Wall Street expects a year-over-year increase in earnings on higher revenues when CSX (CSX - 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 freight railroad is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +13.6%.
Revenues are expected to be $3.82 billion, up 6.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.91% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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 CSX?For CSX, 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 +1.31%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that CSX 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 CSX would post earnings of $0.39 per share when it actually produced earnings of $0.43, delivering a surprise of +10.26%.
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.
CSX 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.
Notice to Pension Funds, Asset Managers, and Fiduciaries: Zoetis' Companion Animal Segment Collapse Allegedly Cost Institutional Portfolios Hundreds of Millions
, /PRNewswire/ -- Institutional investors holding positions in Zoetis Inc. (NYSE: ZTS) during the period January 14, 2025 through May 6, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Zoetis shares declined from $111.22 to $87.31, a loss of nearly $24 per share. The lead plaintiff deadline is July 27, 2026.
Fiduciary Obligations and Recovery Options
Pension funds, endowments, and asset managers with fiduciary duties to beneficiaries should assess whether participation in this action serves portfolio recovery objectives. Under ERISA and common law fiduciary standards, institutional holders face obligations to evaluate potential recoveries when portfolio companies become subjects of securities fraud litigation. Lead plaintiff appointment offers institutional investors direct oversight of litigation strategy, settlement negotiations, and counsel selection.
Zoetis' Companion Animal segment generated approximately 70% of total company revenue, making institutional portfolio exposure to the alleged misconduct substantial Four separate corrective disclosures between August 2025 and May 2026 progressively revealed concealed competitive and safety deterioration The Company raised full-year guidance on August 5, 2025, then sharply reduced it less than nine months later on May 7, 2026 Institutional holders who acquired shares relying on management's representations of "durable growth" and market leadership face concentrated losses Lead plaintiff appointment carries no additional financial obligation and provides direct influence over case direction The PSLRA favors institutional investors with the largest financial interest for lead plaintiff selection Portfolio Impact Assessment
The securities action alleges Zoetis and certain officers portrayed flagship products as competitively dominant while concealing that FDA safety warnings were dampening veterinarian prescribing of Librela, that lower-priced competing therapies were capturing significant market share from Simparica Trio, and that dermatology franchise leadership was eroding. The lawsuit contends these concealed trends made the Company's public growth projections and competitive positioning claims materially misleading to investors who relied on them for portfolio allocation decisions.
Contact us for institutional recovery options or call (212) 363-7500.
Case Summary
The complaint details how management repeatedly assured investors that veterinarian satisfaction remained high and that competitive entrants posed minimal risk, even as internal trends allegedly showed the opposite. When the full scope of deterioration was disclosed on May 7, 2026, shares fell 21.5% in a single session.
"Institutional investors play a critical role in securities class actions. Their participation as lead plaintiffs helps ensure that cases involving significant portfolio losses are managed with the rigor and oversight that benefits the entire shareholder class." -- Joseph E. Levi, Esq.
INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years. The Court has set July 27, 2026 as the deadline to apply for lead plaintiff appointment.
Frequently Asked Questions About the ZTS Lawsuit
Q: Who is eligible to join the ZTS investor lawsuit? A: Investors who purchased ZTS stock or securities between January 14, 2025 and May 6, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: How much did ZTS stock drop? A: Shares fell approximately 21.5% on the final corrective disclosure alone, a decline of $23.91 per share on May 7, 2026.
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 documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
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 ZTS 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: Has Levi & Korsinsky handled similar cases before? A: Yes, including securities class actions involving revenue inflation, earnings guidance fraud, dividend misrepresentation, and executive misconduct across numerous industries.
For the quarter ended June 2026, Elevance Health (ELV - Free Report) reported revenue of $49.83 billion, up 0.8% over the same period last year. EPS came in at $7.45, compared to $8.84 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $48.45 billion, representing a surprise of +2.85%. The company delivered an EPS surprise of +20.55%, with the consensus EPS estimate being $6.18.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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 Elevance Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Medical Membership: 44.95 million compared to the 44.82 million average estimate based on 17 analysts.Medical Membership - Medicaid: 8.36 million versus the 17-analyst average estimate of 8.23 million.Medical Membership - Medicare - Medicare Supplement: 893 thousand versus the 17-analyst average estimate of 878.19 thousand.Medical Membership - Commercial Risk-Based - Employer Group Risk-Based: 3.42 million versus the 17-analyst average estimate of 3.39 million.Revenues- Net investment income: $704 million versus the 17-analyst average estimate of $446.85 million. The reported number represents a year-over-year change of +44.9%.Revenues- Service fees: $2.28 billion versus $2.24 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.Revenues- Premiums: $41.28 billion versus $39.9 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a 0% change.Revenues- Product revenue: $6.26 billion versus the 17-analyst average estimate of $6.32 billion. The reported number represents a year-over-year change of +3.7%.Total operating revenue- Corporate & Other: $6 million versus $148.14 million estimated by 16 analysts on average. Compared to the year-ago quarter, this number represents a -97.4% change.Total operating revenue- Carelon Services: $7.98 billion versus the 16-analyst average estimate of $7.41 billion. The reported number represents a year-over-year change of +7.2%.Total operating revenue- CarelonRx: $11.25 billion versus $10.95 billion estimated by 16 analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.Total operating revenue- Health Benefits: $42.72 billion versus the 16-analyst average estimate of $41.15 billion. The reported number represents a year-over-year change of +2.7%.View all Key Company Metrics for Elevance Health here>>>
Shares of Elevance Health have returned +7.3% 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.
This ETF Is Proof That the Healthcare Rebound Is RealElevance Health NYSE: ELV raised its 2026 adjusted earnings outlook after second-quarter results came in ahead of management’s expectations, citing favorable benefit expense performance, disciplined cost management and improving execution across several major business lines.
President and CEO Gail Boudreaux said the company now expects 2026 adjusted diluted earnings per share of at least $27. Chief Financial Officer Mark Kaye said Elevance views at least $26 as the appropriate 2026 earnings baseline for modeling purposes and remains confident in returning to at least 12% adjusted EPS growth in 2027 off that higher baseline.
Get Elevance Health alerts:
Getting Defensive: 3 Dividend Payers Reporting Strong Q3 EarningsFor the second quarter, Elevance reported adjusted diluted earnings per share of $7.45. Operating revenue was $49.8 billion, up 0.8% from a year earlier, driven by higher premium yields and product revenue, partly offset by lower health plan membership. The company ended the quarter with 44.9 million medical members, with the sequential decline attributed mainly to a known fee-based customer transition and attrition in its individual ACA and Medicaid businesses.
Medicaid Remains a Key Focus as Margins Stay Under Pressure Management spent much of the call addressing Medicaid, where Boudreaux said the operating environment remains “dynamic.” Elevance maintained its full-year Medicaid operating margin outlook of approximately negative 1.75%, even as rate updates received during the quarter were stronger than anticipated.
Why Centene Stock Dropped 40% — And Whether It's a Buy NowKaye said Medicaid cost drivers remain elevated and concentrated in previously identified areas, including behavioral health, specialty pharmacy, outpatient surgery and emergency department utilization. He said the company is not seeing a new “stepwise acuity reset,” adding that membership and acuity remain broadly aligned with assumptions. Instead, incremental pressure is increasingly tied to utilization among members who remain in the program.
Management reiterated that 2026 is expected to be the trough year for Medicaid margins, with improvement over time supported by better rate alignment and the maturation of care management actions. Kaye said the second-half Medicaid margin profile is expected to improve from the second quarter, supported by favorable July 1 rate activity and continued execution against cost pressures.
Boudreaux also said Elevance recently reached a mutual agreement with the District of Columbia to exit the D.C. Medicaid market. She said the company expects to exit additional Medicaid markets over the next 12 to 18 months where it does not see a path to sustainable performance. Executives did not identify the additional markets or provide sizing for potential exits.
Medicare Advantage and ACA Help Drive Second-Quarter Outperformance Elevance said Medicare Advantage results were stronger than expected and contributed to the company’s quarterly outperformance. Boudreaux said deliberate actions taken to reposition the portfolio — including disciplined plan design and a more focused mix of dual-eligible special needs plans and HMO products — are translating into stronger performance.
The company said it remains on track for at least a 2% operating margin in Medicare Advantage this year. Aimée Dailey, president of Government Health Benefits, said Elevance’s 2027 bids were developed with a prudent view of trend and a continued focus on sustainable margin improvement. She said the company continues to believe underlying medical cost trend is outpacing program funding.
In the individual ACA business, management said performance is developing broadly in line with how the year was priced and planned. Kaye said second-quarter favorability reflected more pronounced seasonality tied to a higher mix of bronze plans, as well as favorable final 2025 CMS risk adjustment results relative to prior estimates. However, he said Elevance is not extrapolating that favorability into 2026 and is reestablishing much of the prior-year favorability in its current-year risk adjustment accrual.
Kaye said member retention in ACA remains modestly ahead of expectations and that Elevance now expects to end 2026 with at least 1 million individual ACA members.
Commercial Business and Carelon Remain Growth Priorities In commercial health benefits, management said performance was in line with expectations, with cost trend remaining elevated but consistent with the company’s pricing approach. Morgan Kendrick, president of Commercial Health Benefits, said the market remains focused on affordability and simplicity, and that Elevance’s assets are resonating with employers.
Kendrick said the company’s fee-based and self-funded commercial businesses are performing well, including both local market and national account activity. He said Elevance had a record year in national accounts for 2026 and that its pipeline for 2027 is nearly as large. He also said some customers that left the company in prior years have returned.
Carelon also remains a focus of Elevance’s growth strategy. Boudreaux said CareBridge, which extends Carelon’s whole-health model into the home, can generate medical savings in the mid-teens for members and is being expanded into new markets. She also said Carelon behavioral health programs have delivered average cost savings of 10% through stronger member engagement and fewer adverse events.
Company Plans One-Time Investments From Non-Recurring Benefit Kaye said Elevance recorded a net below-the-line benefit of $0.80 per share in the quarter, primarily related to valuation adjustments within net investment income. Management said it plans to use that non-recurring benefit to fund one-time investments in the second half of the year.
Boudreaux said the investments are focused on strengthening medical cost management, member engagement, provider connectivity, operating efficiency and Carelon’s integrated capabilities. She said the company is using data and AI-enabled tools to identify medical cost pressures earlier and respond more quickly with targeted clinical, network, payment integrity and operating actions.
Executives emphasized that these incremental investments are one-time and will not recur in 2027. Kaye said the company’s 2026 outlook already included approximately $0.75 per share of targeted investment spending that is part of the ongoing run rate, separate from the new $0.80 per share of accelerated investments funded by the below-the-line benefit.
Cash Flow Outlook Raised; CMS Matter Closed Elevance reported second-quarter operating cash flow of $1.9 billion. Kaye said cash flow benefited from strong operating performance and the timing of a state Medicaid pass-through payment received in the quarter and remitted in July. The company raised its full-year operating cash flow outlook to at least $6 billion.
Days in claims payable were 45.4 days as of June 30, up 2.9 days from a year earlier. Kaye said the company remains confident in its reserving levels and described its reserve posture as consistent and prudent.
Kaye also said Elevance made an initial remittance of $342 million to CMS in the second quarter related to a matter discussed on the prior quarter’s call. He said the estimate of potential total financial exposure remains unchanged. As of July 9, Elevance completed all steps required by CMS and subsequently received written confirmation that sanctions will not be imposed and the matter is closed.
Boudreaux closed the call by saying Elevance’s confidence in 2027 is based on the breadth of the enterprise rather than any single line of business. She pointed to commercial pricing discipline, Medicare Advantage portfolio actions, ACA execution, expected Medicaid improvement, Carelon growth, operating efficiency and capital deployment as contributors to the company’s earnings path.
About Elevance Health NYSE: ELVElevance Health, Inc NYSE: ELV is a large U.S.-based health benefits company that provides a broad range of health insurance products and related services. Headquartered in Indianapolis, the company rebranded from Anthem, Inc to Elevance Health in 2022 while continuing to operate consumer-facing health plans under established state and national brands. Gail Boudreaux serves as chief executive officer and president, leading the company's strategic focus on integrated health care and benefit delivery.
Elevance's core activities include offering medical and specialty health plans for individuals, employers and government programs, including Medicare and Medicaid managed-care products.
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].
Should You Invest $1,000 in Elevance Health Right Now?Before you consider Elevance Health, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Elevance Health wasn't on the list.
While Elevance Health currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.
Memory stocks are pulling back sharply Wednesday morning as traders lock in gains after a parabolic run. SK Hynix‘s (NASDAQ:SKHY) U.S.-listed ADR is down 5% to $184.50 in early trading, giving back a chunk of yesterday’s 27% surge to $193.92.
The reversal is rippling through the group. Micron Technology (NASDAQ:MU | MU Price Prediction) shares are off 3% to $953, SanDisk (NASDAQ:SNDK) shares are down 6% to $1,658, and Western Digital (NASDAQ:WDC) shares are down 4% to $541. The Roundhill Memory ETF (CBOE:DRAM) is tracking the group lower, off 3% to $59.
The pullback follows one of the strongest rallies in semiconductors this year, with Micron shares up 244% year to date (YTD) and SanDisk shares up 640% YTD at Tuesday’s close. There’s no confirmed company-specific negative catalyst, and the move looks like broad profit-taking in the priciest AI beneficiaries.
Profit-Taking Caps a Parabolic Run SK Hynix stock has been the volatility story of the sector since its record NASDAQ ADR debut. The ADR whipsawed from a 27% surge Tuesday to a 5% drop today, a swing that reflects a thin float, an ADR premium to the Seoul-listed shares, and heavy demand from newly launched leveraged products.
Micron and SanDisk are riding the same wave lower rather than reacting to fresh news. Micron’s Q3 FY26 report on June 24 delivered revenue of $41.46 billion, up 346% year over year (YoY), and non-GAAP EPS of $25.11, with Q4 guidance calling for $50 billion in revenue at the midpoint. SanDisk’s April report showed datacenter revenue up 645% YoY to $1.47 billion, results CEO David Goeckeler called “a fundamental inflection point.”
Chinese Competition and a Wave of Leveraged ETFs Barron’s flagged a secondary concern this morning, reporting that Micron shares fell as competition from Chinese memory-chip makers looks set to intensify. That framing treats it as a rising longer-term threat rather than a discrete event, and it appears to have added weight to a group already extended.
The other structural factor is a flood of new leveraged single-stock funds tied to SK Hynix. Direxion launched the Direxion Daily SK Hynix Bull 2X ETF (NYSEARCA:SKHL) today, joining GraniteShares 2x Long SK Hynix Daily ETF (NASDAQ:SKUU), GraniteShares 2x Short SK Hynix Daily ETF (NASDAQ:SKDD), and the ProShares Ultra SK hynix (NYSEARCA:SKHU), all of which debuted this week. Daily-reset geared funds mechanically amplify intraday moves and help explain the ADR’s day-to-day whipsaw.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Western Digital didn't make the cut. Grab the names FREE today.
These products are daily-reset, geared single-stock ETFs designed only for short-term trading. Per their own disclosures, they can suffer volatility decay, lose money even if SK Hynix rises over periods longer than a day, and lose an investor’s full principal in a single session. Investors should keep their position sizing in SKHL, SKUU, SKDD, or SKHU very small and treat them as tactical tools, not core holdings.
Peers and Sector Proxies React Western Digital stock is the mildest mover in the group, easing into its July 29 earnings report where analysts are looking for non-GAAP EPS of $3.22. The Roundhill Memory ETF is a useful proxy, with Samsung Electronics, SK hynix, and Micron each at 24% of holdings, though its narrow memory-only focus makes it more volatile than a broad chip fund.
The bull case for SK Hynix remains intact. It’s a dominant supplier of high-bandwidth memory (HBM) for AI accelerators, and the AI memory upcycle looks structural. The bear case is the one on display today: post-debut volatility, an ADR premium that can snap back, the Chinese-competition overhang, and industry cyclicality that no amount of AI narrative fully erases.
What to Watch Now Options positioning tilts slightly defensive. The SKHY put/call ratio sits at 1.12 across the full chain, while Micron sits at 0.91. A Polymarket contract on Micron’s direction today is pricing an 82% probability of a down close.
Market watchers can watch for whether SKHY holds $180 and whether the DRAM ETF stabilizes into the U.S. close. The next fundamental checkpoint is Western Digital’s earnings on July 29, which can set the tone for the group’s next leg and test whether hyperscaler capex commentary keeps the AI memory thesis intact.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Western Digital didn't make the cut. Grab the names FREE today.
The Writers Guild of America has launched a new legal challenge against Paramount Skydance Corp. (PSKY), a film and television entertainment company, and Warner
A formidable 12-state antitrust injunction threatens to trap the $110 billion combination of Paramount Skydance NASDAQ: PSKY and Warner Bros. Discovery NASDAQ: WBD in a protracted legal vacuum. Led by the California attorney general, this state-level intervention explicitly targets the scale of the proposed merger. When a transaction of this scale hits a regulatory wall, institutional arbitrageurs immediately begin repricing the acquisition premium relative to the standalone fundamentals of the underlying businesses.
Get Warner Bros. Discovery alerts:
Beyond the Acquisition Premium: Repricing Legacy Media AssetsParamount Skydance Today
PSKY
Paramount Skydance
$9.22 +0.10 (+1.04%)
As of 11:57 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$8.61▼
$20.86Dividend Yield2.17%
P/E Ratio16.17
Price Target$12.00
For investors holding positions in legacy media, understanding the mechanical friction of this delay provides a crucial edge. The fundamental proposition of this merger is to achieve operational scale to offset the attrition in linear television and the margin compression inherent in direct-to-consumer streaming.
Stripped of that near-term synergistic safety net, both Paramount Skydance and Warner Bros. Discovery face severe capital and operational tests over the next several quarters. Evaluating the balance sheets reveals exactly how vulnerable these entertainment conglomerates are to a prolonged regulatory standstill.
Courtroom Drama: Defending the 27% Theatrical ThresholdWarner Bros. Discovery Today
WBD
Warner Bros. Discovery
$27.22 -0.26 (-0.93%)
As of 11:57 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$10.76▼
$30.00Price Target$27.04
The foundation of the 12-state litigation relies heavily on Clayton Act principles. The lawsuit asserts that the combined entity would unlawfully limit competition in theatrical distribution and inflate consumer costs. Regulators are specifically targeting the combined projected 27% capture of the domestic theatrical distribution market. Compounding the legal pressure, the Writers Guild of America recently filed a parallel antitrust lawsuit, raising concerns about suppressed wages in the industry and concentrated buying power.
Paramount Skydance management preemptively attempted to neutralize these monopolization claims by committing to a 30-film annual theatrical slate. State attorneys general rarely drop coordinated, multi-jurisdictional litigation based on forward-looking corporate promises. This creates a fractured regulatory environment. While the deal was previously tracking favorably with European Union regulators, domestic friction introduces a prolonged timeline that deeply impacts the balance sheets of both Paramount Skydance and Warner Bros. Discovery.
A Debt-Heavy Double FeatureMerger arbitrage relies on predictable timelines. When those timelines fracture, capital rapidly exits. The most pressing catalyst for investors to monitor is the September 30, 2026, deadline in the merger agreement. If the transaction is delayed beyond this date, Paramount Skydance incurs a 25-cent-per-share penalty, amounting to a substantial $650 million in quarterly cash burn payable to Warner Bros. Discovery shareholders.
Investors evaluating this penalty must examine the balance sheet. Paramount Skydance currently has a debt-to-equity ratio of 1.16 and a negative net margin of -2.08%. While Paramount Skydance recently delivered a quarterly earnings beat of 23 cents per share on $7.35 billion in revenue, the structural reality is that extracting $650 million in pure cash every three months will severely strain liquidity. Should the regulatory challenge succeed in terminating the deal entirely, Paramount Skydance would be subject to a catastrophic $7 billion termination fee.
Warner Bros. Discovery is hardly in a position of fundamental strength itself. Warner Bros. Discovery stock recently suffered a severe earnings miss, reporting a loss of $1.17 per share, well below the consensus estimate of a 10-cent loss. Return on equity is deeply depressed at -4.77%. Neither Paramount Skydance nor Warner Bros. Discovery currently generates the robust, unencumbered free cash flow required to easily absorb the friction of a multi-year legal battle.
Cashing Out Before the CreditsInstitutional confidence is heavily influenced by executive alignment. In the shadow of mounting legal challenges, internal leadership actions are drawing intense market scrutiny. Warner Bros. Discovery CEO David Zaslav executed a pre-arranged stock sale on July 13, offloading more than two million shares valued at $59.47 million. While technically triggered by the equity reaching a specific price threshold, the optics of rapid executive liquidation ahead of a capital-intensive legal fight present a headwind to shareholder trust.
Proxy filings reveal an exit package for Zaslav approaching $800 million, heavily weighted in accelerated unvested equity and tax reimbursements. This extraordinary compensation structure has triggered a formal no-vote recommendation from the prominent proxy advisory firm ISS. When executive compensation misaligns with the immediate risk profile borne by retail and institutional shareholders, equity valuation often suffers a confidence discount.
This internal friction is spilling into the derivatives market. Warner Bros. Discovery recently saw a 93% jump in call option volume, pushing open interest to 2.65 million contracts. Aggressive bull call spreads betting on a smooth summer finalization are now stranded assets, leaving Warner Bros. Discovery equity highly vulnerable to volatile swings as market makers delta-hedge their exposures. Short sellers are actively targeting Paramount Skydance, with short interest currently representing just over 7% of the public float.
Warner Bros. Discovery, Inc. (WBD) Price Chart for Wednesday, July, 15, 2026
How Regulatory Friction Empowers Silicon ValleyDespite the bearish technical setup, a contrarian perspective exists within Wall Street analytical communities. Research desks, including those at Needham, view the state-level litigation as a political maneuver that will ultimately delay, rather than defeat, the merger.
This counter-narrative rests on the structural reality of the modern entertainment ecosystem. The true competitors to Paramount Skydance and Warner Bros. Discovery are no longer other legacy studios. They are capitalized digital distribution gateways, such as Alphabet NASDAQ: GOOG, Amazon NASDAQ: AMZN, and Apple NASDAQ: AAPL.
These technology conglomerates utilize media as a loss leader to drive retail subscriptions and hardware sales. Standalone legacy studios cannot compete with Big Tech's balance sheets without consolidating their intellectual property and distribution infrastructure. Regulators may eventually recognize that blocking this merger could inadvertently hand the technology sector total market dominance.
Final Cut: Strategic Positioning Amid Merger VolatilityWhen regulatory environments turn hostile toward media consolidation, the immediate trade logic dictates a rapid recalculation of risk. The underlying businesses of both Paramount Skydance and Warner Bros. Discovery lack the standalone cash flow generation to comfortably service their current debt loads without the anticipated safety net of combined scale.
Investors navigating this space might consider avoiding heavy directional bets on the equity until the preliminary injunction ruling provides clarity on the litigation timeline. Those holding legacy positions might evaluate hedging strategies in the options market to protect against downside volatility if the September deadline triggers the first $650 million penalty payment. A measured, cautious approach allows investors to preserve capital while the market digests the true cost of this regulatory standstill.
Should You Invest $1,000 in Warner Bros. Discovery Right Now?Before you consider Warner Bros. Discovery, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Warner Bros. Discovery wasn't on the list.
While Warner Bros. Discovery currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Investors in Celanese Corporation (CE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 18, 2026 $22.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Celanese shares, but what is the fundamental picture for the company? Currently, Celanese is a Zacks Rank #3 (Hold) in the Chemical – Specialty industry that ranks in the Top 33% of our Zacks Industry Rank. Over the last 30 days, two analysts have increased their earnings estimates for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.10 per share to $2.23 in that period.
Given the way analysts feel about Celanese right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways Robinhood is favored for long-term growth despite StoneX offering a lower price-to-book valuation.HOOD is expanding banking, retirement, crypto and advisory offerings to deepen customer engagement. SNEX benefits from diversified services, acquisitions and AI automation driving record net operating revenues. Robinhood Markets (HOOD - Free Report) and StoneX Group (SNEX - Free Report) are financial services companies that connect clients with global markets through brokerage, trading and investment platforms. However, their business models, customer bases and growth profiles differ considerably.
SNEX operates a diversified financial services franchise spanning commercial hedging, institutional execution, clearing, payments and retail trading. HOOD, meanwhile, has evolved from a commission-free trading application into a broader consumer financial platform offering brokerage, cryptocurrency, retirement, banking, advisory and credit products.
StoneX offers exposure to global transaction volumes and institutional risk-management demand, while Robinhood provides a more direct play on the digitization of personal finance and the growing participation of younger investors in capital markets.
Both Robinhood and StoneX are well-positioned to benefit from the growing demand for brokerage and financial services. However, their distinct business models, growth trajectories and risk profiles make the investment choice less straightforward. A closer comparison of their financial performance, profitability, growth prospects and valuations should reveal which brokerage stock offers the more compelling risk-reward opportunity in the current market.
The Case for RobinhoodRobinhood primarily targets individual investors through a technology-driven platform. Its revenues come from transaction-based activities, interest earned on customer balances and margin loans, subscription fees, securities lending and other financial products.
The company’s performance is consequently influenced by retail trading activity, cryptocurrency markets, interest rates and customer asset growth. This was further reinforced by Robinhood’s first-quarter 2026 results, which demonstrated that it is no longer dependent on a single trading category. This points to increasing wallet share. Customers are not only trading through Robinhood but are also transferring more assets, borrowing on margin, saving for retirement, subscribing to Gold and adopting newer banking, credit and advisory products.
HOOD is attempting to become a comprehensive financial platform rather than merely an online broker. The company is also expanding internationally and entering additional markets, including Canada and the Asia-Pacific. Its acquisition of Bitstamp broadened its cryptocurrency capabilities and institutional reach, while its initiatives in private markets, tokenization, futures and event contracts increase the number of products it can offer existing users.
Each new service creates potential cross-selling opportunities. Robinhood can acquire a customer through stock or cryptocurrency trading and subsequently offer that customer a retirement account, subscription, credit card, managed portfolio or banking product. This ecosystem approach could raise revenue per customer and reduce the company’s long-term dependence on transaction-based revenues.
This supports steady top-line growth across market cycles. The Zacks Consensus Estimate for sales indicates 12.1% and 25.9% growth for 2026 and 2027, respectively.
Sales Growth
Image Source: Zacks Investment Research
The Case for StoneXStoneX serves a broader mix of commercial, institutional and retail clients. Its services include commodity risk management, listed and over-the-counter derivatives, securities execution, foreign exchange, clearing, physical commodities and cross-border payments. The company has more than 80,000 institutional, commercial and payments clients, along with more than 400,000 self-directed retail accounts, across almost 180 countries.
StoneX has been expanding its operations, product capabilities and global presence through targeted acquisitions. Recent buyouts include R.J. O’Brien, Benchmark, Bamboo, Octo, JBR and Right Corporation in fiscal 2025, followed by WCS International Ltd, Plantureux et Associés and Intercam Securities and Intercam Advisors in fiscal 2026. These have helped the company expand across commodities, wealth management, clearing, investment banking, payments, fixed income, metals and agricultural brokerage.
StoneX is rolling out AI-enabled automation across settlement instruction repair, validation, reconciliation and client service chatbots to increase straight-through processing in Payments, while also accelerating software delivery across the organization. The company’s breadth across listed and OTC derivatives, securities, physical commodities, payments and self-directed retail clients has converted the recent heightened volatility into record net operating revenues.
As of March 31, 2026, average client equity plus money market/FDIC sweep balances reached almost $15.2 billion, reinforcing recurring net interest/fee income alongside transactional activity. This multi-segment, volatility-levered business model will likely continue to monetize client activity through commissions, spreads, fees and interest, positioning the company to compound revenues if volatility and client engagement remain elevated.
The Zacks Consensus Estimate for sales indicates 36.4% and 0.2% growth for fiscal 2026 and fiscal 2027, respectively.
Sales Growth
Image Source: Zacks Investment Research
Valuation Favors StoneX, Growth Favors RobinhoodValuation is the clearest argument for StoneX. SNEX is currently trading at a 12-month trailing price-to-book (P/B) of 3.33X, substantially below HOOD’s 10.55X.
P/B TTM
Image Source: Zacks Investment Research
HOOD’s premium leaves less room for execution problems. A slowdown in trading volumes, weaker cryptocurrency activity, regulatory restrictions, falling interest income or disappointing adoption of new products could pressure the shares. It also faces regulatory uncertainty surrounding payment for order flow, cryptocurrency services and event contracts.
Meanwhile, StoneX carries different risks. Its businesses involve credit, counterparty, liquidity and market exposures, while its acquisition-driven strategy creates integration and execution challenges. The R.J. O’Brien deal has meaningfully expanded the company, but it has also increased expenses, financing requirements and operational complexity.
Nonetheless, despite Robinhood’s richer valuation, its premium reflects a substantially larger consumer opportunity and a more scalable technology platform. The company’s rapid deposit growth, expanding product portfolio and strong engagement suggest it can compound revenue beyond traditional brokerage activities.
Analysts seem to be of this view too. Over the past week, the Zacks Consensus Estimate for HOOD’s earnings has been revised upward to $1.87 and $2.61 for 2026 and 2027, respectively. This suggests that though earnings are expected to fall 8.8% this year, the trend will reverse in 2027, with earnings projected to soar 39.3%.
HOOD Earnings Estimates
Image Source: Zacks Investment Research
On the other hand, SNEX’s earnings estimates have remained unchanged over the past seven days at $6 for fiscal 2026 and $6.25 for fiscal 2027. This reflects earnings growth of 52.7% and 4.2% for fiscal 2026 and fiscal 2027, respectively.
SNEX Earnings Estimates
Image Source: Zacks Investment Research
The Smarter Buy: Robinhood or StoneX?So far this year, shares of Robinhood have gained just 0.3%, while the StoneX stock has jumped 78.5%. Hence, in terms of investor sentiment, SNEX has the edge.
YTD Price Performance
Image Source: Zacks Investment Research
StoneX is an attractive financial services company with diversified operations, strong institutional capabilities and considerably lower earnings multiple. Value-oriented investors seeking steadier exposure to global trading, clearing and risk-management activity may prefer SNEX.
Robinhood, however, appears to offer the stronger long-term upside. Its customer assets and deposits are growing rapidly, Gold subscriptions are expanding, margin and retirement balances are reaching records, and newer businesses such as banking, advisory, credit, prediction markets and international crypto are widening its revenue opportunity.
While valuation demands continued execution, making HOOD more volatile and less suitable for highly risk-averse investors, the combination of customer growth, product innovation, operating leverage and expanding wallet share gives it a more powerful growth runway. For investors willing to tolerate valuation and regulatory risks in exchange for higher growth potential, Robinhood is the better brokerage stock to bet on now.
At present, HOOD carries a Zacks Rank #2 (Buy), while StoneX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SAN FRANCISCO--(BUSINESS WIRE)--Today, Anthropic, Blackstone, and Hellman & Friedman introduced Ode with Anthropic (“Ode”), the AI services firm announced earlier this year, now launching under its official name and brand. Ode is a standalone company that combines Anthropic's frontier AI models, a team of experienced AI engineers and operators, and the backing of a consortium of leading investors. Alongside the founding partners, the investor consortium includes Goldman Sachs, General Atlan.
Chipotle Mexican Grill (CMG - 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 Mexican food chain have returned +11.7% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Retail - Restaurants industry, to which Chipotle belongs, has lost 0.6% 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.
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.
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.
For the current quarter, Chipotle is expected to post earnings of $0.32 per share, indicating a change of -3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.13 points to a change of -3.4% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $1.35 indicates a change of +19.8% from what Chipotle 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, Chipotle 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.
In the case of Chipotle, the consensus sales estimate of $3.32 billion for the current quarter points to a year-over-year change of +8.3%. The $12.92 billion and $14.3 billion estimates for the current and next fiscal years indicate changes of +8.3% and +10.7%, respectively.
Last Reported Results and Surprise HistoryChipotle reported revenues of $3.09 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $0.24 for the same period compares with $0.29 a year ago.
Compared to the Zacks Consensus Estimate of $3.08 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was 0%.
Over the last four quarters, Chipotle surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Chipotle is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Chipotle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In its upcoming report, Steel Dynamics (STLD - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $3.62 per share, reflecting an increase of 80.1% compared to the same period last year. Revenues are forecasted to be $5.46 billion, representing a year-over-year increase of 19.5%.
The current level reflects an upward revision of 7.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Steel Dynamics metrics that are commonly monitored and projected by Wall Street analysts.
Analysts' assessment points toward 'External Net Sales- Steel Fabrication' reaching $376.41 million. The estimate points to a change of +10.5% from the year-ago quarter.
Analysts forecast 'External Net Sales- Metals Recycling' to reach $560.25 million. The estimate indicates a change of +7.2% from the prior-year quarter.
According to the collective judgment of analysts, 'External Net Sales- Steel' should come in at $3.87 billion. The estimate points to a change of +18% from the year-ago quarter.
It is projected by analysts that the 'External Net Sales- Other' will reach $377.14 million. The estimate points to a change of +4.6% from the year-ago quarter.
Based on the collective assessment of analysts, 'Steel - Average external sales price (Per ton)' should arrive at 1270 dollars per tonne. Compared to the present estimate, the company reported 1134 dollars per tonne in the same quarter last year.
Analysts predict that the 'Steel Fabrication - Average sales price (Per ton)' will reach 2480 dollars per tonne. The estimate compares to the year-ago value of 2517 dollars per tonne.
Analysts expect 'Steel - External Shipments (Tons)' to come in at 3043 thousands of tons. The estimate is in contrast to the year-ago figure of 2889 thousands of tons.
The collective assessment of analysts points to an estimated 'Steel Fabrication - Shipments (Tons)' of 152 thousands of tons. Compared to the current estimate, the company reported 135 thousands of tons in the same quarter of the previous year.
The consensus among analysts is that 'Steel - Average ferrous cost (Per ton melted)' will reach 421 dollars per tonne. The estimate is in contrast to the year-ago figure of 408 dollars per tonne.
The combined assessment of analysts suggests that 'Steel - Flat Roll shipments - Butler, Columbus and Sinton' will likely reach 2052 thousands of tons. Compared to the current estimate, the company reported 1952 thousands of tons in the same quarter of the previous year.
The consensus estimate for 'Metals Recycling - Ferrous shipments (Gross tons)' stands at 1598 thousands of tons. Compared to the present estimate, the company reported 1597 thousands of tons in the same quarter last year.
The average prediction of analysts places 'Steel - Flat Roll shipments - Steel Processing Divisions' at 675 thousands of tons. Compared to the current estimate, the company reported 479 thousands of tons in the same quarter of the previous year.
View all Key Company Metrics for Steel Dynamics here>>>
Shares of Steel Dynamics have demonstrated returns of -14.9% over the past month compared to the Zacks S&P 500 composite's +1.6% change. With a Zacks Rank #3 (Hold), STLD is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Kalshi thinks the most important commodity of the AI era is compute. The CFTC-regulated prediction market just launched what it calls the first market-driven forward curve for GPU computing power, a way to bet on where the price of AI processing is headed.
The product was unveiled in a Bloomberg exclusive by Uday Shah, Kalshi’s newly appointed Chief Risk Officer and a 16-year veteran of CME Group. It plots future prices of computing power and positions Kalshi squarely in a brewing fight with the biggest names in derivatives. Both CME Group (NASDAQ:CME | CME Price Prediction) and Intercontinental Exchange (NYSE:ICE) have announced their own compute futures products.
The Pitch: Compute Is the New Oil Kalshi CEO Tarek Mansour has been direct about the ambition. “Compute is the new oil,” he has said, adding that “compute futures will eventually dwarf oil futures.” The numbers behind the claim are staggering. Hyperscalers have committed “north of $500 to $600 billion just for 2026” to computing infrastructure, according to Kalshi, with total addressable market estimates stretching into the trillions.
The launch follows a May 2024 prediction from BlackRock CEO Larry Fink at the Milken Institute that “a new asset class will be buying futures of compute.” Two years later, that new asset class is being built in real time.
Why Kalshi Thinks It Has an Edge Shah’s core argument is that the GPU market is fragmented, and the fragmentation is Kalshi’s opportunity. Computing power lacks the standardization of a barrel of oil. Prices vary by chip grade, by location, and by use case, which makes a single clean index hard to pin down. Traditional exchanges focus on specific indices; Kalshi’s prediction-market structure lets it list many contracts simultaneously to capture that fragmentation.
He also draws a sharp line on price discovery. Kalshi’s forward curve is “true market-driven,” built from actual trading, while competing curves lean on OTC deals or bilateral contracts negotiated privately between parties. In a market this new, whose price is the “real” price is a live question.
The Competitive Subplot A pointed rivalry sits underneath all of this. CME is currently suing the CFTC to block Kalshi’s perpetual futures. Shah’s move is especially loaded: he defected from CME, the very exchange trying to box Kalshi in, to build Kalshi’s compute product. A 16-year CME insider now helping the challenger draw the map is a direct competitive signal.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Intercontinental Exchange didn't make the cut. Grab the names FREE today.
Both incumbents are already priming the ground. CME reported Q1 2026 revenue of $1.88 billion and record ADV of 36.2 million contracts, with CEO Terry Duffy citing “expanding access through initiatives such as U.S. Treasury clearing, 24/7 cryptocurrency trading and prediction markets” as core growth vectors. ICE posted Q1 2026 revenue of $2.98 billion and last October announced a strategic investment in Polymarket, a leading prediction market platform, expanding its footprint into decentralized prediction markets.
Why It Matters for Investors This is a land grab for what could become an entirely new derivatives category. If Mansour is right, the exchanges that establish standard contracts and capture volume stand to win a durable, high-margin business. CME’s operating margin sits at 69.8%; ICE’s adjusted operating margin expanded to 65% in Q1 2026. That is the prize Kalshi is aiming at.
CME trades near $243.61, down 8.16% year to date, while ICE sits at $137.61, down 14.44% YTD. Both remain the public-market vehicles for exposure to this category. Kalshi, still private, is the disruptor trying to define the standard before the incumbents lock it down.
A caveat: this is early and unproven. A forward curve for compute is only as useful as the liquidity and standardization behind it, and the GPU market has neither in abundance today. New derivatives categories launch frequently, and most never reach the scale their founders promise.
The direction is clear, though. When the CEO of the world’s largest asset manager predicts a new asset class, and a CFTC-regulated market plus the two biggest names in derivatives all race to build it within two years, the question is no longer whether compute becomes a tradable commodity. It’s who owns the market when it does.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Intercontinental Exchange didn't make the cut. Grab the names FREE today.
CME Group (CME - 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 parent company of the Chicago Board of Trade and other exchanges is expected to post quarterly earnings of $2.98 per share in its upcoming report, which represents a year-over-year change of +0.7%.
Revenues are expected to be $1.7 billion, up 0.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.65% 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 CME?For CME, 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 -2.82%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that CME 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 CME would post earnings of $3.37 per share when it actually produced earnings of $3.36, delivering a surprise of -0.30%.
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.
CME 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.
SANTA ROSA, Calif. & MÁLAGA, Spain--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) has been selected by the European Space Agency (ESA) to lead a three‑year development program focused on creating secure, blockchain‑enabled anomaly detection for 5G non‑terrestrial networks (NTN). Keysight will serve as the prime contractor, collaborating with Sateliot to support key technical development and satellite mission integration. As more satellite communication constellations are deployed, s.
Key Takeaways VEEV topped Q1 fiscal 2027 earnings and revenue estimates, led by Subscription services growth.VEEV's Vault CRM has 150 live customers, 40 migrations and over 80% overall win rate.VEEV is expanding AI offerings, with Ostro serving over 50 brands and Vault AI due in August. Veeva Systems Inc. (VEEV - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid first-quarter fiscal 2027 performance and CRM migrations, is expected to contribute further. However, market saturation remains a cause for concern.
This Zacks Rank #3 (Hold) company’s shares have lost 13.5% in the year-to-date period compared with the 5.9% decline of the industry. The S&P 500 composite has increased 9.7% during the said time frame.
The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $31.97 billion. The company anticipates 35% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 5.5%.
Image Source: Zacks Investment Research
Reasons Favoring VEEV’s GrowthDiversified Platform Driving Durable Growth:Veeva Systems’ long-term growth story is increasingly tied to its position at the center of life sciences digital transformation. The company operates across a broad set of markets spanning clinical development, quality management, regulatory operations, safety, commercial engagement and data analytics. Veeva Systems’ Development Cloud portfolio is particularly well-positioned as pharmaceutical companies seek integrated platforms that connect clinical data, trial operations, quality processes and regulatory functions within a unified ecosystem.
Growth is being fueled by newer product areas that remain in the early stages of penetration, including clinical data management, randomization and trial supply management, drug safety and laboratory information management systems. Management believes these businesses have a significant runway as customers increasingly favor end-to-end platforms over fragmented point solutions.
Enterprise CRM Migrations Expanding Account Footprint: Vault CRM adoption continues to build as large customers move off legacy CRM deployments and standardize commercial workflows. Management highlighted recent global selections from Teva and Merck KGaA and noted that Veeva Systems has secured 10 wins compared with six for Salesforce, within its defined top 20 cohort, with four decisions still pending.
The company also cited an overall Vault CRM win rate above 80% and more than 150 customers live, supported by over 40 completed migrations. This installed base creates a multi-year services and subscription runway and should support the attachment of adjacent commercial applications.
Strong Q1 Results: Veeva Systems exited the first quarter of fiscal 2027 with better-than-expected results, wherein both earnings and revenues beat the Zacks Consensus Estimate. The uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The uptick in Professional services and others’ revenues also bodes well.
Veeva Systems continues to strengthen its position in life sciences software through rapid innovation in artificial intelligence and expanding customer adoption. During the fiscal first quarter, the company significantly advanced its industry-specific AI strategy. Ostro, acquired in March, is now delivering compliant conversational AI for more than 50 brands, while Vault AI remains on track for deployment across all Vault applications in August.
Factor That May Offset VEEV’s GainsMarket Saturation: The life sciences industry, Veeva Systems' primary market for its CRM solutions, is facing increasing saturation as digital transformation and CRM adoption have become widespread across pharmaceutical and biotech companies. Many large enterprises have already implemented Veeva Systems' CRM software or similar solutions, leaving fewer untapped opportunities for new customer acquisition.
Additionally, as smaller biotech firms and generics manufacturers enter the market, they may seek more cost-effective or niche CRM alternatives rather than Veeva Systems' premium offerings. This saturation, combined with heightened competition from both traditional CRM providers and emerging AI-powered platforms, could limit Veeva Systems' ability to maintain its historical CRM sales growth rates.
Estimate TrendVeeva Systems is witnessing a stable estimate revision trend for fiscal 2027. In the past 30 days, the Zacks Consensus Estimate for fiscal 2027 earnings per share (EPS) has remained stable at $9.05.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $904.1 million, indicating a 14.6% improvement from the year-ago quarter’s reported number. The EPS estimate for the second quarter of fiscal 2027 is pinned at $2.22, implying a 11.6% improvement year over year.
Key PicksSome better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical reported first-quarter 2026 earnings per share of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
Intuitive Surgical has an estimated long-term earnings growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.
Key Takeaways Rocket Lab is expanding launch sites, mission control and ground systems to support more missions.RKLB is enhancing payload integration and launch operations to improve mission flexibility.Rocket Lab is strengthening infrastructure to support commercial, civil and national security customers. Rocket Lab Corporation (RKLB - Free Report) continues strengthening its launch infrastructure to support growing demand for reliable and responsive space access. The company operates dedicated launch sites and mission control facilities while expanding ground systems that facilitate launch operations, payload integration and mission execution. These capabilities enhance Rocket Lab's ability to increase launch frequency while serving commercial, civil and national security customers.
Ground infrastructure has become an increasingly important competitive advantage as launch demand continues rising. Rocket Lab's launch complexes, mission control centers, tracking systems and payload processing facilities enable efficient mission preparation and operational flexibility. By integrating launch infrastructure with spacecraft manufacturing and mission services, the company continues building a comprehensive space systems platform.
RKLB's expanding infrastructure also promises growth opportunities. Dedicated launch facilities allow Rocket Lab to accommodate diverse customer requirements while improving scheduling flexibility and operational efficiency. As launch activity increases, continued investment in ground infrastructure strengthens execution capabilities and supports long-term scalability across its launch business.
With governments and commercial operators deploying larger satellite constellations and pursuing more frequent missions, dependable launch infrastructure is expected to become increasingly valuable. Rocket Lab's continued investment in launch sites and supporting ground systems positions the company to meet growing customer demand while reinforcing its competitive position in the global launch market.
Companies Expanding Launch InfrastructureAerospace companies continue investing in launch infrastructure to support higher mission cadence and operational flexibility. Companies like Firefly Aerospace Inc. (FLY - Free Report) and Virgin Galactic Holdings, Inc. (SPCE - Free Report) are also increasing launch facilities and ground systems to support future commercial, civil and national security missions.
Firefly Aerospace continues to boost launch infrastructure and mission operations to support increasing launch activity across government and commercial customers.
Virgin Galactic continues strengthening its launch capabilities through investments in Spaceport America, flight operations and ground infrastructure to support higher commercial spaceflight activity and future mission execution.
Earnings Estimates for RKLB StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 66.67% and 44.44%, respectively.
Image Source: Zacks Investment Research
RKLB Stock Is Trading at a PremiumRocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 41.77X compared with the industry average of 8.38X.
Image Source: Zacks Investment Research
RKLB Stock Price PerformanceOver the past year, RKLB shares have jumped 65.3% compared with the industry’s 8.3% growth.
Image Source: Zacks Investment Research
RKLB’s Zacks RankRocket Lab currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Gentex (GNTX - Free Report) . GNTX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.03 right now. For comparison, its industry sports an average P/E of 18.63. Over the past 52 weeks, GNTX's Forward P/E has been as high as 15.46 and as low as 10.60, with a median of 13.03.
Another valuation metric that we should highlight is GNTX's P/B ratio of 2.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. GNTX's current P/B looks attractive when compared to its industry's average P/B of 4.19. Over the past year, GNTX's P/B has been as high as 2.97 and as low as 1.89, with a median of 2.41.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Visteon (VC - Free Report) . VC is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Visteon is currently trading with a Forward P/E ratio of 13.69 while its PEG ratio sits at 2.73. Both of the company's metrics compare favorably to its industry's average P/E of 18.63 and average PEG ratio of 0.97.
Over the past year, VC's P/E has been as high as 14.33, as low as 8.02, with a median of 10.34; its PEG ratio has been as high as 4.75, as low as 0.35, with a median of 0.40 during the same time period.
Visteon also has a P/B ratio of 2.27 compared to its industry's price-to-book ratio of 4.19. Over the past year, its P/B ratio has been as high as 2.34, as low as 1.31, with a median of 1.87.
These are only a few of the key metrics included in Gentex and Visteon strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GNTX and VC look like an impressive value stock at the moment.
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 includes access to the Zacks Style Scores as well.
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 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 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
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.
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: Paccar (PCAR - Free Report) Headquartered in Bellevue, WA, PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.
PCAR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Auto-Tires-Trucks stock. PCAR has a Momentum Style Score of A, and shares are up 2.4% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $5.62 per share. PCAR also boasts an average earnings surprise of +2.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PCAR should be on investors' short list.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Williams Companies, Inc. (The)?The final step today is to look at a stock that meets our ESP qualifications. Williams Companies, Inc. (The) (WMB - Free Report) earns a #3 (Hold) 19 days from its next quarterly earnings release on August 3, 2026, and its Most Accurate Estimate comes in at $0.56 a share.
Williams Companies, Inc. (The)'s Earnings ESP sits at +7.25%, which, as explained above, is calculated by taking the percentage difference between the $0.56 Most Accurate Estimate and the Zacks Consensus Estimate of $0.52. WMB is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
WMB is just one of a large group of Oils and Energy stocks with a positive ESP figure. BP (BP - Free Report) is another qualifying stock you may want to consider.
BP, which is readying to report earnings on August 4, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $1.34 a share, and BP is 20 days out from its next earnings report.
BP's Earnings ESP figure currently stands at +3.48% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.30.
WMB and BP's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The 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.
Zacks Premium also includes 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum 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 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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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: Interactive Brokers Group, Inc. (IBKR - Free Report) Incorporated in 1977 and headquartered in Greenwich, CT, Interactive Brokers Group Inc. operates as an automated global electronic broker. The company specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds, mutual funds, exchange-traded funds (ETFs) and precious metals on more than 160 electronic exchanges and market centers in 37 countries and 28 currencies. Moreover, customers can use the company’s trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers. In August 2025, the company joined the S&P 500 Index.
IBKR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. IBKR has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.6% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $2.51 per share. IBKR also boasts an average earnings surprise of +11.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, IBKR should be on investors' short list.
In its upcoming report, Zions (ZION - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.57 per share, reflecting a decline of 0.6% compared to the same period last year. Revenues are forecasted to be $879.16 million, representing a year-over-year increase of 3.3%.
Over the last 30 days, there has been an upward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Zions metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 62.7%. Compared to the present estimate, the company reported 62.2% in the same quarter last year.
It is projected by analysts that the 'Net interest margin' will reach 3.3%. Compared to the present estimate, the company reported 3.2% in the same quarter last year.
Analysts forecast 'Average balance - Total interest-earning assets' to reach $82.99 billion. Compared to the current estimate, the company reported $83.57 billion in the same quarter of the previous year.
Analysts predict that the 'Total nonaccrual Loan' will reach $306.75 million. Compared to the current estimate, the company reported $308.00 million in the same quarter of the previous year.
The consensus among analysts is that 'Total nonperforming assets' will reach $317.58 million. The estimate compares to the year-ago value of $313.00 million.
Analysts expect 'Tier 1 risk-based capital ratio' to come in at 11.8%. Compared to the current estimate, the company reported 11.1% in the same quarter of the previous year.
The consensus estimate for 'Total risk-based capital ratio' stands at 14.0%. The estimate is in contrast to the year-ago figure of 13.4%.
The average prediction of analysts places 'Tier 1 leverage ratio' at 9.3%. Compared to the current estimate, the company reported 8.5% in the same quarter of the previous year.
According to the collective judgment of analysts, 'Total Noninterest Income' should come in at $189.81 million. Compared to the current estimate, the company reported $190.00 million in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Commercial account fees' of $49.14 million. The estimate compares to the year-ago value of $46.00 million.
Analysts' assessment points toward 'Other customer-related fees' reaching $15.03 million. The estimate is in contrast to the year-ago figure of $14.00 million.
The combined assessment of analysts suggests that 'Card fees' will likely reach $22.81 million. Compared to the present estimate, the company reported $24.00 million in the same quarter last year.
View all Key Company Metrics for Zions here>>>
Over the past month, shares of Zions have returned +5.5% versus the Zacks S&P 500 composite's +1.6% change. Currently, ZION carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Travel + Leisure Co. (TNL - 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 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 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 company is expected to post quarterly earnings of $1.92 per share in its upcoming report, which represents a year-over-year change of +16.4%.
Revenues are expected to be $1.05 billion, up 3.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 Travel Leisure Co.?For Travel Leisure Co., 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 +1.22%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Travel Leisure Co. 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 Travel Leisure Co. would post earnings of $1.31 per share when it actually produced earnings of $1.45, delivering a surprise of +10.69%.
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.
Travel Leisure Co. 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.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to 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 assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means 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 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.
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.
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: Willis Towers Watson (WTW - Free Report) Based in London, the United Kingdom, Willis Towers Watson plc is a leading global advisory, broking and solutions company. Willis Towers caters to the need of designs and delivers solutions that manage risk, optimize benefits, and expand capabilities, among others of large companies and mid-market and small businesses across the world.
WTW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. WTW has a Momentum Style Score of A, and shares are up 11.2% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $19.53 per share. WTW also boasts an average earnings surprise of +4.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WTW should be on investors' short list.
Kwant’s Construction Workforce Management Platform supports 160,000 workers across the United States and has tracked more than 45 million hours to date July 15, 2026 10:57 ET | Source: Willis Towers Watson US LLC
NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ: WTW), together with its embedded insurance infrastructure partner Kayna, today announced a strategic partnership with Kwant to launch KwantSure, a digital insurance program embedded directly within Kwant’s workforce management platform.
KwantSure enables subcontractors to access the insurance coverage that may be required to remain project compliant, directly within the platform used by general contractors to manage workforce operations and certificate of insurance (COI) tracking.
The program combines:
Kwant’s workforce and compliance platform, which supports 160,000 workers across the United States, providing general contractors with real-time visibility into subcontractor insurance status through integrated COI tracking;Kayna’s award-winning embedded insurance technology, which integrates a seamless insurance procurement experience into the Kwant platform and leverages digital trading capabilities from modern carriers to deliver data-led, streamlined insurance solutions; andWillis’ Affinity advice and expertise, delivering tailored insurance solutions designed specifically for subcontractors. Available coverages include General Liability, Professional Liability, Cyber, Business Owner’s Policy and pay-as-you-go Workers’ Compensation.
By embedding insurance procurement within the COI workflow, KwantSure reduces administrative burdens, streamlines the buying process, and enables subcontractors to obtain quotes and bind coverage in minutes. For general contractors, the program enhances compliance visibility and helps mitigate risk across projects.
Nabeel Tanveer, US Affinity and Programs Leader at Willis, said: “Delivering tech-enabled, embedded insurance solutions is a key strategic priority for us. By integrating Willis-brokered insurance directly into Kwant’s COI tracking platform, we are simplifying access to coverage for subcontractors, strengthening compliance and removing friction from the procurement process.”
Niran Shrestha, CEO and Co-Founder of Kwant, said: “By combining Kwant’s project intelligence with Willis’ broking expertise and Kayna’s technology, we’re making insurance faster, simpler and more accessible for contractors. Contractors can secure coverage in minutes while staying compliant through proactive alerts and real-time monitoring. Together, we’re helping reduce risk across complex projects and laying the foundation for a broader suite of digital insurance solutions.”
Paul Prendergast, CEO of Kayna, said: “Kwant is helping subcontractors to close the compliance gap and mitigate the risk of underinsurance in real time. This is how a vertical SaaS platform can elevate business practices, solve problems and provide real value for its customers. KwantSure provides a data-led, end-to-end insurance solution, designed specifically to support the needs of Kwant customers as they position their businesses for continuity and sustained growth. I’m delighted that our work together has resulted in such a powerful tool for a trusted platform that is driving change in construction, making it safer, smarter and more efficient.”
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk, and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce, and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
Kwant is an AI-powered workforce operating system for construction and industrial sites. By combining real-time data from smart wearables with operational insights, Kwant delivers predictive analytics and automated alerts to boost safety, productivity, and compliance.
Deployed on major projects with over 160,000 workers, Kwant has proven to reduce safety incidents by 50% and increase productivity by 11%.
Kayna is an award-winning embedded insurance distribution platform serving vertical SaaS providers and their customers. Agentic and MCP-native, Kayna can offer a real-time, stand-alone risk management module that analyses policy detail against platform data, flag coverage gaps and can embed insurance procurement journeys to support insurance compliance requirements. Through one connection, Kayna links SaaS providers with carriers, MGAs, and brokers so that SMBs can access live risk intelligence and tailored, data-driven insurance through the software they already use to run their business operations every day.
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.
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 assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means 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 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 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.
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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Waste Management (WM - Free Report) Headquartered in Houston, Texas, Waste Management Inc. is a leading provider of comprehensive waste management services in North America. Formerly known as USA Waste Services, Inc., the company changed its name to Waste Management, Inc. in 1998.
WM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. WM has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.8% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $8.16 per share. WM boasts an average earnings surprise of +0.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, WM should be on investors' short list.
Wall Street analysts forecast that W.R. Berkley (WRB - Free Report) will report quarterly earnings of $1.09 per share in its upcoming release, pointing to a year-over-year increase of 3.8%. It is anticipated that revenues will amount to $3.7 billion, exhibiting an increase of 1.7% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some W.R. Berkley metrics that are commonly tracked and projected by analysts on Wall Street.
The combined assessment of analysts suggests that 'Revenues from non-insurance businesses' will likely reach $134.82 million. The estimate suggests a change of +4.6% year over year.
It is projected by analysts that the 'Insurance service fees' will reach $33.62 million. The estimate indicates a change of +2.6% from the prior-year quarter.
The consensus estimate for 'Net premiums earned' stands at $3.16 billion. The estimate points to a change of +2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net investment income' of $395.62 million. The estimate suggests a change of +4.3% year over year.
Analysts forecast 'Loss ratio - Total' to reach 63.3%. Compared to the present estimate, the company reported 63.1% in the same quarter last year.
Analysts predict that the 'Expense Ratio - Total' will reach 28.7%. Compared to the present estimate, the company reported 28.5% in the same quarter last year.
According to the collective judgment of analysts, 'Combined Ratio - Total' should come in at 92.0%. Compared to the present estimate, the company reported 91.6% in the same quarter last year.
Analysts' assessment points toward 'Loss ratio - Reinsurance & Monoline Excess' reaching 57.3%. Compared to the current estimate, the company reported 57.7% in the same quarter of the previous year.
Analysts expect 'Expense ratio - Reinsurance & Monoline Excess' to come in at 29.8%. The estimate is in contrast to the year-ago figure of 29.7%.
The average prediction of analysts places 'Combined Ratio - Reinsurance & Monoline Excess' at 87.1%. The estimate is in contrast to the year-ago figure of 87.4%.
The consensus among analysts is that 'Expense ratio - Insurance' will reach 28.5%. The estimate is in contrast to the year-ago figure of 28.3%.
Based on the collective assessment of analysts, 'Loss Ratio - Insurance Segment' should arrive at 64.7%. The estimate compares to the year-ago value of 63.8%.
View all Key Company Metrics for W.R. Berkley here>>>
Over the past month, shares of W.R. Berkley have returned +5.3% versus the Zacks S&P 500 composite's +1.6% change. Currently, WRB carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Yext (YEXT - Free Report) is a stock many investors are watching right now. YEXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.61. This compares to its industry's average Forward P/E of 20.89. Over the past 52 weeks, YEXT's Forward P/E has been as high as 21.17 and as low as 10.89, with a median of 12.56.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YEXT has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.75.
Finally, investors will want to recognize that YEXT has a P/CF ratio of 26.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 37.22. Over the past year, YEXT's P/CF has been as high as 227.93 and as low as -1262.83, with a median of 106.38.
These are just a handful of the figures considered in Yext's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that YEXT is an impressive value stock right now.
Index Dow Jones +0,35 % na 52690,89 b. S&P 500 +0,27 % na 7563,81 b. Nasdaq Composite +0,45 % na 26224 b.
Ve středeční seanci se americké indexy pohybují v zelených úrovních a jejich růst byl ovlivněn dnešním reportem Indexu cen výrobců PPI a podle Úřadu statistiky práce (Bureau of Labor Statistics) klesl index cen výrobců (PPI) v červnu meziměsíčně o 0,3 %, což představuje první měsíční pokles za téměř rok. Jádrový PPI vzrostl meziměsíčně o 0,2 %. Ekonomové očekávali stagnaci indexu a nárůst jádra o 0,3 %. V květnu vzrostl index PPI o 0,6 % a jádro o 0,1 %., který meziročně vzrostl o 5,5 % a jádro o 4,7 %, což je méně než konsenzuální odhady 6,2 % a 5,2 %. V květnu index PPI vzrostl o 6,0 % a jádro o 4,6 %. Celková inflace výrobců v USA v červnu zaznamenala první měsíční pokles od srpna 2025, a to především v důsledku poklesu cen energetického zboží konečné poptávky, ukázaly ekonomické údaje zveřejněné ve středu. Podle názoru analytiků tak dnešní report PPI zopakoval podobný vývoj spotřebitelské inflace v USA z předchozího dne. Celkové uvolnění cenového tlaku v červnu naznačovalo, že by Federální rezervní systém mohl mít určitý prostor k okamžitému zvýšení úrokových sazeb. Data však přicházejí v komplikované době, protože geopolitická riziková prémie zůstává hlavním odchylným faktorem, pokud jde o ovlivnění inflace.
V centru zájmu investorů je také ropa a klesající ceny ropy v důsledku prozatímní mírové dohody uzavřené mezi USA a Íránem pomohly v červnu zmírnit cenový tlak. Situace se však v červenci rychle změnila, když se zhroutilo příměří mezi oběma stranami a obě strany bojují o kontrolu nad kritickým Hormuzským průlivem, což opět vyvolalo prudký nárůst cen ropy. Podle dnešního reportu od EIA zásoby surové ropy ke dni 10.7. klesly o 1,692 mil. barelů, když trh předpokládal větší pokles o 2,412 mil. barelů. Lehká ropa WTI reaguje na situaci konfliktu v Hormuzským průlivu a dnes klesá cca 0,8% a dostává se k úrovni 78,7 USD/barel. Ropa otáčí do červených i přes oslabující dolar, který dnes ztrácí -0,11% tj. 1,1432 USD/barel. Ropa klesá a tak se dnes nedaří akciím v těžebním sektoru černého zlata a proto akcie ropného obra Exxon Mobil ( XOM ) dnes ztrácí cca -1,5% a cca -2,5% si odepisují akcie konkurenta Baker Hughes ( BKR ). V červených se pohybují také akcie Occidentalu Petrolůeum ( OXY ) se ztrátou cca -2,5% a -2,5% ztrácí také akcie Transoceanu ( RIG ), kde společnost těží ropu z věží v oceánu. Poklesu v sektoru vzdorují akcie britské skupiny BP ( BP ), které na tržní ceně se již přetáčí do červených cca -0,5%. Za zmínku stojí také akcie francouzského výrobce a dodavatele těžního zařízení Schlumbergeru ( SLB ), které oslabují o necelé 1% a také akcie jeho amerického konkurenta Halliburtonu ( HA ) se pohybují již v záporu se ztrátou do cca 2,5%
.
Za pozornost dnes stojí společnost PayPal ( PYPL ), která patří mezi průkopníky digitálních plateb. Podle dostupných informací společnost Stripe společně s investiční firmou Advent International údajně nabídly za převzetí PayPalu více než 53 mld. USD. Podle informací agentury Reuters činí nabídka 60,50 USD za akcii, což představuje přibližně 28% prémii oproti úterní závěrečné ceně akcií. Důležitým signálem pro investory je také skutečnost, že potenciální kupci údajně neplánují společnost rozdělit ani prodávat její jednotlivé části. Cílem má být informace a obnovení růstu celého podniku. Pro společnost Stripe by akvizice představovala příležitost získat obrovskou uživatelskou základnu, silnou značku a rozsáhlou infrastrukturu v oblasti online plateb. Akcie PayPal Holdings ( PYPL ) jsou dnes v hledáčku investorů a přidávají solidních 15%.
Naopak se dnes nedaří akciím společnosti Pentair ( PNR ), která se zaměřuje na úpravu vody. Firma totiž snížila svůj celoroční výhled. Analytici poukázali na slabé výsledky divize bazénů jako na hlavní brzdu růstu a dodali, že není jasné, jak a kdy se toto podnikání v bezprostřední budoucnosti zotaví. Pentair v celém roce nově očekává očištěný zisk na akcii v rozmezí 4,60 až 4,80 USD, dříve společnost projektovala 5,30 až 5,40 USD. Trh odhadoval 5,33 USD. Akcie Pentair ( PNR ) se tak ocitají pod tlakem investorů a ztrácí na tržní ceně silných -16%.
Z indexu S&P 500 se dnes daří akciím společnosti Blackrock ( BLK ) se ziskem 7,8% a také Ares Management Corp ( ARES ) 4,7%. Naopak se nedaří akciím Progresive Corp ( PGR ) -7,3%, jež je specialistou na pojištění vozidel. Do nižších pater jí posílá zveřejnění výsledků hospodaření za 2Q. Čisté předepsané pojistné vzrostlo meziročně o 5 % na 21,08 mld. USD, což je mírně pod odhady 21,29 mld. USD. Zisk na akcii dosáhl 5,67 USD.
Index S&P 500 +0,27 % na 7563,81 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +2,8 % Energie -1,9 % Zbytná spotřeba +2 % Informační technologie -0,7 % Finanční sektor +0,9 % Základní materiály -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna PayPal Holdings (PYPL) +15 % Pentair (PNR) -16 % Blackrock (BLK) +7,8 % Dell Technologies (DELL) -12 % CBRE Group (CBRE) +6,8 % Sandisk Corp (SNDK) -11 % Invesco (IVZ) +5,4 % Elevance Health (ELV) -8,7 % KKR (KKR) +5,2 % NetApp (NTAP) -8,1 %
Luboš Bedrník
Fio banka, a.s.
Prohlášení
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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 also includes 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 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 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 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.
#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.
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.
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.
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: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.
MCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 18.14; value investors should take notice.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, MCK should be on investors' short list.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
In 1958, Warren Buffett paid $31,500 for a house in Omaha. Sixty-seven years later, he still lives in it. In 2025, a 43-year-old real estate professional named Matthew Rodriguez paid $50,000 for a signed book about Warren Buffett. One of those two purchases was made by the greatest investor in American history, and the cheaper one belonged to Buffett.
The $50,000 Book At the Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) annual shareholders meeting on May 2-3, 2025, a silent auction offered signed copies of “60 Years of Berkshire Hathaway,” a commemorative book packed with photos, quotes, and stories from Buffett and the late Charlie Munger. Rodriguez, an Omaha native and self-described Buffett “fan boy,” watched the online leaderboard and struck about 15 minutes before close, winning a copy for $50,000. “It’s going to be a pretty priceless artifact in my library,” he told CNBC. The highest bid hit $100,000 during the online pre-meeting phase, and during the in-person Berkshire Bazaar of Bargains, more than 50 bids rolled in, some reaching $60,000. Twenty signed copies were available. During that same meeting, Buffett announced he would step down as CEO at year-end, turning the books into instant historical artifacts.
The $31,500 House Buffett bought his home at 5505 Farnam Street in 1958 for $31,500, after he and his late wife Susan had rented it for $175 a month starting in 1956. Adjusted for inflation, that purchase is roughly $318,000 to $336,700 in today’s dollars. The home is now estimated to be worth about $1.4 to $1.5 million, a roughly 4,300% nominal return. Buffett has called it his “third-best investment,” behind only his two wedding rings. “I’m happy there,” he has said. Rodriguez paid more for a signed book about Buffett than Buffett paid for the house where most of the Buffett story happened.
The Most Extraordinary Lifestyle in American Business Buffett’s fortune recently topped $140 billion, yet his base salary as Berkshire CEO sat at $100,000 for decades. His daughter buys his cars, often with cosmetic damage, to get a better price, and he logs about 3,500 miles a year. He eats breakfast at McDonald’s most mornings, spending somewhere between $2.61 and $3.17 depending on how Berkshire’s stock is doing. He used a flip phone until Tim Cook personally talked him into an iPhone in 2020. Home is a five-bedroom, two-bath Dutch Colonial on a tree-lined street in the Dundee-Happy Hollow neighborhood. No gates. No helipad.
What the House Actually Teaches The Farnam Street purchase embodies Buffett’s philosophy: buy quality at a reasonable price, hold indefinitely, and let compounding work. The 4,300% nominal return is excellent. The larger payoff was 67 years of stable, low-cost housing that freed him to compound his portfolio without distraction. As he wrote in his 2010 shareholder letter, “A house can be a nightmare if the buyer’s eyes are bigger than his wallet. I bought the right house when I bought the modest one on Farnam Street.” Omaha’s median home price today is about $275,000, per Redfin, nearly nine times what Buffett paid. The $50,000 signed book is a collectible whose value rests on continued demand for Buffett memorabilia rather than any underlying business or cash flow.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
The Most Buffett Detail of All The whole auction was for charity. Every dollar went to the Stephen Center, a homeless shelter and addiction-recovery campus in Omaha, and Buffett matched every dollar donated, turning $1.3 million in proceeds into $2.6 million of impact. Wire transfers arrived from Singapore. Checks showed up unexpectedly in the mail. “Did I ever think that we would be doing wire transfers from Singapore? I did not,” the Stephen Center’s director marveled. One Buffett mention turned an obscure local shelter into a global destination.
The same dynamic scaled up this week. On Tuesday, July 14, Buffett committed to giving away his entire remaining $140 billion Berkshire stake to four family foundations by 2034, more than twice everything he’s given in 60 years of philanthropy.
The Lesson The most valuable thing Buffett ever signed may be the 1958 check for $31,500 that bought the modest house where he quietly compounded $140 billion, then pledged nearly all of it away. Buy quality at a reasonable price. Hold it. Let compounding do the work. Avoid stretching for more house than you need. Know the difference between a collectible and an investment.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
Wall Street expects a year-over-year decline in earnings on higher revenues when Otis Worldwide (OTIS - 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 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 company is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of -4.8%.
Revenues are expected to be $3.72 billion, up 3.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.16% 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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 Otis Worldwide?For Otis Worldwide, 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 -0.57%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Otis Worldwide 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 Otis Worldwide would post earnings of $0.91 per share when it actually produced earnings of $0.89, delivering a surprise of -2.20%.
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.
Otis Worldwide 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 Aehr targets fiscal 2027 revenues of $130M-$150M, about 2.6 to 3 times fiscal 2026 sales.AI accelerators, CPUs and network processors generated about 71% of Aehr's fiscal 2026 revenues. A major AI chip supplier advanced Aehr toward pilot production after benchmark results beat expectations. Aehr Test Systems, Inc. (AEHR - Free Report) used its fourth-quarter 2026 call to focus less on the quarter itself and more on the scale of demand it sees building into fiscal 2027. Management tied that outlook to AI processors, silicon photonics and a record-effective backlog.
The company still posted a headline beat, with adjusted EPS of 11 cents versus the Zacks Consensus Estimate of a loss of 1 cent and revenues of $18.8 million versus the estimate of $18.7 million. But the call’s main takeaway was the visibility management says it now has into a much larger revenue year ahead.
AEHR Sets the Tone With 2027 TargetPresident and CEO Gayn Erickson said the company entered fiscal 2027 with strong momentum, citing record quarterly bookings, record backlog and rising demand across wafer-level and package-level burn-in. He framed those trends as the base for a multiyear growth setup rather than a one-quarter rebound.
Management guided fiscal 2027 revenues of $130 million to $150 million, or about 2.6 times to 3 times fiscal 2026 revenues, with non-GAAP pretax profitability of 18% to 22%. CFO Chris Siu said the outlook reflects current backlog and anticipated customer demand.
The quarter’s reported numbers helped support that message. Revenues rose 34% year over year, while non-GAAP net income reached $3.6 million versus a loss a year earlier.
Aehr Shifts Further Toward AI DemandErickson said nearly 95% of fiscal 2026 revenues came from markets outside electric-vehicle silicon carbide, a sharp change from two years ago. He identified AI accelerators, CPUs and network processors as the fastest-growing end market, accounting for about 71% of annual revenue.
He also said the lead AI wafer-level customer has moved all production burn-in screening to wafer level on Aehr systems and is forecasting higher capacity needs. That customer has doubled its systems and added automated aligners, underscoring how central AI has become to the company’s story.
In package-level burn-in, Erickson said the lead hyperscale customer is expanding Sonoma purchases for a second device with twice the power of the first. He added that Sonoma systems and consumables could become a larger revenue contributor as those devices ramp.
AEHR Sees a New Wafer-Level OpeningOne of the call’s more important updates came from a benchmark with a major supplier of AI accelerators, CPUs and network processors. Erickson said Aehr completed testing on one processor and produced results that exceeded the customer’s expectations.
That customer now wants to move to pilot production validation in Taiwan for a current high-volume device, and it has also asked Aehr to evaluate a second device in parallel. Erickson said the revenue opportunity from either device could be significant over both the near and long term.
During Q&A, management made clear that little to none of this potential contribution is embedded in current guidance, leaving it positioned as upside rather than a core assumption.
Aehr Builds Around Optics and PowerBeyond AI compute, Erickson highlighted silicon photonics as another key growth lane. He said the lead silicon photonics customer is ramping automated wafer-level systems, while a newer major networking customer has already ordered systems and forecast additional demand this calendar year.
Power semiconductors also remained part of the forward narrative. Management said it completed more than a dozen gallium nitride WaferPak designs, sold its first silicon MOSFET wafer-level burn-in system and saw signs of recovery in silicon carbide.
The press release added that Aehr received about $8 million of new silicon carbide wafer-level burn-in orders in the last month, including an order tied to one of the world’s largest automotive companies.
AEHR Q&A Clarifies Mix and CadenceAnalysts pressed management on what sits inside the new guide. A Craig-Hallum analyst asked about revenue mix, and Erickson said AI should remain roughly 70% of the business, silicon photonics about 15% to 20%, with power and other markets making up the rest. He also said memory is not assumed, even at the top end of guidance.
A William Blair analyst asked about timing, and Siu said the second quarter should be especially strong because of package-level Sonoma shipments. Erickson added that the first quarter has started well, while the second quarter should be bigger.
On consumables, management told analysts that WaferPaks and burn-in module boards should remain about 30% of revenues. That matters because it points to a recurring element inside what could otherwise look like a systems-heavy ramp.
Aehr Leaves an Expansion-Focused MessageThe closing impression from the call was that management is preparing for demand rather than defending the current base. Siu pointed to capacity additions in Southeast Asia and an expanded Taiwan presence, while Erickson said the company is not capacity-constrained even at the high end of current guidance.
That posture matched the balance sheet. Aehr ended the quarter with $116.5 million in cash, cash equivalents and restricted cash after raising about $100 million during fiscal 2026, giving it added flexibility to support larger customer programs.
Zacks Signals Remain MixedAEHR carries a Zacks Rank #3 (Hold). Based on Zacks’ framework, a Rank #3 can be held, but the strongest setups typically combine a Zacks Rank #1 (Strong Buy) or #2 (Buy) with Style Scores of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock’s Value Score of F, Growth Score of F and VGM Score of F point to weak cross-style characteristics, while its Momentum Score of B indicates a more favorable trend profile than its value or growth readings. Zacks also notes that estimate revisions drive the rank, so that rating can change after earnings as analysts update forecasts.
Key Takeaways Aehr Test Systems posted fourth-quarter EPS of 11 cents as revenues rose 33.7% to $18.84 million.AI processors and silicon photonics burn-in generated more than 80% of AEHR's quarterly revenues. AEHR's record bookings and effective backlog of about $100.6 million boosted fiscal 2027 visibility. Aehr Test Systems (AEHR - Free Report) reported non-GAAP earnings of 11 cents per share for the fourth quarter of fiscal 2026, surpassing the Zacks Consensus Estimate by 1200%. The company had posted a loss of 1 cent per share in the year-ago quarter.
Revenues increased 33.7% year over year to $18.84 million and beat the consensus mark by 0.72%. Higher artificial intelligence (AI) and data-center demand, improved manufacturing utilization and favorable product mix supported profitability. Quarterly bookings reached a record $60.7 million.
AEHR's AI & Data Center Mix StrengthensAI processors and silicon photonics burn-in generated more than 80% of fiscal fourth-quarter revenues, up from 56% in the prior-year period. Demand was particularly strong for FOX systems, serial AutoAligners and proprietary WaferPak contactors.
Three customers each accounted for more than 10% of quarterly revenues. Two served the AI market, while the third focused on optical transceivers used in data centers. Contactor revenues totaled $5.8 million, representing 31% of the company’s top line compared with 30% a year earlier.
AEHR's Margin Expansion Lifts ProfitabilityNon-GAAP gross margin expanded to 45% from 35% in the year-ago quarter. The 1,000-basis-point improvement reflected higher revenues, better manufacturing capacity utilization and a more favorable product mix.
Non-GAAP operating expenses increased to $7.5 million from $5.4 million. The rise primarily reflected higher employment costs tied to research and development hiring, along with increased commissions associated with strong AI and data center bookings and legal expenses associated with patent litigation in China.
AEHR Posts Record Bookings & BacklogQuarterly bookings surged more than 500% year over year to $60.7 million from $11.1 million. Growth was driven by orders for Sonoma package-level systems, FOX wafer-level systems, WaferPaks and burn-in module boards supporting AI and silicon photonics applications.
Backlog at fiscal year-end reached $80.6 million, up from $15.2 million a year earlier. AEHR received another $20 million in bookings shortly after year-end, lifting effective backlog to approximately $100.6 million and providing substantial visibility into fiscal 2027 revenues.
AEHR Expands Across Key Semiconductor MarketsThe lead AI wafer-level burn-in customer doubled its system base during fiscal 2026 and shifted all production burn-in screening from system-level to wafer-level testing. Management expects further capacity requirements as the customer receives increased wafer allocations from its foundry.
AEHR completed benchmark testing with a major supplier of AI accelerators, CPUs and network processors. Results exceeded the customer’s expectations, prompting discussions about pilot production validation for a current high-volume processor and an evaluation of a second device. Revenues from this opportunity are largely excluded from the fiscal 2027 outlook.
AEHR Sees Momentum in Photonics & PowerSilicon photonics demand strengthened as data-center architectures increasingly adopted optical input-output and high-speed interconnect technologies. AEHR’s lead customer placed follow-on orders, while another networking customer provided forecasts for additional systems as it expands capacity for hyperscale deployments.
Power semiconductor activity also improved. The company received approximately $8 million in recent silicon carbide WaferPak orders and completed more than a dozen gallium nitride designs. AEHR sold its first FOX system for a silicon MOSFET wafer-level burn-in application.
AEHR Scales Capacity for Customer RampsThe company began shipping Sonoma systems from a contract manufacturer in Southeast Asia, adding capacity for more than 20 systems per month. AEHR is expanding its Taiwan operations to support customer engagement and potential production ramps.
Management highlighted that existing manufacturing capacity can support revenues above the top end of its current guidance. The company expects a significant concentration of Sonoma shipments in the second quarter of fiscal 2027, making that period a particularly strong contributor to the annual revenue profile.
AEHR's Balance Sheet Supports ExpansionAs of May 29, 2026, cash, cash equivalents and restricted cash totaled $116.5 million compared with $37.1 million as of Feb. 27, 2026.
The company raised approximately $100 million during fiscal 2026, primarily through its at-the-market equity program.
Operating activities used $3.3 million in cash in the reported quarter, while capital expenditures totaled $2.1 million.
AEHR Issues Strong Fiscal 2027 OutlookFor fiscal 2027, AEHR expects revenues between $130 million and $150 million, implying growth of approximately 160% to 200% from fiscal 2026 revenues of $50 million. Management expects AI-related applications to contribute roughly 70% of revenues, with silicon photonics representing about 15% to 20%.
Non-GAAP pretax net income is projected to be 18% to 22% of revenues.
AEHR’s Zacks Rank & Stocks to ConsiderCurrently, Aehr Test Systems carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include ASE Technology (ASX - Free Report) , Bandwidth (BAND - Free Report) and Fortinet (FTNT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ASE Technology have gained 150.7% in the year-to-date period. ASX is set to report its second-quarter 2026 results on July 30.
Shares of Bandwidth have surged 390.4% in the year-to-date period. BAND is slated to report its second-quarter 2026 results on July 29.
Fortinet shares have gained 110.1% in the year-to-date period. FTNT is set to report its second-quarter 2026 results on July 29.
Key Wealth poll finds more than one in three have saved at least $100,000 less — and the gap hits hardest among women, set to inherit the most
, /PRNewswire/ -- Most mass affluent Americans who expect an inheritance have never actually confirmed one is coming — yet nearly two-thirds (64%) say an anticipated windfall is actively reshaping their financial decisions, and more than a third (36%) have already saved or invested at least $100,000 less because of it, according to Key Wealth's 2026 Inheritance Pulse Poll, released today.
Key Wealth, the wealth management business of KeyCorp (NYSE: KEY), found that just 34% of Mass Affluent Inheritors formed their expectations through a direct family conversation with specific figures, timing, or conditions, with the rest operating largely on assumption. Among those who have never broached the subject with family, half (50%) say it is because they do not want to appear to be counting on the money. With an estimated $124 trillion expected to change hands worldwide over the next two decades, the gap between expectation and reality carries real planning consequences.
"Inheritances should be treated like bonuses: they are never guaranteed. The strongest financial plan can stand on its own, with or without an inheritance," said Solomon Schmidt, CFP®, Executive Vice President and Head of Mass Affluent Wealth at Key Wealth. "These findings tell a story we see play out in conversations with clients and families every day. When you believe a safety net is coming, it changes the calculus behind saving, investing and financial planning overall."
The Cost of Counting on an Inheritance
Unverified expectations are translating into measurable changes in financial behavior. Among Mass Affluent Inheritors whose decisions have been shaped by inheritance expectations, many are saving less for retirement (40%), taking more investment risk (36%) and spending more freely on lifestyle or travel (18%).
The impact is substantial: 44% report pulling back on savings or investments by at least $25,000 over the past five years, and for more than one in three (36%), that shortfall reaches $100,000 or more.
Prepared in Theory, Exposed in Practice
Six in ten (61%) Mass Affluent Inheritors rate their financial plan as "very prepared" regardless of any expected inheritance. Yet, a quarter (25%) say they would need to work significantly longer than planned if an inheritance fell through, and nearly one in five (19%) would face a reduced retirement lifestyle.
Healthcare and long-term care costs (40%) are the threat most likely to put those plans at risk, ahead of a family member outliving their assets (33%), changes in estate or gifting plans (20%) and even market volatility (19%).
Women Are Set to Inherit More — and Planning for It Less
Research indicates women in the United States are on track to nearly double their assets by 2030, yet Key Wealth's findings reveal a striking preparedness gap. Just 41% of women have discussed their inheritance with a financial advisor, compared to 54% of men, and only 17% say inheritance is a significant part of their long-term financial plan. For more than half (52%) of women, inheritance expectations have not changed their saving behavior at all.
However, the formal planning gap does not extend to all financial behaviors. Among respondents whose decisions have been shaped by anticipated inheritance, women are less likely than men to take on additional investment risk (30% vs. 43%) or reduce retirement contributions (37% vs. 43%).
The Cycle Is Already Repeating
Seven in ten (71%) say they intend to leave a legacy for their children, but 38% have no formal estate plan in place. Without one, their heirs risk inheriting not only fewer assets, but also the same assumptions, silence and unverified expectations that shape today's inheritance gap.
The Most Valuable Conversation in Wealth Planning
Demand for advisor guidance on inheritance planning far outpaces current engagement. More than three-quarters (78%) of Mass Affluent Inheritors would find an advisor-facilitated family conversation on inheritance valuable, but fewer than half (47%) have ever had one.
"The strongest plans are stress-tested against the possibility that an inheritance never arrives, because a strategy built on a windfall is not much of a plan at all," Schmidt said. "Open, advisor-guided conversations help families gain clarity and build resilience, regardless of what ultimately materializes."
Explore more findings from Key Wealth's 2026 Inheritance Pulse Poll here.
Methodology
Key Wealth's 2026 Inheritance Pulse Poll was conducted online via SurveyMonkey from April 17 to May 15, 2026, examining how inheritance expectations shape financial behavior, savings and planning decisions, advisor engagement, and attitudes toward generational wealth transfer. Respondents were screened in two stages. In the first stage, 3,809 U.S. adults confirmed a household income of $100,000 or more and investable assets of $100,000 or more — collectively defined throughout this report as "mass affluent Americans." In the second stage, respondents were asked whether they expect to receive or have already received an inheritance. The 2,301 respondents who confirmed inheritance expectations or receipt completed the full survey and constitute the qualified respondent sample — collectively defined throughout this report as "Mass Affluent Inheritors." All behavioral and attitudinal findings reported herein are drawn exclusively from this qualified sample (n = 2,301). Results are statistically significant at the 95% confidence level with a margin of error of ±2.04%.
About KeyCorp
Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion. Key provides deposit, lending, cash management and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in select industries through the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.
The Key Wealth Institute is comprised of financial professionals representing KeyBank National Association (KeyBank) and certain affiliates, such as Key Investment Services (KIS) and KeyCorp Insurance Agency USA Inc. (KIA).
Any opinions, projections, or recommendations contained herein are subject to change without notice, are those of the individual author(s), and may not necessarily represent the views of KeyBank or any of its subsidiaries or affiliates.
This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product or to employ a specific investment or tax planning strategy.
KeyBank, nor its subsidiaries or affiliates, represent, warrant or guarantee that this material is accurate, complete or suitable for any purpose or any investor and it should not be used as a basis for investment or tax planning decisions. It is not to be relied upon or used in substitution for the exercise of independent judgment. It should not be construed as individual tax, legal or financial advice.
Non-Deposit products are:
NOT FDIC INSURED ● NOT BANK GUARANTEED ● MAY LOSE VALUE ● NOT A DEPOSIT ● NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY
The July 18 event in Mountain View will challenge developers to build travel AI agents using Sabre production APIs, Vocal Bridge voice AI technology and support from partners including American Airlines, PayPal, DeepLearning.AI, LandingAI and AI Fund.
, /PRNewswire/ -- Sabre (NASDAQ: SABR) will co-host the DeepLearning.AI Voice AI Hackathon: The Complete Trip on July 18 in Silicon Valley, bringing together developers to explore how agentic travel and voice AI can help remove friction from the end-to-end traveler experience. Sabre pioneered one of the travel industry's first open developer ecosystems, and today it's challenging developers to build agents using its APIs to pull an itinerary into a single conversation, all booked and managed by voice AI.
As AI agents across every industry move from answering questions to completing tasks, travel is a natural test case for complex innovation because the experience depends on coordination across multiple systems, suppliers and moments of service. A typical trip can involve a flight, hotel, rideshare, dinner reservation, event ticket and multiple confirmation emails, each managed through a different system.
The hackathon challenges developers to build voice agents that can connect these pieces more naturally. Sabre's technology has been used to power the travel industry for decades – including touching a third of all flights booked globally – giving developers access to production-grade travel infrastructure rather than a simulated environment.
Connecting the trip
Participants will imagine and demonstrate how flights, lodging, ground transportation, dining and other travel experiences could be managed through a single AI interaction via voice. The goal is to move beyond standard chatbot scenarios and test agents that can respond in higher-stakes travel moments – for example, helping resolve a hotel issue after a late-night arrival or assisting with a flight disruption when phone-based support remains the only available path.
The technology stack
Developers will build on Sabre's Agentic APIs and MCP Server, with sandbox access provided for the event, and will use Vocal Bridge's voice-first developer tools to add a production-grade voice layer to their agents. PayPal APIs will also be available for teams that want to incorporate payments into their builds. Additionally, American Airlines content will be available through Sabre's sandbox. Together, the tools give participants a way to test voice agents against travel data, booking flows and payment scenarios in a single build environment.
The in-person event attracted hundreds of applications, with about 400 accepted participants expected for the day-long program.
"The next generation of travel technology will not be built behind closed doors," said Garry Wiseman, president of product and engineering at Sabre. "By putting Sabre APIs into the hands of developers working at the edge of AI and voice, we're opening real travel infrastructure to new ideas and testing what happens when global scale meets Silicon Valley experimentation."
A judging panel spanning AI, travel and payments
Judges and speakers include Andrew Ng, founder of DeepLearning.AI and managing general partner at AI Fund; Scott Johnston, former CEO of Docker and venture advisor at AI Fund; Eli Chen, technology partner at AI Fund; Garry Wiseman, president of product and engineering at Sabre; Dan Maloney, CEO of LandingAI; Ashwyn Sharma, CEO and co-founder of Vocal Bridge; X. Eyeé, partner at Offline Research; and Nixon Dinh, director of product, agentic commerce at PayPal. Additional judges are expected from Sabre, American Airlines, PayPal, LandingAI, AI Fund and the broader AI community.
"Getting your work in front of Andrew Ng and Scott Johnston is a once-in-a-lifetime opportunity, but what makes this hackathon especially compelling is that developers are not building against a theoretical travel problem," said Ashwyn Sharma, CEO and co-founder of Vocal Bridge. "By pairing Vocal Bridge's voice AI technology with Sabre's travel infrastructure, participants can experiment with voice agents in a setting that reflects the complexity of real trips, real systems and real traveler needs."
For more information, visit Voice AI Hackathon - Sabre.
SABR-F
About Sabre
Powering the agentic revolution in travel. Sabre is an AI-native technology leader, backed by one of the world's largest travel data clouds. With AI at its core and operating at unparalleled scale, Sabre transforms insights into innovation, empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Sabre is built on an open, modular, cloud-native architecture and serves as the backbone for both established leaders and bold, new disruptors, guiding them to the next age of travel retailing through intelligent, connected, and personalized experiences. For more information visit www.sabre.com.
Media
Cassidy Smith-Broyles
[email protected]
[email protected]
Investors
Jim Mathias
[email protected]
[email protected]
SM Energy (SM) merger integration has exceeded expectations, with increased synergy targets and operational outperformance in Q1. Despite strong capital efficiency and a raised dividend, SM carries the highest leverage among top-10 US independents, impacting valuation and FCF sensitivity. SM trades at a deep earnings discount to peers, but high debt keeps its EV/EBITDA elevated; FCF yield stands at 8.2%.
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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
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 ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see 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 want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and 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: Agco (AGCO - Free Report) Established in 1990, headquartered in Duluth, GA, AGCO Corporation is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of dealers and distributors across 140 countries.
AGCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Industrial Products stock. AGCO has a Momentum Style Score of B, and shares are up 0.8% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $6.07 per share. AGCO boasts an average earnings surprise of +41.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AGCO should be on investors' short list.
Key Takeaways Akamai's security revenues rose 11% year over year, driven by strong WAF, microsegmentation and API demand.AKAM won new API security customers across telecom, finance and fintech as AI and cloud adoption expanded.Akamai's security segment is projected to reach $2.43 billion in 2026 revenues, up 8.5% year over year. Akamai Technologies, Inc. (AKAM - Free Report) is witnessing solid momentum in the security segment. Revenues from the Security Technology Group were $589.8 million compared with $530.7 million in the year-ago quarter. Segment revenues beat our estimate of $578.2 million.
The 11% year over year growth is driven by multiple factors. Strong demand for web application firewall (WAF) remains a major growth catalyst. With the growth of AI infrastructure and cloud services, enterprises are facing increasingly sophisticated cyberattacks. Enterprises are deploying advanced WAF solutions to boost their defense mechanism. One of the major advantages of AKAM is that its WAF runs across 4,300 locations in 700 cities. This allows it to stop attacks at the network edge and mitigate interference on the customer’s infrastructure.
Akamai Guardicore, which provides microsegmentation that limits the movements of attackers after any security breach, is also witnessing strong adoption. Businesses are using APIs more than ever to support cloud applications and AI workloads. Securing those API has become critical for business operations. Backed by this emerging trend, Akamai has secured several API customer wins. During the first quarter, Africa’s one of the largest telecom groups, a major investment manager in South America, a leading investment bank from the Middle East and one of the largest fintech companies in the United States have opted to deploy Akamai API security solutions.
Akamai’s security segment is expected to remain its major growth engine in the upcoming quarters as well. Per our estimate, Akamai is projected to generate $2.43 billion in revenues in 2026, indicating growth of 8.5% year over year.
How Are Competitors Faring?In the cybersecurity space, Akamai faces competition from Cloudflare (NET - Free Report) and Fastly (FSLY - Free Report) . Cloudflare boasts an industry-leading web application firewall that efficiently blocks zero-day attacks and uses machine learning to improve threat detection. Cloudflare continues to expand in this space on the back of its global cloud security platform. The company entered Zero Trust integrations with companies like Atlassian, Microsoft and Sumo Logic, enabling businesses to secure tools and applications with enterprise-ready Zero Trust security.
Fastly ended the first quarter with 634 large customers, defined as those producing more than $100,000 in annualized revenues in the quarter. It continues to broaden its security and developer toolset, supporting cross-sell and higher committed revenue over time. Fastly is aligning product updates with growing AI agent activity and enterprise needs for control, security, and performance at the edge. AI-related demand is expected to be a major tailwind in the upcoming quarters.
AKAM’s Price Performance, Valuation and EstimatesAkamai shares have rallied 63.6% over the past year compared with the industry’s growth of 80.4%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 18.11 forward earnings, lower than 23.71 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have remained unchanged, and for 2027, they have decreased over the past 60 days.
Image Source: Zacks Investment Research
Akamai stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Rentals (URI - 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 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 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 equipment rental company is expected to post quarterly earnings of $11.64 per share in its upcoming report, which represents a year-over-year change of +11.2%.
Revenues are expected to be $4.25 billion, up 7.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.12% 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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 United Rentals?For United Rentals, 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 +1.56%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that United Rentals 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 United Rentals would post earnings of $9.01 per share when it actually produced earnings of $9.71, delivering a surprise of +7.77%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
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.
United Rentals 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.
Time-Sensitive: Hub Group's Internal Controls and Disclosure Controls Were Allegedly Ineffective for Over Two Years While Officers Certified Otherwise
, /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in Hub Group, Inc. (NASDAQ: HUBG) of a pending securities class action. Class Period: April 28, 2023 through May 11, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
Hub Group shares lost $14.71 per share in cumulative declines after the Company admitted its financial statements spanning 2023 through the first nine months of 2025 were materially misstated and could no longer be relied upon. The Court has set August 28, 2026 as the deadline to apply for lead plaintiff appointment.
"Investors deserve transparency about material risks that could affect their investments. When a company certifies quarter after quarter that its internal controls are effective, shareholders are entitled to rely on those certifications when making investment decisions," stated Joseph E. Levi, Esq.
The Alleged Internal Controls Breakdown
A securities class action asserts that Hub Group repeatedly told investors its disclosure controls and procedures were "effective" in every quarterly and annual SEC filing from Q1 2023 through Q3 2025. Each filing contained evaluations conducted "under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer." The lawsuit claims these certifications were false because the Company's controls failed to detect or prevent material misstatements in its largest expense category and its revenue recognition practices.
Sarbanes-Oxley Certifications Under Scrutiny
The action claims that SOX certifications accompanying each SEC filing stated that financial information "fairly present in all material respects the financial condition, results of operations and cash flows" of Hub Group. As alleged, the certifying officers were also "responsible for establishing, evaluating, and maintaining disclosure controls and procedures" and for providing "reasonable assurance regarding the reliability of financial reporting." The Company's own subsequent admissions allegedly contradict these representations.
Alleged Pattern of Ineffective Controls in Freight Transportation Securities
Hub Group certified internal controls as effective in at least ten separate SEC filings during the Class Period, according to the lawsuit The Company later admitted it "expects to conclude that it did not maintain effective disclosure controls and procedures and internal control over financial reporting" for fiscal years 2023 and 2024 Financial statements for five reporting periods across nearly three years were declared unreliable An estimated $77 million understatement of purchased transportation costs went undetected by the controls management certified as effective The failure allegedly extended across multiple officers, including two different CFOs (Geoffrey DeMartino and Kevin Beth) who each signed certifications during their respective tenures, as well as multiple Chief Accounting Officers The Company has not yet quantified the full scope of misstatements for 2023 and 2024 Why Controls Adequacy Allegedly Matters to Investors
Investors rely on management's controls certifications as assurance that reported financial results are trustworthy. As alleged, Hub Group's controls failed to catch $77 million in understated costs in 2025 alone, and additional unquantified errors across 2023 and 2024 involving premature or incorrect revenue recognition. The lawsuit contends that without functioning controls, shareholders had no reliable basis for evaluating the Company's true financial condition.
Speak with an attorney about recovering damages or call Joseph E. Levi, Esq. at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.
Frequently Asked Questions About the HUBG Lawsuit
Q: Who is eligible to join the HUBG investor lawsuit? A: Investors who purchased HUBG stock or securities between April 28, 2023 and May 11, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the HUBG lawsuit allege? A: The complaint alleges Hub Group made materially false or misleading statements regarding the effectiveness of its internal controls over financial reporting and disclosure controls, as well as the accuracy of its financial statements, during the class period. When the true state was revealed, the stock price declined sharply.
Q: When did Hub Group allegedly mislead investors? A: The class period runs from April 28, 2023 to May 11, 2026. The alleged fraud was revealed through two corrective disclosures on February 5, 2026 and May 12, 2026, causing significant stock declines.
Q: What do HUBG investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
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 if I already sold my HUBG 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: 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 missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171
Time-Sensitive: Allegations Focus on Post-Recall Misrepresentations That Concealed Systemic Scope of Omnipod Manufacturing Defects
, /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in Insulet Corporation (NASDAQ: PODD) of a pending securities class action. Class Period: February 21, 2025 through May 26, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
After Insulet's first Medical Device Correction in March 2026, shares fell $16.23 per share (6.88%). A second MDC on May 26, 2026, drove shares down another $7.79 (5.07%) to $146.01. The Court has set August 31, 2026 as the deadline to apply for lead plaintiff appointment.
How Management Allegedly Downplayed a Systemic Problem
The lawsuit asserts that after Insulet announced its March 2026 Medical Device Correction affecting certain Omnipod 5 lots, the Company characterized the issue as limited to specific lots and not indicative of broader product concerns. Insulet stated that "all other Omnipod® 5 Pods and Omnipod® products remain safe to use" and characterized the affected units as only "1.5% of pods that were produced in the last year." As alleged, these reassurances kept the stock trading at artificially inflated prices by failing to disclose that the manufacturing and quality-control issues identified in the March 2026 Medical Device Correction were not limited to the specific lots initially identified.
The Alleged Scope Concealment After March 2026
The action claims that between the two corrective disclosures, management made repeated statements designed to minimize investor concern:
The Company described the March 2026 issue as affecting only "specific lots," suggesting the defect was batch-specific rather than process-wide A senior medical officer stated publicly that "pods that are not recalled are very safe to use," as alleged in the complaint Management represented that corrective actions had addressed the identified issue and that the problem was limited in scope On the Q1 2026 earnings call, the Company claimed it "remain[ed] focused on quality, reliability and customer safety" and had "implemented targeted fixes" The FDA later disclosed 476 Medical Device Reports potentially linked to the March MDC, far exceeding Insulet's initially reported 29 Serious Adverse Events On April 29, 2026, management stated that corrective actions had been implemented to address the identified issue and characterized the problem as limited to specific lots Why the May 2026 Disclosure Shattered the Containment Narrative
When the second MDC arrived on May 26, 2026, it revealed that the cannula tear problem extended across Omnipod 5, Omnipod Dash, and legacy Omnipod Eros products, affecting approximately 7 million Pods representing 8.5% of 2025 global production. The Company itself admitted both MDCs "were related to cannula tears associated with cannula handling at the Company's Acton, Massachusetts facility." Goldman Sachs wrote that it was "not so sure that referencing back to the March MDC sufficiently captures the magnitude of the quality issues."
Speak with an attorney about recovering damages or call (212) 363-7500.
"Investors deserve transparency about material risks that could affect their investments. When a company represents that a manufacturing issue is limited in scope, investors may rely on those disclosures when evaluating their investments. The allegations contend that the scope of the manufacturing and quality-control issues affecting Omnipod products was broader than what shareholders were told between the two Medical Device Corrections." -- Joseph E. Levi, Esq.
Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Investors who suffered losses have until August 31, 2026 to seek appointment as lead plaintiff. Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the PODD Lawsuit
Q: Who is eligible to join the PODD investor lawsuit? A: Investors who purchased PODD stock or securities between February 21, 2025 and May 26, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the PODD lawsuit allege? A: The complaint alleges Insulet made materially false or misleading statements regarding the safety of its Omnipod products and the scope of manufacturing defects at its Acton, Massachusetts facility. After the March 2026 Medical Device Correction, Insulet understated the scope of the manufacturing issue, and that the stock price declined sharply after subsequent disclosures revealed broader quality-control concerns.
Q: How much did PODD stock drop? A: Shares fell approximately 6.88%, or $16.23 per share, after the first Medical Device Correction disclosure on March 12, 2026. Following the second MDC on May 26, 2026, shares fell another 5.07%, or $7.79, to close at $146.01.
Q: What do PODD investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my PODD 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: 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 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 if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
, /PRNewswire/ -- California American Water is recognizing the completion of projects near its water facilities in the Larkfield-Mark West Area of Sonoma County that have significantly reduced wildfire risk around critical community infrastructure.
The projects were led and implemented by the Sonoma County Fire District, with financial contributions and coordination support from other local partners, including California American Water, local property owners, Sonoma County agencies, and other stakeholders. The work focused on reducing hazardous vegetation in areas surrounding water system facilities and nearby neighborhoods, helping improve community wildfire resilience.
"We're proud to have supported these projects," said Sarah Leeper, President of California American Water. "We're grateful to the Sonoma County Fire District, its contractors, neighbors, and community partners whose work helped reduce wildfire risk and strengthen protection of critical water infrastructure."
At the Montebello site, approximately four acres of highly flammable eucalyptus trees were removed from property adjacent to California American Water facilities. The work reduced wildfire fuels surrounding two 400,000-gallon water storage tanks and a backup generator that are vital to maintaining water service and supporting firefighting operations during emergencies.
Additional vegetation-reduction efforts near California American Water's Wikiup facility helped improve defensible space around water infrastructure that serves the community. Together, the projects represent a collaborative approach to protecting both neighborhoods and essential public infrastructure from wildfire threats.
California American Water remains committed to partnering with local agencies and community organizations on efforts that improve public safety, enhance system resilience, and help ensure reliable water service throughout Sonoma County.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.
For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About California American Water
California American Water, a subsidiary of American Water, provides safe, clean, reliable and affordable water and wastewater services to approximately 720,000 people.
Ada Water Treatment Plant in Bluefield recognized for demonstrating an outstanding commitment to providing high-quality drinking water
, /PRNewswire/ -- West Virginia's Ada Water Treatment Plant in Bluefield, West Virginia, was recently recognized by the Partnership for Safe Water with the 25-year Directors Award for water quality excellence, and its decades-long commitment to improve water quality.
The Partnership for Safe Water is a voluntary group of drinking water organizations that works to help water system operators, managers, and administrators improve performance at treatment plants and facilities, meet local, state and federal drinking water standards, and ensure water quality for communities across the country.
Nationally, just over 400 surface water treatment plants are part of the Partnership for Safe Water.
The national awards, which honor efforts to continuously optimize water treatment plant and distribution system operation and performance, were announced by the American Water Works Association, which administers the Partnership program.
"West Virginia American Water is proud to be recognized by the Partnership for Safe Water for our commitment to delivering safe, clean and reliable drinking water," said West Virginia American Water President Scott Wyman. "At the Ada Water Treatment Plant, we've made consistent performance improvements to make sure that when Bluefield residents turn on the tap, they know that their water meets or surpasses all drinking water standards."
"This award reflects the great work and dedication of our team in Bluefield, who live in the city and its surrounding communities," said Jon Jarvis, West Virginia American Water's Senior Manager of Water Quality and Environmental Compliance. "It's a testament to our ongoing commitment to improving our systems and delivering the high-quality drinking water that our customers deserve."
West Virginia American Water also participates in the Partnership for Clean Water, a global optimization and recognition program for wastewater utilities that AWWA created to parallel the Partnership for Safe Water.
To learn more about West Virginia American Water's commitment to water quality in communities statewide, visit amwater.com/wvaw/water-quality.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water's approximately 7,000 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.
About West Virginia American Water
West Virginia American Water, a subsidiary of American Water, is the largest regulated water utility in the state with approximately 300 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 610,000 people. For more information, visit us on amwater.com/wvaw, LinkedIn, Facebook, YouTube, X and Instagram.
AppLovin (NASDAQ:APP | APP Price Prediction) is now a pure-play, AI-driven advertising platform generating profitability metrics that stand alongside the biggest names in software, even as the market still categorizes it as a “mobile gaming roll-up.”
A Literal Business Pivot AppLovin sold its entire Apps and mobile-gaming portfolio to Tripledot Studios, closing the deal on June 30, 2025, for roughly $400 million in cash plus an approximately 20% equity stake. The games business is gone from the operating results. What remains is the Axon advertising engine and a balance sheet that looks nothing like a hit-driven app studio.
The Margins Tell the Real Story In the most recently reported quarter, revenue reached $1.84 billion, up 59% year over year, with operating income of $1.44 billion and an operating margin of 78%. GAAP net margin came in at 65%, and adjusted EBITDA margin hit 85%. These are Big Tech-caliber margins.
CFO Matt Stumpf framed it plainly: “Margins expanded approximately 400 basis points from the same period last year. Quarter-over-quarter flow-through to adjusted EBITDA was 86%, again, reflecting the operating leverage of our model.”
Operating Leverage from the AI Engine Full-year 2025 revenue landed at $5.48 billion (+16.4% year on year) with net income of $3.33 billion (+111% year on year). In Q2 2025, R&D fell 56% year on year and S&M fell 30%, even as revenue grew 77%. Four consecutive quarterly beats have followed. CEO Adam Foroughi noted: “We continue to grow this business very quickly despite the numbers getting much bigger, and we are doing it while margins keep expanding.”
A Capital-Light Cash Machine Q1 free cash flow of $1.29 billion was generated on just $413,000 in capital expenditures. The company returned $1.0 billion via buybacks (2.2 million shares) in the quarter alone, with roughly $2.3 billion remaining under authorization.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AppLovin didn't make the cut. Grab the names FREE today.
Investors curious about the broader shift in AI-adjacent software winners can see our related research at 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
The Risks of a Premium Platform Shares trade at a trailing P/E of 38 and a beta of 2.48. The stock is down 33.4% year to date to $448.98, against a 52-week range of $343.00 to $745.61. FY2025 also included a $188.9 million goodwill impairment tied to the pivot. Analyst consensus target is $654.60.
Retail is catching on. A February 2026 Reddit thread titled “$APP Has Gone from Overvalued to Now Cheap?” drove sustained bullish sentiment. The category-leader thesis remains intact; the stock simply needs the market to update its label.
This article is for informational purposes only and does not constitute investment advice.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AppLovin didn't make the cut. Grab the names FREE today.
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 ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank 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.
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: Merit Medical (MMSI - Free Report) South Jordan, UT-headquartered Merit Medical Systems, Inc. designs, manufactures and markets proprietary medical devices used in interventional, diagnostic and therapeutic procedures. The company serves a wide range of clinical areas, including cardiology, radiology, oncology, critical care and endoscopy.
MMSI is a #2 (Buy) 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 17.46; 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 $0.01 to $4.07 per share. MMSI boasts an average earnings surprise of +12.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, MMSI should be on investors' short list.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Silgan Holdings (SLGN - Free Report) . SLGN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.09, while its industry has an average P/E of 13.48. Over the past year, SLGN's Forward P/E has been as high as 14.44 and as low as 10.09, with a median of 12.71.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SLGN has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.84.
Finally, investors should note that SLGN has a P/CF ratio of 7.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.44. Over the past year, SLGN's P/CF has been as high as 10.88 and as low as 7.57, with a median of 9.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Silgan Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SLGN feels like a great value stock at the moment.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Commvault To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Commvault between January 28, 2025 and January 26, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
, /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Commvault Systems, Inc. ("Commvault" or the "Company") (NASDAQ: CVLT) and reminds investors of the July 17, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
James (Josh) Wilson, Faruqi & Faruqi Senior Partner Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
Defendants provided investors with material information pertaining to Commvault's projected ARR growth for fiscal year 2026. Defendants' statements included, among other things, misleading guidance and projections related to the Company's new net ARR growth. Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Commvault's ARR growth environment; pertinently, Commvault knew or recklessly disregarded that the Company's ARR growth guidance failed to properly factor in crucial variables, such as the type of sale. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Commvault's securities at artificially inflated prices.
On January 27, 2026, Commvault reported financial results for the third quarter of fiscal 2026 ended December 31, 2025, including "40% growth in SaaS ARR to $364 million," as noted by the Company's Chief Accounting Officer ("CAO") during the earnings call to discuss these results. Additionally, the CAO said "60% of our deals actually closed in the last few weeks of the quarter." According to Bloomberg Intelligence, "SaaS ARR growth of 40% represents a meaningful deceleration from 56%" reported for the second quarter fiscal 2026.
Following this news, Commvault stock declined over 31% on January 27, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Commvault's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Commvault class action, go to www.faruqilaw.com/CVLT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Commvault Systems Securities Class Action Lawsuit:
What is the Commvault Systems securities fraud lawsuit about?
The Commvault Systems securities fraud lawsuit is a federal securities class action alleging that Commvault Systems, Inc. (NASDAQ: CVLT) and its executives made false and misleading statements to investors by providing materially misleading guidance and projections related to the Company's annual recurring revenue (ARR) growth while concealing that its ARR growth guidance failed to properly account for crucial variables — such as the type of sale — that significantly affected the Company's true growth trajectory. As the truth emerged on January 27, 2026, when Commvault reported Q3 fiscal 2026 results showing SaaS ARR growth of only 40% — a meaningful deceleration from 56% in the prior quarter — CVLT's stock price fell over 31% in a single day, causing significant losses for investors.
Who may be eligible to participate in the Commvault Systems class action lawsuit?
Investors who purchased or acquired Commvault Systems (CVLT) stock between April 29, 2025 and January 26, 2026 — the Class Period — and suffered financial losses may be eligible to participate in the Commvault securities class action. Participation as a class member does not require taking any affirmative legal action; eligible investors may recover losses simply by remaining members of the class. Whistleblowers, former Commvault employees, and others with relevant information about the Company's conduct are also encouraged to come forward.
What is a lead plaintiff, and how can I seek appointment in the Commvault Systems lawsuit?
A lead plaintiff in the Commvault Systems class action is a court-appointed investor — typically the one with the largest financial interest in the case — who directs and oversees the litigation on behalf of all class members. Any Commvault investor who purchased CVLT stock during the Class Period may move the Court to serve as lead plaintiff through counsel of their choice. The deadline to seek lead plaintiff appointment is July 17, 2026. Importantly, choosing not to seek the lead plaintiff role does not affect an investor's ability to share in any recovery obtained for the class.
What should investors do if they purchased Commvault Systems stock during the Class Period?
Investors who purchased Commvault Systems (CVLT) stock between January 28, 2025 and January 26, 2026 and suffered losses should contact Faruqi & Faruqi, LLP immediately to discuss their legal rights. The deadline to seek appointment as lead plaintiff in the Commvault Systems securities class action is July 17, 2026. To speak directly with securities litigation partner Josh Wilson, call 877-247-4292 or 212-983-9330 (Ext. 1310), or visit www.faruqilaw.com/CVLT for more information.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
