gone visibly bearish and prediction markets are pricing in a miss.
A One-Day Reset That Erased Two Years of Progress IBM cratered more than 25% in a single session, its worst day since 1968, after management preannounced a Q2 revenue and EPS shortfall. The one-week decline came in at -29.09%. Year to date, IBM is down 25.75%.
The catalyst was concrete. Preliminary Q2 revenue is tracking $17.2 billion versus a $17.86 billion estimate, and non-GAAP EPS $2.93 against $3.01 expected. CEO Arvind Krishna attributed the miss to customers shifting budgets from software and mainframes to AI servers and memory amid a global memory shortage. In plain English: hyperscaler AI capex is crowding out traditional enterprise IT spend.
This is company-specific. The S&P 500 is up 10.25% year to date. IBM’s collapse hit every software and IT services name in the neighborhood.
Why the Street Still Sees $294 and Change Analysts have not capitulated because the pre-warning fundamentals were legitimately good. IBM beat EPS in four consecutive quarters, with Q1 revenue of $15.917 billion, up 9.46% year over year, and IBM Z mainframe revenue up 51%. Free cash flow guidance still calls for roughly $1 billion of year-over-year improvement.
Current ratings skew constructive: 3 Strong Buy, 12 Buy, 7 Hold, 0 Sell, and 1 Strong Sell. The target range is unusually wide, with the Street-high at $375 from Citigroup and the Street-low at $191 from HSBC. The low target sits below the current price, so the bullish view is not unanimous.
The bull case: the Q2 shock is a timing distortion tied to hyperscaler capex crowding out enterprise IT spend. Enterprise AI spending eventually rotates back through IBM’s watsonx, Red Hat, and consulting layers, and the mainframe cycle keeps humming. Bears counter that hyperscaler capex durably eats software wallet share. Prediction markets side with the bears in the near term, pricing a 93.9% probability IBM misses next quarter.
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Everyone in the Enterprise Aisle Got Hit Microsoft (NASDAQ:MSFT) trades at $395.76, down 20.05% YTD, against a consensus target of $559.86. Analyst posture remains overwhelmingly bullish at 13 Strong Buy, 41 Buy, 3 Hold. Microsoft is the capex spender driving the market’s concern.
Oracle (NYSE:ORCL) sits at $131.66, off 33.34% YTD, versus a target of $251.85. Ratings are heavily positive at 8 Strong Buy, 29 Buy, 5 Hold, 1 Sell. Oracle’s problem is the mirror image of IBM’s: enormous capex, deeply negative free cash flow, and rising debt.
Salesforce (NYSE:CRM) trades at $170.33, down 36.42% YTD, with a consensus target of $245.41 and analyst posture at 6 Strong Buy, 34 Buy, 10 Hold, 2 Strong Sell. The AI-crowding-out narrative hits CRM directly.
Accenture (NYSE:ACN) is the group’s worst performer at $138.67, down 48.51% YTD, against a target of just $179.13. Ratings sit at 2 Strong Buy, 12 Buy, 13 Hold, and revisions have drifted down as growth decelerates.
IBM’s forward P/E of 23 is friendlier than peers, against a business still growing revenue high-single digits.
What the Numbers Actually Say IBM currently trades at $214.46, hugging the $212.34 52-week low and well below the $332.46 high. Consensus target: $294.94. Roughly 19 analysts cover the name, with ratings running 15 Buy-equivalent, 7 Hold, and 1 Strong Sell.
IBM is down 25.75% YTD and 21.54% over the past year. The S&P 500 is up 10.25% YTD and 20.33% over one year. Beta is 0.675, which makes the size of the move striking.
The dividend yield sits at 2.28%, backed by a 31st consecutive year of increases. Investors get paid to wait.
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about UnitedHealth Group (UNH - Free Report) .
UnitedHealth currently has an average brokerage recommendation (ABR) of 1.46, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.46 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 20 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 74.1% and 11.1% of all recommendations.
Brokerage Recommendation Trends for UNH
Check price target & stock forecast for UnitedHealth here>>>
While the ABR calls for buying UnitedHealth, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is UNH a Good Investment?Looking at the earnings estimate revisions for UnitedHealth, the Zacks Consensus Estimate for the current year has increased 0.4% over the past month to $18.39.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UnitedHealth. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for UnitedHealth may serve as a useful guide for investors.
Key Takeaways Newmont's shares fell 16.4% in three months amid a pullback in gold prices.NEM is advancing key projects, strengthening liquidity and expanding shareholder returns through buybacks.Newmont expects lower 2026 gold output and higher costs, which could weigh on profitability. Newmont Corporation's (NEM - Free Report) shares have lost 16.4% in the past three months, reflecting the sharp decline in gold prices on inflation worries stemming from the Middle East tensions, a stronger U.S. dollar and expectations of higher interest rates.
NEM stock has outperformed the Zacks Mining – Gold industry’s 24.4% fall while underperforming the S&P 500’s 6.6% increase. Among its gold mining peers, Barrick Mining Corporation (B - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) have lost 13.9%, 32.8% and 29.4%, respectively, over the same period.
NEM’s 3-month Price Performance Image Source: Zacks Investment Research
The NEM stock slipped below its 200-day simple moving average (SMA) on June 22, 2026. It is also currently trading below its 50-day SMA. The 50-day SMA is reading lower than the 200-day SMA, following a death crossover on July 9, 2026, signaling a bearish trend.
NEM Stock Trades Below 50-Day SMA Image Source: Zacks Investment Research
Let’s take a look at NEM’s fundamentals to analyze the stock better.
NEM Poised for Growth on Key Projects & Portfolio ActionsNewmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including the Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand Newmont’s production capacity and extend mine life, driving revenues and profits.
In October 2025, NEM achieved a significant milestone at Ahafo North. It achieved commercial production at the project, which followed the first gold pour in September 2025. Ahafo North is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years. Output is expected to be 315,000 ounces this year, with a ramp-up to full capacity.
NEM recently received key regulatory approvals from the Province of British Columbia for its Red Chris Block Cave Project, marking a major milestone in the planned transformation of the Red Chris Mine from an open-pit operation to a large-scale block-cave mine. The approvals move the project closer to a final investment decision, which Newmont expects to make later this year.
Newmont has also divested non-core businesses as it shifts its strategic focus to Tier 1 assets. The company generated $3.6 billion from its portfolio optimization actions in 2025. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.
NEM’s Capital Allocation Backed by Solid Financial HealthNewmont has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter of 2026, Newmont had robust liquidity of roughly $12.8 billion, including cash and cash equivalents of around $8.8 billion. Its free cash flow surged 161% year over year to a record $3.1 billion in the first quarter, led by an increase in net cash from operating activities. Net cash from operating activities amounted to $3.8 billion in the first quarter, up from $2 billion in the year-ago quarter.
Newmont stands to benefit from still-elevated gold prices, which should drive its profitability and cash flow generation. While gold prices have experienced a significant downward correction after reaching peak levels in January 2026, they remain at supportive levels. Heightened geopolitical tensions, a weaker U.S. dollar, tariff-related worries and concerns surrounding the Federal Reserve’s independence had driven bullion to a record high of nearly $5,600 per ounce in late January. Since then, gold has pulled back sharply due to inflation concerns triggered by a surge in crude oil prices amid Middle East tensions, with prices falling to $4,500 per ounce around the end of May.
Bullion continued to retreat in June, with prices slipping below $4,000 per ounce to a near eight-month low amid rate-hike expectations and a stronger greenback, despite reduced inflation concerns following the interim agreement between the United States and Iran. Meanwhile, the Fed held interest rates steady in the latest policy meeting, but signaled a potential rate increase before the year's end. Aggressive profit-booking also contributed to the slump in gold prices.
Gold prices recouped some losses last week to climb above $4,100 per ounce, but again eased toward $4,000 per ounce lately as an uptick in oil prices outweighed soft U.S. inflation data. Bullion is up roughly 21% year over year.
NEM has distributed $3.4 billion to its shareholders through dividends and share repurchases in 2025. It has returned $2.7 billion to its shareholders since Feb. 19, 2026. Newmont has executed buybacks of $6 billion under the earlier authorized share repurchase programs, including $2.4 billion since the fourth-quarter 2025 earnings call. Its board has approved an additional $6 billion repurchase program. NEM offers a dividend yield of 1.1% at the current stock price. Its payout ratio is 12%.
Newmont also remains committed to deleveraging, reducing debt by roughly $3.4 billion in 2025. It reduced debt by an additional $42 million in the first quarter, resulting in a strong net cash position of $3.2 billion.
Weaker Production, Higher Costs Cloud NEM’s ProspectsNEM saw lower gold production for the first quarter, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces. Newmont expects second-quarter 2026 production to be below the first-quarter level.
The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine.
Lower production is expected to lead to higher unit costs in 2026. NEM expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to lower sales volumes as a result of planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 into 2026 and inventory changes. Newmont also sees a significant sequential increase in unit costs in the second quarter, partly due to increased sustaining capital spending, higher costs associated with sales at Boddington, Tanami, Lihir and Penasquito and increased oil prices. The production decline and higher costs could undercut the profitability goals.
NEM’s Earnings Estimates Moving LowerNewmont’s earnings estimates for 2026 have been going down over the past 60 days. The Zacks Consensus Estimate for second-quarter 2026 has also been revised lower over the same time frame.
The Zacks Consensus Estimate for 2026 earnings is currently pegged at $9.32, suggesting year-over-year growth of 35.3%. Earnings are expected to grow roughly 52.5% in the second quarter.
Image Source: Zacks Investment Research
A Look at Newmont Stock’s ValuationNewmont is currently trading at a forward price/earnings of 9.6X, a 4.9% premium to the industry average of 9.15X. NEM is trading at a premium to Barrick and Kinross Gold and at a discount to Agnico Eagle. Newmont and Kinross Gold currently have a Value Score of B each. Barrick and Agnico Eagle have a Value Score of A and C, respectively.
NEM’s P/E F12M Vs. Industry, B, AEM and KGC Image Source: Zacks Investment Research
Conclusion: Hold Onto NEM SharesNewmont is well-positioned for growth, backed by strong operating performance and a robust project pipeline that is expected to expand production capacity, extend mine life and support revenue and earnings growth. The company’s asset optimization, which prioritizes investment in high-return, long-life assets, further enhances its long-term prospects.
Despite the significant downswing in bullion prices, higher year-over-year realized prices should continue to boost NEM’s profitability and drive cash flow generation. However, lower production stemming from divestitures and lower ore grades, along with elevated costs, could pressure overall performance. Investors who already own this Zacks Rank #3 (Hold) stock may consider continuing to hold their positions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Salesforce (CRM - Free Report) Salesforce is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. Its offerings are delivered on the Agentforce 360 Platform, which connects customer data with integrated AI across systems, apps and devices.
CRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.87; value investors should take notice.
16 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.97 to $14.12 per share. CRM boasts an average earnings surprise of +17.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CRM should be on investors' short list.
, /PRNewswire/ - Falcon Gold Corp. (TSXV: FG) (FSE: 3FA) (OTC Pink: FGLDF) ("Falcon" or the "Company") is pleased to announce that it has commenced the drill tender process for its fully permitted Central Canada Gold Project located near Atikokan, Ontario.
"Central Canada continues to emerge as one of the most exciting exploration opportunities in Falcon's portfolio," said Karim Rayani, Chief Executive Officer of Falcon Gold Corp. "With a fully permitted drill program, encouraging results from our previous drilling campaigns and more than a century of historic exploration to build upon, we believe we are well positioned to advance this project toward its next significant discovery."
The Company recently received approval for a diamond drilling program consisting of up to 20 drill holes totaling approximately 2,500 metres. Falcon has invited a number of experienced Canadian diamond drilling contractors to submit tenders for the upcoming exploration program, with contractor selection expected to be completed in the coming weeks.
The planned drill program is designed to follow up on Falcon's previously identified high-grade gold mineralization while testing additional priority targets generated through the integration of historical exploration, diamond drilling, geological mapping, geophysics and structural interpretation.
Exploration and development at the Central Canada Gold Project dates back to the early 1900s, when the property was the site of shaft sinking, underground development and limited historic gold production. During the 1930s, Central Canada Mines Ltd. further advanced the property through underground development and exploration, establishing the project as one of the historic gold occurrences within the Atikokan Gold Camp.
To date, Falcon has successfully completed two phases of diamond drilling at the Central Canada Gold Project. These programs confirmed the presence of high-grade, structurally controlled gold mineralization, including highlights of 10.17 g/t Au over 3.0 metres, including 18.6 g/t Au over 1.0 metre with visible gold, and 2.8 g/t Au over 7.5 metres. These results have significantly enhanced the Company's geological understanding of the project and refined several priority drill targets.
The upcoming drill program will focus on expanding and testing the historic Central Canada Mine Trend (J.J. Walshe Mine Trend) together with several additional prospective gold-bearing structures identified across the property, including the Sugar Shear, Monte Zone, No. 2 Vein, Honey Zone and Hoist Zone. Collectively, these targets represent a broad, district-scale mineralized system that remains only partially evaluated by modern exploration despite more than a century of intermittent exploration.
In addition to advancing the Central Canada Gold Project, Falcon continues to strengthen its strategic position within the Atikokan-Hammond Reef Gold District through the recent acquisition of the West Hammond Contact Property, providing shareholders with exposure to a growing portfolio of highly prospective gold projects in one of Ontario's premier exploration districts.
Following completion of the tender process, the Company expects to award a drilling contract and announce the commencement of the program. Mobilization will be subject to financing, contractor availability and customary operational scheduling.
The Company will continue to provide updates as exploration activities progress.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Mike Kilbourne, P.Geo., a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Kilbourne is an independent consulting geologist and is at arms length to the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
Karim Rayani
Chief Executive Officer
Falcon Gold Corp.
[email protected]
+1 604 716 0551
About Falcon Gold Corp.
Falcon Gold Corp. is a Canadian mineral exploration company focused on the acquisition, exploration, and advancement of precious and battery metals opportunities across the Americas, with a portfolio spanning established mining camps and emerging exploration districts. Its flagship asset, the Central Canada Gold Project, is located approximately 20 kilometres southeast of Agnico Eagle's Hammond Reef Gold Deposit in northwestern Ontario. The project lies within the highly prospective Quetico Fault Zone, a major regional structural corridor interpreted as a key control on gold mineralization in the district. The Hammond Reef deposit is associated with a northeast-trending structural system linked to this broader regional framework, highlighting the significance of the geological setting. The Central Canada property has a documented exploration and development history spanning more than a century. Early work between 1901 and 1907 included shallow shaft development and small-scale production from high-grade material processed through stamp milling. Between 1930 and 1935, Central Canada Mines Ltd. further advanced the project with deeper underground development, crosscutting, and the installation of a small-scale gold mill. Subsequent exploration programs have included diamond drilling campaigns that returned multiple high-grade gold intercepts, supporting the presence of significant mineralization within the system. Beyond its flagship project, Falcon Gold maintains a diversified portfolio of Canadian exploration assets. This includes a 49% interest in the Burton Gold Property in partnership with IAMGOLD near Sudbury, Ontario, exploration-stage gold targets in British Columbia through the Spitfire and Sunny Boy claims, and the Great Burnt Copper-Gold Project in central Newfoundland.
Cautionary Language and Forward-Looking Statements
This news release may contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including but not limited to statements relating to the timing and content of future work programs, including planned drilling programs, geological interpretations, receipt of property titles, and other corporate and technical matters. Forward-looking statements are based on assumptions, expectations, estimates, and projections as of the date of this news release and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied herein. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "intend," "expect," "plan," "anticipate," "believe," "estimate," "project," "potential," or "continue," or the negative of these terms, or other comparable terminology. Forward-looking statements in this news release may include, but are not limited to, statements regarding planned drilling activities on the Central Canada Gold Project, which is currently permitted for up to 20 drill holes, and the interpretation and potential extension of mineralization along structural trends within the project area. There can be no assurance that the Company's exploration programs will proceed as currently contemplated or that they will achieve their intended objectives. Forward-looking statements are inherently subject to significant business, economic, competitive, and geological uncertainties and contingencies. Actual results may differ materially from those currently anticipated. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that plans, assumptions, or expectations will prove to be accurate.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Baidu Inc. (BIDU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this web search company have returned -2.7%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Internet - Services industry, which Baidu Inc. falls in, has gained 0.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Baidu Inc. is expected to post earnings of $2.13 per share, indicating a change of +12.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $8.22 for the current fiscal year indicates a year-over-year change of +7.6%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.16 indicates a change of +23.6% from what Baidu Inc. is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Baidu Inc..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Baidu Inc., the consensus sales estimate of $4.87 billion for the current quarter points to a year-over-year change of +6.6%. The $20.09 billion and $22.4 billion estimates for the current and next fiscal years indicate changes of +11% and +11.5%, respectively.
Last Reported Results and Surprise HistoryBaidu Inc. reported revenues of $4.65 billion in the last reported quarter, representing a year-over-year change of +4%. EPS of $1.75 for the same period compares with $2.55 a year ago.
Compared to the Zacks Consensus Estimate of $4.66 billion, the reported revenues represent a surprise of -0.28%. The EPS surprise was -6.42%.
Over the last four quarters, Baidu Inc. surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Baidu Inc. is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Baidu Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.52; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $10.68 per share. TMUS boasts an average earnings surprise of +12.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TMUS should be on investors' short list.
Key Takeaways Deere settled its FTC and five-state right-to-repair lawsuit over agricultural equipment repairs.DE will provide farmers and independent repair providers with equal repair resources for 10 years.Deere plans to keep investing in tools, technology and services to expand customer repair options. Deere & Company (DE - Free Report) has reached a settlement with the Federal Trade Commission (“FTC”) and five states regarding the ‘right to repair’ lawsuit. Resolving the early-2025 dispute, which accused Deere of restricting farmers from fixing its agricultural equipment, clears the way for Deere to proceed with its ongoing innovation toward more flexible repair options.
According to the settlement, Deere will provide farmers and independent repair providers with the same equipment repair resources, including full access to applicable software capabilities for the next 10 years under the supervision of the FTC. The settlement formalizes the company's ongoing initiative to expand access to diagnostic and repair tools, giving farmers and independent providers the freedom to fix their equipment while giving the FTC the ability to verify compliance.
Deere expects to continue investing in tools, technology and services to give customers better options to care for their equipment. Deere continues to focus on providing reliable equipment, robust dealer support and effective solutions to keep farmers productive.
DE’s Price Performance, Valuations & EstimatesDeere shares have gained 16.5% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 12.2% growth. In comparison, the broader Zacks Industrial Products sector has returned 22.4% and the S&P 500 has rallied 25.4%.
Image Source: Zacks Investment ResearchThe DE stock has performed better than its peers AGCO Corporation (AGCO - Free Report) and CNH Industrial (CNH - Free Report) . AGCO has gained 7.9% in the time frame, whereas CNH has lost 19.8%.
Image Source: Zacks Investment ResearchDeere is currently trading at a forward 12-month price/earnings of 27.32X, a premium compared with the industry’s 25.20X. It is also higher than DE’s five-year median of 26.06X.
Image Source: Zacks Investment Research
The DE stock also seems relatively more expensive than AGCO Corp and CNH Industrial. AGCO Corp is trading lower at 16.03X and CNH Industrial is trading at 18.89X.
The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 2%. The same for fiscal 2027 indicates growth of 27%. The Zacks Consensus Estimate for 2026 sales implies 6% growth. The same for fiscal 2027 suggests a rise of 8%.
EPS estimates for 2026 have moved north, while the same for 2027 have moved south over the past 60 days.
Image Source: Zacks Investment Research
Deere currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle (ORCL - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this software maker have returned -32.1% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Computer - Software industry, to which Oracle belongs, has lost 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Oracle is expected to post earnings of $1.72 per share for the current quarter, representing a year-over-year change of +17%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $8.03 for the current fiscal year indicates a year-over-year change of +5.2%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.69 indicates a change of +33.1% from what Oracle is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Oracle.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Oracle, the consensus sales estimate of $19.13 billion for the current quarter points to a year-over-year change of +28.1%. The $89.73 billion and $128.88 billion estimates for the current and next fiscal years indicate changes of +33.2% and +43.6%, respectively.
Last Reported Results and Surprise HistoryOracle reported revenues of $19.18 billion in the last reported quarter, representing a year-over-year change of +20.6%. EPS of $2.11 for the same period compares with $1.7 a year ago.
Compared to the Zacks Consensus Estimate of $19.08 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +7.65%.
Over the last four quarters, Oracle surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Oracle is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Oracle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The share price of Oracle (ORCL +2.79%) has plunged more than 60% from its 52-week high, and the stock currently trades at $136. This reflects investor concerns around the heavy capital spending to support the company's data center build-out, but it's difficult to overlook the level of demand in Oracle's cloud business.
Cloud revenue growth has accelerated from 28% year over year in the August-ending fiscal first quarter to 47% growth in the fiscal fourth quarter. Demand for artificial intelligence (AI) services drove a 93% increase in the cloud infrastructure business last quarter. While there are risks, the disconnect between cloud growth and its stock price presents a compelling opportunity for investors.
Image source: The Motley Fool.
Oracle's cloud advantage Oracle's momentum reflects a key competitive advantage in the cloud market: data security. Enterprises want to use AI to boost productivity, but it's also essential that they keep their data private and secure when using AI models from OpenAI, Anthropic, and others.
Its cloud infrastructure is differentiated from other hyperscalers through its secure data-isolation architecture. This separates the cloud control computers from the customer's compute nodes. This allows an enterprise to control its data behind its own firewall, which seems to be a key selling point driving greater demand for Oracle's cloud business.
Oracle provides the data center infrastructure for AI training and inference, along with industry expertise for running enterprise software. It essentially serves as the customer's digital hub.
CEO Mike Sicilia hinted at a huge opportunity for Oracle: "We're on the front end of one of the most interesting times in the technology business." Oracle's cloud revenue trajectory in recent quarters suggests that customers are moving past the testing stage of AI and actively implementing it to run their businesses.
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Growth and value outweigh the risks Building data centers is capital-intensive. Oracle's capital expenditures are growing faster than the cash it is generating from operations. It has also issued more debt to fund its data center build-out. Its total debt has increased by $57 billion over the last year, while its free cash flow has tanked to negative $23.7 billion on a trailing 12-month basis.
The lower free cash flow and higher debt load have raised concerns around Oracle's financial health. However, the company's debt-to-equity ratio has declined from 5.3 to 3.9. This shows Oracle shifting from a debt-heavy business to an asset-heavy one focused on owning data center infrastructure for an AI-driven economy.
Importantly, Oracle is not spending without contracts in place. Remaining performance obligations, which are contracted revenue, ended the quarter at $638 billion. Once the data center infrastructure is in place and Oracle fulfills this demand, earnings and free cash flow should grow significantly.
The stock's forward price-to-earnings multiple has dropped to 17, while analysts have raised their earnings growth estimates to 28% annually over the next few years. The stock looks undervalued, but, of course, the shares could hit new lows before rebounding.
A slowdown in data center spending is a risk that would likely pressure the stock. But from a long-term perspective, the company's advantages in the cloud market and lower valuation could deliver outstanding compounding returns for investors.
Oracle logo is screened on a mobile phone for illustration photo. Krakow, Poland on July 13th, 2026. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Its historical performance during market downturns illustrates a consistent trend of significant declines followed by prolonged recoveries, which every investor ought to recognize.
Oracle (ORCL) shares experienced a pronounced decline of 6.5% on July 13 and another 2.7% on July 14, prompting an essential question for every investor. This is the software titan responsible for crucial databases and cloud frameworks that support AI operations for businesses worldwide. Currently, the market is contemplating a narrative of remarkable expansion, with the corporation securing $67 billion in new AI infrastructure agreements within a single quarter, juxtaposed with an equally significant capital strategy projecting a net cash expenditure of approximately $70 billion for fiscal 2027. This environment renders the question of downside potential particularly pressing.
The drop on that singular day serves merely as an indication. The true challenge for an investor lies in assessing how the stock performs amidst a genuine, widespread market crisis. The historical data is unequivocal and constant. The inquiry is not whether it will decline, but rather to what extent, for how long, and whether you possess the capacity to endure that period.
40% Decline During The 2008 CrisisThroughout the 15 market disruptions it has navigated, Oracle has seen an average decrease of 18%, which is slightly more than the S&P 500's 16% drop during similar intervals. However, averages might obfuscate the genuine distress caused by extreme cases. Its most severe decline was a 40% drop in the wake of the 2008-2009 Global Financial Crisis. The stock also suffered significantly during a market disruption in 2025, experiencing a 32% decline, as well as a 30% drop during a market downturn in 2022. When the market truly collapses, this stock has a pattern of falling alongside it, and the drops tend to be substantial.
A Median Recovery Duration Of 4 MonthsEnduring the decline is one aspect; waiting for recovery is quite another. The duration spent in the red can challenge an investor’s resolve. Historically, Oracle has required a median of about 4 months to return to its pre-crisis peak. Nonetheless, patience has occasionally been necessary for much longer. The slowest recovery documented happened following the 2014-2016 Oil Price Collapse, requiring nearly 27 months to complete the rebound. A swift recovery is never assured, and shareholders ought to brace for a potentially prolonged wait.
A Review Of Major Shocks Oracle Has EnduredPeak-to-trough declines for each market disruption, and the time it took for the stock to regain its pre-disruption level. Stock performance compared to the S&P 500, long-term bonds, and its sector.
ORCL Stock Drawdowns
Trefis
A $638 Billion Backlog Faces New ChallengesUndoubtedly, the Oracle of yesteryears differs from today’s Oracle. The optimistic outlook is that the company is fortified, supported by an impressive $638 billion in remaining performance obligations (RPO) that offer remarkable clarity. This demand is driven by its distinct role in AI, providing everything from Oracle Cloud Infrastructure to various applications. However, this growth necessitates tremendous investment, with plans to gather around $40 billion in capital and predictions of short-term pressure on gross margins. While we have examined the business fundamentals in greater depth, the inherent risk framework for a substantial, established tech firm confronting new competitive forces in the AI data center sector remains likely unchanged.
A 10% Position Might Lead To A 4% Portfolio DeclineTo illustrate this, contemplate the impact on your portfolio. That maximum 40% drop on a position accounting for 10% of your portfolio would have deducted roughly 4% from your overall assets. If the position weight were increased to 20%, that decline would escalate to approximately 8%. The past does not serve as a forecast, but it does indicate the level of risk associated with your investments. The true lever at your disposal is not the market, but rather your exposure levels. Careful position sizing and diversification are your primary strategies for managing that risk.
What Other Risks Are Lurking In Your Portfolio?You have just witnessed, through exact figures, the extent of Oracle’s declines during market failures and the duration it took to recover. The logical subsequent question is how much your other holdings could potentially decrease, and the options market assigns a future figure to quantify that: the anticipated movement it estimates for each stock over the next year. Our Expected Move screen provides a ranking of which S&P 500 entities carry the widest projected fluctuations, allowing you to ascertain if other investments bear more downside risk than accounted for.
You Have Ascertained the Downside. Now Quantify It.
The information above quantifies the potential decrease for this stock. This calculation is disquieting for any investment – but particularly for one that has subtly grown into a sizable part of your wealth, this drawdown is not merely a theoretical concern, it pertains to your financial position. Furthermore, the typical solution, selling to diversify, results in entrusting a portion of the gains to the IRS. There exists a strategy to limit that downside and diversify without incurring tax penalties.
Key Takeaways MetLife is embedding AI across core operations to improve efficiency and customer experiences.MET invested $3.2 billion in technology over five years to support enterprise-wide AI adoption.MET's Q1 2026 adjusted EPS rose 23.5% YoY, while its direct expense ratio improved to 11.9%. MetLife, Inc. (MET - Free Report) is increasingly embedding artificial intelligence (AI) across its business as part of its New Frontier strategy, with the goal of improving efficiency, enhancing customer experiences and supporting long-term growth. Rather than treating AI as a standalone initiative, the insurer is integrating the technology into core operations, from underwriting and claims to customer service and decision-making. This approach is helping the company simplify workflows while positioning it to compete more effectively in an evolving insurance market.
MetLife has invested more than $3.2 billion over the past five years to modernize its technology infrastructure. These investments are enabling broader AI adoption across the enterprise. AI tools are helping employees make faster decisions, reduce operational friction and deliver more personalized customer interactions. MetLife continues to emphasize responsible AI deployment through robust governance and risk management practices.
The company's AI investments are already supporting stronger operating performance. In the first quarter of 2026, adjusted earnings per share (EPS) increased 23.5% year over year to $2.42. At the same time, MetLife's direct expense ratio, excluding total notable items related to direct expenses and PRT, improved to 11.9% from 12% a year ago, reflecting continued productivity gains and disciplined cost management.
AI is becoming more than an operational tool for MetLife — it is evolving into a strategic differentiator. By combining technology-driven efficiency with disciplined execution and a diversified business model, the company is positioning itself to improve productivity, strengthen customer relationships and build a sustainable competitive advantage over the long run.
How Are Competitors Faring?Some of MET’s competitors adopting AI to improve operations include American International Group, Inc. (AIG - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) .
AIG is expanding its use of AI to improve underwriting accuracy, automate claims handling and strengthen risk assessment. American International Group is also using generative AI to support employees and streamline workflows, helping improve operational efficiency while delivering faster and more personalized customer service.
CNO Financial is adopting AI and advanced analytics to modernize customer engagement, automate routine processes and improve agent productivity. CNO is also investing in digital capabilities that simplify policy servicing and support more personalized insurance solutions, strengthening its long-term operating efficiency.
MET’s Price Performance, Valuation & EstimatesIn the year-to-date period, MET’s shares have risen 17.3% compared with the industry’s growth of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, MET trades at a forward price-to-earnings ratio of 8.80, above the industry average of 8.27. MetLife carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MET’s 2026 earnings implies 13% growth from the year-ago period.
Image Source: Zacks Investment Research
MetLife 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 Kimberly-Clark is expanding its portfolio with innovation across multiple price points and categories.KMB said that innovation, not promotions, drove volume and mix growth while supporting market share gains.KMB's enhanced Snug & Dry launch improved household penetration and product velocities. Kimberly-Clark Corporation (KMB - Free Report) continues to strengthen its portfolio through differentiated, science-backed innovation across its good, better, best product ladder, enabling it to address a broad range of consumer needs and price points. In the first quarter of fiscal 2026, these innovation efforts supported solid organic sales growth, with volume plus mix growth improving to 3%, extending two consecutive years of broad-based gains in this metric
The company highlighted that it is building market share across its key focus areas of Baby Care, Women’s Health and Active Aging as it continues to execute its innovation-led strategy. By consistently introducing differentiated products that address evolving consumer needs, Kimberly-Clark is expanding its product portfolio and strengthening its position across these key categories.
Kimberly-Clark emphasized that recent volume and mix improvements have been driven primarily by product innovation rather than promotional activity, highlighting the strength of the company’s innovation-focused growth model. Promotional programs are designed to support product launches by encouraging consumer trial and accelerating adoption, rather than serving as the primary driver of sales. This disciplined approach supports sustainable volume and mix growth while reinforcing the company’s innovation-led strategy.
In the first quarter, promotional efforts were centered on the enhanced Snug & Dry offering, which feature a softer feel enabled by a redesigned absorbent core. According to the company, this innovation has delivered encouraging results, contributing to higher household penetration and improved product velocities.
Overall, Kimberly-Clark’s continued investment in consumer-centric innovation is reinforcing its competitive position across key categories. As the company expands its pipeline of differentiated products, it is well-positioned to build on its market share momentum and support sustainable, profitable organic growth over the long term.
The Zacks Rundown for KMBShares of this Zacks Rank #3 (Hold) company have gained 7.6% in the past six months compared with the industry’s growth of 1.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 14.24, lower than the industry’s average of 18.43.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 0.8% and the same for next fiscal year earnings implies growth of 0.9%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Church & Dwight Co., Inc. (CHD - Free Report) develops, manufactures and markets household, personal care and specialty products. At present, CHD carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CHD’s current fiscal-year sales implies a decline of 1% and the same for current fiscal-year earnings suggests growth of 6.2% from the year-ago reported figures. CHD reported a trailing four-quarter average earnings surprise of 6.5%.
Krispy Kreme, Inc. (DNUT - Free Report) produces doughnuts in the United States, the U.K., Ireland, Australia, New Zealand, Mexico, Canada, Japan and internationally. At present, DNUT carries a Zacks Rank of 2.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales indicates a decline of 14%, and the same for earnings implies growth of 30% from the year-ago reported figures. DNUT delivered a trailing four-quarter negative earnings surprise of 6.3%, on average.
Ryohin Keikaku Co., Ltd. (RYKKY - Free Report) engages in the retail of household goods and food items in Japan and internationally. RYKKY currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for RYKKY's current fiscal-year sales and earnings implies growth of 6.9% and 8.3%, respectively, from the year-ago actuals.
PayPal Holdings (PYPL +16.29%) stock exploded 17.1% higher through 10:35 a.m. ET Wednesday on reports the e-payments company has received a buyout offer from privately held companies Stripe and Advent, perhaps with assistance from publicly traded Block (XYZ +4.48%).
The reported buyout price: $53 billion.
Image source: PayPal.
PayPal: Buy it now? As CNBC reports this morning, Stripe, Advent, and Block have offered to acquire PayPal for $60.50 per share, nearly 28% above PayPal's closing price last night. $17 billion of the total $53 billion purchase price would be paid in stock, and the rest in cash.
Not all the details of the transaction are clear, and none of the companies reportedly involved are commenting on the reported acquisition, which Reuters first reported. Regardless, with PayPal stock down 35% over the past year (even after today's jump) versus a 20% gain for the broader S&P 500, PayPal shareholders are finally seeing a light at the end of the tunnel and hoping a buyout from Stripe and Advent may save them.
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What's next for PayPal? But is this light the tunnel exit, or an oncoming train?
According to the CNBC report, PayPal has received the offer and plans to discuss it at a board meeting on July 20, so the answer should come soon. The good news is that with PayPal stock trading at less than 9x earnings at present -- and only about 11.3x earnings at the reported purchase price -- the stock looks cheap, and there's good reason to believe Stripe, Advent, and Block would be interested in snapping up PayPal on the cheap.
The bad news is that if PayPal's board thinks it's too cheap, it might refuse to sell -- and if that happens, PayPal's stock price could go right back to where it was yesterday. Caveat investor.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block and PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
SAN DIEGO, July 15, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating Hyliion Holdings Corp. (NYSE American: HYLN) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.
What Should Hyliion Investors Do?
If you purchased Hyliion securities and suffered losses on your investment, you are encouraged to contact Johnson Fistel to learn more about the investigation.
To join the investigation click here.
For more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.
Why Is Johnson Fistel Investigating Hyliion?
On June 23, 2026, Pelican Way Research published a short report concerning Hyliion titled “Hyliion: A Glorified Science Project Who Has Continuously Failed To Meet Expectations And Is Now Throwing Around A Meaningless Deal.” The report stated that Hyliion’s stock had risen significantly following the Company’s announcement of a non-binding LOI with VFG Holdings for up to 250 KARNO Cores, representing approximately $133 million in potential revenue.
Pelican Way Research alleged that the VFG LOI accounted for roughly one-third of Hyliion’s reported $400 million-plus pipeline and questioned whether the LOI provided meaningful commercial validation. The report further alleged that VFG, which Pelican Way identified as VFG Tech Holdings, LLC, was incorporated in January 2026, appeared to have only four LinkedIn employees, had a minimal website, and lacked evidence of funding or operating substance sufficient to support an order of that size.
In light of these allegations, Johnson Fistel is investigating whether Hyliion Holdings complied with federal securities laws. If you suffered losses, or are a long-term holder of Hyliion stock, contact Johnson Fistel.
About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder litigation involving securities fraud, breaches of fiduciary duties, and other violations of state and federal law.
Johnson Fistel has been recognized as one of the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. In 2024, the firm recovered approximately $90,725,000 for investors.
Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. The attorney responsible for this communication is Frank J. Johnson.
Contact:
Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471 [email protected] | [email protected]
Wall Street expects a year-over-year increase in earnings on higher revenues when Globe Life (GL - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis life and health insurance company is expected to post quarterly earnings of $3.67 per share in its upcoming report, which represents a year-over-year change of +12.2%.
Revenues are expected to be $1.59 billion, up 6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.04% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Globe Life?For Globe Life, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.41%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Globe Life will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Globe Life would post earnings of $3.46 per share when it actually produced earnings of $3.43, delivering a surprise of -0.87%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Globe Life doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Moody's (MCO - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis credit ratings agency is expected to post quarterly earnings of $4.23 per share in its upcoming report, which represents a year-over-year change of +18.8%.
Revenues are expected to be $2.09 billion, up 10% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Moody's?For Moody's, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.36%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Moody's will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Moody's would post earnings of $4.25 per share when it actually produced earnings of $4.33, delivering a surprise of +1.88%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Moody's appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Financial - Miscellaneous Services industry, Synchrony (SYF - Free Report) , is soon expected to post earnings of $2.02 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -19.2%. Revenues for the quarter are expected to be $4.67 billion, up 3.4% from the year-ago quarter.
The consensus EPS estimate for Synchrony has been revised 0.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.66%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Synchrony will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Banks Are Buying Back Stock Hand Over Fist, Including These 3 NamesM&T Bank NYSE: MTB reported a stronger second quarter of 2026, with Chief Financial Officer Daryl Bible telling analysts that the bank posted the highest quarterly diluted earnings per share in its history, supported by broad-based loan growth, record fee income excluding prior notable items and continued improvement in credit metrics.
Diluted GAAP earnings per share were $5.32, up from $4.13 in the first quarter. Net income rose to $818 million from $664 million in the linked quarter. The bank generated a return on assets of 1.51% and a return on common equity of 12.3%.
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Banking and trucking: Is the economy rolling toward troubles?On an operating basis, net operating income was $823 million, up from $671 million in the prior quarter. Diluted operating earnings per share were $5.35, compared with $4.18 in the first quarter. Operating return on tangible common equity was 18.57%.
Loan Growth Broadens Across Portfolios Bible said M&T’s second-quarter earnings strength was “broad-based,” with taxable-equivalent net interest income rising 2% from the prior quarter to $1.8 billion. The net interest margin was unchanged at 3.70%, as higher earning asset yields were offset by increased funding levels to support loan growth.
Challenges Loom for Regional Banks as Interest Rates SurgeAverage loans increased $3 billion to $141.4 billion, with growth across each major portfolio. Commercial loans rose $2.3 billion to $66 billion, helped by middle-market lending, business banking and specialty businesses. Bible said middle-market balances benefited from higher utilization rates.
Commercial real estate also returned to growth. Average CRE loans increased $57 million to $23.6 billion, while end-of-period CRE balances rose $1.1 billion from March to $24.5 billion, driven mainly by multifamily and industrial lending. Bible said the second-quarter finish in CRE was strong enough to support “really strong average balance growth” in the third quarter.
Average residential mortgage loans rose 1% to $25.1 billion, while consumer loans increased 2% to $26.7 billion, led by recreational finance and home equity line of credit portfolios.
In response to analyst questions, Bible said loan growth in the second quarter was unusually broad, with about 90% of commercial businesses growing quarter over quarter. He said C&I growth may moderate in the third quarter as pipelines rebuild, but the bank remains optimistic about momentum into the fourth quarter and 2027.
Deposits Decline on Average but Improve Late in Quarter Average total deposits declined $700 million to $163.5 billion. Non-interest-bearing deposits decreased $600 million to $43.9 billion, with lower institutional services and commercial deposits partly offset by growth in consumer and business banking. Interest-bearing deposits were largely unchanged at $119.6 billion.
Bible said M&T shifted its deposit mix by shedding higher-cost money market deposits and replacing them with lower-cost time deposits. Interest-bearing deposit costs declined 2 basis points to 1.95%. He said the bank’s cumulative interest-bearing deposit beta since the beginning of the rate-cutting cycle in 2024 was 56%.
The bank saw stronger deposit trends later in the quarter, with end-of-period deposits rising to $168.9 billion. Bible said M&T typically sees more deposit growth in the second half of the year and expects that trend to continue. He also said short-term borrowings, which were elevated during the quarter, had already declined by a couple billion dollars as deposits improved.
Asked about funding loan growth, Bible said the bank is focused on core deposits across consumer, business banking, commercial, wealth, corporate trust and mortgage escrow channels. He said M&T has other funding options, including securitizations in auto, recreational vehicle and small-ticket leasing portfolios, as well as debt issuance or Federal Home Loan Bank advances, but emphasized the priority is to fund core loan demand with core deposits.
Fee Income Rises, Expenses Fall From Seasonal First-Quarter Levels Non-interest income increased to $740 million from $689 million in the first quarter. Mortgage banking revenue was unchanged at $127 million, with residential mortgage revenue rising $7 million to $96 million on higher servicing fee income, offset by a $7 million decline in commercial mortgage revenue to $31 million because of lower origination volume.
Service charges rose $5 million to $144 million, reflecting higher consumer transaction volume. Trust income increased $14 million to $197 million, supported by seasonal tax preparation fees and growth in institutional services and wealth fee income. Derivatives and trading revenue increased $8 million to $22 million on interest rate swap transactions with commercial customers.
Other revenue from operations rose $26 million to $213 million. That included a $47 million Bayview distribution, compared with $33 million in the prior quarter, along with higher credit card and merchant discount revenue. Bible said Bayview distributions can vary in timing, but described the investment as a “meaningful and recurring contributor” to annual earnings.
In the second half of the year, the bank expects approximately $35 million of additional revenue from newly boarded residential mortgage sub-servicing loans. Bible said M&T recently added 214,000 sub-servicing loans, with costs already largely in the run rate.
Non-interest expense fell $89 million from the prior quarter to $1.35 billion. Salaries and benefits decreased $88 million to $826 million, reflecting lower seasonal compensation and staffing levels, partly offset by an additional working day and the full-quarter impact of annual merit increases. Outside data processing and software costs increased $10 million as M&T continued investing in technology infrastructure and cybersecurity. The efficiency ratio improved to 52.8% from 58.3%.
Credit Metrics Continue to Improve M&T reported continued improvement in asset quality. Criticized commercial loans declined to $5.9 billion from $6.6 billion at the end of March, marking the ninth consecutive quarterly decline. The improvement included a $590 million decline in criticized CRE loans, driven mainly by upgrades in multifamily and office, and a $110 million decline in criticized C&I loans.
Non-accrual loans decreased 3% to $1.2 billion, and the non-accrual ratio fell 5 basis points to 84 basis points. Net charge-offs totaled $80 million, or 23 basis points, down from 31 basis points in the first quarter. Bible said charge-offs were granular, with no single net charge-off greater than $10 million.
The provision for credit losses was $120 million, compared with net charge-offs of $80 million. The allowance for loan losses declined 1 basis point to 1.52% of total loans.
Bible said the non-accrual ratio is likely near a two-decade low and may “bounce around” current levels. However, he said there remains room for criticized loans to decline, particularly in office CRE, where about 24% of the portfolio remained criticized.
Outlook Calls for Loan Growth and NIM in the High 3.60% Range M&T maintained expectations for 2026 net interest income in the lower half of its $7.2 billion to $7.35 billion range, with full-year net interest margin in the high 3.60% range. The bank expects average loans of $141 billion to $143 billion for the year and deposits of $165 billion to $167 billion.
Fee income is expected to be $2.8 billion to $2.85 billion, reflecting year-to-date strength, the second-quarter Bayview distribution and higher sub-servicing fee income beginning in the third quarter. Expenses are expected at the high end of the $5.5 billion to $5.6 billion range as the bank continues enterprise investments while maintaining expense discipline.
Given first-half credit performance and collateral positions, M&T now expects full-year net charge-offs of 37 basis points. The bank expects to operate with a common equity tier 1 ratio in the lower part of its 10% to 10.5% range unless market conditions deteriorate. Its estimated CET1 ratio was 10.19% at quarter-end, down 14 basis points from the first quarter, reflecting $465 million in share repurchases and higher risk-weighted assets from loan growth.
Bible said future buybacks will depend on risk-weighted asset growth from lending, with the bank targeting capital around current levels.
About M&T Bank NYSE: MTBM&T Bank Corporation is a bank holding company headquartered in Buffalo, New York, that provides a broad range of banking and financial services to individuals, businesses and institutions. The company operates a commercial and retail banking franchise that includes deposit-taking, lending, and payment services delivered through branch networks, digital channels and commercial banking teams. M&T serves customers across the northeastern and mid‑Atlantic United States and has expanded its geographic footprint through strategic acquisitions.
Its core businesses include commercial banking for middle‑market and community businesses, consumer and retail banking, mortgage origination and servicing, treasury and cash management, and wealth management and trust services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended June 2026, M&T Bank Corporation (MTB - Free Report) reported revenue of $2.53 billion, up 5.7% over the same period last year. EPS came in at $5.35, compared to $4.28 in the year-ago quarter.
The reported revenue represents a surprise of +2.21% over the Zacks Consensus Estimate of $2.48 billion. With the consensus EPS estimate being $4.66, the EPS surprise was +14.81%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how M&T Bank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 52.8% compared to the 55.4% average estimate based on two analysts.Tier 1 Capital Ratio: 11.6% compared to the 11.5% average estimate based on two analysts.Net interest margin: 3.7% compared to the 3.7% average estimate based on two analysts.Net charge-offs to average total net loans: 0.2% versus the two-analyst average estimate of 0.4%.Average Balance - Total earning assets: $195.22 billion compared to the $194.84 billion average estimate based on two analysts.Trust income: $197 million versus $190.32 million estimated by two analysts on average.Mortgage banking revenues: $127 million versus the two-analyst average estimate of $129.79 million.Net interest income - taxable-equivalent: $1.8 billion versus the two-analyst average estimate of $1.79 billion.Service charges on deposit accounts: $144 million versus $142.27 million estimated by two analysts on average.Total other income: $740 million versus $672.8 million estimated by two analysts on average.View all Key Company Metrics for M&T Bank here>>>
Shares of M&T Bank have returned +5.9% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways MTB beat Q2 earnings and revenue estimates as NII and non-interest income increased y/y.MTB posted loan and deposit growth, lower net charge-offs, and improved efficiency and asset quality metrics.M&T Bank expects 2026 NII of $7.2-$7.35B and fee income of $2.8-$2.85B. Shares of M&T Bank Corporation (MTB - Free Report) rallied 1.2% in the pre-market trading session on better-than-expected second-quarter 2026 results. The company reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.
Results were aided by higher net interest income (NII) and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.
Net income available to common shareholders was $781 million, up 15% from the prior-year quarter.
M&T Bank’s Revenues & Expenses Rise Y/YMTB’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year.
NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements.
Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations.
Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses.
The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan & Deposit Balances IncreaseTotal loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion.
M&T Bank’s Credit Quality ImprovesNet charge-offs decreased 25.9% to $80 million from the prior-year quarter.
The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter.
Non-performing assets declined 23.2% year over year to $1.23 billion.
The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/YM&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter.
M&T Bank’s Capital Distribution UpdateMTB repurchased 2.1 million shares of its common stock for $465 million in the second quarter of 2026.
MTB’s 2026 OutlookFor 2026, M&T Bank expects taxable-equivalent NII of $7.2-$7.35 billion. Fee income is projected between $2.8 billion and $2.85 billion.
GAAP expenses, including intangible amortization, are anticipated between $5.5 billion and $5.6 billion, with management expecting results toward the higher end of the range. Net charge-offs are projected at nearly 37 basis points of average loans, while the taxable-equivalent tax rate is expected to be 24%.
Average loans are expected between $141 billion and $143 billion, supported by continued commercial loan momentum, stabilizing commercial real estate balances, and consumer loan growth. Average deposits are anticipated between $165 billion and $167 billion.
The CET1 capital ratio is expected to be 10-10.5%.
Our View on MTBSustained growth in NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Loan and deposit growth, improving asset quality metrics, and a lower efficiency ratio will likely support its overall performance. However, higher expenses are near-term concerns.
Currently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other BanksCitizens Financial Group (CFG - Free Report) is scheduled to release second-quarter 2026 earnings on July 16.
The Zacks Consensus Estimate for CFG’s quarterly earnings has been unchanged at $1.25 per share over the past seven days. This indicates a 35.9% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report second-quarter 2026 results on July 23.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share. This implies a 2.6% rise from the prior-year reported number.
First Solar (FSLR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this largest U.S. solar company have returned -16.6% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Solar industry, to which First Solar belongs, has lost 16.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, First Solar is expected to post earnings of $2.74 per share, indicating a change of -13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
The consensus earnings estimate of $17.61 for the current fiscal year indicates a year-over-year change of +23.9%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $24.43 indicates a change of +38.8% from what First Solar is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, First Solar is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For First Solar, the consensus sales estimate for the current quarter of $1.06 billion indicates a year-over-year change of -3.3%. For the current and next fiscal years, $5.1 billion and $6.07 billion estimates indicate -2.2% and +18.9% changes, respectively.
Last Reported Results and Surprise HistoryFirst Solar reported revenues of $1.04 billion in the last reported quarter, representing a year-over-year change of +23.6%. EPS of $3.22 for the same period compares with $1.95 a year ago.
Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of -0.13%. The EPS surprise was +12.2%.
Over the last four quarters, First Solar surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
First Solar is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about First Solar. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Important Information Regarding Section 20(a) Individual Liability Claims Against First Solar's CEO and CFO for Alleged Tariff and Production Misrepresentations That Cost Shareholders Over $60 Per Share
, /PRNewswire/ -- Two senior executives of First Solar, Inc. (NASDAQ: FSLR) are named as individual defendants in a securities class action alleging they personally directed and controlled materially misleading statements about the Company's ability to manage U.S. tariff impacts and international production challenges. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
First Solar shares declined a combined $60.76 per share across two corrective disclosures, closing at $210.12 on February 25, 2026, after the Company issued lower-than-expected FY 2026 revenue guidance. The Court has set August 24, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The action names CEO Mark R. Widmar and CFO Alexander R. Bradley as control person defendants under Section 20(a) of the Securities Exchange Act of 1934. Both executives served in their respective roles throughout the entire Class Period, from February 26, 2025 through February 24, 2026. The complaint asserts that each possessed the authority to control the content of SEC filings, press releases, and earnings call statements disseminated to the investing public.
Sarbanes-Oxley Certification Obligations
As CEO and CFO, Widmar and Bradley were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify that the Company's periodic filings with the SEC:
Did not contain untrue statements of material fact or omit material facts necessary to make statements not misleading Fairly presented the Company's financial condition and results of operations Disclosed any significant changes in internal controls Reported any fraud involving management or employees with significant roles in internal controls The lawsuit contends that these certifications were materially false given the executives' alleged knowledge that international facility underutilization would persist into FY 2026 and that the onshoring of production to a new South Carolina facility would impose substantial costs on projected performance.
Section 20(a) Control Person Framework
The complaint charges that Widmar and Bradley functioned as controlling persons of First Solar by virtue of their senior positions, their direct participation in managing day-to-day operations, their authority over public communications, and their access to material non-public information. As pleaded in the action:
Widmar personally delivered prepared remarks at four consecutive earnings calls characterizing the tariff environment as "long term favorable" for First Solar Bradley personally introduced revised financial guidance at each quarterly call, setting assumptions around international facility utilization rates Both executives had advance review of all SEC filings and press releases before dissemination Both had access to internal data regarding customer contract defaults, including the 6.6 gigawatt BP affiliate termination "Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify SEC filings and deliver earnings call statements, they bear individual responsibility for the truthfulness of those communications." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering damages or call (212) 363-7500.
Scienter Allegations
The action asserts that both defendants knew or were deliberately reckless in not knowing that their public statements were misleading. The complaint identifies their direct operational oversight, participation in customer contract negotiations, and involvement in the decision to establish the $330 million South Carolina facility as evidence that they possessed contemporaneous knowledge of material risks they failed to disclose to shareholders.
Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com | Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the FSLR Lawsuit
Q: Who are the defendants named in the FSLR lawsuit? A: The complaint names First Solar, Inc. and individual defendants CEO Mark R. Widmar and CFO Alexander R. Bradley, who signed SEC filings, made public statements on earnings calls, and certified financial disclosures under Sarbanes-Oxley throughout the Class Period.
Q: When did First Solar allegedly mislead investors? A: The Class Period runs from February 26, 2025 to February 24, 2026. The alleged fraud was revealed through corrective disclosures on January 7, 2026 and February 24, 2026, causing combined stock declines of over $60 per share.
Q: What specific misstatements does the FSLR lawsuit allege? A: The complaint alleges First Solar made materially false or misleading statements regarding its capacity to manage U.S. tariff impacts, the consequences of underutilizing international production facilities, and the costs associated with onshoring production to a new U.S. facility. When the true state was revealed, the stock price declined sharply.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my FSLR shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
New York, New York--(Newsfile Corp. - July 15, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of First Solar, Inc. (NASDAQ: FSLR) between February 26, 2025 and February 24, 2026, inclusive (the "Class Period"), of the important August 24, 2026 lead plaintiff deadline.
SO WHAT: If you purchased First Solar securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the First Solar class action, go to https://rosenlegal.com/cases/first-solar-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 24, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose that: (1) defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on First Solar's business; (2) defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (3) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the First Solar class action, go to https://rosenlegal.com/cases/first-solar-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305257
Source: The Rosen Law Firm PA
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against First Solar, Inc. ("First Solar" or the "Company") (NASDAQ:FSLR).
IF YOU SUFFERED A LOSS ON YOUR FIRST SOLAR INVESTMENTS, CLICK HERE BEFORE AUGUST 24, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between February 26, 2025 and February 24, 2026, Defendants failed to disclose to investors that: (1) Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business; (2) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
AbbVie (ABBV - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this drugmaker have returned +10%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which AbbVie falls in, has gained 2.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AbbVie is expected to post earnings of $3.68 per share, indicating a change of +23.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
The consensus earnings estimate of $14.23 for the current fiscal year indicates a year-over-year change of +42.3%. This estimate has changed -0.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $16.12 indicates a change of +13.3% from what AbbVie is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AbbVie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of AbbVie, the consensus sales estimate of $16.81 billion for the current quarter points to a year-over-year change of +9%. The $67.32 billion and $72.98 billion estimates for the current and next fiscal years indicate changes of +10.1% and +8.4%, respectively.
Last Reported Results and Surprise HistoryAbbVie reported revenues of $15 billion in the last reported quarter, representing a year-over-year change of +12.4%. EPS of $2.65 for the same period compares with $2.46 a year ago.
Compared to the Zacks Consensus Estimate of $14.78 billion, the reported revenues represent a surprise of +1.47%. The EPS surprise was +1.15%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AbbVie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AbbVie. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
AbbVie ABBV stock has risen 8.9% so far this year as investor confidence strengthened in the company's post-Humira growth strategy. Despite Humira's U.S. patent expiry in 2023, AbbVie has successfully replaced much of the blockbuster's lost revenues with strong growth from Skyrizi and Rinvoq, easing concerns over its long-term earnings outlook.
The Bank of New York Mellon Corporation delivered its 14th consecutive quarter of YoY revenue growth, with Q2 non-GAAP EPS up 27% and a 39.8% pre-tax margin. I maintain a Buy rating and raise my price target, citing pristine technical momentum, robust earnings growth, and positive Wall Street revisions. BNY's valuation is now fair at a 16x P/E multiple, but strong operating leverage, dividend growth, and bullish technicals support further upside.
SummaryPalantir generated 85% revenue growth while operating expenses rose only 32%, driving 60% adjusted operating margins and 57% free cash flow margins.Stable stock-based compensation alongside rapidly growing revenue is allowing earnings and free cash flow to compound much faster than sales.Remaining performance obligations surged 134% to $4.5 billion, while 150% net dollar retention highlights expanding customer spending after deployment.Although Palantir trades near 38x forward sales, its long-term economics increasingly resemble software infrastructure rather than traditional enterprise software. South_agency/iStock via Getty Images
My earlier Palantir Technologies (PLTR) thesis was that the market mistakenly viewed AI as a threat to Palantir, whereas I believed it would become one of the key platforms enabling enterprise AI deployment. While I
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR 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.
Bristol Myers Squibb (BMY - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this biopharmaceutical company have returned +1.8%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Bristol Myers falls in, has gained 2.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Bristol Myers is expected to post earnings of $1.59 per share, indicating a change of +8.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
The consensus earnings estimate of $6.33 for the current fiscal year indicates a year-over-year change of +2.9%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.08 indicates a change of -3.9% from what Bristol Myers is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Bristol Myers.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Bristol Myers, the consensus sales estimate of $11.65 billion for the current quarter points to a year-over-year change of -5.1%. The $47.47 billion and $46.05 billion estimates for the current and next fiscal years indicate changes of -1.5% and -3%, respectively.
Last Reported Results and Surprise HistoryBristol Myers reported revenues of $11.49 billion in the last reported quarter, representing a year-over-year change of +2.6%. EPS of $1.58 for the same period compares with $1.8 a year ago.
Compared to the Zacks Consensus Estimate of $10.92 billion, the reported revenues represent a surprise of +5.25%. The EPS surprise was +9.72%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Bristol Myers is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Bristol Myers. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Albemarle (ALB - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this specialty chemicals company have returned -22.5%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Chemical - Diversified industry, which Albemarle falls in, has lost 5.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Albemarle is expected to post earnings of $3.21 per share for the current quarter, representing a year-over-year change of +2818.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.4%.
For the current fiscal year, the consensus earnings estimate of $13.06 points to a change of +1753.2% from the prior year. Over the last 30 days, this estimate has changed +5.4%.
For the next fiscal year, the consensus earnings estimate of $13.53 indicates a change of +3.6% from what Albemarle is expected to report a year ago. Over the past month, the estimate has changed +7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Albemarle is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Albemarle, the consensus sales estimate of $1.52 billion for the current quarter points to a year-over-year change of +14.5%. The $6.13 billion and $6.51 billion estimates for the current and next fiscal years indicate changes of +19.1% and +6.3%, respectively.
Last Reported Results and Surprise HistoryAlbemarle reported revenues of $1.43 billion in the last reported quarter, representing a year-over-year change of +32.7%. EPS of $2.95 for the same period compares with -$0.18 a year ago.
Compared to the Zacks Consensus Estimate of $1.33 billion, the reported revenues represent a surprise of +7.82%. The EPS surprise was +137.9%.
Over the last four quarters, Albemarle surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Albemarle is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Albemarle. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Roku (ROKU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this video streaming company have returned +2.8% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Broadcast Radio and Television industry, to which Roku belongs, has lost 7.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Roku is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +771.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $2.41 for the current fiscal year indicates a year-over-year change of +308.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.58 indicates a change of +48.6% from what Roku is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Roku.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Roku, the consensus sales estimate for the current quarter of $1.3 billion indicates a year-over-year change of +17%. For the current and next fiscal years, $5.55 billion and $6.31 billion estimates indicate +17.2% and +13.6% changes, respectively.
Last Reported Results and Surprise HistoryRoku reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $0.57 for the same period compares with -$0.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.2 billion, the reported revenues represent a surprise of +3.8%. The EPS surprise was +67.65%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Roku is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Roku. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Discretionary stock. ROKU has a Momentum Style Score of B, and shares are up 2.8% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $2.41 per share. ROKU boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROKU should be on investors' short list.
• SK Hynix stock is showing notable weakness. Why is SKHY stock falling?
Direxion on Wednesday launched the Direxion Daily SK Hynix Bull 2X ETF (NASDAQ:SKHL), offering investors 2x the daily performance of SK Hynix’s U.S.-listed shares.
In an interview with Benzinga, Jake Behan, Direxion’s head of Capital Markets, said the firm’s new leveraged ETF reflects growing trader interest in AI memory, describing SK Hynix as a company at the intersection of semiconductors, AI infrastructure and surging memory-chip demand.
AI Infrastructure Is Becoming the Next BattlegroundDirexion believes the investment case extends well beyond the IPO itself. Behan said SK Hynix has become one of the market’s most closely watched AI infrastructure companies because of its dominant position in high-bandwidth memory (HBM), a critical component paired with AI accelerators.
“SK Hynix sits at the intersection of several important themes being watched closely by traders, including semiconductors, the AI infrastructure buildout and memory chip demand. The company’s proximity to the memory ecosystem, particularly as demand for those products has exploded, has drawn significant interest from the trading community.”
SK Hynix is the world’s leading supplier of HBM chips and a key memory partner to Nvidia, including the qualification of its next-generation HBM4 products for Nvidia’s upcoming Vera Rubin platform.
Nasdaq Listing Opens the Door for U.S. InvestorsBehan said the company’s U.S. listing is an important catalyst in its own right, making it easier for American investors to access one of the most important players in the AI supply chain.
“The U.S. listing is a critical consideration for traders, giving them quick access to a company that’s squarely at the center of one of the hottest areas of the market right now.”
Greater accessibility could also broaden investor participation in AI infrastructure investing, as U.S. investors can now gain exposure to the company through domestic exchanges and U.S.-listed investment products.
Crowded Field, Different PitchDirexion is entering an increasingly competitive market for single-stock semiconductor ETFs. Alongside Leverage Shares’ bullish and bearish SK Hynix products, several issuers have moved quickly to capitalize on what is expected to be one of the year’s most closely watched semiconductor listings.
Asked how SKHL differentiates itself, Behan said the answer goes beyond pricing.
“Fees are certainly one consideration, but leveraged ETF users tend to look at the full package. That includes issuer experience, liquidity, execution, and the infrastructure supporting the ETF. Direxion has been managing leveraged and inverse ETFs for more than two decades and works with a broad network of counterparties to help support these strategies. For many traders, those factors can be just as important as the headline expense ratio.”
Leveraged Exposure Requires DisciplineWhile enthusiasm around SK Hynix has grown alongside the AI boom, Behan emphasized that leveraged ETFs are designed for tactical traders rather than long-term buy-and-hold investors, particularly during periods of heightened volatility surrounding major IPOs and ADR listings.
“Leveraged ETFs are designed for sophisticated traders who understand the impact of daily compounding and the risks associated with amplified exposure. Periods surrounding major listings and new ADR launches can be particularly volatile, making risk management especially critical.”
With multiple issuers rolling out products within days of SK Hynix’s U.S. debut, the scramble to launch dedicated ETFs highlights a growing conviction across the industry that the next phase of the AI trade may extend beyond GPU designers to the companies supplying the memory that keeps AI infrastructure running.
Photo: Shutterstock
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@CharlesSchwab's Nate Peterson explains the bearish case for the memory market and why Micron's (MU) performance could shape the industry's outlook. He also discusses Apple's (AAPL) partnerships with AI research labs to examine how advances in AI model compression could affect future memory demand.
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Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are down 8% to $903.50 in early trading Wednesday, dragging the broader semiconductor complex lower. The selloff is spilling into Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD), and Marvell Technology (NASDAQ:MRVL), which are lower by 6%, 6%, and 7%, respectively.
The iShares Semiconductor ETF (NASDAQ:SOXX) is off 4% to $546.72, reflecting a sector-wide risk-off tone. Micron shares had been trading near record highs after a blowout June earnings print, so today’s pullback follows a powerful rally.
The main catalyst appears to be a Micron-specific memory story. Barron’s reported that Micron shares fell as competition from Chinese memory-chip makers looks set to intensify, framing a longer-term threat to the DRAM and NAND business.
China Memory Competition Fuels the Selloff Chinese producer ChangXin Memory Technologies (CXMT) has been climbing the DRAM ranks quickly. CXMT has become the world’s fourth-largest DRAM producer, and Apple (NASDAQ:AAPL) is testing CXMT chips for devices sold in China. Furthermore, Nio (NYSE:NIO) recently disclosed a $23.3 million investment in the Chinese memory maker.
That signal of gathering Chinese scale threatens Micron’s pricing power in commodity DRAM even as HBM4 keeps the AI story intact. The narrative is framed as analysis, not a confirmed near-term revenue hit, but it lands on a stock that seems to already have been priced for perfection.
Why Intel, AMD, and Marvell Are Falling in Sympathy Intel focuses on CPUs and foundry, AMD on CPUs and GPUs, and Marvell on custom silicon and networking. None of the three compete in DRAM or NAND, so today’s action in Intel stock, AMD stock, and Marvell stock reads as sector-wide de-risking rather than a China-memory hit to their fundamentals.
Profit-taking is a big piece of the story. Intel stock is up 177% year to date, AMD shares are up 142%, and Marvell stock is up 145%. Sector-level positioning has repeatedly hit this group together, and today’s tape looks similar.
The SOXX ETF holds all four names and is a common vehicle for sector exposure. Traders should note the concentration risk in a handful of mega-caps within their sector allocation. The fund isn’t leveraged, so exposure moves one-for-one with the underlying basket.
Weighing the Bull and Bear Case on Micron The bull case for Micron remains anchored in AI memory demand. The company delivered FQ3 2026 revenue of $41.46 billion, up 346% year over year, with non-GAAP EPS of $25.11 and GAAP gross margin of 85%. Micron’s guidance for FQ4 called for revenue of $50 billion, plus or minus $1 billion.
The bear case rests on memory cyclicality, the Chinese competitive overhang, and a rich valuation after the run-up. Micron stock is up 217% year to date. Traders sizing their positions here can expect volatility to stay elevated and may consider trimming their exposure into strength.
The prediction markets echo the near-term caution. Polymarket odds put a 99% probability on Micron closing lower on July 15, and the crowd assigns 72% odds to the stock touching $840 in July.
What to Watch Now Traders can watch for whether Micron holds $905 and whether the SOXX ETF’s bounce attempts gain traction. Any confirming reporting on Chinese memory capacity, or a rebuttal from HBM customers, could reset the tone quickly.
TD Cowen’s $1,600 price target on Micron and Citigroup‘s (NYSE:C) upside catalyst watch on stronger second-half DRAM pricing remain intact for now. Market watchers can look for whether any sell-side desk cuts numbers on the China angle, with Micron’s next scheduled earnings being the key forward catalyst for the memory group.
Intuitive Surgical (ISRG +0.51%) is scheduled to report earnings after the market closes on July 16. The robotic healthcare stock has suffered so far this year, falling a little more than 30%, despite a strong first-quarter earnings report.
Positioning a trade or an investment right before an earnings report always carries a bit of event risk, but the current setup for Intuitive Surgical presents a compelling bull case.
It's worth noting that the stock has a recent history of earnings beats, bettering analysts' predictions in each of the past four quarters. If Intuitive reports better earnings than the current predictions of $2.81 billion in revenue and $2.48 in earnings per share (EPS), the stock will likely go up. However, it's important to take a longer view of the company's potential if you're planning on investing.
Here are three reasons why Intuitive Surgical's stock is a good long-term buy:
Image source: Getty Images.
The price is right, for now While Intuitive historically commands a premium multiple due to its absolute dominance in robotic surgery, the stock's sell-off this year has driven its forward price-to-earnings (P/E) multiple down to around 36x. That's a stark discount to its 5-year historical average of more than 58 times forward P/E. This compression offers a much more attractive entry point into a company where more than 80% of revenue is highly durable and recurring, from instruments, accessories, and services.
In the first quarter, recurring revenue from instruments and services grew 23% year over year to $2.12 billion. The increase in instruments and accessories revenue was primarily driven by approximately 16% growth in da Vinci procedure volume, customer buying patterns, and approximately 39% growth in Ion procedure volume.
Once a hospital installs a machine, it is effectively locked into the Intuitive ecosystem, creating a powerful, reliable revenue stream for investors.
It's worth noting that in the first quarter, revenue and EPS both grew by double-digit percentages, with revenue reported as $2.77 billion, up 23% year over year, and EPS of $2.28, up nearly 19% over the same period a year ago.
One reason for pessimism among investors is that GLP-1 obesity drugs are lowering bariatric surgical volumes. However, Intuitive is making up for that with the growth in other medical procedures performed using its systems. The other concern is that the company is now promoting a longer lifespan for its instruments to lower hospital costs, but while that may cut down on revenue from instruments and accessories, it also builds customer loyalty and improves the company's moat.
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Its da Vinci 5 system is seeing a nice uptake The central near-term driver for Intuitive is the rollout of its next-generation da Vinci 5 system. Early data show that hospital utilization of the da Vinci 5 is roughly 11% higher than the legacy Xi platform. Because customer adoption has moved faster than expected, the accelerating trade-in and upgrade cycle serves as a major fundamental catalyst that could drive an upside surprise in system placements and forward guidance.
The first quarter 2026 da Vinci surgical system placements included 232 da Vinci 5 systems, compared with 147 in the first quarter of 2025.
The launch of the da Vinci 5 platform introduces true hardware-enabled artificial intelligence and Force Feedback technology, which provide surgeons with a physical sense of resistance and tissue pressure for the first time. Beyond just a near-term upgrade cycle, this establishes the technology baseline for the next decade of surgery. It also creates a massive technical barrier that newer competitors will find difficult to replicate.
Expansion into diagnostics and soft tissue treatment For years, the company focused strictly on treating disease through general surgery with the da Vinci platform. With its Ion platform, it is moving upstream to own the diagnosis and early intervention stage as well.
The spearhead of this diagnostic expansion is the Ion endoluminal system, a robotic bronchoscopy platform designed for minimally invasive lung biopsies. Ion uses an ultrathin, highly flexible robotic catheter.
Ion feeds Intuitive's high-margin recurring revenue model. Each procedure requires single-use flexible needles, vision probes, and patient-specific 3D planning software. Furthermore, Intuitive is currently integrating adjunctive diagnostic technologies such as endobronchial ultrasound (EBUS) directly into the Ion workflow to increase revenue per procedure.
Intuitive is also deepening its moat in soft tissue treatment through its da Vinci SP (Single Port) platform. While the da Vinci 5 requires multiple small incisions across the abdomen, the SP platform allows an entire surgical team of camera and instruments to enter through one single 2.5-centimeter incision or a natural orifice. The SP platform is rapidly gaining traction in urology and transoral otolaryngology (head and neck surgeries), driving high-volume procedure growth.
So Intuitive Surgical looks undervalued heading into the Q2 report. For those with a multi-year horizon, the setup looks favorable.
Key Takeaways AMC refinanced $400M of 12.75% debt with a $425M loan at 10.5%, extending maturity to 2031.AMC's $155.8 million note conversion lowers long-term debt to about $3.9 billion and removes covenants.AMC ended the first quarter of 2026 with $339 million in cash, excluding $42 million of restricted cash. AMC Entertainment Holdings, Inc. (AMC - Free Report) is advancing its balance-sheet restructuring through a combination of refinancing, debt conversion and liquidity enhancement. The company refinanced $400 million of debt carrying a 12.75% interest rate and maturing in 2027 with a new $425 million first-lien term loan carrying a 10.5% rate and maturing in 2031. The transaction extends the maturity by four years while lowering annual cash interest expense.
The refinancing materially reduces AMC’s near-term maturity burden. Following the transaction, the company’s only remaining debt maturity before 2029 is $125.5 million of 6.25% unsecured notes due in 2027. This longer maturity runway gives AMC greater flexibility to evaluate future refinancing opportunities based on market conditions rather than near-term funding requirements.
AMC is also converting approximately $155.8 million of senior secured exchangeable notes due in 2030 into equity. The company emphasized that the conversion lowers long-term debt to roughly $3.9 billion, compared with more than $5 billion before the pandemic. The removal of the exchangeable notes also eliminates associated covenants, providing additional flexibility to address the remaining debt structure.
Liquidity remains an important component of the broader balance-sheet strategy. AMC ended the first quarter of 2026 with $339 million in cash, excluding $42 million of restricted cash. The company also raised approximately $101 million through its at-the-market equity program and the sale of Hycroft Mining shares, supporting liquidity while preserving investment capacity for its core theater operations.
Looking ahead, AMC’s refinancing strategy remains closely connected to its operating execution. The interest rate on roughly $2.9 billion of debt declines as leverage improves, creating a direct link between EBITDA growth and lower borrowing costs. With near-term maturities largely contained, continued execution across pricing, premium-format expansion, loyalty programs, food-and-beverage initiatives and theater-portfolio optimization could support EBITDA growth, lower leverage, improve future refinancing terms and strengthen financial flexibility.
AMC’s Price Performance, Valuation & EstimatesShares of AMC have declined 38.4% in the past year compared with the industry’s 8.8% fall. In the same time frame, other industry players like Cinemark Holdings, Inc. (CNK - Free Report) have inched up 0.1%, while The Marcus Corporation (MCS - Free Report) has gained 30.2%.
AMC’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AMC trades at a forward price-to-sales (P/S) multiple of 0.32, below the industry’s average of 2.65. Cinemark and Marcus have P/S ratios of 0.97 and 0.82, respectively.
AMC’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AMC’s 2026 loss per share has narrowed from 31 cents to 23 cents over the past 60 days.
EPS Trend of AMC Stock
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AMC’s 2026 loss per share suggests a 76% year-over-year improvement. Conversely, industry players like Cinemark and Marcus are likely to witness growth of 108.7% and 188.2%, respectively, year over year in 2026 earnings.
AMC’s Zacks RankAMC stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ: Z) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zillow securities between February 11, 2025 and May 7, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/Z.
Zillow Case Details
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:
(1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business;
(2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws;
(3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and
(4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What's Next for Zillow Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/Z. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zillow you have until August 10, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zillow Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zillow Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
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Prior results do not guarantee similar outcomes.
Key Takeaways MercadoLibre's first-quarter operating margin fell to 6.9% as it prioritized long-term expansion.Lower free-shipping thresholds helped Brazil's GMV grow 38% and items sold surge 56%.MELI's credit portfolio jumped 87% to $14.6B, while 2.7 million cards were issued in the quarter. MercadoLibre, Inc. (MELI - Free Report) is prioritizing long-term market expansion over near-term margin optimization. During the first quarter of 2026, operating margin fell to 6.9% from 12.9% a year earlier, while net income margin declined to 4.7% from 8.3%. Management made it clear that this was not an accidental cost overrun but the result of funding initiatives that are already producing stronger demand, engagement and scale. Net revenues and financial income surged 49% year over year, the fastest pace in nearly four years. Instead of maximizing near-term profitability, management is stepping up investments across its commerce and fintech businesses.
Management believes Latin America still offers a significant growth opportunity. For instance, the average Latin American makes just seven online purchases a year compared with 41 in the United States. To capture this opportunity, MercadoLibre is investing heavily in lowering free shipping thresholds, expanding its fulfillment network, scaling first-party selection, growing cross-border trade and accelerating its credit card business across Brazil, Mexico and Argentina.
The lower free-shipping threshold in Brazil has reduced shipping monetization and weighed on gross margin, but it has also driven stronger buyer acquisition and purchasing frequency. Brazil's FX-neutral gross merchandise volume growth accelerated to 38% in the first quarter from 35% in the preceding quarter, while items sold surged 56%, up from 45% in the fourth quarter and 42% in the third quarter of 2025. Brazil also added a record 17 million unique active buyers year over year, helping MercadoLibre's total unique active buyers increase 26%.
Fintech adds another layer of pressure. MercadoLibre's credit portfolio jumped 87% year over year to $14.6 billion, while it issued 2.7 million credit cards during the quarter. Credit card payment volume rose 90%, and monthly active credit card users increased 68%. However, newly issued cards require higher upfront provisions before they become profitable, putting pressure on current earnings. Even so, management said improving performance of older credit card cohorts in Brazil and healthy repayment trends give it the confidence to continue expanding its credit card business in Mexico and Argentina.
Management emphasized that improving margins in the short term would be relatively easy by slowing investments. However, it believes doing so would sacrifice a much larger opportunity. MercadoLibre is choosing to maintain a bold investment posture to strengthen its ecosystem, expand its user base and build durable competitive advantages that can support stronger profitability over time.
What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares tumble 9.7% over the past six months compared with the industry’s 2.9% decline. While shares of Amazon have jumped 3.5%, those of Sea Limited have fallen 10% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio stands at 36.53, higher than the industry’s ratio of 21.94. The stock is also trading above its 12-month median level of 34.46.
MercadoLibre is trading at a premium to Amazon (with a forward 12-month P/E ratio of 25.98) and Sea Limited (21.99).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales and earnings per share implies year-over-year growth of 39.7% and 4%, respectively. For the next fiscal year, the consensus estimate indicates a 26.6% rise in sales and 47% growth in earnings.
Image Source: Zacks Investment Research
MELI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
STAMFORD, CT--(BUSINESS WIRE)--Regulatory News: Philip Morris International Inc. (PMI) (NYSE: PM) will host a live audio webcast on Wednesday, July 22, 2026, at 9:00 a.m. ET, to discuss its 2026 second-quarter and first six-months financial results, which will be issued at approximately 7:00 a.m. ET the same day. The webcast can be accessed here. The webcast will be hosted by Emmanuel Babeau, Group Chief Financial Officer, and Massimo Andolina, incoming Group CFO, and will include discussion of.
Wall Street expects a year-over-year increase in earnings on higher revenues when Philip Morris (PM - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis seller of Marlboro and other cigarette brands is expected to post quarterly earnings of $2.04 per share in its upcoming report, which represents a year-over-year change of +6.8%.
Revenues are expected to be $10.5 billion, up 3.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.02% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Philip Morris?For Philip Morris, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.69%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Philip Morris will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Philip Morris would post earnings of $1.82 per share when it actually produced earnings of $1.96, delivering a surprise of +7.69%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Philip Morris doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Thermo Fisher is expected to report Q2 revenues of $11.68B and EPS of $5.71 on July 23.TMO's Life Sciences Solutions growth may be led by bioproduction demand, launches and integration efforts.Thermo Fisher's Analytical Instruments and Biopharma units may benefit from innovations and collaborations. Thermo Fisher Scientific (TMO - Free Report) is set to release second-quarter 2026 results on July 23, before the market opens.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $5.44, which surpassed the Zacks Consensus Estimate by 4.62%. The company’s earnings topped estimates in each of the trailing four quarters, the average surprise being 3.69%.
Q2 Estimates for TMOThe Zacks Consensus Estimate for revenues is pegged at $11.68 billion, indicating an increase of 7.6% from the year-ago reported figure.
The consensus mark for the company’s EPS implies a 6.5% year-over-year rise to $5.71. The estimate has dropped 1 cent in the past 30 days.
Factors Likely to Influence TMO’s Q2 ResultsLife Sciences SolutionsThe segment’s performance is expected to have benefited from continued strength in the Bioproduction business, driven by healthy demand from the pharma and biotech customers. Thermo Fisher further enhanced its Bioproduction offerings through the acquisition of Solventum’s Filtration and Separation business, adding advanced filtration technologies and industrial filtration and membrane solutions. Integration of this business is likely to have continued during the quarter.
A steady cadence of product launches is also expected to have supported the Life Sciences Solutions segment. Among its newer innovations, Thermo Fisher introduced the Gibco CTS Compleo Fill and Finish System to help address manual fill and finish challenges in cell therapy manufacturing. The company also launched an integrated platform to advance scalable cell therapy manufacturing and introduced the Gibco CHOvantage GS Cell Line Development (“CLD”) Kit to help biologics developers accelerate time to clinic while maintaining regulatory confidence and commercial scalability.
Thermo Fisher’s new Applied Biosystems PowerFlex Thermal Cycler is designed to help deliver enhanced flexibility, precise thermal performance and improved productivity for modern molecular biology laboratories. We expect all these developments to have positively boosted revenues in the second quarter of 2026.
Per the Zacks Consensus Estimate, the Life Sciences Solutions revenues are expected to increase 9.6% year over year.
Analytical InstrumentsThe segment is likely to have continued to witness soft demand for instruments from academic and government customers in the United States and China. Tariffs and lower volumes may have also weighed on profitability. Despite this, Thermo Fisher’s strength in innovations may have remained a bright spot. The company introduced the Glacios 3 Cryo-TEM, a next-generation cryo-transmission electron microscope that features AI-enabled workflows.
At ASMS 2026, Thermo Fisher unveiled the Orbitrap Tribrid Apex and Orbitrap Excedion mass spectrometry platforms, designed to help researchers and drug developers generate high-quality data more efficiently across complex applications, including proteomics, multiomics, biologics and genetic medicines.
Thermo Fisher's collaboration with NVIDIA is expected to have made further progress toward commercializing AI-enabled scientific workflow solutions. We expect these developments to have favorably boosted the company’s top line in the second quarter of 2026.
Per the Zacks Consensus Estimates, revenues in this segment are projected to increase 4.7% year over year.
Specialty DiagnosticsSimilar to the previous quarter, the segment’s growth may have been driven by the transplant diagnostics business. The healthcare market channel is likely to have contributed to the second-quarter revenues.
Recent product innovations are also expected to have supported the segment's performance. These include the Thermo Scientific Brilliance Candida 2 Agar and Spectra Candida Agar, new color-based (chromogenic) culture media to help quickly detect and differentiate clinically important Candida species, and a new laboratory-developed test to help transplant patients receive the right dose of critical anti-rejection medication faster.
Thermo Fisher marked a notable development in April 2026, entering into an agreement to sell its microbiology business to Astorg for approximately $1.075 billion. The closing of the transaction is expected in the second half of this year, subject to customary closing conditions and applicable regulatory approvals.
The Zacks Consensus Estimate anticipates Specialty Diagnostics revenues to grow 2.8% year over year.
Laboratory Products and Biopharma ServicesIn the second quarter of 2026, the segment is likely to have delivered solid performance due to its clinical research business and the research and safety market channel. During the quarter, Thermo Fisher’s PPD clinical research business expanded its global bioanalytical capabilities by opening a new bioanalytical and biomarker laboratory in Gothenburg, Sweden.
Thermo Fisher completed the acquisition of Clario in late March, adding digital endpoint data solutions that are highly complementary to its clinical research capabilities. Integration of this acquired business may have continued to progress in the second quarter.
Thermo Fisher also announced a strategic collaboration with SHL Medical, a leading provider of advanced drug delivery systems, alongside an expansion of sterile fill-finish and autoinjector final assembly capacity at its Ridgefield, NJ site. The facility was acquired from Sanofi in September 2025 as part of the company’s strategy to strengthen its U.S. manufacturing footprint.
Collectively, these developments are expected to have supported the segment's second-quarter revenues.
The Zacks Consensus Estimate expects revenues in this segment to increase 7.7% year over year.
What Our Model Unveils for TMOPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.
Earnings ESP: Thermo Fisher has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 stocks here.
MedTech PicksHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2026 results on Aug. 11.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%. The Zacks Consensus Estimate expects the company’s fourth-quarter EPS to increase 9.1% from the year-ago quarter’s figure.
Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #2. The company is expected to release second-quarter 2026 results soon.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.74%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.9% from the year-ago quarter’s figure.
Alcon (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 10.
ALC’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.66%. The Zacks Consensus Estimate anticipates the company’s second-quarter EPS to increase 1.3% from the year-ago quarter’s figure.
Key Takeaways Texas Instruments expects 2026 CapEx of $2B-$3B, down 34%-56% from 2025.TXN's first-quarter free cash flow rose to $1.4B from negative $14M a year earlier.Texas Instruments sees free cash flow per share topping $8 if demand trends continue. Texas Instruments Incorporated (TXN - Free Report) is entering a new phase of its investment cycle, with capital expenditures expected to decline after several years of heavy spending on manufacturing expansion. This shift could significantly improve the company’s free cash flow and strengthen its ability to return more capital to shareholders.
Over the past few years, Texas Instruments invested aggressively in new 300-millimeter wafer fabrication plants and assembly and test facilities to expand internal manufacturing capacity. These investments temporarily weighed on free cash flow but positioned the company to support future demand while lowering production costs. In 2025, capital expenditures totaled approximately $4.55 billion.
The spending pace is now easing. In the first quarter of 2026, Texas Instruments’ capital expenditure nearly halved to $676 million from $1.12 billion in the year-ago quarter. Management expects 2026 capital expenditures to be between $2 billion and $3 billion, about a 34% to 56% reduction from the 2025 level. While some investment will continue to support additional assembly and test capacity, the company believes most of its major manufacturing infrastructure is already in place. This should allow a larger share of operating cash flow to convert into free cash flow.
The benefits are already becoming visible. In the first quarter of 2026, Texas Instruments generated free cash flow of $1.4 billion, a robust improvement from a negative $14 million in the year-ago quarter. Trailing 12-month free cash flow also increased to $4.35 billion in the first quarter of 2026 from $1.72 billion a year earlier. Free cash flow margin also improved sharply to 23.6% from 10.7%, supported by stronger revenue growth and lower capital intensity.
Management believes free cash flow per share could exceed $8 in 2026 if current demand trends continue. Combined with improving industrial demand, stronger data center spending and better factory utilization, lower capital expenditures could further strengthen Texas Instruments’ cash generation, giving the company greater flexibility to fund dividends, repurchase shares and invest in future growth. In the trailing 12 months, Texas Instruments returned $6.43 billion to shareholders through share buybacks and dividend payments.
TXN’s Rivals Are Also Balancing CapEx and Cash GenerationTexas Instruments’ main competitors, Analog Devices, Inc. (ADI - Free Report) and NXP Semiconductors N.V. (NXPI - Free Report) , are also balancing their capital expenditures and cash flows.
Analog Devices has taken a disciplined approach to capital spending while maintaining strong cash flow. The company follows a hybrid manufacturing model that combines internal production with outsourced foundries, allowing it to keep capital expenditures relatively low.
This asset-light approach has helped Analog Devices consistently generate more than $3 billion in annual free cash flow while maintaining free cash flow margins above 30% over the past few years. The strong cash generation has enabled the company to steadily increase dividends and repurchase shares without making large manufacturing investments.
NXP Semiconductors also focuses on disciplined capital allocation to maximize cash flow. The company typically keeps annual capital expenditures at about a mid-single-digit percentage of revenue, well below the levels Texas Instruments has invested in recent years. This strategy has helped NXP Semiconductors consistently generate more than $2 billion in annual free cash flow, supporting regular dividends and sizable share repurchases.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 76.1% year to date compared with the Zacks Semiconductor - General industry’s 18.2% growth.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 37.01, significantly higher than the industry’s average of 22.23.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 40.6% and 14.4%, respectively. Estimates for 2026 and 2027 have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Texas Instruments currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments (TXN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis chipmaker is expected to post quarterly earnings of $1.91 per share in its upcoming report, which represents a year-over-year change of +35.5%.
Revenues are expected to be $5.22 billion, up 17.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.88% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Texas Instruments?For Texas Instruments, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.66%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Texas Instruments will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Texas Instruments would post earnings of $1.37 per share when it actually produced earnings of $1.68, delivering a surprise of +22.63%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Texas Instruments appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
