In its upcoming report, Roblox (RBLX - Free Report) is predicted by Wall Street analysts to post quarterly loss of -$0.41 per share, reflecting a decline of 10.8% compared to the same period last year. Revenues are forecasted to be $1.63 billion, representing a year-over-year decrease of 15%.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Roblox metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Bookings' to come in at $1.63 billion. The estimate compares to the year-ago value of $1.92 billion.
The consensus among analysts is that 'Daily Active Users (DAUs)' will reach 130.65 million. Compared to the present estimate, the company reported 151.50 million in the same quarter last year.
It is projected by analysts that the 'Total Hours Engaged' will reach 32.24 billion. Compared to the current estimate, the company reported 39.60 billion in the same quarter of the previous year.
The average prediction of analysts places 'Daily Active Users (DAUs) - ROW' at 35.28 million. The estimate is in contrast to the year-ago figure of 45.20 million.
The collective assessment of analysts points to an estimated 'Daily Active Users (DAUs) - APAC' of 42.14 million. Compared to the current estimate, the company reported 46.30 million in the same quarter of the previous year.
Analysts' assessment points toward 'Daily Active Users (DAUs) - US & Canada' reaching 24.03 million. Compared to the current estimate, the company reported 26.10 million in the same quarter of the previous year.
The consensus estimate for 'Daily Active Users (DAUs) - Europe' stands at 28.18 million. Compared to the current estimate, the company reported 33.90 million in the same quarter of the previous year.
View all Key Company Metrics for Roblox here>>>
Shares of Roblox have experienced a change of +13.9% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), RBLX is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value 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 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 +23.82% 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.
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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: V.F. (VFC - Free Report) Based in Denver, CO, V.F. Corp. designs, manufactures and markets branded apparel, footwear, equipment and accessories in the United States and internationally. Its product portfolio includes outdoor apparel and equipment, casual and active apparel, backpacks and luggage, and lifestyle and performance footwear. The company sells products through wholesale customers, VF-operated stores and digital channels, and also generates royalty revenues through licensing arrangements.
VFC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.71; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.03 to $1.10 per share. VFC boasts an average earnings surprise of +34%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, VFC should be on investors' short list.
Agreement makes Kalshi a preferred prediction market platform for S&P DJI index contracts, and S&P DJI a preferred index provider for Kalshi event contract data
, /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") and Kalshi today announced a strategic collaboration that brings the world's most trusted benchmarks to prediction markets, pairing the world's leading index provider with the world's largest prediction market platform.
Under the agreement, Kalshi becomes a preferred prediction market platform licensed for event contracts tied to S&P DJI indices. In addition, S&P DJI becomes a preferred provider for constructing indices from Kalshi event contract data.
Forthcoming Kalshi event contracts will settle against official index values published by S&P DJI, the same reference standard that professional markets rely on every day. For users, that means contracts built on transparent methodologies, quality data, independent calculation and governance, and a name the world's financial institutions trust.
"Kalshi's aspiration is to be the next great financial exchange," said Tarek Mansour, co-founder and CEO of Kalshi. "S&P DJI is the gold standard for benchmarks. Bringing that standard to Kalshi is an important step toward accelerating retail and institutional demand."
"Our collaboration extends S&P DJI's role as the world's leading benchmark provider into one of the fastest-growing categories in financial markets," said Cathy Clay, CEO of S&P Dow Jones Indices. "Robust indices help to define markets: what they are, how to measure them and rules for monitoring their evolution. With benchmarks spanning every major asset class, S&P DJI's breadth, independence, and trust make us the index provider of choice as prediction markets mature."
The collaboration will also bring together Kalshi's market data and S&P DJI's expertise to open the door for indices, such as indices on economics, politics, and sports, built from the underlying markets on Kalshi. Event contracts turn expectations about real-world outcomes into prices. Applying S&P DJI's index methodologies to Kalshi data will enable the creation of indices that reflect those expectations, offering market participants a new way to observe and assess signals stemming from prediction markets.
The S&P 500 is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "The 500®" and "US 500™" are trademarks of Standard & Poor's Financial Services LLC; "Dow Jones®" is a trademark of Dow Jones Trademark Holdings LLC. Kalshi's contracts based on the S&P 500 and other S&P Indices are not sponsored, sold or endorsed by S&P DJI, and S&P DJI makes no representation regarding the advisability of trading in such contracts nor does it have any liability for any errors, omissions, or interruptions of the Indices.
About S&P Dow Jones Indices
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: www.spglobal.com/spdji.
About Kalshi
Founded in 2018, Kalshi is the world's next-generation financial exchange. Prediction markets provide accurate, real-time information on the likelihood of events, making humanity more informed about the future. As the first regulated exchange for events, Kalshi is credited with legalizing and establishing prediction markets as a financial asset class. It's the leading safe and regulated platform, trusted by millions of people and a growing number of institutions in America. To learn more about Kalshi, visit www.kalshi.com.
FOR MORE INFORMATION:
Silke McGuinness
Global Head of Communications, S&P DJI
(+1) 628 628 6806
[email protected]
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.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
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 #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Estee Lauder?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. Estee Lauder (EL - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.54 a share seven days away from its upcoming earnings release on November 2, 2026.
Estee Lauder's Earnings ESP sits at +3.75%, which, as explained above, is calculated by taking the percentage difference between the $0.54 Most Accurate Estimate and the Zacks Consensus Estimate of $0.52. EL 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.
EL is just one of a large group of Consumer Staples stocks with a positive ESP figure. Sysco (SYY - Free Report) is another qualifying stock you may want to consider.
Sysco is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 3, 2026. SYY's Most Accurate Estimate sits at $1.19 a share eight days from its next earnings release.
Sysco's Earnings ESP figure currently stands at +2.46% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.17.
Because both stocks hold a positive Earnings ESP, EL and SYY could potentially post earnings beats in their next reports.
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 >>
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
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 is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete 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 Freeport-McMoRan?The final step today is to look at a stock that meets our ESP qualifications. Freeport-McMoRan (FCX - Free Report) earns a #2 (Buy) one day from its next quarterly earnings release on October 27, 2026, and its Most Accurate Estimate comes in at $0.81 a share.
Freeport-McMoRan's Earnings ESP sits at +0.63%, which, as explained above, is calculated by taking the percentage difference between the $0.81 Most Accurate Estimate and the Zacks Consensus Estimate of $0.8. FCX 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.
FCX is one of just a large database of Basic Materials stocks with positive ESPs. Another solid-looking stock is Dow Inc. (DOW - Free Report) .
Dow Inc., which is readying to report earnings on February 4, 2027, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.55 a share, and DOW is 101 days out from its next earnings report.
The Zacks Consensus Estimate for Dow Inc. is $0.50, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +9.25%.
FCX and DOW'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 >>
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.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
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.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 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 Kohl's?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. Kohl's (KSS - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.03 a share 29 days away from its upcoming earnings release on November 24, 2026.
Kohl's Earnings ESP sits at +460.00%, which, as explained above, is calculated by taking the percentage difference between the $0.03 Most Accurate Estimate and the Zacks Consensus Estimate of -$0.01. KSS 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.
KSS is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Kroger (KR - Free Report) is another qualifying stock you may want to consider.
Kroger, which is readying to report earnings on December 3, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $1.20 a share, and KR is 38 days out from its next earnings report.
For Kroger, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.16 is +3.43%.
Because both stocks hold a positive Earnings ESP, KSS and KR could potentially post earnings beats in their next reports.
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 >>
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is in the spotlight Monday after a busy week that included an expanded AI agent security collaboration with Nvidia Corporation (NASDAQ:NVDA), a Mizuho price target increase, and a rally in cybersecurity stocks.
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 also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM 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.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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: Viatris (VTRS - Free Report) Viatris, a global healthcare company, was formed in November 2020 through the merger of the erstwhile Mylan and Pfizer’s Upjohn businesses. The company has operations in more than 165 countries. Viatris’ portfolio consists of generics (including complex products), globally recognized iconic brands and an expanding portfolio of innovative drugs.
VTRS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. VTRS has a Momentum Style Score of B, and shares are up 1% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.51 per share. VTRS boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VTRS should be on investors' short list.
Key Takeaways Biogen's growth portfolio surpassed legacy MS drug revenues in Q2, with momentum expected to continue.Skyclarys, Qalsody, Zurzuvae and Spinraza may help offset declining Tecfidera and Tysabri sales.Biogen expects a $1.70-per-share earnings hit from acquired R&D and milestone expenses in Q3.
We expect Biogen (BIIB - Free Report) to beat expectations when it reports third-quarter 2026 results on Oct. 28, before market open. In the last reported quarter, the company's earnings beat expectations by 18.42%. The Zacks Consensus Estimate for third-quarter sales and earnings is pegged at $2.60 billion and $2.05 per share, respectively.
Factors to Consider for BiogenIn the third quarter, lower sales of multiple sclerosis drugs, Tecfidera and Tysabri, are likely to have been offset by higher revenues from new drugs, Skyclarys, Qalsody and Zurzuvae, and contributions from newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition.
Sales from Biogen’s growth products exceeded revenues from its legacy MS portfolio in the second quarter. Its growth drugs include Spinraza, Vumerity, new drugs Skyclarys (Friedreich’s ataxia), Qalsody (amyotrophic lateral sclerosis) and Supernus Pharmaceuticals (SUPN - Free Report) -partnered Zurzuvae (postpartum depression). Its growth drugs also include Empaveli and Syfovre, from the Apellis acquisition, plus Alzheimer’s revenues from the Leqembi collaboration with Eisai. The growth portfolio is expected to maintain its lead in the second half of 2026.
Sales of Biogen’s MS drugs like Tecfidera and Tysabri are likely to have declined in the third quarter. Sales of Tecfidera are likely to have been hurt by generic competition globally, particularly in Europe. Sales of Tysabri are likely to have been hurt by biosimilar competition in Europe and a decrease in U.S. demand.
The Zacks Consensus Estimate for third-quarter sales of Tecfidera is pegged at $88.0 million. The Zacks Consensus Estimate for Tysabri is $379.0 million.
Sales of another MS drug, Vumerity, declined in the second quarter due to inventory dynamics. We expect the trend to have reversed in the third quarter. The Zacks Consensus Estimate for Vumerity is $210.0 million.
Sales of Biogen’s spinal muscular atrophy drug, Spinraza, are likely to have continued to improve in the quarter due to demand and stocking for the new high-dose regimen. The Zacks Consensus Estimate for Spinraza is $384.0 million.
Sales of Biogen’s new drug Skyclarys for Friedreich’s ataxia are likely to have continued to improve on higher demand growth in both U.S. and ex-U.S. markets.
Sales of other new drugs, Zurzuvae and Qalsody, are likely to have benefited from strong demand trends.
Biogen has a collaboration with Supernus Pharmaceuticals for Zurzuvae. Biogen and Supernus Pharmaceuticals equally share profits and losses for the commercialization of Zurzuvae in the United States. In outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea) and pays royalties to Supernus.
Alzheimer’s collaboration revenues are expected to have risen in the quarter. Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s drug Leqembi (lecanemab), which has been developed in collaboration with Eisai.
Leqembi sales have been improving sequentially over the past few quarters, driven by demand growth globally. The positive trend is expected to have continued in the third quarter. Leqembi sales are recorded by Eisai.
Contribution from Apellis’ products, Empaveli and Syfovre, is likely to have been much higher in the third quarter than the second since Biogen only began recording Syfovre and Empaveli revenues in mid-May.
In the third quarter, Biogen will record a charge related to acquired in-process research and development, upfront and milestone expense, which is expected to hurt adjusted earnings by $1.70 per share.
BIIB’s Earnings Surprise HistoryThe company’s earnings beat estimates in each of the last four quarters. The company has a four-quarter earnings surprise of 21.7%, on average.
Image Source: Zacks Investment Research
Biogen’s stock has risen 42.4% so far this year compared with an increase of 4.7% for the industry.
Image Source: Zacks Investment Research
What Our Model Says for BIIBOur proven model predicts an earnings beat for Biogen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Biogen’s Earnings ESP is +0.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Biogen has a Zacks Rank #3.
Other Stocks to ConsiderHere are two drug/biotech stocks that also have the right combination of elements to beat on earnings this time around:
Gilead Sciences (GILD - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead’s stock has risen 27.1% so far this year. GILD beat estimates in each of the last four quarters. The company has a four-quarter earnings surprise of 7.12%, on average. Gilead is scheduled to report third-quarter results on Oct. 29.
Pfizer (PFE - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.
Shares of Pfizer have risen 20.6% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 16.62%. Pfizer is scheduled to report third-quarter results on Nov. 3.
New protection capabilities block unwanted actions and let you decide what AI can see and do
, /PRNewswire/ -- Norton, a consumer Cyber Safety brand of Gen (NASDAQ: GEN), today announced Safe AI, a new set of protections inside Norton 360 that keeps an eye on what AI chat apps like ChatGPT or Claude do on your device. It blocks AI actions you did not intend, lets you decide which personal files AI tools can open, and helps you avoid risky links. Instead of relying on AI tools to recognize every threat, Norton Safe AI provides an additional layer of protection to help people use AI with greater confidence and control.
Norton Launches Safe AI to Help You Use AI Without Giving Up Control
Why AI assistants create new risks
AI assistants are making it easier than ever to find information and get things done. But that same convenience can invite new risks. A seemingly helpful AI response could contain a dangerous link, an AI tool could be tricked into taking actions that put your personal information in jeopardy, or your personal files could be accessed in ways you never intended.
Research from Gen Threat Labs underscores just how real these risks have become. There has been a 54% increase in malicious content served to Gen users through AI chatbots such as ChatGPT and Claude in the last 90 days. And these risks are weighing on people. According to Gen research, more than two-thirds of people are concerned about privacy, data breaches, or losing control when using an autonomous AI assistant that can act on their behalf.
Safe AI is designed to help address these emerging risks and people's concerns while extending Norton's protection into the AI experiences people are increasingly using every day.
"Most of the AI tools people are using today should really come with a warning label that safety isn't included. The tools were designed around how to get the job done and not necessarily how to get the job done right, or even safely, despite the best intentions," said Dagim Girma, GM for Norton. "That's where we come in. People shouldn't have to become AI security experts to benefit from AI tools. With Safe AI, we're helping people stay in control of their information and embrace the possibilities of AI with greater confidence."
Multi-layer Protection for the AI Era
Built into Norton 360's advanced scam protection1, Safe AI introduces three capabilities designed to help make using AI tools safer:
Protects against unwanted AI actions. As AI tools become more capable of performing tasks, malicious instructions and prompt injections can introduce new security risks. Action Shield helps stop unwanted AI actions and potentially harmful prompt injections before they run.Gives people more control over AI file access. As people connect AI tools to their personal files and content, understanding what those tools can access becomes increasingly important. Safe Zone lets you choose which connected files and content AI can access, with options for full, read-only or blocked permissions.Spots risky links before you click. AI assistants can surface links that appear useful or trustworthy, even when they lead to unsafe destinations. Safe Links helps identify potentially harmful links shared through ChatGPT and Claude before people open them.Together, these capabilities help address risks at different points in the AI experience, from the links people encounter to the actions AI tools may take and the information they can access.
Helping People Live Fearless in an AI-Powered World
As AI reshapes the digital landscape, Gen is working to help people navigate emerging risks with greater confidence. Through its Agent Trust Hub, Gen is advancing the understanding of AI-related threats and the security challenges emerging as AI tools become more capable and autonomous. Combined with the research and expertise of Gen Threat Labs, this intelligence helps inform innovations like Safe AI in Norton 360, translating insights into practical protection for people everywhere. Together, these efforts reflect Gen's broader Fearless commitment: helping people understand what's changing, protect what matters and embrace the possibilities of an AI-powered world without fear.
Safe AI is available in Norton 360 on Windows and Mac. To learn more, visit our Safe AI blog.
About Norton, part of Gen
Norton is a leader in Cyber Safety and empowers millions of individuals and families with award-winning protection for their devices, online privacy, and identity. Norton is part of Gen (NASDAQ: GEN), a global company dedicated to powering Digital Freedom with a family of trusted consumer brands that help people protect and take control of their digital and financial lives. As AI reshapes how people discover, decide and transact, Gen is building the security and trust layer to empower people and their agents to navigate digital life more safely. Gen empowers nearly 500 million users in more than 150 countries through its products and services that span cybersecurity, online privacy, identity protection and financial wellness. Learn more at Norton.com and GenDigital.com.
Media Contact
Brittany Posey
Gen
[email protected]
1 Safe AI is available on Windows and Mac. Within Safe AI, Safe Zone is available on Windows only; Safe Links currently supports ChatGPT and Claude in browser versions; and Action Shield currently supports Claude, Cursor, OpenClaw, and VS Code.
TEMPE, Ariz.--(BUSINESS WIRE)--Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today announced a new $1 million, five-year commitment to the American Association of Orthodontists (AAO) Foundation building on the Company's most recent $1 million pledge made in 2021. The commitment.
Riot, Strategy, and MARA are sliding roughly four times harder than Bitcoin itself, and that gap between the coin and the stocks it powers points to something beyond ordinary price pressure.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Crypto-linked equities are absorbing a heavier blow than the digital asset they track, which places the pressure directly on the stocks. Riot Platforms (NASDAQ:RIOT | RIOT Price Prediction) stock has dropped 4% to $12.06, a slide that puts the miner’s turn toward AI data centers back in focus. Meanwhile, Strategy (NASDAQ:MSTR) stock is down 4% to $140.26, falling in step with Riot stock.
Bitcoin (CRYPTO:BTC) is at $79,883, only down 1% over the past 24 hours, leaving the coin comparatively steady while the equities tied to it retreat. MARA Holdings (NASDAQ:MARA) stock is down 4% to $6.77; this matches the declines in Riot stock and Strategy stock and confirms that the selling runs across Bitcoin-linked names. That divergence between the coin and its related equities points to pressure specific to the stocks.
For a sector read, the CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) is down 2% to $28.36, a softer decline than Riot, Strategy or MARA shares. Across the broader market, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.6% to $764.15, which sets the Bitcoin-linked group apart from equities overall.
Selling Concentrates in Bitcoin-Linked Stocks Riot’s shift toward AI data centers also ties it to the concerns about debt-funded AI infrastructure that have weighed on similar companies this month.
Building data center capacity requires heavy upfront spending, and those concerns focus on how developers fund that work. These issues can land harder on Riot stock, which already swings with Bitcoin and now carries a second source of risk.
Miners and Strategy Carry Different Bitcoin Risks Mining is the common thread for Riot and MARA. That ties each company’s results to the coin’s price and to the cost of running and expanding its facilities. Part of Riot’s business has been converting toward data center capacity for AI computing, giving the company a revenue stream that doesn’t hinge on Bitcoin alone.
Strategy’s model centers on holding Bitcoin on its balance sheet as a treasury asset, which ties the company directly to the coin’s price. That structure spares Strategy the facility costs that Riot and MARA shoulder, but it leaves the stock with few offsets when sentiment toward Bitcoin turns negative, though the upside works the same way, since a stronger coin price would flow straight through to the value of Strategy’s treasury.
What the Selloff Means for Riot’s Data Center Shift Riot’s next test is whether its data center expansion keeps drawing customers while Bitcoin holds its current level. Steady demand from AI tenants could give Riot a revenue source that protects its mining business when the coin stalls. Any slowdown in new tenant commitments could leave Riot stock more exposed to swings in Bitcoin.
Funding is another unresolved piece, since the debt concerns hanging over AI infrastructure developers could shape how cheaply Riot raises capital for new capacity. Shareholders can watch for signs that Riot secures financing on terms that keep its balance sheet sound. Clear progress on that front may help separate Riot from the rest of the Bitcoin-linked pack.
Strategy and MARA remain tied to the coin, so a stronger Bitcoin price could lift both stocks while further weakness might deepen the decline. The CoinShares WGMI fund offers a broader read on whether the pressure spreads across the mining group. Position sizes should stay modest until Riot’s data center financing question resolves.
Contact [email protected] for any questions or corrections.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Cloudflare (NET - Free Report) .
Cloudflare currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 20 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 62.5% and 6.3% of all recommendations.
Brokerage Recommendation Trends for NET
Check price target & stock forecast for Cloudflare here>>>
While the ABR calls for buying Cloudflare, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NET a Good Investment?Looking at the earnings estimate revisions for Cloudflare, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.26.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cloudflare. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cloudflare.
New cloud-delivered service brings advanced AI guardrails and inspection to FortiGate firewalls, backed by continued FortiAIGate innovation | Source: Fortinet, Inc.
Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the new FortiGuard Inline AI Security Service, delivering AI-specific inspection and guardrails to FortiGate customers through a cloud-delivered service. Organizations gain deeper visibility into AI activity and stop AI threats and data exposure through the Fortinet solutions they already use. Ongoing innovation in FortiAIGate powers these capabilities with high-performance AI guardrails, expanded access and compliance controls, shadow AI and agent visibility, and technology from the recent acquisition of Virtue AI.
Fortinet’s broad FortiGate footprint gives organizations a simpler path to adopt advanced AI security through the infrastructure they already use. Customers can enable the FortiGuard Inline AI Security Service without deploying and managing separate AI security infrastructure, making advanced AI security accessible to a broader set of organizations. Customers with more advanced security, privacy, and sovereignty requirements can deploy FortiAIGate directly in their own environment for greater control over how and where AI traffic and data are processed.
“Organizations need AI security that can scale with how quickly AI is being adopted across the enterprise,” said Michael Xie, Founder, President, and Chief Technology Officer at Fortinet. “By extending advanced AI inspection and guardrails through FortiGate, we are making AI security available through the infrastructure customers already use. FortiAIGate provides the foundation for this broader strategy, giving customers flexibility in how they deploy and consume AI security based on their cost, performance, privacy, and sovereignty requirements.”
Cloud-Delivered AI Security through Fortinet Infrastructure
With the FortiGuard Inline AI Security Service, FortiGate customers gain deeper visibility into AI activity and stop AI-specific threats and sensitive data exposure through infrastructure they already use. FortiAIGate-based guardrails inspect prompts and data in real time and enforce security, compliance, and data protection policies across interactions with agents, large language models (LLMs), and Model Context Protocol (MCP) tools.
The service goes beyond existing Fortinet capabilities for discovering shadow AI usage and applying data loss prevention (DLP) policies to AI traffic. It extends protection beyond identifying AI use and sensitive data movement to inspecting the content of AI interactions and masking sensitive data without adding new infrastructure to deploy and manage.
Context-Aware AI Security for Applications and Agents
With AI moving into production, LLMs and autonomous agents gain access to sensitive data, business applications, and critical workflows. Traditional security tools inspect IPs, signatures, and payloads, but they do not assess prompts and responses for potential threats. AI-specific threats hide in prompts, model responses, and MCP tool communications and can trigger harmful tool calls, API calls, and autonomous agent actions.
FortiAIGate addresses these risks by providing a real-time control point between AI applications and models, analyzing interactions, and enforcing policy in real time based on the model, application, user role, and business context. Organizations can:
Stop AI attacks and data leaks in real time: Apply multilayered AI guardrails across prompts, model responses, MCP tool calls and responses, API activity, and agent actions. Dynamic inspection covers text, images, audio, video, and code, delivering industry-leading low latency and minimal false positives. Expanded DLP detects 35 types of personally identifiable information (PII) and confidential data, allowing organizations to alert, deny, or redact that sensitive information before exposure.Enforce usage policies and control AI spending: Set model permissions, budgets, spend limits, and rate limits by organization, workspace, project, or user. Administrators are alerted as spending nears a limit and requests are blocked once spending exceeds it. Malicious prompts and Denial-of-Wallet attacks are blocked before they consume tokens or GPU compute. Intelligent routing directs each request to the right model based on content, policy, and cost, with no application re-architecture.Govern AI across teams: Dedicated workspaces give teams and business units their own policies, models, logs, roles, and permissions under centralized visibility and control.Simplify compliance and auditability: Add more than 50 predefined policies with one click, spanning AI governance frameworks, data privacy laws, industry regulations, and security frameworks. Customize each policy, and give auditors detailed logs of every prompt, output, and tool call.Gain visibility into AI agents: See which agents are operating across the business and how they interact with enterprise applications, APIs, tools, data, and MCP servers.Maintain data sovereignty and deployment flexibility: Self-host FortiAIGate on-premises or in your cloud, on Kubernetes with NVIDIA GPUs. Prompts, responses, data, and logs stay inside your environment. Reducing AI Security Complexity for Enterprises
Across cloud-delivered and self-hosted deployment options, Fortinet gives organizations a more unified approach to securing AI without adding disconnected tools and operational complexity.
“FortiAIGate takes an elegant approach to a complex problem,” said Will Townsend, Chief Analyst at LoneStar Advisory & Research. “Rather than asking customers to manage separate tools for AI security, governance, cost, and agent visibility, Fortinet is bringing these capabilities together in a single gateway. The rapid integration of Virtue AI technology further strengthens that story by improving the guardrails and performance customers need as they move AI into production.”
Together, FortiAIGate and the FortiGuard Inline AI Security Service connect AI inspection and runtime controls with Fortinet capabilities spanning network, application, cloud, data, identity, and security operations. Organizations gain a more consistent approach to managing AI risk across users, applications, models, agents, and infrastructure while meeting performance, privacy, regulatory, and sovereignty requirements.
Additional Resources
Read more about FortiAIGate.Download the FortiAIGate solution brief.Read about the Fortinet AI-Native Security Fabric.Learn about the Fortinet Open Ecosystem.Visit fortinet.com/trust to learn about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.Read about how Fortinet customers are securing their organizations.Learn about Fortinet’s commitment to product security and integrity, including its responsible product development and vulnerability disclosure approach and policies.Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube. Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a Over one million lifetime customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Devon Energy (DVN - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Devon Energy is a member of the Oils-Energy sector. This group includes 254 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Devon Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DVN's full-year earnings has moved 18.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DVN has returned about 40.3% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 36.5%. This means that Devon Energy is performing better than its sector in terms of year-to-date returns.
One other Oils-Energy stock that has outperformed the sector so far this year is Baytex Energy (BTE - Free Report) . The stock is up 70.3% year-to-date.
Over the past three months, Baytex Energy's consensus EPS estimate for the current year has increased 61.5%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Devon Energy belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual companies and currently sits at #25 in the Zacks Industry Rank. On average, stocks in this group have gained 34.1% this year, meaning that DVN is performing better in terms of year-to-date returns.
Baytex Energy, however, belongs to the Oil and Gas - Exploration and Production - Canadian industry. Currently, this 7-stock industry is ranked #21. The industry has moved +65.4% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Devon Energy and Baytex Energy as they could maintain their solid performance.
Easterly Government Properties (DEA - Free Report) came out with quarterly funds from operations (FFO) of $0.78 per share, missing the Zacks Consensus Estimate of $0.79 per share. This compares to FFO of $0.76 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of -1.27%. A quarter ago, it was expected that this property management company would post FFO of $0.79 per share when it actually produced FFO of $0.78, delivering a surprise of -1.27%.
Over the last four quarters, the company has not been able to surpass consensus FFO estimates.
Easterly Government Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $93.61 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $86.15 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Easterly Government Properties shares have added about 7% since the beginning of the year versus the S&P 500's gain of 11.4%.
What's Next for Easterly Government Properties?While Easterly Government Properties has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Easterly Government Properties was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.77 on $93.45 million in revenues for the coming quarter and $3.09 on $371.93 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
COPT Defense (CDP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This real estate investment trust specializing in suburban office properties is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
COPT Defense's revenues are expected to be $196.88 million, up 4.3% from the year-ago quarter.
Have you assessed how the international operations of SLB (SLB - Free Report) performed in the quarter ended September 2026? For this world's largest oilfield services company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
In our recent assessment of SLB's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The recent quarter saw the company's total revenue reaching $9.45 billion, marking an improvement of 5.8% from the prior-year quarter. Next, we'll examine the breakdown of SLB's revenue from abroad to comprehend the significance of its international presence.
Exploring SLB's International Revenue PatternsOf the total revenue, $2.81 billion came from Middle East & Asia during the last fiscal quarter, accounting for 29.7%. This represented a surprise of +3.56% as analysts had expected the region to contribute $2.71 billion to the total revenue. In comparison, the region contributed $2.57 billion, or 28.7%, and $3 billion, or 33.6%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Latin America contributed $1.75 billion in revenue, making up 18.5% of the total revenue. When compared to the consensus estimate of $1.71 billion, this meant a surprise of +2.43%. Looking back, Latin America contributed $1.71 billion, or 19.1%, in the previous quarter, and $1.48 billion, or 16.6%, in the same quarter of the previous year.
Europe & Africa accounted for 25.8% of the company's total revenue during the quarter, translating to $2.44 billion. Revenues from this region represented a surprise of -2.89%, with Wall Street analysts collectively expecting $2.51 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe & Africa contributed $2.39 billion (26.6%) and $2.43 billion (27.3%) to the total revenue, respectively.
Anticipated Revenues in Overseas MarketsIt is projected by analysts on Wall Street that SLB will post revenues of $10 billion for the ongoing fiscal quarter, an increase of 2.6% from the year-ago quarter. The expected contributions from Middle East & Asia, Latin America and Europe & Africa to this revenue are 31.4%, 18.6%, and 26.4%, translating into $3.14 billion, $1.86 billion, and $2.64 billion, respectively.
Analysts expect the company to report a total annual revenue of $37 billion for the full year, marking an increase of 3.6% compared to last year. The expected revenue contributions from Middle East & Asia, Latin America and Europe & Africa are projected to be 30% ($11.11 billion), 18.4% ($6.81 billion) and 26.5% ($9.79 billion) of the total revenue, in that order.
Wrapping UpSLB's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, SLB holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SLB's Recent Stock Market PerformanceThe stock has increased by 3% over the past month compared to the 1.2% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Business Services sector, which includes SLB,has increased 3.5% during this time frame. Over the past three months, the company's shares have experienced a gain of 7% relative to the S&P 500's 2.5% increase. Throughout this period, the sector overall has witnessed a 1.7% increase.
Cameco has missed earnings estimates five quarters straight while trading at a valuation that assumes near-perfection, and its October 30 report arrives just as mine shutdowns and processing problems cloud what the Street expects to be a massive rebound quarter.
Cameco (NYSE:CCJ | CCJ Price Prediction) reports third-quarter results on Thursday, October 30. The uranium producer has missed estimates five quarters in a row, and its shares sit near a 52-week low. This report will test whether a premium valuation can survive more operational issues.
A Rough Q2 Collides With Record Uranium Prices
In Q2, Cameco posted EPS of $0.13, missing the $0.26 consensus. Westinghouse, where Cameco holds a 49% interest, recorded a $10 million net loss on purchase price amortization and financing costs.
In the July release, CEO Tim Gitzel said the results “reflect normal quarterly variability.” He kept the annual production outlook unchanged even though flooding disrupted northern Saskatchewan supply routes.
The market has shown less patience. Shares trade at $79.39, down 12.57% over the past month and 13.23% year to date. That leaves the stock just above its 52-week low of $76.92, even as the long-term uranium contract price rose to a record $96.50/lb.
Consensus Expects a Sharp Rebound From a Weak Comparison
Metric
Consensus
Prior-Year Actual
YoY Growth
Q3 2026 Normalized EPS
$0.2727
$0.0502
443.2%
Q3 2026 Revenue
$753.9M
$440.8M
71.0%
FY2026 EPS
$1.4467
$1.0328
40.1%
FY2026 Revenue
$3.48B
$2.497B
39.5%
Key Lake, Cigar Lake and Westinghouse Will Set the Tone
Analysts have already cut their numbers. The Q3 EPS consensus of $0.2727 compares with $0.3521 90 days ago, and individual estimates run from $0.0800 to $0.3800. A spread that wide tells me the Street has limited visibility into operations.
First, I’ll be watching mine performance. Key Lake ran an extended Q3 maintenance shutdown to install new infrastructure. Cigar Lake only recently resumed shipping stockpiled ore after acid plant problems at Orano’s McClean Lake mill. Management has to show that the 19.5M to 21.5M lb production range still holds.
Second, Westinghouse. Management guided for a weak first half followed by a stronger second half, so Q3 should start to show that recovery. Progress on the $120 billion U.S.-South Korea framework for up to eight Westinghouse reactors would carry real weight. So would follow-through on the Energy Department’s conditional commitment to support AP1000 deployment. The reactor restart trade reaches well beyond Cameco, and we picked five ways to play it, utilities and fuel included, in a free nuclear report.
Third, you should look at pricing. Market-related contracts made up 69% of Q1 revenue, compared with 51% a year earlier. With 230M lbs already committed under long-term contracts, any new deals signed at record term prices would strengthen the outlook for 2027.
Performance Has to Catch Up to an 89x Multiple
Cameco trades around 89x trailing earnings, 52x forward earnings and 68x EV/EBITDA. Analysts remain bullish, with 8 Strong Buy ratings, 11 Buy ratings and a $125.60 average target. Still, the shares fell on each of the last five earnings days. A clean quarter with guidance intact would give the nuclear story fresh credibility. Another miss would show how much patience that premium can still buy.
Contact [email protected] for any questions or corrections.
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Consolidated Edison (ED - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Consolidated Edison is one of 111 companies in the Utilities group. The Utilities group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Consolidated Edison is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ED's full-year earnings has moved 0.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ED has returned about 16.5% since the start of the calendar year. Meanwhile, the Utilities sector has returned an average of 1.3% on a year-to-date basis. This shows that Consolidated Edison is outperforming its peers so far this year.
Another Utilities stock, which has outperformed the sector so far this year, is Enel Chile (ENIC - Free Report) . The stock has returned 8% year-to-date.
Over the past three months, Enel Chile's consensus EPS estimate for the current year has increased 4.6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Consolidated Edison belongs to the Utility - Electric Power industry, which includes 63 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, stocks in this group have gained 1.6% this year, meaning that ED is performing better in terms of year-to-date returns. Enel Chile is also part of the same industry.
Investors with an interest in Utilities stocks should continue to track Consolidated Edison and Enel Chile. These stocks will be looking to continue their solid performance.
INVH heads into Q3 earnings with revenue and FFO growth in focus, supported by strong renewal pricing, healthy rental demand and improving supply conditions.
ESS heads into Q3 earnings with rental demand and limited housing supply supporting growth, while West Coast leasing trends and rent increases remain key drivers.
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.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value 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 are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum 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.
#1 (Strong Buy) stocks have produced an unmatched +23.82% 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 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.
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: Expeditors International (EXPD - Free Report) Expeditors International of Washington, Inc. is a leading third-party logistics (3PL) provider. The company, based in Bellevue, WA, is engaged in the business of global logistics management worldwide, including international freight forwarding and consolidation, for both air and ocean freight.
EXPD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Transportation stock. EXPD has a Momentum Style Score of B, and shares are up 4.7% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $7.77 per share. EXPD boasts an average earnings surprise of +17.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EXPD 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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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: Corning (GLW - Free Report) New York-based Corning Incorporated started out as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets. Corning reports its business through four reportable segments, while Life Sciences and Emerging Growth Businesses encompasses operations that do not meet the criteria for separate reportable-segment classification.
GLW is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. GLW has a Growth Style Score of A, forecasting year-over-year earnings growth of 31% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $3.30 per share. GLW boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, GLW should be on investors' short list.
A group of senior creditors to JetBlue Airways has reportedly hired financial and legal advisors as the airline faces mounting financial pressure, falling bond prices and rising fuel costs that have complicated turnaround efforts.
The creditors are working with investment bank PJT Partners and law firm Akin, according to The Wall Street Journal, which cited people familiar with the matter.
JetBlue's roughly $2 billion in senior secured notes due in 2031 fell to approximately 42 cents on the dollar Thursday before recovering to the mid-40-cent range Friday, the Journal reported. Last month the bonds were trading near 80 cents.
Bloomberg separately reported that the creditor group includes holders of the $2 billion in bonds and a $742 million secured loan.
JETMAKER BOMBARDIER DOUBLES DOWN ON US INVESTMENT IN DEAL TOUTED BY TRUMP
A JetBlue Airways Airbus A321 airplane approaches San Diego International Airport for a landing from Boston on April 20, 2025, in San Diego, California. (Kevin Carter/Getty Images)
The developments come as JetBlue struggles to restore profitability while managing approximately $8.5 billion in debt and finance lease obligations, according to its second-quarter filing with the Securities and Exchange Commission. The airline's shares have also fallen roughly 58% since the beginning of August, the Journal reported.
While creditors sometimes hire advisors to assess their options when a borrower faces financial difficulties, such moves do not necessarily signal an imminent bankruptcy or debt restructuring.
JetBlue reported a net loss of $247 million in the second quarter, compared with a $74 million loss a year earlier. Revenue rose 14.5% to $2.7 billion, but operating expenses climbed 20.8%, driven largely by higher fuel costs.
JetBlue reported a net loss of $247 million in the second quarter, compared with a $74 million loss a year earlier. (Beata Zawrzel/NurPhoto via Getty Images)
Aircraft fuel expenses surged 80.7% year over year to $911 million, with the average price per gallon rising to $4.23 from $2.40.
Higher jet fuel prices linked to the Iran war have pressured airlines across the U.S., squeezing profit margins despite resilient travel demand and higher airfares.
FAA PROPOSES $350K FINE AGAINST CHARTER COMPANY OVER UNAUTHORIZED FLIGHTS
In September, JetBlue raised its third-quarter fuel price estimate to $3.96 per gallon from $3.49 while also increasing its projected nonfuel operating costs. However, the airline raised its revenue outlook, citing strong travel demand and a favorable pricing environment.
The developments come as JetBlue struggles to restore profitability while managing approximately $8.5 billion in debt and finance lease obligations. ( Eva Marie Uzcategui/Bloomberg via Getty Images)
JetBlue has sought to shore up its finances, including through a $500 million aircraft-backed financing agreement reached in April. As of June 30, the airline reported approximately $2.2 billion in unrestricted cash, cash equivalents and investment securities, along with a $600 million undrawn credit facility.
In April, JetBlue CEO Joanna Geraghty told employees the airline was not considering bankruptcy in 2026, according to an internal memo reviewed by Reuters. She also said JetBlue had ample liquidity and access to additional capital.
Ticker Security Last Change Change % JBLU NO DATA AVAILABLE - -
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The airline has continued pursuing its JetForward turnaround strategy, which management said in July had generated $470 million in cumulative incremental earnings before interest and taxes through June.
A JetBlue representative told the Journal that the airline remained focused on strengthening revenue and building a more profitable business.
JetBlue is scheduled to report third-quarter earnings Tuesday, Oct. 27, offering investors a fresh look at its financial health and turnaround efforts.
CLICK HERE TO GET FOX BUSINESS ON THE GO
PJT Partners declined to comment.
FOX Business reached out to JetBlue and Akin for comment.
A creditor group hiring restructuring advisers has sent JetBlue Airways into a freefall while rival carriers climb, raising hard questions about whether the airline's turnaround plan can outrun its mounting debt obligations.
A creditor group preparing for a possible restructuring has made JetBlue Airways (NASDAQ:JBLU) the lone casualty in an otherwise firm airline sector. JetBlue Airways stock has fallen 16% to $2.22, a decline that shows shareholders pricing in real balance-sheet risk at the discount carrier.
At the same time, United Airlines Holdings (NASDAQ:UAL | UAL Price Prediction) stock is up 3% to $100.75, moving in the opposite direction from its smaller rival. Delta Air Lines (NYSE:DAL) stock is up 2% to $78.19, a second legacy-carrier gain that keeps the pressure isolated on JetBlue Airways. Both carriers fly the same domestic skies as JetBlue Airways, which makes the gap between the three stocks stand out.
Fund-level moves confirm how narrow the selling is. Meanwhile, the U.S. Global Jets ETF (NYSEARCA:JETS) is up 0.8% to $26.32, so the airline basket is climbing even with JetBlue Airways among its members. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.85% to $766.44, which leaves JetBlue Airways out of step with both the airline group and the broad market.
JetBlue’s Creditors Hire Restructuring Advisers
JetBlue Airways creditors have hired two restructuring specialists. The group, including holders of the airline’s senior bonds and a first-lien loan, brought in an advisor and a law firm, according to a Wall Street Journal report late last week. Those bonds, which are backed by collateral tied to the JetBlue Airways loyalty program, have fallen to record lows along with the loan and the stock. Creditor groups typically bring in such advisers to organize their bargaining position before any talks over a borrower’s obligations.
So far, JetBlue Airways hasn’t commented on the adviser hirings. In April, the airline’s chief executive told employees that the company wasn’t considering bankruptcy this year. The creditor move lands as higher jet fuel costs weigh on airlines and before JetBlue Airways releases its third-quarter 2026 report.
United Airlines and Delta Climb While JetBlue Airways Carries the Credit Risk
A loyalty and interline partnership called Blue Sky links JetBlue Airways and United Airlines commercially, giving travelers mutual benefits across both networks. However, shares of the two partners are moving in opposite directions, with the credit concern falling entirely on the more indebted one.
Loyalty-backed debt adds another layer to the comparison. Collateral for the senior bonds at JetBlue Airways is tied to its TrueBlue program, placing a core commercial asset at the center of any creditor negotiation. Bondholders with a claim on that collateral could gain significant leverage if formal talks begin.
What the Creditor Move Means for JetBlue Airways
JetBlue Airways’ upcoming third-quarter report is the next major test, particularly on whether management addresses the airline’s debt and cash position, and shareholders can watch for whether the report lays out a path for the obligations owed to bond and loan holders. The company’s response to the advisor hirings, whenever it comes, is another potential catalyst for the stock.
JetBlue Airways is pursuing its multi-year JetForward turnaround plan. On the bull side, the effort focuses on revenue optimization, cost discipline, network restructuring and product upgrades to restore sustained profitability. A credible update on that effort could ease some pressure on the stock, while fresh silence on liquidity may leave the creditor overhang in place.
United Airlines stock and Delta stock remain the firmer legacy names in the group, though higher jet fuel costs still hang over the whole industry. JBLU stock traders may prefer to keep their exposure limited until JetBlue Airways’ creditor dispute resolves.
Contact [email protected] for any questions or corrections.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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: Lam Research (LRCX - Free Report) Fremont, CA-based Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. It serves the related markets that rely on semiconductor processes and require production-proven manufacturing capabilities, such as complementary metal-oxide-semiconductor image sensors and micro-electromechanical systems (MEMS).
LRCX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. LRCX has a Growth Style Score of B, forecasting year-over-year earnings growth of 63.2% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.16 to $9.48 per share. LRCX also boasts an average earnings surprise of +6.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LRCX should be on investors' short list.
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--Enterprises in the U.S. are asking Workday service providers to support AI adoption, platform expansion and continuous optimization, ISG says.
Dell Technologies (DELL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this computer and technology services provider have returned -18.9% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Computer - Micro Computers industry, to which Dell Technologies belongs, has gained 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Dell Technologies is expected to post earnings of $6.63 per share for the current quarter, representing a year-over-year change of +156%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $26.09 points to a change of +153.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $30.24 indicates a change of +15.9% from what Dell Technologies is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Dell Technologies.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Dell Technologies, the consensus sales estimate for the current quarter of $50.63 billion indicates a year-over-year change of +87.5%. For the current and next fiscal years, $195.68 billion and $230.9 billion estimates indicate +72.3% and +18% changes, respectively.
Last Reported Results and Surprise HistoryDell Technologies reported revenues of $46.97 billion in the last reported quarter, representing a year-over-year change of +57.7%. EPS of $7.04 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $45.34 billion, the reported revenues represent a surprise of +3.6%. The EPS surprise was +41.65%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Dell Technologies is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Dell Technologies. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Dell Technologies (DELL - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Dell Technologies is a member of the Computer and Technology sector. This group includes 619 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dell Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DELL's full-year earnings has moved 41.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, DELL has moved about 262.6% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 13.9% on a year-to-date basis. As we can see, Dell Technologies is performing better than its sector in the calendar year.
CDW (CDW - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 21.2%.
In CDW's case, the consensus EPS estimate for the current year increased 1.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Dell Technologies belongs to the Computer - Micro Computers industry, which includes 5 individual stocks and currently sits at #26 in the Zacks Industry Rank. On average, stocks in this group have gained 33.1% this year, meaning that DELL is performing better in terms of year-to-date returns.
CDW, however, belongs to the Computers - IT Services industry. Currently, this 45-stock industry is ranked #92. The industry has moved -5.5% so far this year.
Investors interested in the Computer and Technology sector may want to keep a close eye on Dell Technologies and CDW as they attempt to continue their solid performance.
OLDWICK, N.J.--(BUSINESS WIRE)-- #insurance--AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to TMHCC (CI) Insurance SPC Ltd. [TMHCC (CI) or the company] (Cayman Islands). The outlook assigned to these Credit Ratings (ratings) is stable.The ratings reflect TMHCC (CI)'s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk ma.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSM, SKHY, ASML, MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Investors in Elevance Health, Inc. (ELV - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 15, 2027 $500 Put 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 Elevance Health shares, but what is the fundamental picture for the company? Currently, Elevance Health is a Zacks Rank #2 (Buy) in the Medical Services industry that ranks in the Bottom 38% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.54 per share to $2.40 in that period.
Given the way analysts feel about Elevance Health 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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MDLZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered investment and/or tax advice. I am a private investor from Europe and share my investing journey here on Seeking Alpha. I am neither a licensed investment advisor nor a licensed tax advisor. Furthermore, I am not an expert on taxes and related laws—neither in relation to the U.S. nor other geographies/jurisdictions. It is not my intention to give financial and/or tax advice, and I am in no way qualified to do so. Although I do my best to make sure that what I write is accurate and well-researched, I cannot be held responsible and accept no liability whatsoever for any errors, omissions, or consequences resulting from the enclosed information. The writing reflects my personal opinion at the time of writing. If you intend to invest in the stocks or other investment vehicles mentioned in this article—or in any investment vehicle generally—please consult your licensed investment advisor. If uncertain about tax-related implications, please consult your licensed tax advisor.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Buy PBR. The selloff is mostly political “state control” fear, but the stock is already pricing a worst-case fuel intervention. Offsetting facts: record output (3.34m boe/d), and a clear near-term cash signal—R$17.4bn Q2 payouts in Nov/Dec plus a 2026–2030 ordinary dividend plan of $45–$50bn. If Lula’s policy is less aggressive than feared, the rerating is fast because the dividend math is visible.
Key Risk: A new fuel-price intervention that forces a dividend cut or delays payouts.
Itaú Unibanco (ITUB)
Buy ITUB. The drop (far bigger than the real’s move) looks like panic repricing of a “fiscal accident” that the fundamentals don’t support. Core strength is intact: recurring net income up, ROE strong, core capital ratio at 12.3%, delinquency steady at 1.9%, and cost of credit stable at 2.7%. If rates stop rising and credit stays contained, the market will unwind the over-discount.
Key Risk: Credit losses jump because sovereign yields stay high and the economy slows, pushing delinquency and cost of credit higher.
Brazilian markets prepared for one outcome and received another. Luiz Inácio Lula da Silva won a fourth term in Sunday’s runoff, beating Flávio Bolsonaro with 51.8% of valid votes to 48.2%, a margin of about 4.4 million ballots.
It is the first time since direct elections returned in 1989 that a candidate has won a runoff after trailing in the first round, and Bolsonaro has not conceded.
Investors had positioned for the opposite result. The Ibovespa set a record close on Oct. 5 after Bolsonaro’s first-round lead, and the iShares MSCI Brazil ETF fell nearly 20% overnight as real futures lost about 10%.
That said, three Brazilian stocks look better placed than the index to recover.
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Petrobras is set for dividend focus as politics shifts fuel policy risk.
51% of retail investor accounts lose money when trading CFDs with this provider.
Petrobras stock tanked roughly 17% in trading on Monday as investors priced in a state-controlled company answering to a re-elected president who has pushed it to invest more.
The worry is pricing: analysts have warned that domestic fuel sits below international levels, a gap that favors consumers over shareholders.
Against that, the company approved R$17.4 billion in Q2 payouts, due in “two installments” in November and December, and its 2026-2030 plan promises $45 billion to $50 billion in ordinary dividends.
Output also reached a record 3.34 million barrels of oil equivalent a day in the second quarter.
A dividend cut, or deeper fuel-price intervention, would undercut the case, though.
Vale shares gained 6% in trading, bucking the trend. The company today is overcoming the weakness that comes with a weaker real, as iron ore is sold in dollars while much of its cost base is in reais.
A weaker real, along with diesel and freight charges, accounted for an 18% rise in Q2 all-in iron ore costs to $61.60 a ton.
Pro forma EBITDA rose 19% to $4.1 billion that quarter, and net debt stood at 0.8 times EBITDA.
Itaú BBA noted in August that VALE shares traded at 4.2 times 2026 enterprise value to EBITDA.
Iron ore prices, which have corrected, and Chinese demand remain the swing factors.
Itaú Unibanco fell about 24% in trading, a drop well beyond the real’s slide that prices the country’s largest private bank for a fiscal accident.
But its latest financials describe a sturdier business: second-quarter recurring net income of R$12.4 billion, up 7.8% from a year earlier; a 24.3% return on equity; a 12.3% core capital ratio; and delinquency on the expanded portfolio steady at 1.9%.
Cost of credit has held at 2.7% of the portfolio since early 2025.
Higher sovereign yields and the unwinding of rate-cut bets could raise credit costs and slow loan growth, which is the central risk.
The capital position gives Itaú room to absorb that, and the share price now assumes it needs to.
A mixed report for Verizon (VZ) adds pressure for the legacy telecom company to maintain positioning. Diane King Hall discusses how a hike in full-year guidance isn't enough to fend off fears from SpaceX (SPCX) capturing market share.
Digital transformation remains a primary driver for enterprise efficiency, placing Adobe (ADBE -1.02%) and Docusign (DOCU -0.28%) at the center of many corporate budgets. Deciding between them requires balancing established scale against specialized growth.
Adobe is the industry standard for creative professionals and digital marketers, offering comprehensive software suites. Docusign provides the essential infrastructure for creating and managing digital agreements across global industries. Both companies are now integrating artificial intelligence to enhance their core product offerings.
The case for AdobeAdobe provides a wide array of digital media and experience tools, ranging from the iconic Photoshop to complex marketing analytics platforms. The company operates in the competitive landscape for tech stocks, but its scale offers a unique advantage. Adobe relies on an expansive partner ecosystem and direct enterprise sales to reach its audience of creators and business professionals.
In the fiscal year ended Nov. 28, 2025, revenue reached nearly $23.8 billion, representing growth of roughly 10.5% over the prior fiscal year. The company reported net income of approximately $7.1 billion for the same period. This resulted in a strong net margin, which measures how much profit a company keeps from every dollar of sales, of close to 30%.
According to its November 2025 balance sheet, Adobe maintains a debt-to-equity ratio of 0.6x. This ratio compares total debt to shareholder equity to show how a company finances its operations. The current ratio, which measures the ability to pay short-term obligations, stands at 1.0x. Adobe generated roughly $9.9 billion in free cash flow, which is the cash remaining after paying for operating costs and equipment.
The case for DocusignDocusign is pivoting from a pure e-signature provider to a leader in Intelligent Agreement Management. The company supports over 1.8 million customers through its direct sales teams and strategic partnerships with Salesforce (CRM -0.26%), Microsoft (MSFT +0.99%), and SAP (SAP +1.13%). It also maintains deep integrations with ServiceNow (NOW -1.19%) and Workday (WDAY +0.54%) to streamline business workflows.
In the fiscal year ended Jan. 31, 2026, revenue reached approximately $3.2 billion, an increase of roughly 8.2% year over year. The company reported net income of close to $309.1 million during this period. Its net margin for the latest fiscal year was approximately 9.6%, reflecting its continued investment in its new platform and expansion efforts.
As of its January 2026 balance sheet, Docusign carries a debt-to-equity ratio of 0.1x. Its current ratio is roughly 0.7x, indicating that current assets cover a portion of its short-term liabilities. The company produced nearly $1.1 billion in free cash flow. Note that stock-based compensation accounted for roughly 53.4% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.
Risk profile comparisonAdobe faces intense competition from established global companies, AI-native firms, and cloud-based entrants, which could put pressure on its pricing. The company operates in a rapidly evolving regulatory environment concerning data privacy, including the EU AI Act and GDPR, which may increase compliance costs. Additionally, its subscription-based model requires consistent renewal rates, which could be impacted by global economic conditions or customer attrition.
Docusign is substantially dependent on its e-signature product for revenue, and failure to drive adoption of its new agreement management platform could harm the business. The company faces ongoing cybersecurity risks, as unauthorized access to sensitive customer data could lead to reputational damage and legal liability. Docusign also relies on third-party cloud infrastructure, including Microsoft Azure, and partner integrations, the failure of which could disrupt its essential services.
Valuation comparisonAdobe currently trades at a lower multiple relative to its future earnings estimates and sales compared to the valuation assigned to Docusign in the current market.
MetricAdobeDocusignForward P/E11.1x18.3xP/S ratio4.1x4.7xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
The P/S ratio compares the market value of the company to its sales over the past twelve months. The Forward P/E ratio helps investors understand what they are paying for each dollar of forecasted profit based on future earnings estimates.
When comparing Adobe and Docusign, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.
To start, there's growth. Over the last three years, Adobe has averaged 11.4% year-over-year revenue growth. Meanwhile, Docusign has averaged 8.2%. That gives Adobe a modest, but not insignificant, advantage in this category.
Another factor to consider is each company's profitability. Again, using the last three years as a guide, it's clear that Adobe has maintained a steady lead. Adobe's average operating margin over the last three years is 36.1%, while Docusign has averaged just 6.9%.
Last, there's valuation. Since Docusign's profitability has been volatile, let's use price-to-sales (P/S) to get a sense of each stock's valuation in recent years. Dating back to 2023, Adobe was the more expensive stock on a P/S basis. In fact, in 2023, Adobe's P/S multiple was around 14x, while Docusign's was only about 4x. However, over the years, Adobe's valuation has moderated, while Docusign's has stayed nearly unchanged. As a result, Adobe is now slightly more affordable than Docusign with a P/S ratio of 4.1x, while Docusign has a P/S ratio of 5.1x.
In summary, these two stocks each demonstrate decent growth, profitability, and valuation. However, in a head-to-head matchup, many investors may favor Adobe given its modest lead in growth, sizable lead in profitability, and slight edge in valuation.
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.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM 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.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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: DocuSign (DOCU - Free Report) Docusign, Inc., founded in 2003 and headquartered in San Francisco, is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a suite of cloud applications designed to automate and connect the entire agreement process. Its products support agreement preparation, execution, analysis and management.
DOCU is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. DOCU has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.1% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.07 to $4.61 per share. DOCU boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DOCU should be on investors' short list.
, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leader in cloud-native cyber risk management, today announced that the company will report its financial results for the third quarter 2026 after the market closes on Monday, November 9, 2026.
Qualys will host a conference call and live webcast to discuss its third quarter 2026 financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Monday, November 9, 2026. To access the conference call, please register here. A live webcast of the earnings conference call, investor presentation, and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a leader in cloud-native cyber risk management, helping organizations measure, communicate, and eliminate cyber risk. The Qualys platform and its solutions power the Risk Operations Center (ROC), unifying asset visibility, exposure management, risk prioritization, and remediation to help organizations continuously reduce risk across hybrid, multi-cloud, endpoint, and AI environments. Qualys equips security and IT teams for the Frontier AI Era with AI-speed detection, hyper-prioritization, and autonomous remediation. Trusted by more than 10,000 organizations globally, including most of the Fortune 100, Qualys helps customers transform cybersecurity into a measurable business function that strengthens resilience and drives business outcomes. For more information, please visit www.qualys.com.
Qualys and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.
The market expects Marriott International (MAR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 2, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis hotel company is expected to post quarterly earnings of $2.86 per share in its upcoming report, which represents a year-over-year change of +15.8%.
Revenues are expected to be $7.04 billion, up 8.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.21% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Marriott?For Marriott, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.52%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Marriott will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Marriott would post earnings of $3.06 per share when it actually produced earnings of $3.19, delivering a surprise of +4.25%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Marriott appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerCiveo (CVEO - Free Report) , another stock in the Zacks Hotels and Motels industry, is expected to report loss per share of $0.27 for the quarter ended September 2026. This estimate points to a year-over-year change of -575%. Revenues for the quarter are expected to be $174.05 million, up 2.1% from the year-ago quarter.
The consensus EPS estimate for Civeo has been revised 6.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -37.20%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Civeo will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The Zacks Automotive – Foreign industry is likely to see a mixed outlook in the coming months. In Europe, registrations are rising, but the growth now comes from electrified vehicles, which are displacing petrol and diesel models rather than simply adding to sales. China’s domestic market is in sharp decline, with weak consumer spending and a property slump hurting demand, while exports and a rising NEV share offer some support. Japan is growing modestly, helped by tax changes and cleared order backlogs, though forecasts point to a softer 2026 and 2027. Overall, automakers are likely to operate in an uneven demand environment, with growth varying sharply by region.
Against this backdrop, Toyota Motor (TM - Free Report) , Honda Motor (HMC - Free Report) and Polestar Automotive (PSNY - Free Report) stand out for their electrified offerings and are worth buying now.
Industry Overview
Companies in the Zacks Automotive – Foreign industry are involved in the design, manufacture and sale of vehicles, components and production systems. The industry is highly dependent on business cycles and overall economic conditions. China, Japan, Germany and India are among the leading automotive manufacturing countries. The widespread adoption of advanced technologies is reshaping the industry, while stricter emission and fuel-efficiency norms, expanding charging infrastructure and supportive government policies are driving the adoption of green vehicles. As automakers intensify their electrification efforts, competition continues to increase. Companies are also investing heavily in the research and development of electric and autonomous vehicles, fuel-efficient technologies and low-emission solutions.
Key Investing Themes
Europe’s Electrified Vehicles Now Drive the Market: Europe’s car market is growing despite a tough backdrop. According to European Automobile Manufacturers’ Association, new passenger car registrations in the EU rose 5.7% year to date to about 8.52 million units, even as energy prices kept climbing and geopolitical tensions weighed on sentiment. The growth is coming almost entirely from electrified vehicles. Hybrids are the most popular choice among buyers, while battery-electric cars hold 22.7% of the market and plug-in hybrids 10.1%. Government buyer incentives and a wider range of models are helping sustain this demand, especially in the larger European economies. Electrified cars are no longer a side segment adding to sales; they are taking share from petrol and diesel models. As this momentum continues, a carmaker’s standing in Europe will depend largely on how strong its electrified line-up is.
China’s Exports Cushion a Weak Home Market: China’s domestic car market is under heavy pressure. Per China Passenger Car Association, September passenger vehicle sales dropped 28.1% year on year to 1.63 million units, the 12th straight monthly fall and a sharper slide than August’s 23.7%. Weak consumer spending and a long property slump are the main reasons. Retail sales for the first nine months fell 22% to 13.33 million units against growth of over 9% a year earlier. Two things are still supporting the industry. Exports are growing as automakers look abroad, and new energy vehicle sales are climbing. New energy vehicle sales reached a record 66.5% of total vehicle sales in September. Forecasts remain cautious. The CPCA expects domestic sales to fall about 22% to 18.5 million in 2026, then recover by a modest 2% in 2027 as short-term pressures fade, costs ease and products improve.
Japan’s Growth Modest but Outlook Soft: Japan’s vehicle market is growing slowly but steadily. Per Just Auto, in the first nine months of the year, sales rose 2.3% to about 3.55 million units, following a 5% gain a year earlier. Passenger vehicles grew 1.3% to 2.96 million, while trucks did better, up 7.4% to 574,606 units, led by a 12% jump in light trucks. Two factors have supported demand over the last five months— the end of the prefectural Environmental Performance Tax in March, and manufacturers clearing their order backlogs. Consumer sentiment is also improving as household incomes rise, offsetting interest rate hikes and higher living costs. That said, GlobalData expects light vehicle sales in the country to slip 1% to 4.47 million units in 2026, then fall a further 4% to 4.32 million in 2027.
Zacks Industry Rank Is Encouraging
The Zacks Automotive – Foreign industry within the broader Zacks Auto-Tires-Trucks sector currently carries a Zacks Industry Rank #101, which places it in the top 41% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates a strong near-term outlook. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Before we present a couple of stocks that are worth adding to your portfolio, let’s look at the industry’s recent stock market performance and current valuation.
Industry Lags Sector & S&P 500
The Zacks Automotive – Foreign industry has underperformed the Auto, Tires and Truck sector and the Zacks S&P 500 composite over the past year. The industry has lost 23.6% compared with the sector’s decline of 11.7%. The S&P 500 has risen 11%.
One-Year Price Performance
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio.
Based on the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 10.96X compared with the S&P 500’s 17.65X and the sector’s 25.3X.
Over the past five years, the industry has traded as high as 12.73X, as low as 6.97X and at a median of 9.52X, as the chart below shows.
EV/EBITDA Ratio (Past Five Years)
3 Stocks to Buy
Honda, Japan’s leading automaker, has an encouraging outlook backed by strong hybrid demand, a profitable motorcycle business and growing Financial Services earnings. Hybrids should remain a key growth driver, especially in North America, where demand and profitability compare favorably with EVs. At the same time, Honda is building for the longer term through its 0 Series EVs, battery partnerships and a planned 40-GWh joint venture with LG Energy Solution. This gives it EV upside while letting it profit from hybrids today.
The motorcycle business adds stability. It serves broad demand across large emerging markets and earns high margins, giving Honda a recurring source of income while the auto division absorbs restructuring and electrification costs. Overall, this diversified earnings base and balanced electrification approach make the risk-reward look attractive.
HMC currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for Honda’s fiscal 2027 and 2028 EPS implies year-over-year growth of 209% and 59%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: HMC
Toyota, Japan’s largest automaker, is well placed to benefit from the rising demand for hybrids. The company expects hybrid sales to climb to 5.09 million units in fiscal 2027 from 4.62 million in fiscal 2026, and it plans to add more capacity ahead of 2030. To support this, Toyota will upgrade battery lines that serve about 600,000 vehicles to next-generation technology during 2027-2028. The aim is better performance and lower costs, which should help it stay competitive as electrified vehicles take a bigger share of sales.
Its value-chain businesses, such as financing and connected services, add a steady stream of recurring earnings and reduce reliance on vehicle sales alone. Near-term prospects also look firmer. Toyota raised its fiscal 2027 consolidated sales forecast by 100,000 units to 9.70 million, citing demand in Europe and alternative logistics routes to the Middle East. Manufacturing expansion in key markets further backs its growth outlook.
Toyota currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for TM’s fiscal 2027 and 2028 EPS implies year-over-year growth of 3.5% and 15%, respectively.
Price & Consensus: TM
Polestar, a Sweden-based EV maker, had a record first half of 2026, supported by its shift to a retailer-led sales model and a growing retail network across its markets. The Polestar 4 coupe, its best seller, makes up most of the volume, and Europe remains the core region. Operations are improving. Cost discipline has lowered administrative spending, and a richer mix of higher-margin Polestar 4 cars is helping profitability.
The balance sheet is also stronger. Polestar has raised fresh equity, converted a large part of its shareholder loans into equity and extended the maturity of Volvo Cars’ remaining loan to 2031. Lower capital spending should also help reduce cash burn in the second half. New launches add momentum. The Polestar 4 SUV, aimed at a larger and growing segment, will begin deliveries in the fourth quarter, and Polestar 5 deliveries are about to start.
Polestar currently carries a Zacks Rank #2. The Zacks Consensus Estimate for PSNY’s 2026 and 2027 bottom line implies year-over-year improvement of 53% and 2.5%, respectively.
Wall Street expects a year-over-year increase in earnings on higher revenues when Celanese (CE - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 2. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis chemical company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of +13.4%.
Revenues are expected to be $2.58 billion, up 6.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Celanese?For Celanese, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -10.59%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Celanese will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Celanese would post earnings of $2.21 per share when it actually produced earnings of $2.45, delivering a surprise of +10.86%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Celanese doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Chemical - Specialty industry, Axalta Coating Systems (AXTA - Free Report) , is soon expected to post earnings of $0.71 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +6%. Revenues for the quarter are expected to be $1.33 billion, up 3.6% from the year-ago quarter.
The consensus EPS estimate for Axalta Coating Systems has been revised 0.7% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.30%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Axalta Coating Systems will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
In its upcoming report, Rivian Automotive (RIVN - Free Report) is predicted by Wall Street analysts to post quarterly loss of -$0.67 per share, reflecting an increase of 4.3% compared to the same period last year. Revenues are forecasted to be $2.02 billion, representing a year-over-year increase of 29.7%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Rivian Automotive metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenue- Software and services' should arrive at $628.79 million. The estimate indicates a change of +51.2% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Automotive' of $1.37 billion. The estimate indicates a year-over-year change of +20.2%.
Analysts' assessment points toward 'Delivery volume' reaching 19,248 . The estimate compares to the year-ago value of 13,201 .
The combined assessment of analysts suggests that 'Production volume' will likely reach 19,751 . Compared to the current estimate, the company reported 10,720 in the same quarter of the previous year.
Analysts predict that the 'Gross Profit- Software and services' will reach $230.37 million. The estimate is in contrast to the year-ago figure of $154.00 million.
View all Key Company Metrics for Rivian Automotive here>>>
Shares of Rivian Automotive have demonstrated returns of -23.5% over the past month compared to the Zacks S&P 500 composite's -1.2% change. With a Zacks Rank #2 (Buy), RIVN is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Expands Customer Engagement and Support Capabilities Across North America
Supports Growing Demand Across Leading Aerospace and Defense Customers
Provides Access to Advanced Manufacturing Solutions, Application Development and Process Evaluation
WALTHAM, Mass., Oct. 26, 2026 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM) (“Nano Dimension,” “Nano”, or the “Company”) today announced that its Essemtec business unit has relocated its U.S. headquarters to a new facility in Woburn, Massachusetts, reinforcing its established presence in the United States and supporting its continued business growth.
The relocation comes amid strong operating momentum at Essemtec, with accelerating revenue growth, expanding customer relationships and demand for its advanced electronics manufacturing solutions.
Essemtec has developed a significant presence in the aerospace and defense industries, serving leading customers with demanding requirements for precision, reliability, and manufacturing performance. The business also engages with leading global electronics manufacturing services companies serving large-scale customers, including in AI-related manufacturing applications, and has expanded deployments with leading space and satellite companies.
Accelerating Growth and Strong Market Position
Essemtec continues to deliver strong business performance, supported by growing demand across its core markets, particularly aerospace and defense.
The new U.S. headquarters strengthens customer engagement and provides customers across North America with access to equipment demonstrations, application development, and process evaluation, supporting Essemtec’s established position in the North American market and its continued growth opportunities.
Moshe Rozenbaum, Interim Chief Executive Officer of Nano Dimension, commented, “Essemtec is performing exceptionally well. We are seeing accelerating revenue growth, strong commercial momentum, and increasing demand from leading customers in the aerospace and defense industries. The quality of Essemtec's customer base is a testament to the strength of its technology and its ability to meet the demanding standards of these industries. The new U.S. headquarters reflects our confidence in the business and its growth opportunities, strengthening our ability to support customers and build on Essemtec’s commercial momentum. We believe Essemtec is well positioned to continue delivering strong operating performance and creating value for our shareholders.”
About Essemtec
Essemtec is renowned for its adaptive, highly flexible SMT pick-and-place equipment, sophisticated dispensers suitable for both high-speed and micro-dispensing, and intelligent production material storage and logistic systems. All products are equipped with advanced software packages, ensuring efficient material management and user-friendly operation. Essemtec's solutions are implemented worldwide across various industries, reflecting the company's commitment to quality and innovation.
About Nano Dimension Ltd.
Nano Dimension Ltd. (Nasdaq: NNDM) has historically delivered advanced digital manufacturing technologies, including serving customers across the defense, aerospace, automotive, electronics and medical device industry segments. For more information, please visit www.nano-di.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations regarding Essemtec’s future revenue growth, commercial momentum, customer demand and operating performance; its growth opportunities and market position, including in the aerospace and defense industries; the anticipated benefits of its new U.S. headquarters, including enhanced customer engagement, application development, process evaluation and customer support; and its ability to create shareholder value. Statements other than statements of historical fact may be forward-looking. Forward-looking statements may be identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “may,” “could,” “will,” “continue,” and similar expressions, although not all forward-looking statements contain these words.
These statements reflect management’s current expectations, beliefs and assumptions and are not guarantees of future performance. Actual results could differ materially due to risks and uncertainties, including changes in customer demand and capital spending, particularly in the aerospace, defense and electronics manufacturing markets; delays, reductions or cancellations in customer orders; competition and technological developments; supply-chain disruptions and changes in component availability or costs; changes in tariffs, trade restrictions and economic conditions; and Essemtec’s ability to realize the anticipated operational and commercial benefits of the new facility. Additional risks and uncertainties are described under “Risk Factors” in Nano Dimension’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on March 31, 2026, and in subsequent SEC filings.
Forward-looking statements speak only as of the date of this press release. Except as required by applicable law, Nano Dimension undertakes no obligation to update or revise them, whether as a result of new information, future events or otherwise. References and links to websites are provided for convenience; information on those websites is not incorporated by reference into this press release.
Key Takeaways Robinhood's Q3 revenues are projected to rise 13.1% to $1.44 billion, while earnings may decline 8.2%.Options and equity trading revenues are expected to jump 31.5% and 54.7%, offsetting a 55.7% crypto slump.Robinhood shares surged 29.9% in Q3, but premium valuation, rising expenses and regulatory risks remain.
Robinhood Markets (HOOD - Free Report) is scheduled to report third-quarter 2026 results tomorrow after market close.
After an impressive 2025 performance, momentum continued for HOOD in the first half of 2026 amid crypto weakness. Solid trading activity across options and equities amid heightened volatility led to an increase in transaction-based revenues, while a sell-off in cryptos hampered performance to some extent. The company’s events contract operations witnessed solid performance, which, along with higher net interest revenues (NIR) and a surge in Gold subscribers, was a tailwind. The company’s top line jumped 24% year over year.
HOOD is expected to have witnessed solid revenue growth in the third quarter as well. The Zacks Consensus Estimate for sales of $1.44 billion suggests 13.1% growth on a year-over-year basis.
Robinhood has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, with the average beat being 15.07%.
Earnings Surprise History
Image Source: Zacks Investment Research
In the past week, the consensus estimate for earnings has been revised 1.8% upward to 56 cents. This indicates a fall of 8.2% from the prior-year quarter.
HOOD’s Earnings Estimates
Image Source: Zacks Investment Research
With Robinhood’s upcoming earnings release drawing closer, investors may be wondering whether to buy the stock ahead of the announcement or wait for greater clarity from the results. Let’s assess the company’s prospects and key factors that could influence its performance.
Factors to Note & Estimates for HOOD’s Q3 ResultsRevenues: During the third quarter, client activity was robust, driven by heightened volatility. Hence, Robinhood’s transaction revenues are expected to have increased like its peers, Interactive Brokers Group (IBKR - Free Report) and Charles Schwab (SCHW - Free Report) .
Interactive Brokers, which released third-quarter results on Oct. 15, witnessed a 12% year-over-year rise in commissions. Schwab, which also announced quarterly numbers on Oct. 15, recorded 16% growth in trading revenues.
The Zacks Consensus Estimate for HOOD’s transaction-based revenues is pegged at $887.7 million, indicating a 21.6% increase from the prior-year quarter. This performance is likely to have been supported by higher options and equity transaction revenues. However, cryptocurrencies transaction revenues and the prediction markets business may have remained subdued during the quarter.
The consensus estimate for options transaction revenues is $399.8 million, suggesting a 31.5% jump. Further, the Zacks Consensus Estimate for equity and cryptocurrencies transaction revenues is pegged at $133 million and $118.7 million, respectively. Equity transaction revenues are projected to soar 54.7%, while cryptocurrencies transaction revenues are estimated to plunge 55.7% year over year. The consensus estimate for other transaction revenues of $51.4 million suggests a 28.6% fall.
Robinhood’s NIR is expected to have witnessed a subdued performance amid higher interest rates. The consensus estimate for the metric is $430.7 million, implying a 5.6% decline.
The Zacks Consensus Estimate for other revenues is pegged at $134.4 million, suggesting a 52.7% jump from the prior-year quarter.
Expenses: Total operating expenses are likely to have remained elevated as HOOD invests in key areas to enhance platform capabilities, drive product innovation, improve customer support and build upon regulatory and compliance functions. Further, expansion through global presence is likely to have added to expenses.
What Our Model Unveils for RobinhoodOur quantitative model shows that the chances of an earnings beat for Robinhood are high this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you see below.
Earnings ESP: Robinhood has an Earnings ESP of +0.22%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: It sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HOOD Stock Price Performance & ValuationIn the third quarter, Robinhood shares jumped 29.9% against the industry’s decline of 6.8%. It also outperformed Schwab and Interactive Brokers.
HOOD’s Q3 2026 Price Performance
Image Source: Zacks Investment Research
Now, let’s look at the value Robinhood offers investors at current levels.
Currently, HOOD is trading at 9.88X 12-month trailing price/tangible book (P/TB), above the industry’s P/TB TTM multiple of 2.95X. Hence, the stock is trading at a steep premium compared with the industry.
HOOD P/TB TTM
Image Source: Zacks Investment Research
Robinhood stock is expensive compared with Interactive Brokers and Schwab. At present, Interactive Brokers and Schwab have a P/TB TTM of 1.57X and 6.44X, respectively.
Robinhood: Investment ThesisRobinhood continues to make meaningful progress in diversifying its revenue streams and strengthening its product portfolio. Innovative product launches and international expansion (Europe, Canada, Singapore and Dubai) support its ambition to establish a comprehensive global financial platform.
HOOD’s expanding offerings appeal to younger, digitally savvy customers, while reduced dependence on transaction-based revenues reflects an evolving business model. Strong liquidity, a $1.4 billion share repurchase program, $2.2 billion in debt issuance and healthy customer engagement amid increasing digital asset adoption reinforce its competitive position.
However, heightened regulatory scrutiny, penalties and investigations across jurisdictions could raise compliance costs and complicate expansion plans. Moreover, its entry into banking introduces execution challenges in a highly competitive market, potentially weighing on near-term performance.
Robinhood stands to benefit from heightened market volatility and increased trading activity, although cryptocurrency market weakness could pressure revenues. Investments in tokenization, strategic acquisitions and product enhancements should help broaden its revenue base over time. While regulatory uncertainties and crypto-related volatility warrant a cautious near-term stance, Robinhood’s diversification efforts strengthen its long-term prospects.
How to Approach Robinhood Shares Ahead of Q3 Earnings?Robinhood presents a favorable investment opportunity ahead of its third-quarter earnings release, supported by robust trading activity, product diversification and encouraging revenue prospects. Strength in options and equities trading, alongside expanding subscription offerings, is expected to support results despite cryptocurrency-related weakness.
However, its premium valuation, elevated expenses and regulatory uncertainties could limit near-term upside. Despite these risks, Robinhood’s strategic initiatives and improving business diversification underpin its long-term prospects. Thus, investors with a higher risk appetite may consider buying HOOD shares ahead of earnings, while valuation-conscious investors may prefer awaiting greater clarity from the results.
Robinhood (HOOD -2.33%) basically forced its competitors in the discount brokerage industry to adopt free trading. And it has pushed quickly into new areas, such as cryptocurrencies and prediction markets. While this has allowed Robinhood to grow materially and meet its customers' demands, it has kept pressure on peers such as Charles Schwab (SCHW -0.07%) and Interactive Brokers (IBKR +0.80%).
But that doesn't mean Robinhood is an attractive investment right now, even after it has lost more than a third of its value from its 2025 high. Here's why you might want to tread with caution.
Image source: Getty Images.
Robinhood remains relatively expensive
Robinhood hit its all-time high of around $152 per share in late 2025. It trades at around $97 as of this writing, a decline of roughly 35%. That's a sizable drop and much larger than the declines in Schwab or Interactive Brokers, which are down roughly 15% and 20%, respectively, from their recent highs. Based on the stock price moves, you might think that this is a value opportunity.
The problem is that Robinhood's price-to-earnings ratio is around 42x. That's still much higher than its competitors, with Schwab at 16x and Interactive Brokers at 31x. Value investors probably won't be interested in Robinhood. And growth investors should probably tread with caution as well.
Robinhood's customers are new and untested
To be fair to Robinhood, the company has experienced rapid growth and managed that growth very well. As noted, it helped transform the discount brokerage industry with its free-trading model. However, the company only went public in 2021. It hasn't been public through a truly deep market downturn, like the Great Recession or the dot-com crash.
HOOD Robinhood Markets$92.86-$2.21 (-2.33%)
NASDAQ · As of 10:43 AM ET 10/26/26
Meanwhile, Robinhood specifically attempts to attract customers who are new to investing, as it looks to "democratize finance for all." That's a laudable goal, but it also means that its customers haven't been tested by a deep and prolonged bear market, either. And the company has been growing in high-risk areas, such as the aforementioned cryptocurrencies and prediction markets.
Younger, risk-taking customers may be shocked by a long-lived and painful market downturn. And that could lead them to exit the markets, perhaps permanently, as they watch their savings vanish. If they are using leverage, which has been a growing part of Robinhood's business (margin balances rose 127% year over year in the second quarter of 2026), they may have no choice but to sell.
Robinhood has done a great job of growing its business, and it is highly likely to survive any market downturn it faces. But the premium it is being afforded relative to peers, even after a deep drawdown, should probably keep most investors on the sidelines until the company and its customers have faced a test on the scale of the Great Recession or the dot-com bubble.
Charles Schwab is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and Robinhood Markets and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.
Medifast (MED - Free Report) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.4. This compares to a loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +52.50%. A quarter ago, it was expected that this weight-loss company would post a loss of $0.67 per share when it actually produced a loss of $0.28, delivering a surprise of +58.21%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Medifast, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $72.05 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 5.89%. This compares to year-ago revenues of $89.41 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Medifast shares have added about 11.1% since the beginning of the year versus the S&P 500's gain of 11.4%.
What's Next for Medifast?While Medifast has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Medifast was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.17 on $59.98 million in revenues for the coming quarter and -$1.04 on $280.44 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Vital Farms (VITL - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -138.9%. The consensus EPS estimate for the quarter has been revised 10.4% lower over the last 30 days to the current level.
Vital Farms' revenues are expected to be $184.6 million, down 7.2% from the year-ago quarter.
LifeMD Can Surge on Its GLP-1 Offerings Medifast NYSE: MED reported third-quarter 2026 revenue of $72 million, down 19.4% from a year earlier, as the company continued to face a sharp decline in its active earning coach base. Management said revenue was within its guidance range and marked a fourth consecutive quarter in which sales stabilized around the mid-$70 million range.
The company ended the quarter with approximately 10,200 active earning coaches, compared with 19,500 in the third quarter of 2025. Chief Financial Officer Jim Maloney said the decline reflects, in part, rapid adoption of GLP-1 medications across the traditional weight-loss category.
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LifeMD Shares Come Back to Life on GLP-1 Business Growth Despite the lower coach count, Medifast said coach productivity continued to improve. Average revenue per active earning coach rose 54.1% year over year to $7,064, while CEO Nick Johnson said productivity improved 54% in the third quarter and increased an estimated 8% sequentially. The company expects active earning coach counts to continue declining through year-end, while anticipating further productivity gains.
Trilivy Rollout Targets Metabolic Health Market Johnson said the quarter centered on execution of Medifast’s “3.0” strategy, including the rollout of its Trilivy brand, Reset product line, revised coach compensation plan and unified coach training platform.
Are These Consumer Staples Too Cheap for Investors To Ignore?The company is positioning Trilivy as a metabolic health platform rather than a traditional weight-loss offering. Its three-phase system includes Reset, Refine and Renew, which are intended to support clients from initial weight loss through longer-term metabolic health and body-composition goals.
Medifast said Reset Fuelings became available to coaches and clients in August, with all stock-keeping units expected to convert to the Reset line by the end of the fourth quarter. The company also introduced its MetaVantage ingredient platform, which it said is designed to support fat metabolism, waist-circumference reduction and healthy insulin levels.
Johnson cited an independent clinical study in which the Reset 5 & 1 Plan reduced visceral fat by 14% while retaining 98% of lean mass over 16 weeks. He said 95% of active earning coaches were already offering Trilivy Reset products to clients in September.
Management said the company’s updated coach compensation structure emphasizes the development of high-producing Executive Directors. Johnson said the plan was designed to improve the quality and productivity of the coach network, even as the overall number of active coaches remains under pressure.
GLP-1 Use Reshapes Client Conversations During the question-and-answer session, Johnson said GLP-1 medications have become “ubiquitous” in the marketplace and that Medifast coaches are regularly working with clients who use the medications.
He said conversations have shifted from the amount of weight a client loses to the quality of weight lost, including preserving lean mass and skeletal muscle. Johnson said Medifast views GLP-1 medications as a potential catalyst for consumers to begin a health journey, while maintaining that medications alone may not support lasting lifestyle changes.
Maloney said Medifast has survey data on the percentage of clients using GLP-1 medications but does not centrally track GLP-1 use for every customer or by individual order. As a result, he said the company could not provide specific spending comparisons between clients using GLP-1s and those solely using Medifast’s program.
Catalyst Restructuring Drives Charges, Cost Reduction Efforts Medifast recorded a $19.4 million operating loss in the third quarter, compared with a $4.1 million operating loss a year earlier. The result included charges tied to Project Catalyst, a restructuring program involving facility closures, retirement of internal-use software and other cost-realignment actions.
SG&A expense increased 4.8% to $69.4 million, driven primarily by $13.8 million in Catalyst restructuring charges. Those expenses were partly offset by a $6.6 million reduction in coach compensation and a $1.4 million decline in IT consulting spending.
On a non-GAAP basis excluding Catalyst-related expenses, Medifast’s operating loss improved 3.2% to $4 million. Adjusted EBITDA, excluding stock-based compensation and Catalyst charges, was $0.4 million, while adjusted EBITDA excluding interest income was $1.9 million.
The company reported a net loss of $17.5 million, or $1.57 per diluted share, compared with a loss of $2.3 million, or $0.21 per share, in the prior-year quarter. Excluding Catalyst-related expenses, the adjusted net loss was $2.1 million, or $0.19 per diluted share.
Maloney said Medifast continues to seek efficiencies through process improvements and artificial intelligence applications. He said management expects AI and operational changes to reduce the need to add certain fixed costs if revenue returns to growth.
Fourth-Quarter Profitability Target Remains Medifast ended September with $172.5 million in cash equivalents and investments and no debt. Johnson said the company’s balance sheet and leaner cost structure provide a foundation for investments in growth initiatives while pursuing profitability.
For the fourth quarter, Medifast forecast revenue of $55 million to $75 million and earnings per share between breakeven and $0.25. It expects adjusted EBITDA excluding interest income of $2 million to $6 million.
For full-year 2026, the company forecast revenue of $280 million to $300 million and a loss of $1.80 to $2.05 per share. On a non-GAAP basis, it expects a loss of $0.45 to $0.70 per share and adjusted EBITDA excluding interest income of $10 million to $14 million.
Johnson said Medifast remains focused on achieving profitability in the fourth quarter, while acknowledging that rebuilding the coach count remains a key challenge.
About Medifast (NYSE:MED)Medifast, Inc NYSE: MED is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.
The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, 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 The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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: Steel Dynamics (STLD - Free Report) Based in Fort Wayne, IN, Steel Dynamics, Inc. is among the leading steel producers and metal recyclers in the United States. It is one of the most diversified steel companies in the United States with a vast range of specialty products. The company makes and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products in the United States and internationally.
STLD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.26; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.90 to $18.22 per share. STLD also boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, STLD should be on investors' short list.
Key Takeaways Top-ranked EL, IMAX, SWK, STRL and PBF show strong potential to deliver earnings beats this season. Positive Earnings ESP, high Zacks Rank and surprise history boost the odds of earnings surprises. Strong earnings beats often fuel stock gains, making these five names worth watching before results.
It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
In this regard, we ran a screener that identified stocks such as The Estee Lauder Companies (EL - Free Report) , IMAX (IMAX - Free Report) , Stanley Black & Decker (SWK - Free Report) , Sterling Infrastructure Inc. (STRL - Free Report) and PBF Energy (PBF - Free Report) as likely winners on earnings-beat potential.
Why Is a Positive Earnings Surprise So Important?Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s first quarter is seasonally weak and its fourth quarter strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading when judging the true health of a company.
On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project companies' earnings. They, in fact, combine their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track record in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release.
The Winning StrategyIn order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that push up the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria have narrowed down the universe from over 7,700 stocks to only 15.
Here are five out of the 15 stocks:
The Estee Lauder Companies: This Zacks Rank #2 company is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise for EL in the past four quarters is 41.43%.
IMAX: This Zacks Rank #1 company is a leading global entertainment technology company specializing in motion picture technologies and presentations.
The average earnings surprise for IMAX in the past four quarters is 31.37%.
Stanley Black & Decker: This Zacks Rank #2 company manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.
The average earnings surprise for SWK in the past four quarters is 23.29%.
Sterling Infrastructure Inc.: The company is a diversified U.S. infrastructure services company. The stock has a Zacks Rank #2.
The average earnings surprise of STRL in the past four quarters is 27.21%.
PBF Energy: The company is a leading independent refiner of crude oil. The stock has a Zacks Rank #1.
The average earnings surprise for PBF in the past four quarters is 123.38%.
