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When financial stocks rally, a 3x leveraged ETF can deliver outsized gains. When they stumble, losses compound just as fast. Direxion Daily Financial Bull 3X Shares (NYSEARCA:FAS) promises amplified exposure to the financial sector. That 8% yield? It happened in 2025, almost entirely from a single December special distribution. Regular quarterly yield sits closer to 1.5%.

What FAS Actually Does FAS uses swaps and derivatives to deliver three times the daily return of the Financial Select Sector Index. When JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Visa Inc. (NYSE:V) (the fund’s largest holdings) climb 2% in a day, FAS targets a 6% gain. The fund holds $2.5 billion in assets, with 59% in financial stocks and roughly 33% in cash instruments and swaps that create the leverage.

This structure works through daily rebalancing. Each morning, the fund resets exposure to hit that 3x target for that trading day only. Over longer periods, the math gets complicated. Path dependency means returns diverge from a simple 3x multiplier. FAS has demonstrated performance that varies from the theoretical 3x multiplier due to volatility decay and daily rebalancing effects.

This infographic explains the structure and use cases of the Direxion Daily Financial Bull 3X Shares (FAS) ETF, detailing its daily leverage, the nature of its yield, and critical pros and cons. The Catch Everyone Misses That 8% yield came from a $12.09 special distribution in December 2025, representing 87% of the year’s total payouts. Regular quarterly distributions typically range from $0.30 to $0.50, translating to an annual yield around 1.5%. The special distribution was a one-time event, likely from realized gains as the fund rebalanced positions.

The expense ratio of 0.89% is more than 11 times higher than Financial Select Sector SPDR Fund (NYSEARCA:XLF)’s 0.08%, and that cost compounds over time alongside the volatility decay inherent to daily leveraged products.

When This ETF Makes Sense FAS fits portfolios during sustained financial sector rallies. If you believe banks will benefit from stable interest rates, improved lending conditions, or regulatory tailwinds over the next few weeks or months, FAS can amplify those gains.

This is a tactical tool, not a core holding. Traders who monitor positions daily and can exit quickly when momentum shifts will find FAS useful. It’s also appropriate for investors with high risk tolerance who want concentrated financial sector exposure without using margin.

The Tradeoffs You Accept Volatility decay erodes returns in choppy markets. When the underlying index swings up and down without clear direction, the daily reset mechanism causes FAS to lose value even if the index ends flat over time. A 10% drop followed by an 11.1% gain leaves the index unchanged, but FAS experiences larger swings that don’t fully recover.

Concentration risk is severe. Nearly 60% of the fund sits in financial stocks, with the top 10 holdings representing about 38% of equity exposure. If JPMorgan Chase or Berkshire Hathaway Inc. (NYSE:BRK.B) stumble, FAS feels it three times over.

Who Should Avoid FAS Buy-and-hold investors should stay away. The daily reset mechanism and volatility decay make FAS unsuitable for retirement accounts or long-term wealth building. The fund’s leveraged structure creates significant volatility that requires active monitoring.

Income-focused investors expecting consistent 8% yields will be disappointed. The fund’s distribution history shows extreme variability, with 2025’s $13.82 total driven almost entirely by that December special distribution.

Consider XLF Instead XLF offers similar financial sector exposure without leverage. It charges just 0.08% annually and delivers a more consistent 1.3% dividend yield. XLF has delivered solid performance with significantly lower volatility. For investors who want financial sector exposure but can’t actively monitor positions daily, XLF provides the same holdings without the amplified downside risk or volatility decay.

FAS works for short-term tactical bets on financial sector strength, but the 8% yield was a one-time event and the 3x leverage cuts both ways.

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Disclosure: The opinions, analyses, and evaluations here are ours and not provided by any bank, financial institution, or any other company. They have not reviewed, approved or endorsed our content.

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.

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

The Style Scores are broken down into four categories:

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

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

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

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank 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 +23.9% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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

That's where the Style Scores come in.

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

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

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

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

Stock to Watch: Wheaton Precious Metals Corp. (WPM - Free Report) Wheaton Precious Metals is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and cobalt.

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

Momentum investors should take note of this Basic Materials stock. WPM has a Momentum Style Score of A, and shares are up 5.5% over the past four weeks.

For fiscal 2025, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $2.64 per share. WPM boasts an average earnings surprise of +5.9%.

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

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

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

The Style Scores are broken down into four categories:

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

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

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

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

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

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.9% 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.

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 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.

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: Heico Corporation (HEI - Free Report) Florida-based HEICO Corporation, incorporated in 1957, is one of the world’s leading manufacturers of Federal Aviation Administration (“FAA”)-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. The company’s products are found on large commercial aircraft, regional, business and military aircraft, as well as on a large variety of industrial turbines, targeting systems, missiles and electro-optical devices.

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

Momentum investors should take note of this Aerospace stock. HEI has a Momentum Style Score of A, and shares are up 11.3% 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 $0.19 to $5.50 per share. HEI boasts an average earnings surprise of +15.5%.

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

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.

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

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

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

How Style Scores Work with the Zacks Rank 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.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.9% 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.

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.

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: Regions Financial (RF - Free Report) Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial and mortgage banking, as well as other financial services in asset management, wealth management, securities brokerage, trust services, mergers and acquisitions (M&A) advisory services, and other specialty financing.

RF is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. RF has a Momentum Style Score of A, and shares are up 3.6% over the past four weeks.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.00 to $2.36 per share. RF also boasts an average earnings surprise of +6.3%.

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

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

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

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

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

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

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

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

#1 (Strong Buy) stocks have produced an unmatched +23.9% 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.

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.

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: Marriott International (MAR - Free Report) Marriott International Inc. is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in November 2011.

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

Momentum investors should take note of this Consumer Discretionary stock. MAR has a Momentum Style Score of A, and shares are up 9.6% over the past four weeks.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.04 to $10.05 per share. MAR also boasts an average earnings surprise of +2%.

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

Canaccord Genuity has initiated coverage of Empire Metals Ltd (AIM:EEE, OTCQX:EPMLF) with a 'buy' recommendation and a 62p price target, implying material upside from the current share price of 44.6p, as the broker highlights the scale and quality of the company’s flagship Pitfield titanium project in Western Australia.

The initiation centres on Pitfield’s potential to become a long-life, low-cost producer of high-value titanium dioxide products, positioning Empire as an emerging player in critical minerals supply chains.

Canaccord describes Pitfield as a “unique, large-scale and high-grade” deposit, underpinned by an October 2025 maiden mineral resource estimate of 2.2 billion tonnes at 5.1% TiO₂, containing 113 million tonnes of titanium dioxide.

Crucially, the broker notes that the existing indicated resource alone could support an initial 30-year mine life, reducing long-term resource risk at this early stage.

Valuation is driven by a net asset value approach, reflecting the project’s development status. Canaccord estimates an unrisked NAV of 124p per share on current shares outstanding, before applying a conservative 0.5x NAV multiple to derive the 62p target.

The broker flags that even after allowing for future equity raises to fund development, a fully diluted NAV of around 82p per share still points to significant upside from current levels.

Operationally, Pitfield is expected to progress through several catalysts in 2026. These include further drilling to upgrade and expand resources at the Thomas and Cosgrove prospects, bulk metallurgical test work, and the delivery of a scoping study in the second half of 2026.

Canaccord believes these milestones should sharpen visibility on process flowsheets, end-product selection and project economics, all of which are key for investor confidence.

Looking further ahead, the broker models first production around 2030, with full run-rate output from 2031. On its assumptions, Pitfield could deliver EBITDA margins of more than 50% once operational, reflecting favourable grades, shallow mineralisation and the potential to produce a premium anatase-grade pigment.

Risks remain material, particularly around funding, process optimisation and titanium pigment pricing, which underpins the “speculative” nature of the rating.

Nevertheless, Canaccord argues that the combination of scale, jurisdictional quality and exposure to strategic metals leaves Empire Metals well placed to re-rate as the project advances.

LOS ANGELES, Jan. 09, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against DeFi Technologies Inc. (“DeFi” or “the Company”) (NASDAQ: DEFT) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

Investors who purchased the Company’s securities between May 12, 2025 and November 14, 2025, inclusive (the “Class Period”), are encouraged to contact the firm before January 30, 2026.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

According to the Complaint, the Company made false and misleading statements to the market. DeFi suffered from delays in executive its arbitrage strategy. The Company downplayed the extent of competition from other digital asset treasury (“DAT”) companies. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about DeFi, investors suffered damages.

Join the case to recover your losses

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

CONTACT:

The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335
[email protected]

SOURCE:

The Schall Law Firm

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In the last three months of 2025, the tech sector experienced what some called a “correction”. However, the selloff was not from investors going into cash out of fear; hedge funds and other large institutional investors were, in fact, rotating out of tech stocks and into, of all things – defensive stocks. As this trend has continued through the new year into January, the following defensive stock sector ETFs may be worth keeping an eye on:

Invesco Aerospace & Defense ETF (NYSE: PPA) Consumers Staples Select Sector SPDR Fund (NYSE: XLP) Vanguard Health Care Index Fund ETF Shares (NYSE: VHT) Shuffling Inside the S&P 500

Tech stock funds went directly into defensive stocks within the S&P 500, cushioning the blow from tech stock selloff by reshuffling the funds to other S&P 500 stocks.

While the Magnificent 7 AI tech stocks have been leading the S&P 500 to stratospheric heights, a growing consensus of analysts and market watchers have been vocally public with their criticisms about stocks in the tech and AI sector being overvalued, overbought, and due for a correction. Among these parties are:

Michael “The Big Short” Burry  Rishi Jaluria of RBC Capital Jay Goldberg at Seaport Research Alexander Haissi of Redburn Atlantic Warren Buffett of Berkshire Hathaway In Q4 2025, hedge funds and other institutions apparently started taking these contrarian sentiments seriously, with not only billions of outflows from the tech sector per day, but trillion dollar net cap Magnificent 7 leaders like Nvidia taking a body blow drop as steep as -7.0% in only a few weeks. 

However, any profit taking or shorting of tech stocks didn’t impact the S&P 500 proportionately, since the majority of the funds rotated into defensive stocks – companies with consistent earnings and steady growth that were not cyclical or trend oriented. As most large defensive stocks are also S&P 500 members, the tech fall offs affected the S&P 500 considerably less than indexes geared towards tech stocks or their subsectors. The trend does not appear to want to subside as we have entered 2026, so ETFs that track certain defensive stock sectors will likely benefit as this trajectory continues. 

Invesco Aerospace & Defense ETF

Multiple successful military deployments by the Trump Administration with zero casualties has fueled large budget allocation for defense contractors to supply new and replacement hardware.

The Aerospace & Defense sector is considered a defensive stock area, although its fortunes are also predicated on politics and geopolitical events. The Trump Administration recently announced it was proposing an increased Department of War budget to $1.5 trillion on the heels of Operation Absolute Resolve, which attacked Venezuelan military targets to capture, apprehend, and extradite narco-terrorist dictator Nicholas Maduro back to the US to stand trial. The administration destroyed Iran’s nuclear weapon capabilities earlier in 2025 with Operation Midnight Hammer, yet Iran has not ended its terrorism campaigns via its Hezbollah proxy. Many believe another deployment may soon follow.

With military recruitment at record highs and a military hardware upgrade project already underway under Secretary of War Hegseth, the Aerospace & Defense sector is poised for further growth, making it a ripe target for reallocated tech stock funds. 

PPA was launched on 10-26-2005. Designed to track the S&P Composite 1500 Aerospace & Defense Index, it has a 5-star Morningstar rating. 

NAV

$165.05

Yield

0.42%

Net Assets

$6.85 billion

# holdings

62

Expense Ratio

0.58%

1-Year Return

45.26%

Average Volume

168,595 shares

3-YearReturn

28.12%

52-week range

$100.39 – $172.36

5-Year Return

19.00%

The top 10 holding of PPA are:

Boeing: 8.98% General Electric: 8.78% RTX Corp.: 8.53% Lockheed Martin: 7.51% Northrop Grumman: 5.38% General Dynamics: 5.17% L3Harris Technologies: 4.06% Honeywell International: 3.94% Howmet Aerospace: 3.92% Parker-Hannifin: 3.26% Consumers Staples Select Sector SPDR Fund

XLP’s second largest holding is Costco.

The affordability concerns voiced by many in big cities have become a national mantra for the Democratic Party of late, desperate for a platform upon which to run on  for the midterm elections. As such, institutional stock rotation out of tech and consumer discretionary stocks, which are those not considered “essential”, like hotels and restaurants, and into consumer staples, which includes food, personal care products, and household products. Although the past years have seen lower than average returns due to the large allocation in tech, the rotation should favor at least a closer return to the historical norm.

With an inception date of December 16, 1998, XLP is into its 28th year of tracking the S&P 500’s Consumer Staples Select Sector. XLP has a 4-star Morningstar rating. 

NAV

$76.63

Yield

2.75%

Net Assets

$14.32 billion

# holdings

36

Expense Ratio

0.08%

1-Year Return

1.56%

Average Volume

14.43 million shares

3-YearReturn

4.14%

52-week range

$75.16 – $84.35

5-Year Return

5.58%

XLP’s top 10 holdings are:

WalMart: 11.71% Costco: 9.27% Procter & Gamble: 7.64% Coca-Cola: 6.20% Philip Morris: 5.72% Pepsico: 4.44% Mondelez Int’l: 4.35% Colgate-Palmolive: 4.33% Altria: 4.24% Monster Beverage: 3.79% Vanguard Health Care Index Fund ETF Shares

Healthcare is probably the sector that saw the largest inflows of tech stock rotation funds. The combination of steady growth, consistent cashflow, and biotech breakthrough potential made healthcare a particularly attractive alternative to AI. With healthcare expected to become a huge growth 2026 area, due to rapid adoption of agentic AI, a surge in GLP-1 obesity treatments, and a large shift toward lower-acuity care settings like ambulatory surgery centers (ASCs).

VHT has a 4-star Morningstar rating. It launched on January 26, 2004. 

NAV

$294.33

Yield

1.61%

Net Assets

$19.89 billion

# holdings

427

Expense Ratio

0.08%

1-Year Return

17.18%

Average Volume

262,593 shares

3-YearReturn

7.88%

52-week range

$234.11 – $298.61

5-Year Return

6.69%

The top 10 holdings of VHT are:

Eli Lilly: 12.39% Abbvie: 4.85% Johnson & Johnson: 4.42% United Health Group: 4.02% Merck: 3.75% Abbott Labs: 3.21% NYSE: TMO : 3.19% Intuitive Surgical: 2.94% Amgen: 2.66% Gilead Sciences: 2.33% Released: The Ultimate Guide To Retirement Income (sponsor) Most investors spend years learning how to pick good stocks and funds. Far fewer have a clear plan for turning those investments into a reliable retirement paycheck. The truth is, the transition from “building wealth” to “living on wealth” is one of the most overlooked risks facing successful investors in their 50s, 60s and 70s.

That is exactly what The Definitive Guide to Retirement Income was created to solve. It’s a free guide that outlines the straightforward math and strategies you need to convert your investments to income. Learn more here.

Disclosure: The opinions, analyses, and evaluations here are ours and not provided by any bank, financial institution, or any other company. They have not reviewed, approved or endorsed our content.

Investors in DuPont de Nemours, Inc. (DD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 16, 2026 $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 DuPont de Nemours shares, but what is the fundamental picture for the company? Currently, DuPont de Nemours is a Zacks Rank #5 (Strong Sell) in the Chemical - Diversified industry that ranks in the Bottom 6% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while three analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 90 cents per share to 42 cents in that period.

Given the way analysts feel about DuPont de Nemours 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.

Vancouver, British Columbia--(Newsfile Corp. - January 9, 2026) - Brasnova Energy Materials Inc. (TSXV: BEM) ("BEM'' or the "Company") is pleased to announce that Mr. Joel Ferari will be joining the Company as President and Chief Executive Officer effective immediately. Mr. Ferari will also be appointed as a Director of the Company upon completion of submissions to and approval from the TSX Venture Exchange (TSXV).

Mr. Ferari is an experienced Brazilian business professional and entrepreneur with decades of experience in working with Startups and developing Industrial Process Plants and Services, in Brazil. Mr. Ferari has experience working in publicly traded, family-owned, branch and parent companies in Brazil with more than 25 years working in projects focused on the Startup phase. Specific deliverables have included construction of plants on budget, planning and guidelines, technical parameters; negotiation with national and international suppliers; hiring of the staff/team and implementation and assembly of industrial equipment. Mr. Ferari's education includes degrees in both Materials and Production Engineering.

Brasnova will issue Mr. Ferari 500,000 common share options at a price of 15 cents with a term of five years and subject to approval of the stock option plan at the next AGM. The management changes and options issuance are subject to TSXV Venture Exchange approval.

Mr. Brian Leeners will step down as the Chief Executive Officer and as a Director of Brasnova. We would like to thank Mr. Leeners for his many years of service on behalf of the Company.

ABOUT BRASNOVA ENERGY MATERIALS INC.

Brasnova Energy Materials is focused on securing, developing and monetizing materials assets and technologies in Brazil, to build shareholder value.

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/279906

Source: Brasnova Energy Materials Inc.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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Correction: The incorrect webcast link was provided for the presentation. The correct webcast link for the Needham Conference presentation at 4:30 pm ET on Thursday, January 15, 2026 is https://wsw.com/webcast/needham148/aerg/2229297

TUCSON, AZ / ACCESS Newswire / January 9, 2026 / Applied Energetics, Inc. ("AE") (OTCQB:AERG), a leader in ultrashort pulse laser (USPL) and directed-energy technologies, today announced that it will participate and present at the 28th Annual Needham Growth Conference on January 15, 2026 at the Lotte New York Palace Hotel in New York City.

Chris Donaghey, President & Chief Executive Officer, will discuss Applied Energetics' strategy and recent milestones.

The Company's presentation will begin at 4:30 pm ET on Thursday, January 15, 2026, and will be webcast live at https://wsw.com/webcast/needham148/aerg/2229297.

All interested parties are welcome to register and join the webcast through the link. Those who wish to schedule a meeting with Applied Energetics' management team may contact their Needham representative.

About Applied Energetics, Inc.

Applied Energetics, Inc. specializes in advanced laser and photonics systems, particularly fiber-based ultrashort pulse (USP) laser technologies. With 26 patents and 6 patents pending, Applied Energetics' proprietary architecture enables orders of magnitude size-weight-power reductions, a key differentiator when compared with traditional continuous wave (CW) laser technology with larger footprints. AE's powerful, dual-use systems are designed for integration and deployment on numerous potential defense platforms for the delivery of high intensity, ultrashort pulses of light to disable or destroy a target. These technologies have applications in both national security and commercial markets. ​ Today, AE's USP optical technologies are being designed to offer flexibility and power for complex missions in national security such as enhancing layered defense strategies to counter complex threats.

For more information about Applied Energetics and its innovative technologies, please visit www.appliedenergetics.com.

Forward Looking Statements

Certain statements in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to the historical or current facts and can be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "anticipate," "estimates," "plans," "strategy," "target," "prospects," or "continue," and words of similar meaning. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition and may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. We do not assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements.

Applied Energetics, Inc. Investor information contact:

Kevin McGrath, Managing Director
Cameron Associates, Inc.
[email protected]
T: 646-418-7002

SOURCE: Applied Energetics, Inc.

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

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.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), 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 Northrop Grumman?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Northrop Grumman (NOC - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $7.03 a share, just 18 days from its upcoming earnings release on January 27, 2026.

Northrop Grumman's Earnings ESP sits at +0.54%, which, as explained above, is calculated by taking the percentage difference between the $7.03 Most Accurate Estimate and the Zacks Consensus Estimate of $6.99. NOC 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.

NOC is one of just a large database of Aerospace stocks with positive ESPs. Another solid-looking stock is RTX (RTX - Free Report) .

RTX is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on January 27, 2026. RTX's Most Accurate Estimate sits at $1.50 a share 18 days from its next earnings release.

The Zacks Consensus Estimate for RTX is $1.45, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +3.50%.

NOC and RTX's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

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 >>

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.

Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.

Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

Krystal Biotech, Inc. (KRYS - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. KRYS is quite a good fit in this regard, gaining 32.2% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 0.9% over the past four weeks ensures that the trend is still in place for the stock of this company.

Moreover, KRYS is currently trading at 93.3% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in KRYS may not reverse anytime soon.

In addition to KRYS, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) announced that it has signed new partnerships with nuclear power companies Vistra (NYSE:VST), TerraPower and Oklo (NYSE:OKLO) to secure electricity for its growing artificial intelligence operations, including its Prometheus supercluster in New Albany, Ohio.

The company said the agreements are expected to support up to 6.6 gigawatts of clean energy by 2035, helping meet rising power demand from large-scale data centers.

Meta said the deals will extend the life of existing nuclear plants, support the development of advanced reactor technology and add reliable power to regional electric grids.

Under the arrangements, Meta will purchase power from existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, fund new Natrium reactor projects with TerraPower beginning in the early 2030s, and support the development of a nuclear campus in Ohio with Oklo that could begin operating around 2030.

Meta said the projects are expected to create construction and long-term operational jobs and that the company pays the full cost of the energy used by its data centers.

The agreements build on a nuclear energy deal Meta signed with Constellation Energy last year, as the company plans years ahead to meet future energy needs driven by AI growth.

“Our agreements with Vistra, TerraPower, Oklo, and Constellation make Meta one of the most significant corporate purchasers of nuclear energy in American history,” Meta Chief Global Affairs Officer Joel Kaplan said in a statement.

Shares of Oklo jumped 13% to about $110 on the news, and Vistra shares also added 13% at $170.

Wedbush analysts highlighted the Oklo agreement as particularly significant, noting that it “represents a strong endorsement of advanced nuclear technology from one of the world’s largest technology companies.”

They said the partnership provides Oklo with increased visibility on future demand and could accelerate development timelines for its nuclear campus in Ohio.

“We believe this news is incrementally positive for the entire nuclear energy industry, including Oklo, as it reaffirms the commitment from hyperscalers to start leveraging new energy sources to fuel the AI Revolution with power being the biggest headwind to the industry,” they wrote.

The firm has an ‘Outperform’ rating and $150 price target on Oklo.

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.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

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 ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), 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 General Dynamics?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. General Dynamics (GD - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $4.16 a share 26 days away from its upcoming earnings release on February 4, 2026.

GD has an Earnings ESP figure of +1.11%, which, as explained above, is calculated by taking the percentage difference between the $4.16 Most Accurate Estimate and the Zacks Consensus Estimate of $4.12. General Dynamics is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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 >>

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.

The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.

Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

Owlet, Inc. (OWLT - Free Report) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. OWLT is quite a good fit in this regard, gaining 78.4% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 7.7% over the past four weeks ensures that the trend is still in place for the stock of this company.

Moreover, OWLT is currently trading at 88.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in OWLT may not reverse anytime soon.

In addition to OWLT, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Oceaneering International (OII - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 0.9%, the stock of this oilfield services company is certainly well-positioned in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. OII meets this criterion too, as the stock gained 19.3% over the past 12 weeks.

Moreover, the momentum for OII is fast paced, as the stock currently has a beta of 1.24. This indicates that the stock moves 24% higher than the market in either direction.

Given this price performance, it is no surprise that OII has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped OII earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, OII is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. OII is currently trading at 0.95 times its sales. In other words, investors need to pay only 95 cents for each dollar of sales.

So, OII appears to have plenty of room to run, and that too at a fast pace.

In addition to OII, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Key Takeaways OUTFRONT Media stock outpaced the industry, rising 43.8% in three months compared with 0.5% growth.OUT benefits from a nationwide, multi-industry ad portfolio that helps smooth demand cycles and revenues.OUT is expanding through strategic buyouts, investing $10.4M in acquisitions in the first nine months of 2025. OUTFRONT Media’s (OUT - Free Report) shares have gained 43.8% over the past three months compared with the industry’s 0.5% growth.

This New York-based real estate investment trust’s (“REIT”) diversified portfolio, both geographical and industry-wise, strategic buyouts and digital billboard conversions augur well for long-term growth.

Analysts seem positive on this advertisement REIT, currently carrying a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 FFO per share has been revised northward by 2.1% to $1.94 over the past two months. The same for 2026 FFO per share has moved up by 1.9% to $2.15 over the past month.

Image Source: Zacks Investment Research

Factors Behind OUT Stock’s Price Rise: Will This Trend Last?OUTFRONT Media’s advertising assets are spread across major U.S. markets, giving it a broad geographic reach. This nationwide footprint allows advertisers to run campaigns at scale while also customizing messages for specific cities or regions. The company serves a wide mix of industries, including professional services, healthcare and pharmaceuticals, and retail. This combination of geographic diversity and industry breadth helps smooth demand cycles and reduces revenue volatility.

OUT is also focused on enhancing its portfolio quality via strategic acquisitions. In the first nine months of 2025, the company acquired several assets for approximately $10.4 million. With such expansion efforts, it remains well-poised to grow over the long term.

OUT has been making efforts to convert its business from traditional static billboard advertising to digital displays, which are helping expand the number of new advertising relationships, providing scope to boost digital revenues. Its total digital billboard displays reached 1,906 at the end of the third quarter of 2025.

Moreover, it has been making investments in its digital transit portfolio. Its total digital transit displays reached 31,358 at the end of the third quarter of 2025. It built, converted or replaced 1,104 digital transit and other displays in the United States in the same period. Such expansion efforts in new assets and technology are likely to drive the company’s revenues and OIBDA growth in the upcoming period.

OUTFRONT Media operates in an industry that is characterized by high barriers to entry due to permitting restrictions. As there is a control on the permits and inventory, intrusion from other market players, both local and national, is restricted. This helps support advertising rates. Hence, this OOH advertising company remains well-poised to grow over the long term.

Key Risks for OUTOUTFRONT Media’s revenues and operating results are sensitive to fluctuations in advertising expenditures, general economic conditions and other unexpected external events. Moreover, the company faces competition from other outdoor advertisers for customers, display locations and structures. This is anticipated to affect its pricing power in the market.

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST - Free Report) and Prologis Inc. (PLD - 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.

The Zacks Consensus Estimate for HST’s 2025 and 2026 FFO per share is pegged at $2.05 and $2.04, respectively. This implies year-over-year growth of 4.1% for 2025 and a marginal fall for 2026.

The Zacks Consensus Estimate for PLD’s 2025 and 2026 FFO per share is pinned at $5.80 and $6.08, respectively. This calls for year-over-year growth of 4.3% for 2025 and 4.7% for 2026.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Tesco PLC (LSE:TSCO) shares saw pressure after reporting softer-than-expected sales growth for its third quarter and Christmas period, though analysts at Deutsche Bank and Citi believe the market reaction may be overdone.

Group like-for-like (LFL) sales rose 3.1% in Q3 and 2.4% over the six weeks to early January, both slightly below consensus estimates. In the UK, LFL sales grew by 3.9%, just shy of expectations, while Republic of Ireland sales rose 5%. Booker and Central Europe were weaker, with Booker reporting a 0.9% decline.

Deutsche Bank, in a note, said that although the near-term trading miss was driven by softer volume trends and below-market inflation, Tesco continues to outperform peers on both value and volume. It sees the group as well-positioned going into 2026, having invested in pricing over the key festive period.

Analysts trimmed the American bank's FY27 EPS estimate by 1.5% and lowered its target price to 490p from 500p, but maintained a 'Buy' rating.

Citi said FY26 earnings (EBIT) guidance has been narrowed to the top end of the £2.9–£3.1 billion range, in line with consensus. It expects a slightly negative share price reaction to the update.

Tesco shares are down some 5.3% this week, down to 415.2p.

General Motors Company (NYSE:GM) said Thursday it will record $7.1 billion in special charges for the fourth quarter of 2025, reflecting a pullback in its electric vehicle (EV) strategy and restructuring efforts tied to its operations in China.

In a filing with the Securities and Exchange Commission (SEC), the Detroit automaker said approximately $6 billion of the charges are related to changes in its EV plans amid weakening demand in North America.

The remaining $1.1 billion is largely associated with a previously announced overhaul of its China joint venture, including about $500 million in cash-related costs.

GM said the charges will reduce reported net income for the quarter but will be excluded from its adjusted results.

The announcement follows earlier disclosures in October, when GM said it was reassessing its EV capacity and manufacturing footprint in response to shifting consumer demand and US government policy changes. At that time, the company recorded a $1.6 billion charge in the third quarter related to EV capacity reductions.

In its filing, GM said it has invested heavily in electric vehicles in recent years to meet fuel economy and emissions regulations and to address customer demand. The company noted that these efforts helped it become the second-largest seller of EVs in North America beginning in the second half of 2024, supported by a broad lineup of electric SUVs, trucks, and luxury vehicles.

However, GM said industry-wide EV demand in North America slowed in 2025 following the termination of certain consumer tax incentives and a reduction in the stringency of emissions regulations. In response, the company said it proactively reduced EV capacity, including shifting its Orion, Michigan assembly plant from EV production to the production of full-size SUVs and pickups powered by internal combustion engines. GM also reduced battery cell capacity, including by selling its interest in the Ultium Cells facility in Lansing, Michigan, to LG Energy Solution.

GM added that it expects additional, though smaller, EV-related charges in 2026 tied to ongoing supplier negotiations.

Shares of GM traded down 2.7% on the update.

Unified structure for U.S., Canada & CALA under Satya Anand's leadership; Neal Jones to lead EMEA; Federico "Fede" Greppi to head CALA; retirements of Marriott veterans Liam Brown and Brian King announced.

, /PRNewswire/ -- Marriott International (Nasdaq: MAR) today announced the retirement of two long-time leaders and the appointment of three seasoned executives to drive the company's continued expansion, underscoring Marriott's deep bench of talent and commitment to growth across global regions.

Liam Brown, Group President, U.S. and Canada, and Brian King, President, Enterprise Transformation & Caribbean and Latin America (CALA), will step down from their roles at the end of March and retire from the Company at the end of June 2026 after decades of extraordinary service. Effective March 28, 2026, Satya Anand, currently President of the company's Europe, Middle East and Africa (EMEA) region, will become Group President, U.S., Canada and CALA. Neal Jones, currently Chief Operating Officer for Europe and Africa and Global Leader Design Hotels, will assume the role of President, EMEA, and Federico "Fede" Greppi, currently Chief Operating Officer for CALA, will step into the role of the region's President. Jones will join Anand in serving on Marriott's executive leadership team, and both will report to Anthony Capuano, President and Chief Executive Officer, Marriott International. Greppi will report to Anand.

"Liam and Brian are extraordinary leaders whose impact on Marriott and our people cannot be overstated," said Capuano. "They have guided our company through pivotal moments with vision, integrity, and a deep commitment to our associates, guests and owners. While we will miss Liam and Brian, we are grateful for their decades of service and the lasting legacy they leave behind."

Marriott Recognizes the Legacy of Two Impactful Leaders

Liam Brown's nearly four-decade career with Marriott has been defined by strategic growth and measurable impact. From his start as General Manager of the Courtyard by Marriott in Syracuse, New York in 1989 to his current role as Group President, U.S. & Canada, Brown has driven expansion across key segments and strengthened Marriott's market position. He played a pivotal role in advancing franchising, elevating brand management, and scaling select-service operations globally. His leadership in Europe, Middle East & Africa and later in the U.S. & Canada delivered sustained portfolio growth, operational efficiencies, and resilience through periods of significant industry disruption. Brown's ability to connect with and develop deep relationships with owners and franchisees has been a hallmark of his tenure with Marriott.

Brian King's three-decade career at Marriott has been defined by transformative growth and innovation. As President, Enterprise Transformation & CALA, King delivered record-breaking performance across Marriott's portfolio in the region, which now spans 37 countries and territories, accelerating Marriott's footprint and strengthening profitability in the region. He spearheaded Marriott's entry into the affordable midscale segment through the acquisition of the City Express brand, positioning the company to capture new customer segments and drive incremental revenue. Under his leadership, Marriott expanded its presence in the all-inclusive category, forging relationships with new owners and portfolios that elevated the company's luxury and lifestyle offerings. King's ability to envision and execute complex enterprise-wide strategies while delivering sustained results in CALA has left a lasting impact on Marriott's global portfolio and competitive position.

Satya Anand to Oversee U.S., Canada & CALA in Expanded Leadership Role

Satya Anand, a 37-year Marriott veteran, began his career in 1988 as a Night Auditor at the Vienna Marriott Hotel. Throughout his tenure, he has held leadership roles spanning operations, finance, and design, including Cluster General Manager for the Renaissance Hotels in Vienna, Area Vice President for Western & Central Europe, Chief Financial Officer for Europe, and Chief Operations Officer for Luxury & Southern Europe and Global Design EMEA.

Since 2020, Anand has served as President of EMEA, driving digital transformation, advancing sustainability initiatives, and delivering significant growth – expanding the region's portfolio to over 1,300 properties. Under his leadership, the region achieved record expansion, strengthened owner relationships, and elevated guest experiences across diverse markets. Known for his strategic vision and people-first leadership, Anand will oversee the U.S., Canada, and Caribbean & Latin America in his new role, uniting these markets under a single structure to foster greater alignment and collaboration across the hemisphere.

Originally from India, Anand earned a Bachelor's in Accounting from MES College of Commerce in Bangalore and a diploma in Hotel & Tourism Management from the Institute of Tourism & Hotel Management in Austria. He will be relocating to the United States and based out of the company's global headquarters in Bethesda, Maryland.

Neal Jones to Guide EMEA's Next Chapter

Neal Jones brings three decades of Marriott experience to his new role as President EMEA, with leadership experience in sales, marketing, and operations. As Chief Sales & Marketing Officer for EMEA, he drove commercial strategy and brand positioning across the region, strengthening Marriott's presence in key markets.

In his current role, Jones oversees performance across Europe and Africa and spearheaded the integration of Design Hotels into Marriott's portfolio, enhancing the company's luxury and lifestyle offerings. In his new role, Jones will lead Marriott's operations across nearly 80 countries and territories and more than 1,300 properties representing 30 brands, guiding the company's continued growth in EMEA. His deep market knowledge, strategic mindset, and commitment to Marriott's culture will shape the region's next chapter, with a focus on accelerating innovation and further strengthening owner relationships.

Jones is based in the United Kingdom and graduated from Hotelschool The Hague in the Netherlands.

Federico "Fede" Greppi to Lead CALA Region into Next Phase of Growth

A trilingual, cross-disciplinary leader with more than 22 years of hospitality experience, including 13 years at Starwood Hotels & Resorts, Federico "Fede" Greppi, who will assume the role of President, CALA, has operational and financial experience, and a proven track record of driving performance across diverse markets.

As Chief Operating Officer for CALA, Greppi focused on translating Marriott's global vision into actionable strategies tailored for local markets. Prior to that, as Chief Financial Officer and Head of Franchise Operations and Owner Relations, CALA, he helped expand Marriott's footprint to over 500 properties across 37 markets in the region. A native of Argentina, Greppi's strong local market knowledge, deep roots in the region, and strategic leadership have been instrumental in strengthening Marriott's position in the market and make him well positioned to lead CALA's next phase of growth and expansion.

Greppi holds a master's in business administration (MBA) from the London Business School. He will continue to be based out of Marriott's CALA offices in South Florida.

"Today's appointments position Marriott for our next chapter of growth," said Capuano. "Satya brings a powerful combination of operational depth, financial discipline, and design expertise to a unified regional structure, which will sharpen how we execute and elevate outcomes for our associates, guests, and owners. Neal has been a driving force behind EMEA's commercial performance and brand development, and I know he will build on that momentum with a laser focus on innovation and owner relationships. Fede's deep market, financial and operating expertise in CALA will position the region well as we focus on further accelerating our growth in the southern hemisphere. I'm confident these leaders will advance our strategy and continue to nurture the culture that sets Marriott apart."

Anand, Jones, and Greppi will assume their new roles on March 28, 2026. Brown and King will remain with the Company in advisory roles through June 2026 to ensure a smooth transition.

NOTE ON FORWARD-LOOKING STATEMENTS
All statements in this press release are made as of January 9, 2026. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements related to the company's leadership transition plans; the company's plans and expectations related to growth and expansion; the company's commitment to growth and growth prospects; the company's plans to accelerate its strategy and innovation, advance alignment and collaboration, execute and elevate outcomes, and strengthen owner relationships; opportunities to capture new customer segments and drive incremental revenue; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we describe in our U.S. Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

ABOUT MARRIOTT INTERNATIONAL
Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of over 9,700 properties across more than 30 leading brands in 143 countries and territories, as of September 30, 2025. Marriott operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties all around the world. The company offers Marriott Bonvoy®, its highly awarded travel platform. For more information, please visit www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

IRPR#1

SOURCE Marriott International, Inc.

January 09, 2026 08:45 ET  | Source: PDS Biotechnology Corporation

PDS Biotech Submits Amended Protocol for Phase 3 VERSATILE-003 Trial

Constructive Type C Meeting Provides Potential Pathway to Accelerated Approval of PDS0101

PRINCETON, N.J., Jan. 09, 2026 (GLOBE NEWSWIRE) -- PDS Biotechnology Corporation (Nasdaq: PDSB) (“PDS Biotech” or the “Company”), a late-stage immunotherapy company focused on transforming how the immune system targets and kills cancers, today announced that the Company has submitted a protocol amendment to the U.S. Food & Drug Administration (“FDA”) for its Phase 3 VERSATILE-003 clinical trial. The proposed amendment to the VERSATILE-003 Phase 3 trial changes the PFS endpoint to a primary endpoint that can be evaluated earlier with significant statistical power, potentially providing the basis for accelerated approval of PDS0101. Median overall survival (mOS) remains the primary endpoint for full approval as originally recommended by FDA.

The submission follows a constructive Type C meeting held with the FDA in December 2025 to discuss the proposed accelerated approval pathway for PDS0101 in HPV16-positive recurrent and/or metastatic Head and Neck Cancer. The amendment is supported by positive final results from the Company’s VERSATILE-002 trial, which showed promising mOS and durable PFS.

“Submission of the amended protocol is an exciting next step in our mission to make this promising treatment available to patients in need,” said Frank Bedu-Addo, PhD, President and Chief Executive Officer of PDS Biotech. “We believe that including PFS as a primary endpoint offers an important opportunity to shorten the duration of VERSATILE-003. The amendment retains mOS and safety as requirements for full FDA approval, and based on the dialogue we had with the agency in December, we are confident that we have a pathway to potentially accelerate our regulatory submission.”

About PDS Biotechnology

PDS Biotechnology is a late-stage immunotherapy company focused on transforming how the immune system targets and kills cancers. The Company has initiated a pivotal clinical trial to advance its lead program in advanced HPV16-positive head and neck squamous cell cancers. PDS Biotech’s lead investigational targeted immunotherapy PDS0101 (Versamune® HPV) is being developed in combination with a standard-of-care immune checkpoint inhibitor, and in a triple combination including PDS01ADC, an IL-12 fused antibody drug conjugate (ADC), and a standard-of-care immune checkpoint inhibitor.

For more information, please visit www.pdsbiotech.com

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” “forecast,” “guidance”, “outlook” and other similar expressions among others. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the Company’s ability to protect its intellectual property rights; the Company’s anticipated capital requirements, including the Company’s anticipated cash runway and the Company’s current expectations regarding its plans for future equity financings; the Company’s dependence on additional financing to fund its operations and complete the development and commercialization of its product candidates, and the risks that raising such additional capital may restrict the Company’s operations or require the Company to relinquish rights to the Company’s technologies or product candidates; the Company’s limited operating history in the Company’s current line of business, which makes it difficult to evaluate the Company’s prospects, the Company’s business plan or the likelihood of the Company’s successful implementation of such business plan; the timing for the Company or its partners to conduct clinical trials for PDS0101 (Versamune® HPV), PDS01ADC, PDS0103 (Versamune® MUC1) and other Versamune® based product candidates; the future success of such trials; the successful implementation of the Company’s research and development programs and collaborations, including any collaboration studies concerning PDS0101 (Versamune® HPV), PDS01ADC, PDS0103 (Versamune® MUC1) and other Versamune® based product candidates and the Company’s interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company’s product candidates; the success, timing and cost of the Company’s or its partners’ ongoing clinical trials and anticipated clinical trials for the Company’s current product candidates, including statements regarding response rates, the timing of initiation, pace of enrollment and completion of the trials (including the Company’s ability to fully fund its disclosed clinical trials, which assumes no material changes to the Company’s currently projected expenses), futility analyses, presentations at conferences and data reported in an abstract, and receipt of interim or preliminary results (including, without limitation, any preclinical results or data), which are not necessarily indicative of the final results of the Company’s ongoing clinical trials; any Company statements about its understanding of product candidates mechanisms of action and interpretation of preclinical and early clinical results from its clinical development programs and any collaboration studies; the Company’s ability to continue as a going concern; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the other risks, uncertainties, and other factors described under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the U.S. Securities and Exchange Commission. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Versamune® is a registered trademark of PDS Biotechnology Corporation.

Investor Contact:
Mike Moyer
LifeSci Advisors
Phone +1 (617) 308-4306
Email: [email protected]

Media Contact:
Jude Gorman / Kiki Torpey
Collected Strategies
[email protected]

Stadtratte/iStock via Getty Images

Despite the threat of economic slowdown and high-interest rates, the US industrials sector delivered a solid performance in fiscal 2025, beating the S&P 500 and MSCI USA indices. The sector is expected to accelerate its growth in 2026 amid the favorable market conditions. The robust US GDP growth rate along with rate cuts is likely to translate into mid-teen percentage earnings growth for the industrials sector. Therefore, I initiate coverage of Fidelity MSCI Industrials Index ETF (FIDU) with a buy rating. My price target for FIDU is $102 per share, implying nearly 20% upside from the current level.

The Industrials Sector Growth Is Expected To Accelerate in 2026 FIDU total return (Seeking Alpha)

The US industrials sector outshone the S&P 500 index and MSCI USA Index in fiscal 2025 as stronger than expected economic growth supported the sector’s performance. In addition, an unprecedented demand in the aerospace & defense industry contributed significantly to the sector’s uptrend. Fidelity MSCI Industrials Index ETF delivered nearly 19% in total return, comprising 17% in price and 2% in dividend return.

I expect FIDU to deliver nearly 20% in price return and 22% in annual total return in 2026. My price target and total return estimates are in line with its three-year annual average. In the past three years, FIDU generated a total return of 68%. I attribute my price target estimate to the economic trends, easing monetary policy, and robust earnings growth power. In fact, the fund could surpass its annual average because of the more favorable conditions in 2026 compared to the past few years.

The Industrials is a cyclical sector, as its performance is significantly correlated to the broader economic conditions and rate policies. The economic expansion increases demand for industrials products and services, while contraction can negatively impact its performance.

Favorable Market Conditions and Earnings Growth Power US GDP growth (Trading Economics)

In the last few years, the US economic growth was resilient despite multiple risks, growing around 2.5% in 2023 and 2.8% in 2024. The US GDP is expected to increase 3% in 2025. In the past two quarters, the growth was higher than expected, increasing around 3.8% in the second quarter of 2025 and 4.3% in the September quarter. The Atlanta Fed expects the final quarter GDP growth to be around 2.7%.

In fiscal 2026, the US economy is expected to experience a positive impact from rate cuts. A low-rate environment generally helps in increasing business activities and raising consumers spending power. The Fed rate is currently hovering in a range of 3.50% to 3.75%, down from the recent peak of 5.50% to 5.75%. The market currently expects two more rate cuts in 2026 to end the year around 3.0% to 3.25%. In addition, the risk of tariffs has also declined compared to 2025 as countries across the world seek to adjust trade policies through negotiations.

Earnings forecast 2026 (FactSet)

In the September quarter, the industrials earnings growth of 15.7% year over year topped the consensus of 7.9%. The sector's earnings growth was driven by the defense & aerospace, ground transportation, electrical equipment, and construction & engineering industries. Moreover, the 2026 outlook also appears robust amid the consensus earnings growth forecast of 15%.

FIDU’s Diversified Portfolio Offers Broader Industrials Sector Exposure The Fidelity MSCI Industrials Index ETF offers one of the best ways to gain significant access to the US industrials sector. The fund tracks the MSCI USA IMI Industrials 25/25 Index by using a representative sampling technique. According to FIDU's fact sheet, the fund’s portfolio is spread across 26 industries within the industrials sector.

It offers a higher weight in the aerospace & defense, industrial machinery & supplies & components, electrical components & equipment, construction machinery & heavy transportation equipment, building products, and others.

FIDU top 10 holdings (Seeking Alpha)

FIDU’s portfolio includes large, mid, and small caps. Its portfolio comprises 363 companies, with the top 10 making-up 30%. Reviewing its top 10 holdings can also help us gauge the impact of favorable market conditions on the industrials sector.

For example, GE Aerospace (GE) is its largest stock holding. The company’s share price rallied 87% in the last twelve months, supported by a strong demand for aerospace products. In the September quarter, its revenue grew 26%, while earnings per share increased by 44% to $1.66. Furthermore, the company's free cash flow conversion rate was around 130%. It also lifted its full-year forecast, now expecting revenue growth in the high teens to low 20s range compared to its previous guidance of mid-teen percentage growth.

BA, RTX and GE price return (Seeking Alpha)

RTX Corp. (RTX), a defense and aerospace company, also delivered an exceptional price gain of 61% in the last twelve months. It topped the September quarter estimate and raised its full-year adjusted sales outlook to the range of $86.5 - $87.0 billion, up from the previous forecast of $84.75 - $85.5 billion. Its new adjusted earnings per share outlook of $6.10 - $6.20 is higher than the previous forecast of $5.80 - $5.95.

After years of internal and regulatory challenges, The Boeing Company (BA) also begins to shine. The commercial aircraft maker’s stock price rallied 32% in the last twelve months. Its backlog grew to $636 billion, including over 5,900 commercial airplanes.

Besides the defense and aerospace, FIDU’s other top holdings also contributed to its performance. For example, Uber Technologies (UBER), a passenger transporter, saw a share price rally of 30% year-to-date amid its strong revenue and earnings growth. The company expects a 17% to 21% boost in full-year gross bookings to $52.25B to $53.75B with adjusted EBITDA growing around 31% to 36%.

GE Vernova (GEV), a heavy electric equipment maker, experienced a price gain of 80% in the last twelve months. Its orders grew 55% year over year to $14.6 billion in the September quarter, enlarging the total backlog to $135 billion. In the September quarter, its revenue increased 10% with the double-digit growth in both equipment and services segments. Its portfolio includes numerous other prominent companies, such as Parker Hannifin (PH), 3M Co. (MMM), General Dynamics (GD) and Emerson Electric (EMR).

FIDU’s other interesting characteristics include a low expense ratio of 0.08%. In addition, the fund offers a dividend yield of around 1%. It has paid dividends in the past 12 consecutive years. Moreover, FIDU’s valuations are in-line with the broader market indices. Its trailing PE is around 27x, while its price-to-book ratio is close to 5.5. Although FIDU and the broader market's valuations are higher compared to their 5- and 10 years averages, I believe a risk of valuation burst is limited unless accompanied by other macro factors.

Risk Factors The industrial sector can be hit harder in the case of a tariff-related war. According to the FactSet data, the term 'tariffs' was cited in 51 earnings calls of the Industrials sector. The Fidelity MSCI Industrials Index ETF can also respond to economic trends and interest rate policies. Its standard deviation of 12% and annualized volatility of 20% are higher than the median of all ETFs. Overall, the ETF carries an aggressive risk factor.

In Conclusion The industrials sector’s boom is expected to intensify in 2026 as economic growth and interest rate policies favor cyclical businesses. A mid-teen earnings growth forecast for fiscal 2026 also indicates a solid growth trend. Therefore, the sector offers an opportunity for investors to earn healthy returns.

Fidelity MSCI Industrials Index ETF could be a worthwhile investment vehicle. FIDU’s portfolio exposure to large, mid, and small caps from numerous industries enables it to capitalize on bullish market conditions. Its low expense ratio, above-average liquidity, and potential to pay a decent quarterly dividend make it an interesting candidate.

Key Takeaways Kratos Defense's shares surged 35.3% in a month, sharply outperforming the industry's 15.3% gain.KTOS' Valkyrie UAS became a core platform in the Marine Corps' CCA program, lifting cash flow visibility.KTOS secured nearly $30M in defense contracts and expanded MRO capabilities with a new PT6 engine facility. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) shares have rallied 35.3% in the past month compared with the Zacks Aerospace-Defense Equipment industry’s growth of 15.3%. Contract wins and growing demand for unmanned, autonomous tactical systems are driving strong interest in Kratos Defense’s drone and defense technologies.
 

Image Source: Zacks Investment Research

Other defense equipment stocks, such as CurtissWright (CW - Free Report) and AAR Corporation (AIR - Free Report) , have also increased in the last month. Shares of CurtissWright and AAR have gained 8.1% and 19.1%, respectively, during the same time frame.

Considering Kratos Defense’s outperformance compared with its industry, investors might be left wondering if this is a good time to add KTOS stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Factors Driving KTOS StockKratos Defense is one of the leading providers of unmanned aerial target drones for U.S. and allied militaries, with its strong reputation and proven technology driving consistent contract wins, strategic partnerships, global expansion and long-term competitiveness.

Kratos Defense is set to benefit meaningfully from this development as its Valkyrie UAS becomes a core platform in the U.S. Marine Corps’ Collaborative Combat Aircraft program led by Northrop Grumman. The partnership also accelerates operational deployment, improving near-to-medium-term cash flow visibility and enhancing investor confidence in KTOS’ long-term defense growth prospects.

In December 2025, Kratos Defense announced the successful completion of factory acceptance testing between its EPOCH Command and Control (C2) software and Airbus’ OneSat next-generation software-defined satellite platform. This strengthens the company’s position in the growing software-defined space segment, validates its technology for managing highly dynamic, reconfigurable satellites and paves the way for operational use.

During the same month, Kratos Defense received nearly $30 million in Air Defense and C5ISR system national-security-related, military-grade custom hardware production contracts. This helps the company boost near-term revenues while expanding its involvement in high-priority national security programs.

In the same month, Kratos Defense announced the opening of its new state???of???the???art 10,000 square foot facility for PT6A and PT6T engine overhaul in Vancouver, British Columbia. This helps the company in expanding and strengthening its maintenance, repair and overhaul (“MRO”) capabilities for PT6A and PT6T engines, which are widely used in helicopters and fixed-wing aircraft. The expansion also broadens Kratos Defense’s service portfolio by positioning it to support additional engine models in the future, strengthening customer relationships and helping grow long-term revenues and market presence.

Challenges Faced by KTOSAlthough Kratos Defense shows notable growth prospects, it continues to face certain obstacles. One such obstacle is disruptions to the supply chain, arising from raw material shortages, which continue to impact the defense sector as a whole and might affect the company's operations.

Estimates for KTOS StockThe Zacks Consensus Estimate for KTOS’ 2026 earnings per share (EPS) indicates an increase of 38.43% year over year. The Zacks Consensus Estimate for 2026 sales indicates an improvement of 19.91% year over year.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CurtissWright’s 2026 EPS indicates an increase of 11.72% year over year. CW’s long-term (three to five years) earnings growth rate is 14.54%. The consensus estimate for AAR’s fiscal 2026 EPS indicates an increase of 16.21% year over year.

KTOS’ Earnings Surprise HistoryThe company beat on earnings in each of the trailing four quarters, delivering an average surprise of 29.17%.

Image Source: Zacks Investment Research

KTOS Stock’s ROICThe image below shows that KTOS stock’s trailing 12-month return on invested capital (ROIC) lags the peer group’s average. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.

Image Source: Zacks Investment Research

KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price/book (P/B) is 8.87X, a discount to the industry’s average of 17.01X.

Image Source: Zacks Investment Research

What Should an Investor Do?Kratos Defense is strengthening its growth outlook through leadership in unmanned systems, validation of its Valkyrie UAS in a key Marine Corps program, and expanding roles in defense, space and aviation markets. Recent contract wins, technology milestones, and facility expansion support near-term revenue growth while reinforcing long-term competitiveness.

However, given its poor ROIC and recent challenges, new investors may wait for a better entry point. Those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, considering the company’s impressive earnings growth projection.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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