Track market-moving stories before they get noisy

Warren Buffett is a tough act to follow. He is arguably the greatest investor of his time, transforming Berkshire Hathaway (BRKA +1.41%)(BRKB +1.40%) into a massive holding company with almost 200 subsidiaries and a $330 billion equity portfolio, and he has trounced the S&P 500 over time.

However, Greg Abel, Buffett's handpicked successor, made his mark on the company in the first quarter of 2026, his first as CEO. Here's what it looks like, and how it could change the company's trajectory.

Image source: Getty Images.

Out with the old In his first annual shareholder letter as CEO, Abel committed to upholding the values that shaped Berkshire Hathaway over the 60 years Buffett ran it. He said that "Berkshire's culture and values remain unchanged and will continue into perpetuity," and he specified the commitment to allocating capital efficiently with a business underpinned by a robust insurance operation. He echoed Buffett's maxim that the company's job is to be "exceptional stewards of our shareholders' capital."

He laid out the principles behind his investing strategy, which include:

Investing in companies that Berkshire understands and that have durable, long-term economic moats. Choosing partners with integrity who understand their own customers. Avoiding companies that could tarnish Berkshire's reputation and aren't good for society. Acting quickly and concentrating the portfolio in a few, high-conviction stocks. Staying disciplined. In the company's equity positions, Abel followed these principles when he made his moves. Most noticeable was the immediate termination of most of its smaller positions, followed by a dive straight into the fourth principle to consolidate the portfolio into fewer high-conviction positions. The equity portfolio went from 42 to 29 positions, the lowest number in more than a decade.

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In with the new Abel also expanded the company's position in Alphabet, which is a rare tech stock in the portfolio. One of the stocks closed out was Amazon, so Berkshire remains with two artificial intelligence (AI) stocks, the other being perennial Buffett favorite Apple. Apple can be viewed as a consumer goods company, but Alphabet is more of a pure-play tech stock.

While the portfolio is still highly invested in consumer goods and financial stocks, and the new positions in Macy's and Delta Air Lines are classic Buffett-style stocks, it could signal that Abel feels more comfortable understanding Alphabet and its role in the economy. As the shift to digital and AI continues at a rapid pace, it appears that Abel is willing to invest in it.

Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Key Takeaways EMCOR's electrical construction revenues rose 33.1% to a record $1.45B in first-quarter 2026.Network and communications revenues surged nearly 50% on AI infrastructure and data-center demand.EMCOR's remaining performance obligations reached a record $15.62B on strong market bookings. EMCOR Group's (EME - Free Report) electrical construction business continues to build strong momentum, supported by robust demand for mission-critical infrastructure and the company's ability to execute complex projects at scale. In the first quarter of 2026, the segment delivered record revenues of $1.45 billion, up 33.1% year over year, while maintaining an industry-leading operating margin of 12.1%. Although margins eased slightly due to acquisition-related amortization, profitability remained strong, highlighting the resilience of EMCOR's operating model.

The biggest growth driver remains network and communications, where revenues surged nearly 50% as hyperscalers and enterprises accelerated investments in AI infrastructure and data centers. Beyond this, EMCOR benefited from healthy demand across institutional projects, hospitality and entertainment, including stadium construction, as well as higher volumes of short-duration projects and service work. This broad-based demand reduces reliance on any single end market and supports sustainable long-term growth.

Looking ahead, management expects the momentum to continue. Remaining performance obligations climbed to a record $15.62 billion, driven by strong bookings across data centers, healthcare, institutional, water and wastewater and manufacturing markets. The company also continues expanding its geographic footprint while leveraging prefabrication, virtual design, workforce training and disciplined contract management to improve execution on increasingly complex projects.

With AI-driven data center construction showing no signs of slowing and diversified demand across multiple infrastructure markets, EMCOR's electrical construction segment appears well-positioned to remain a key contributor to the company's growth throughout 2026 and beyond.

How Do EMCOR's Peers Compare in Electrical Construction?Two of EMCOR's closest competitors in electrical and mechanical contracting are Quanta Services (PWR - Free Report) and Comfort Systems USA (FIX - Free Report) . Both companies are benefiting from the same secular drivers, including AI data center construction, grid modernization and expanding infrastructure investment.

Quanta continues to strengthen its electrical construction business through large-scale transmission, substation and renewable energy projects, while also increasing its exposure to data centers and communications infrastructure. Quanta has leveraged its engineering expertise and nationwide workforce to secure long-duration projects, giving it strong revenue visibility. As AI-related power demand rises, Quanta is expected to remain a key beneficiary of utility and hyperscaler spending.

Comfort Systems is also expanding its presence in mission-critical facilities through electrical, mechanical and building automation services. Comfort Systems has steadily increased its exposure to data centers, semiconductor manufacturing and advanced industrial facilities, supported by strategic acquisitions. Comfort Systems further benefits from higher-margin service work and prefabrication capabilities that improve execution and profitability.

While both Quanta and Comfort Systems are well-positioned, EMCOR's diversified project portfolio, disciplined contract management and broad geographic reach provide it with a strong competitive position in the rapidly growing electrical construction market.

EME’s Price Performance, Valuation & EstimatesShares of EMCOR have gained 26.6% year to date (YTD), underperforming the Zacks Building Products - Heavy Construction industry, as shown below.

EME YTD Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, EME stock trades at a forward 12-month price-to-earnings ratio of 24.9, below the industry’s average.

EME Valuation - P/E (F12M)

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EME’s 2026 sales and earnings implies year-over-year growth of 12% and 13.5%, respectively. Earnings per share estimates for 2026 have increased to $29.37 in the past 30 days, as shown below.
 

Image Source: Zacks Investment Research

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

Key Takeaways ILMN is focused on core sequencing, multiomics, and software after the GRAIL spin-off.ILMN raised 2026 guidance as Q1 revenues, margins, EPS and NovaSeq X placements topped expectations.ILMN faces China weakness, tariffs and higher input costs that may pressure growth and margins. Illumina Inc. (ILMN - Free Report) is well-poised to grow in the coming quarters owing to its strategic execution against growing the core sequencing business, expanding multiomics and developing services, data and software capabilities. Ongoing momentum in clinical end markets is boosting sequencing consumables demand. Higher-than-expected NovaSeq X placements and continued transition to the platform further strengthen the outlook. Yet, China remains a drag on Illumina’s growth, while input-cost volatility can limit incremental margin upside over the next several quarters.

Over the past year, this Zacks Rank #3 (Hold) stock has surged 87%, well ahead of the industry’s 23.8% growth and the S&P 500 composite’s rise of 22.8%.

The renowned biotechnology company has a market capitalization of $27.82 billion. ILMN’s earnings yield of 2.8% is well ahead of the industry’s -14.9% yield. In the trailing four quarters, it surpassed estimates on all occasions, delivering an average surprise of 12.2%. 

Let’s delve deeper.

Tailwinds Behind ILMN StockSharpened Focus on Core Genomics: Following the spin-off of GRAIL in June 2024, Illumina has continued to center its strategy on the core sequencing franchise while scaling into adjacent multiomics and data offerings. The company remains focused on returning to durable growth and higher profitability, aiming for high-single-digit revenue growth by 2027, along with double-digits to teens annual earnings per share (EPS) growth, anchored by its roadmap of growing the core sequencing business, expanding multiomics and building services, data and software capabilities.

Image Source: Zacks Investment Research

First-quarter 2026 results reinforced that direction, with revenues, margins and non-GAAP EPS exceeding guidance. Management also raised full-year 2026 guidance, now expecting revenues in the range of $4.52-$4.62 billion and non-GAAP diluted EPS in the range of $5.15-$5.30, alongside a modest step-up in the non-GAAP operating margin outlook between 23.4% and 23.6%.

NovaSeq X Placements and Transition Progress: Illumina’s core sequencing business remains anchored by NovaSeq X. First-quarter 2026 placements exceeded 80 units, around 20 more than the prior-year quarter and above the company’s targeted quarterly range. Demand remains strong for the platform, especially with clinical. Management noted supply constraints in meeting first-quarter placement demand while exiting the quarter with a backlog that supported a higher full-year instrument outlook.

Transition progress also continued, with approximately 82% of volumes and 55% of revenues transitioned to NovaSeq X in the first quarter, and roughly 90% of research and applied volume now on the platform. Management continues to plan for average quarterly NovaSeq X placements of 50 to 60 through 2026 while investing to scale supply given the current pipeline.

Clinical Demand Remains the Key Driver: Illumina continues to benefit from the broader adoption of NGS-based testing, with clinical markets now representing the majority of sequencing consumables revenues in first-quarter 2026. Management cited continued adoption of sequencing-based diagnostics and growing use of sequencing-intensive tests, including comprehensive genomic profiling and whole genome sequencing, as drivers of higher sequencing intensity.

Clinical sequencing consumables demand grew 20%, excluding China, for the second consecutive quarter, and management continues to expect most clinical volumes to transition to NovaSeq X by the end of 2026. Over time, the mix shift toward higher-throughput clinical workflows should remain supportive for consumables growth even as research demand stays uneven.

What Ails ILMN?Setbacks in China Market: Illumina continues to face constrained demand in Greater China amid ongoing regulatory and geopolitical uncertainty, keeping the region out of step with the rest of the business. In first-quarter 2026, Greater China revenues were $52 million, down 27.8% year over year. With Illumina still operating under uncertainty tied to its status with Chinese authorities and the resulting friction on commercial activity, visibility on a sustained recovery in China remains limited and can weigh on overall growth and operating leverage.

Macroeconomic Pressures Remain a Concern: Illumina continues to operate in a higher-cost environment shaped by tariffs and supply-chain inflation, which can affect both demand and margins. In the first quarter of 2026, tariffs were a partial offset to underlying cost efficiencies and revenue leverage.

Second-quarter guidance calls for an operating margin of around 22%, reflecting a higher instrument mix, near-term inflationary impacts tied to freight and higher electronic component costs, and incremental costs from a full quarter of SomaLogic. Management expects mitigation actions to offset these cost items over the balance of the year, but ongoing volatility in trade policy and input costs can still create uneven quarterly performance and limit visibility for customers facing tighter budgets.

ILMN Stock Estimate TrendThe Zacks Consensus Estimate for ILMN’s 2026 EPS has increased 0.4% to $5.19 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $4.56 billion. This suggests a 5.1% rise from the year-ago reported number.

Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .

Globus Medical has an earnings yield of 6.2% compared to the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 35.4% against the industry’s 10.6% decline over the past year.

GMED carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 6.3% against the industry’s 9.6% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.7% against the industry’s negative 3% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 33.8% against the industry’s 10.5% decline over the past year.

Key Takeaways Wendy's China deal provides a long-term unit growth runway, targeting up to 1,000 restaurants over 10 years.The China push builds on 6% international sales growth and unit gains in the Philippines and Mexico.Wendy's China strategy combines its hamburger platform with localized menu innovation to drive adoption. The Wendy’s Company (WEN - Free Report) is sharpening its focus on international expansion as it works through a challenging U.S. turnaround. The company recently signed a franchise agreement to build up to 1,000 restaurants across China over the next 10 years, marking the largest development agreement in Wendy’s history. The deal gives the company a meaningful growth catalyst in one of the world’s most important restaurant markets.

The timing is important, as Wendy’s international business is showing relative strength. In the first quarter of 2026, international system-wide sales increased 6%, driven by net unit growth in key markets such as the Philippines and Mexico. The China agreement further advances the company’s “globally great, locally loved” strategy by pairing its core hamburger platform with locally inspired menu innovation for Chinese consumers.

The expansion also gives Wendy’s a potential counterbalance to ongoing domestic pressure. During the quarter, U.S. same-restaurant sales declined 7.8%, weighed down by lower traffic, severe weather and restaurant-hour optimization. The company expects sequential quarterly improvement through 2026 and maintains its outlook for approximately flat global system-wide sales, reflecting expectations that Project Fresh initiatives can gradually support better U.S. trends.

With relative strength in international markets, a major new China opportunity and early Project Fresh execution underway, Wendy’s appears better positioned to build a more balanced growth profile. While U.S. traffic remains a near-term overhang, successful execution in China could strengthen the company’s long-term expansion story and provide a broader growth platform.

How Does Wendy’s China Plan Stack Up Against MCD and SBUX?McDonald’s Corporation (MCD - Free Report) continues to benefit from its global scale, disciplined value strategy and strong menu-marketing execution. In the first quarter of 2026, the company grew global system-wide sales 6% in constant currency and global comparable sales 3.8%, while gaining market share in nearly all of its top 10 markets. In China, McDonald’s maintained its share and remains on track to open approximately 1,000 new restaurants this year, underscoring the scale Wendy’s will face as it builds its own China platform.

Meanwhile, Starbucks Corporation (SBUX - Free Report) continues to deepen its China strategy through a more localized partnership model. Starbucks China delivered transaction-led comparable sales growth for the fourth consecutive quarter, while the company completed its transaction with Boyu Capital after quarter-end. The partnership combines Starbucks’ global brand strength with Boyu’s local market expertise and is expected to support long-term growth. Starbucks also plans to expand from more than 1,000 county-level cities today to more than 1,500 over the next three years.

However, unlike McDonald’s and Starbucks, Wendy’s is still in the early stages of building scale in China. Its agreement to develop up to 1,000 restaurants over the next 10 years gives the company a sizable growth runway, but execution will be critical. Wendy’s fresh-beef positioning, locally inspired menu innovation and franchise-led expansion model could help the brand carve out a differentiated presence in the region.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 21.1% in the past three months against the industry’s 1.7% drop.

WEN Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.73, below the industry’s average of 3.34.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

WEN’s Zacks RankWEN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.

Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.

Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.

On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.

Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.

Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.

CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.

Image Source: Zacks Investment Research

Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways ACHR expands flight testing to validate aircraft systems and support regulatory certification.ACHR advances Midnight certification through compliance, testing and system validation activities.ACHR certification progress supports future aircraft deliveries and commercial deployment plans. Archer Aviation Inc. (ACHR - Free Report) continues prioritizing safety as it advances the development of its Midnight electric aircraft. The company is designing the aircraft with multiple layers of redundancy across flight-critical systems, helping enhance operational reliability while supporting certification and future commercial operations. This safety-focused approach is expected to strengthen Archer's position in the emerging electric aircraft market.

Redundant aircraft systems play an important role in next-generation aviation by helping maintain safe operations in the event of individual component failures. Archer's Midnight aircraft incorporates redundancy across key flight systems, including propulsion, power and flight-control architecture. These design features are intended to improve overall system reliability while supporting compliance with stringent aviation safety standards.

The company's emphasis on safety also complements its broader aircraft development strategy. By integrating redundant systems into the aircraft from the design stage, Archer aims to strengthen operational resilience while enhancing future passenger confidence and commercial adoption. This approach positions ACHR to meet evolving regulatory and customer expectations as electric aircraft enter commercial service.

As the electric aircraft industry continues to mature, safety-focused design is expected to remain a key competitive differentiator. Archer's continued investment in redundant aircraft architecture strengthens its long-term growth prospects while supporting the commercialization of its Midnight platform.

Companies Advancing Safety-Focused Aircraft DesignElectric aircraft developers continue strengthening aircraft safety through redundant flight-critical systems and resilient vehicle architectures. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Vertical Aerospace Ltd. (EVTL - Free Report) are also advancing capabilities in this area.

Joby Aviation is developing its electric aircraft with multiple redundant flight-critical systems designed to support safe, reliable and certifiable commercial operations.

Vertical Aerospace is incorporating redundant propulsion, power and flight-control systems into its electric aircraft to enhance operational reliability and support aircraft certification.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 61.90% and growth of 7.51%, respectively.

Image Source: Zacks Investment Research

ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 1.82X compared with the industry average of 6.31X.

Image Source: Zacks Investment Research

ACHR Stock Price PerformanceOver the past three months, ACHR shares have fallen 10.1% against the industry’s 1.2% growth.

Image Source: Zacks Investment Research

ACHR’s Zacks RankArcher currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Guidewire benefits as P&C insurers modernize legacy systems and shift core workflows to cloud.GWRE closed 11 cloud deals in Q3 fiscal 2026, including two net-new core system wins.ProNavigator and PricingCenter gained traction, but services mix and execution remain in focus. Guidewire Software, Inc. (GWRE - Free Report) is benefiting from insurer modernization, cloud migration and broader AI adoption across the property and casualty insurance market.

The story is not one-sided. Subscription-led growth is improving the model, but implementation intensity, services mix and execution demands still shape the stock’s risk-reward balance.

Why Guidewire Benefits From Insurer ModernizationP&C insurers continue to move away from legacy systems and toward cloud-based platforms that can support policy, billing, claims, pricing and underwriting workflows. Guidewire sits directly in that shift, with its cloud platform positioned as a core operating system for insurers.

In third-quarter fiscal 2026, Guidewire closed 11 cloud deals, including two net-new core system wins. The wins included a seven-year expansion with Auto Club of Southern California, a strategic net-new cloud win with Bradesco Seguros in Brazil, a U.K. ClaimCenter selection and a PolicyCenter win at a large U.S. insurer.

SAP SE (SAP - Free Report) remains relevant in the broader enterprise software market and is listed among Guidewire’s competitive landscape in software serving P&C insurers. Oracle Corporation (ORCL - Free Report) , with its cloud applications and platform services, is another useful reference point for investors tracking enterprise cloud migration across regulated industries.

How GWRE Is Building AI Into Daily WorkflowsGuidewire’s AI push is becoming more practical through ProNavigator. The company completed five ProNavigator deals in the third quarter as insurers looked to embed AI-driven knowledge and workflow automation into core operations.

The product is designed to provide role-specific, secure and context-aware AI guidance for underwriters, claims adjusters, billing specialists and customer service representatives. That matters because it extends Guidewire’s relevance beyond system replacement and into daily decision support.

AI is also influencing implementation work. Management has cited productivity gains from agentic development tools, which could help reduce friction in cloud migrations and speed delivery over time.

Where Guidewire’s Services Trend Cuts Both WaysServices revenue rose 32% year over year to $71.8 million in the third quarter. That growth reflects demand for Guidewire-led services programs, field engineering work and support for customers using Guidewire Cloud Platform.

The trade-off is margin mix. Services carried a non-GAAP gross margin of 14.3% in the quarter, compared with 74.1% for subscription and support. Higher services demand can signal healthy implementation activity, but it can also dilute the benefits of subscription-led growth.

For fiscal 2026, Guidewire expects services revenues of about $270 million and services gross margin of about 14%. A larger services revenue mix and higher bonus accrual partially offset the benefit from raised revenue expectations.

What Pricing Tools Mean for Guidewire’s Next PhasePricingCenter gives Guidewire another route into data-driven insurance workflows. The solution helps P&C insurers update pricing, analyze impacts in real time and respond to market changes.

Guidewire closed three PricingCenter wins in the third quarter, including deals with insurers in Sweden and Poland and its first U.S. win at Oklahoma Farm Bureau. The early traction supports the view that Guidewire can expand deeper into pricing and product teams.

Still, newer products must scale efficiently. PricingCenter and ProNavigator broaden the platform opportunity, but the company still needs to prove that adoption can grow without adding delivery complexity or weakening unit economics.

How Zacks Signals Reflect GWRE’s Trend BalanceGuidewire’s growth story is becoming broader, but not simpler. Cloud migrations remain the main engine, while ProNavigator and PricingCenter add new ways for insurers to use Guidewire inside daily workflows. At the same time, the rise in services demand shows that modernization still requires meaningful implementation support, keeping margin mix and execution discipline in focus.

GWRE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also has a Value Score of F, Growth Score of B, Momentum Score of F and VGM Score of D. The Growth Score of B fits a company delivering double-digit ARR and subscription growth, but the weaker Value, Momentum and VGM readings point to a less favorable overall style profile.

For investors, that combination supports a measured view: Guidewire is participating in durable insurance technology trends, but the stock still needs cleaner evidence that newer products, cloud scale and services demand can translate into more efficient long-term growth.

Key Takeaways Oklo received DOE approval for its DSA, advancing Groves into the final startup review phase.It targets July 2026 for the first criticality after readiness review, fuel loading and startup authorization.Oklo says Groves will support U.S. isotope production for medicine, research, manufacturing and security. Oklo Inc. (OKLO - Free Report) has achieved a major milestone in the development of its Groves Isotope Test Reactor after receiving approval for its Documented Safety Analysis (DSA) from the U.S. Department of Energy (DOE). The approval, granted under the DOE's Reactor Pilot Program, moves the Texas-based project one step closer to operational authorization and highlights the growing momentum behind advanced nuclear technology in the United States.

The achievement reinforces Oklo's strategy of accelerating commercial nuclear deployment while supporting a more resilient domestic supply of critical medical and industrial isotopes.

DOE Safety Approval Moves Groves Into Final Startup PhaseThe DOE's approval of the DSA marks the completion of the reactor's final safety documentation process. The DSA provides a comprehensive technical assessment of potential hazards, required safety controls and operational procedures needed to ensure safe reactor startup.

This follows the earlier approval of the Preliminary Documented Safety Analysis, which established the project's initial safety basis during the design and construction stages.

With both approvals now secured, the Groves reactor enters the DOE's final pre-startup review, which includes a readiness review and startup authorization. Once approved, the facility will be permitted to receive and load nuclear fuel, conduct startup testing and advance toward first criticality — the point at which the reactor achieves a controlled, self-sustaining nuclear chain reaction.

Oklo is targeting July 2026 for its first criticality.

A First for Commercial Advanced Nuclear ProjectsAccording to Oklo’s co-founder and CEO, the project represents a significant milestone for the advanced nuclear industry.

Groves is the first advanced reactor project to receive DSA approval while being located on privately owned land and relying entirely on commercially sourced fuel, equipment and systems supplied by the private sector. Construction and planned operations have also been led by a private-sector team under DOE oversight, making the facility representative of future commercial reactors that Oklo intends to build and operate.

The company also noted that the project demonstrates how advanced reactors can move from construction to deployment on a commercial timeline while maintaining rigorous safety standards.

Supporting Domestic Isotope ProductionBeyond reactor development, the Groves facility plays a strategic role in expanding Oklo's isotope business.

The reactor is expected to strengthen domestic production of critical isotopes used across several sectors, including cancer diagnosis and treatment, advanced manufacturing, scientific research, space exploration and national security.

Many of these isotopes are currently imported or produced at aging facilities, creating supply chain vulnerabilities for hospitals, research institutions and government agencies across the United States.

By launching operations through a pilot facility, Oklo aims to validate production processes, optimize reactor performance and establish reliable commercial-scale isotope production within the country.

Oklo Continues to Build MomentumThe DOE approval comes shortly after Oklo announced its acquisition of Creative Engineers Inc., a company specializing in alkali metal engineering for the nuclear industry. Although financial details of the acquisition were not disclosed, the move further strengthens Oklo's technical capabilities as it advances its next generation of nuclear technologies.

With regulatory progress accelerating, strategic acquisitions expanding its expertise and the Groves reactor approaching startup, Oklo continues to position itself as a leading developer of advanced nuclear solutions while helping build a more secure domestic isotope supply chain.

OKLO’s Zacks Rank & Key PicksOklo is an advanced nuclear energy company focused on developing, owning and operating small nuclear power plants under its Aurora product line. Currently, OKLO has a Zacks Rank #3 (Hold).

Investors interested in the nuclear energy sector may consider some top-ranked stocks like GE Vernova Inc. (GEV - Free Report) , NextEra Energy, Inc. (NEE - Free Report) and The Southern Company (SO - Free Report) — each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova is an energy company that includes Power, Wind and Electrification segments and is supported by its accelerator businesses of Advanced Research, Consulting Services and Financial Services. The Zacks Consensus Estimate for GEV’s 2026 earnings indicates 73.2% year-over-year growth.

Juno Beach, FL-based NextEra Energy is a public utility holding company engaged in the generation, transmission, distribution and sale of electric energy. The Zacks Consensus Estimate for NEE’s 2026 earnings indicates 8.1% year-over-year growth.

Atlanta, GA-based Southern Company is one of the largest utilities in the United States. The company deals with the generation, transmission and distribution of electricity. The Zacks Consensus Estimate for SO’s 2026 earnings indicates 6.5% year-over-year growth.

Amazon (AMZN +0.55%) certainly makes the short list of the best-performing stocks so far this century. Over the past two decades, shares have risen 12,350% (as of June 29). You would have over $1.2 million today if you made a hypothetical $10,000 investment in late June 2006.

The "Magnificent Seven" stock currently trades 13% off its peak, which can be viewed as an attractive entry point to acquire a disruptive enterprise with a strong position in online shopping, digital advertising, and cloud computing.

It's a good idea not to rush, though. Don't buy Amazon shares until you read this first.

Image source: The Motley Fool.

Pouring money into AI investments When Amazon announced its 2025 fourth-quarter financial results in February, what caught the market's attention was that the company upped its guidance for capital expenditures (capex). It plans $200 billion in capex in 2026, up from $131 billion last year.

The business is one of the hyperscalers; its Amazon Web Services (AWS) segment is the leading cloud computing platform in the world. The company is seeing robust demand from AWS customers, with a backlog of $364 billion as of March 31 (excluding the $100 billion Anthropic deal). This is leading to a surge in capital deployment.

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"This primarily relates to AWS and generative AI, as we invest to support strong customer demand," chief financial officer Brian Olsavsky said on the first-quarter 2026 earnings call when discussing his company's capex during the quarter. The business is investing aggressively to build data centers that power the AI revolution.

This is hitting Amazon's free cash flow (FCF). It posted just $1.2 billion in FCF in the past 12 months, down a notable 95% from the year-ago period. And the consensus view among sell-side analysts is that the business will report negative FCF of $10 billion in 2026.

Should the market give this business the benefit of the doubt? "We believe it to be a massive opportunity with the potential to drive long-term revenue and free cash flow," Olsavsky said on the call when referring to the AI landscape. Management clearly believes all this spending will benefit Amazon well into the future as it builds capacity that it can monetize.

Investors have to ask themselves if they're willing to buy what management is selling. That's the trillion-dollar question. Given the track records of founder Jeff Bezos and current CEO Andy Jassy, it's easy to give Amazon the benefit of the doubt. This company has always prioritized its customers' needs, adopted an extremely long time horizon, and didn't give in to Wall Street's short-term pressures.

This operational DNA is why the stock has performed so well. However, what makes things more complicated is that Amazon has raised more than $80 billion in debt so far in 2026. And we still have more than half of the year left.

It wouldn't be surprising if the market demands a higher return on this AI spending sooner rather than later.

DETROIT — Ford Motor regularly promotes itself as a cornerstone of American manufacturing, business and truck leadership with its best-selling F-Series pickups, but it also has led the U.S. in one area that it isn't so proud of: vehicle recalls and quality issues.

They've plagued the Detroit automaker's earnings, degraded customer trust and stained Ford's reputation for much of the past decade. The automaker has issued 53 recalls for more than 12 million vehicles so far this year after an industry record of 153 recalls covering 13 million cars and trucks in 2025.

But that period for Ford is coming to an end, CEO Jim Farley told CNBC during an exclusive interview, as the automaker notched a key quality milestone. He said Ford has learned from its past mistakes and will use that knowledge to attempt to flawlessly launch a litany of new products in the coming years.

"Our best days are in front of us as we continue to execute this quality turnaround for our investors, for employees, for our customers," Farley said during a phone interview. "We're going to have all new vehicles across our entire North America range in a couple of years, and so that whole new lineup, we have to launch all those perfectly."

Doing so will be a difficult task. New vehicle launches, especially ones with emerging technologies such as software-defined systems and electrified powertrains, are complex, and one issue can have a ripple effect on an entire product line.

It's something Farley knows all too well. Such issues have cost Ford billions of dollars in losses under his nearly six-year tenure leading the company.

The automaker this week added to its 2026 recall total by recalling 741,195 SUVs and F-150 pickup trucks that varied in age from the 2018 to 2021 model years.

Investors have been closely watching the issues, saying unneeded warranty costs are a risk to the company's guidance and future business plans. Warranty costs are the expenses an automaker incurs to cover repairs, replacements and other costs for defective parts or workmanship under a certain period of time or miles driven after customers purchase a new vehicle.

Ford said it reduced warranty and materials costs by $1.5 billion in 2025, when adjusted for volume and mix, and is targeting an additional reduction in warranty and material costs in 2026. This follows the company's warranty costs reaching a high of $4.8 billion in 2023.

"While warranty costs had been a clear drag to earnings over the past several years, Ford appears to have 'turned the corner,'" Barclays analyst Dan Levy said in a May 15 investor note, citing four consecutive quarters of year-over-year warranty benefits. "We believe the 1Q warranty improvement is encouraging, yet believe further improvement will still be needed."

Ford No. 1 in initial qualityThe company last week received outside validation of its yearslong efforts to turn around its product issues as the Ford brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking.

After the news was released on June 25, Ford stock rose 2%, making it the company's second-best trading day of the month.

Ford stock in 2026

It's the first time since 2010 that Ford has led mainstream brands in the influential study, which assesses expected new vehicle quality based on owner-reported problems within the first 90 days of ownership. Ford, which ranked No. 23 in 2023, ranked third among all brands, behind luxury makers Porsche and Hyundai's Genesis. It came before Toyota's Lexus brand at No. 4.

Ford improved in nearly every vehicle category measured by J.D. Power in initial quality, including software, infotainment and power trains.

The acknowledgement comes as Farley has doubled down on efforts to restructure Ford's leadership, including its bonuses and incentives; focus on quality; and revamp its processes as well as those of suppliers and other partners to more proactively identify potential problems.

"I'm very proud that an American car company can beat the world in initial quality, but obviously none of us are satisfied," said Farley, who worked at Toyota for nearly 19 years before Ford. "We have so much left to do to be the No. 1 quality brand in all attributes."

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Farley said Ford needs to continue trying to lower its warranty costs and future recalls as well as improve its overall quality reputation, including long-term durability.

Ford and its luxury Lincoln brand respectively ranked 18th and 19th in J.D. Power's U.S. Vehicle Dependability Study released in February, well below the industry average. That study looks at vehicles over a longer period.

Farley declined to predict when Ford, which has led recalls in the U.S. since 2024, will not hold that position anymore, saying he can't control what happens in older-model vehicles as well as competitors' efforts in quality. But he did say everything the company is doing "will absolutely lead to a massive reduction" in future recalls of current and future products.

"The ultimate success metric is will we do it over the course of five or 10 years through launches, through all sorts of economic cycles," he said. "Everyone wants the quick answer, but when it comes to quality, time is the most important measure of success."

Ford's quality effortsRecalls are companies rectifying mistakes that weren't caught or known during a vehicle's development or production. They can range from mundane issues such as visor labels or software updates to severe, potentially deadly issues for consumers.

Ford's most recent quality efforts have focused on finding any issues as soon as possible in a vehicle's development, which Farley said meant structurally rearranging the company's processes.

He implemented a new organizational structure and has hired 350 technical specialists since 2023, held more routine meetings, encouraged closer collaboration with suppliers and rolled out more rigorous testing during the entire vehicle development process.

Ford also changed its bonus structure, tying executive compensation more closely to quality metrics, including those for new executives from Whirlpool and Johnson Controls who brought additional quality expertise.

Ford has still had to deal with issues along the way. After it rolled out new artificial intelligence tools to detect problems, the company had to ultimately bring back what it calls veteran "gray beard" engineers to help guide younger staff members and to better train its AI models.

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"We found in the past that Ford restructured the company to save money, only to find that we had let go experienced people in supply chain and manufacturing and engineering," he said. "By bringing those people back, that complements all this AI technology."

For many companies, AI has increasingly shown it can increase productivity of many tasks but might not be as efficient if it's not properly trained and deployed to assist the work of human employees.

Farley said that while Ford's quality efforts are a never-ending journey, he believes the company is about halfway through its most recent turnaround efforts under his Ford+ business plan, which is just beginning to show Ford's future upside.

"I know after 40 years how important quality is and durability is, and how difficult it is to be the best, which we now are initial," Farley said. "We cannot lose this momentum, it has to be a culture."

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Cincinnati Financial (NASDAQ:CINF | CINF Price Prediction) just sent another quarterly check to shareholders, extending one of the most remarkable streaks in American business. The Ohio-based property and casualty insurer declared a quarterly cash dividend of 94 cents per share, payable July 15, to shareholders of record as of June 23. That payout represents an 8% increase over the prior year quarterly rate of 87 cents, keeping the company firmly inside the elite Dividend King club with 65 consecutive years of hikes.

What makes this raise notable is the context. A year ago, this streak looked vulnerable. Now it looks bulletproof. Here is the scorecard, and why the dividend keeps rising even after the closest call in decades.

The Dividend Scorecard: Grade A Cincinnati Financial earns an A on the dividend report card, and the math behind that grade is straightforward.

Yield: Roughly 2% at current prices, modest but consistent with high-quality compounders. Growth streak: 65 consecutive years of increases, putting CINF among fewer than a dozen U.S. public companies with this distinction. Latest hike: 8%, well above the rate of inflation and the long-run average raise. Payout coverage: Trailing EPS of $17.49 against an annualized dividend of $3.55 leaves the dividend deeply covered by earnings. Valuation: Trailing P/E of 11, with a price-to-book ratio of 1.81. The only soft spot is the headline yield. At a stock price of around $191, CINF does not scream income. But Dividend Kings are compounding machines, and the total return profile bears that out.

How Close The Streak Came To Cracking The 65-year run was tested hard in early 2025. The California wildfires became the worst catastrophe loss in company history, and the damage showed up in the financials. Cincinnati Financial reported a net loss of $90 million in Q1 2025, with non-GAAP operating income flipping to a $37 million loss. Personal lines combined ratios blew out. The narrative around the stock shifted from compounder to catastrophe story.

One year later, the picture has completely flipped. Q1 2026 net income came in at $274 million, and non-GAAP operating income hit $330 million. CEO Stephen Spray summarized it plainly on the call: “Non-GAAP operating income was strong at $330 million for the quarter compared with an operating loss of $37 million a year ago.”

EPS of $2.10 beat the $1.94 estimate, and revenue grew 12% year over year to $2.86 billion.

Why The Dividend Keeps Rising: Three Pillars 1. Underwriting discipline that actually works: The Q1 2026 property casualty combined ratio improved by 18 percentage points to 96%. The accident year ex-catastrophe combined ratio of 88% is the kind of number that funds dividend hikes for years. Full-year 2025 closed with a 95% combined ratio, marking 14 consecutive years of underwriting profit.

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2. An investment portfolio that finally has wind at its back: Pretax investment income grew 14% in Q1 2026. The fixed-maturity portfolio earned a pretax yield of 5%, and new purchases hit a 5% yield. With $624 million of fixed-maturity purchases in the quarter, the income stream is compounding at higher reinvestment rates than the portfolio has seen in years.

3. A fortress balance sheet: Book value per share ended Q1 at $101.60, parent company cash and marketable securities sat at $5.6 billion and debt-to-total capital remained under 10%. CFO Michael Sewell put it directly: “We believe both our financial flexibility and our financial strength are in great shape.”

The company also returned $133 million in dividends and repurchased 1.1 million shares at an average price of $164.93 during the quarter, signaling management’s willingness to buy its own stock around current levels.

Total Return: The Real Story Investors who fixate on the modest yield miss the bigger picture. CINF is up more than 18% this year and nearly 31% over the past year, well ahead of the S&P 500’s 21% and 9% over those same windows. Over 10 years, CINF has returned more than 152% in price alone, before dividends are added back. On Thursday, the stock set a new 52-week high of $191.83.

Risks Investors Should Watch The streak is intact, but the underwriting environment is shifting. Commercial lines combined ratio deteriorated 7 points to 99% in Q1 2026, and personal lines new business premiums fell 40%. Spray called out the pressure on the call: “We are definitely seeing pressure. The larger the premium, the larger the account, the more pressure there is.”

Social inflation and legal system abuse remain a structural risk for casualty insurers. And with consumer sentiment sitting at 44.8 in May 2026, the macro backdrop is shakier than the underwriting numbers suggest.

The Bottom Line Cincinnati Financial nearly tripped on its 65-year dividend streak in 2025 thanks to a once-in-a-company-history catastrophe. Twelve months later, the underwriting engine, the investment portfolio, and the balance sheet are all firing simultaneously. The latest 8% hike is a clear statement that management believes the worst is behind them. Income investors looking for a Dividend King they can hold through cycles have a fresh data point to anchor that thesis.

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It's no secret that Wall Street loves Micron Technology (MU 5.68%) stock. On the heels of the company's recent quarterly report, it's also not hard to see why. Micron recorded non-GAAP (adjusted) earnings per share of $25.11 on sales of $41.46 billion in the third quarter of its current fiscal year, which ended May 28. Meanwhile, the average analyst estimate had called for an adjusted profit of $20.78 per share on sales of $35.84 billion in the period.

As impressive as the memory chip leader's performance was in the period, that's far from the only reason that many Wall Street investment firms are super bullish on Micron stock right now. Read on for a look at one key factor that helps explain why Micron stock has risen more than 800% over the last year -- and why top Wall Street analysts think that the stock can keep climbing.

Image source: Getty Images.

Micron's operating profits are expected to keep soaring In terms of operating income, analysts polled by FactSet expect Micron to be the world's third-most profitable company in the 2027 calendar year. The average estimate calls for the business to record operating income of $200.8 billion in the period, trailing only Alphabet's estimated $207.6 billion and Nvidia's estimated $359.4 billion. For reference, the average analyst estimate calls for Microsoft and Apple to post operating profits of $194 billion and $170.5 billion, respectively.

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Micron posted operating income of approximately $10.85 billion in its last fiscal year, up from operating income of roughly $1.94 billion in the previous year. The company is seemingly on track to continue growing its operating profit at an incredible pace, and that helps explain why top Wall Street analysts are so bullish on the stock.

Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways Micron is riding one of its strongest profit cycles as higher memory prices lift revenues and margins.AI servers, HBM, enterprise SSDs and advanced DRAM demand continue to outpace industry supply.Strategic customer agreements now cover about 20% of MU's DRAM volume and one-third of NAND volume. Micron Technology, Inc. (MU - Free Report) is enjoying one of the strongest profit cycles in its history, and higher memory prices remain a major reason behind this momentum. Robust demand for artificial intelligence (AI) servers, high-bandwidth memory (HBM), enterprise SSDs and advanced DRAM continues to outpace industry supply, creating a favorable pricing environment.

In the third quarter of fiscal 2026, Micron Technology reported record revenues of $41.46 billion, up 74% sequentially and 346% year over year. Non-GAAP gross margin expanded to 84.9% from 74.9% in the previous quarter and 39% in the year-ago quarter, while non-GAAP earnings jumped to $25.11 per share from $12.20 in the previous quarter and $1.91 in the year-ago quarter. DRAM revenues increased 67% sequentially, supported by average selling prices rising in the low-60% range. NAND revenues climbed 99%, with average selling prices surging in the mid-80% range.

The pricing outlook remains encouraging. Micron Technology expects DRAM and NAND demand to exceed industry supply beyond calendar year 2027 as AI adoption accelerates across data centers, PCs, smartphones and automotive applications. Limited wafer capacity, slower technology transitions and expanding HBM production are likely to keep memory supplies tight, supporting healthy pricing.

Micron Technology is also strengthening pricing visibility through long-term strategic customer agreements covering a growing portion of its business. The company announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the third quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.

These contracts, combined with continued AI-driven demand and disciplined industry supply growth, should help the company sustain elevated margins. While memory remains a cyclical business, current industry dynamics suggest Micron Technology's profit boom still has room to run. For the fourth quarter of fiscal 2026, the company projects a non-GAAP gross margin of approximately 86%, indicating a robust expansion from the year-ago quarter’s level of 45.7%.

How Are Micron’s Semiconductor Peers Performing on Margins?Major semiconductor players, NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , are also benefiting from the AI boom.

NVIDIA continues to lead the AI accelerator market, with data center revenues growing 92% year over year in the first quarter of fiscal 2027. The company’s non-GAAP gross margin reached 75% from 60.8% in the year-ago quarter, supported by strong pricing power for its AI GPUs and networking products. NVIDIA’s growth indirectly benefits Micron Technology because AI servers using NVIDIA chips require large amounts of DRAM and HBM memory.

Advanced Micro Devices is also gaining momentum in AI and data center markets. Its EPYC server processors and Instinct AI accelerators are helping expand enterprise adoption. AMD’s data center revenues surged 57% year over year to a record $5.78 billion in the first quarter of 2026, while non-GAAP gross margins expanded 180 basis points to 55.4%. As AI server deployments rise, Advanced Micro Devices’ growth is increasing demand for advanced memory and storage products supplied by Micron Technology.

MU’s Price Performance, Valuation and EstimatesShares of Micron Technology have surged around 242.6% year to date compared with the Zacks Computer and Technology sector’s return of 16.8%.

Micron Technology YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 8.52, significantly lower than the sector’s average of 23.18.

Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 791% and 107%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.

Image Source: Zacks Investment Research

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

The collapse of the Albertsons mega-merger forced Kroger NYSE: KR into a severe reckoning. Antitrust regulators effectively shut the door on transformative coast-to-coast consolidation late last year, and the market aggressively punished the uncertainty. Shares dragged toward a 52-week low of $54.15 as investors questioned how Kroger would navigate relentless pressure from omnichannel titans such as Amazon NASDAQ: AMZN and Walmart NASDAQ: WMT.

Kroger Today

$58.12 -0.10 (-0.16%)

As of 07/2/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$54.15▼

$76.58Dividend Yield2.68%

P/E Ratio34.19

Price Target$71.94

Shifting consumer behavior and an unforgiving macroeconomic environment require massive scale to survive, leaving Kroger in a precarious position.

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The answer arrived in the form of a definitive agreement to acquire regional grocer Giant Eagle for a total enterprise value of $1.65 billion. This transaction represents a ruthlessly pragmatic pivot in corporate strategy.

By bolting on a dense, well-established grocery network across five key midwestern and mid-Atlantic states, Kroger is securing immediate distribution leverage.

Under the guidance of recently installed Chief Executive Officer Greg Foran, who brings deep operational experience from Walmart, Kroger is orchestrating a classic value-play consolidation to defend an increasingly vulnerable economic moat.

Kroger Rings Up Top-Line Growth at a BargainBreaking down the transaction arithmetic reveals exactly why this acquisition serves as a powerful upside catalyst. Kroger is paying $1.25 billion in cash and assuming approximately $400 million in outstanding liabilities. In exchange, Kroger instantly integrates 197 supermarkets, 11 standalone pharmacies, and roughly $9 billion in annual top-line revenue across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana.

Securing $9 billion in incoming revenue for a total price tag of $1.65 billion translates to a 0.18x multiple on acquired sales. Attempting to build that physical footprint organically is nearly impossible in today's elevated interest rate environment. Securing premium commercial real estate, building localized distribution centers, and acquiring net-new customers in heavily saturated regional corridors would cost substantially more capital and take a decade to execute properly.

Kroger is instead buying established cash flows and localized market dominance at a steep discount. Management expects the deal to become accretive to adjusted earnings per share (EPS) by the second full year post-integration in 2029.

Trimming the Fat: Digital Margins and Pharmacy PlaysSupermarket operators exist in an environment where profitability remains structurally tight. Kroger currently generates razor-thin net margins of 0.71% and pre-tax margins of 0.86%. Earnings per share for the first quarter of 2027 came in at $1.58, missing consensus estimates by a single penny, while identical sales excluding fuel increased by just 1.0%. Investors rightly view these metrics with caution, but analyzing the underlying operations reveals a critical inflection point hidden just beneath the surface.

During that same first quarter, Kroger's digital fulfillment operations turned profitable for the very first time. E-commerce logistics and last-mile grocery delivery traditionally bleed cash, serving as massive loss leaders to maintain market share.

Achieving sustainable profitability in digital fulfillment justifies the Giant Eagle acquisition on a fundamental level. Kroger can now seamlessly integrate Giant Eagle's established customer loyalty programs into a proven, margin-positive digital fulfillment engine, eliminating redundant logistics costs and instantly scaling online margins.

Investors must also contextualize shifting consumer behaviors, specifically the structural rise of GLP-1 weight-loss medications. Market data indicate that households using GLP-1 treatments reduce overall grocery spending by roughly 5.5% to 6.0%. This dynamic presents a widely discussed margin-pressure point for traditional center-store grocery volumes. Kroger is slightly derisked in this environment, as it already operates a massive network of in-store pharmacies.

Adding Giant Eagle's standalone and integrated pharmacy footprint acts as a natural defensive hedge. The combined entity captures high-margin prescription revenue from dispensing the weight-loss medications, effectively neutralizing the peripheral drag on traditional packaged food sales by shifting the consumer's wallet from the grocery aisle to the pharmacy counter.

Paying the Bill: How Kroger Funds the FeastAny debt-funded acquisition requires serious balance sheet scrutiny from investors. Kroger carries a debt-to-equity ratio of 2.43 and a quick ratio of 0.39, signaling low immediate liquidity. Adding $400 million in assumed Giant Eagle liabilities introduces near-term financial friction. When the Giant Eagle deal hit the wires, Kroger shares dipped to $53.92 amid immediate financing concerns before buyers stepped in and pushed the stock back to a close above $56

The Kroger Co. (KR) Price Chart for Friday, July, 3, 2026

The downside risk appears heavily capped by a deeply compressed valuation and highly aggressive capital return programs. Kroger currently trades at a forward price-to-earnings ratio (P/E) of 11 and a price-to-sales ratio (P/S) of just 0.24.

These depressed metrics price in operational stagnation rather than targeted regional growth. Kroger management is aggressively exploiting the disconnect between market price and intrinsic value. Following the dissolution of the Albertsons deal, the board initiated a $7.5 billion share repurchase program. Retiring nearly 17% of the outstanding float at current depressed prices artificially boosts earnings per share. This creates a powerful dual-engine for shareholder returns when combined with Giant Eagle's incoming cash flows.

This aggressive buyback program is backstopped by heavy institutional conviction. Vanguard Group and BlackRock maintain stable equity positions, holding approximately 12.0% and 8.6% of Kroger's outstanding shares, respectively. Having over 20% of the entire float anchored by two institutional giants provides a formidable structural floor. This institutional ownership mitigates downside volatility while the regulatory and integration processes play out ahead of the 2027 closing date.

Bagging the Bottom: Why Kroger Is a Top-Shelf BuyCapital allocation ultimately dictates long-term shareholder value in the retail sector. Kroger is leveraging a temporary weakness in its own equity pricing to acquire significant regional market share at a deep discount. Securing localized density in the Midwest and Mid-Atlantic allows Kroger to build a formidable firewall against non-traditional grocery entrants such as Walmart and Amazon.

The grocery sector rarely offers hyper-growth narratives, but the industry frequently provides mispriced cash flows. Kroger is trading at a depressed multiple while expanding its omnichannel reach, leveraging a newly profitable digital fulfillment network, and executing one of the largest buyback programs in the retail landscape.

Value-oriented investors willing to look past the immediate debt load and short-term integration friction might find current pricing levels a highly opportunistic entry point into a resilient, cash-generating retail powerhouse.

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

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kroger wasn't on the list.

While Kroger currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Comcast Corp. NASDAQ: CMCSA dipped into a familiar playbook this week. But after an initial pop, CMCSA is drifting back to its pre-announcement levels.

Comcast Today

$23.79 +0.06 (+0.25%)

As of 07/2/2026 04:00 PM Eastern

52-Week Range$22.13▼

$36.40Dividend Yield5.55%

P/E Ratio4.68

Price Target$34.40

This isn’t a sell-the-news moment. It’s traders doing what they do, which is making a quick profit on news that doesn’t really do much for Comcast’s business.

The announcement was a spinoff of its NBCUniversal, Peacock, Universal Studios, and Sky business units into a second new public company. Comcast will retain a minority ownership stake but plans to unwind it over time. The move makes sense. Content creation in the streaming space is a competitive, cash-intensive business. Although Comcast was still posting stable revenue and earnings, the idea is that this move will unlock more value.

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A New Chapter in an Old PlaybookInvestors familiar with Comcast may think they've been here before. They have. Recently. In late 2025, the company announced it was spinning off several of its cable bundle channels, such as CNBC and USA Network, into a new company, Versant NASDAQ: VSNT.

VSNT began trading publicly in mid-December, and the early returns have been poor. The stock is down a little over 20%. That may be evidence that Comcast was wise to jettison that business. But that doesn’t mean a leaner, more focused business will deliver the growth investors may expect.

Aside from being a more streamlined stock, do analysts have a reason to re-rate Comcast? Since the announcement, the Comcast analyst forecasts on MarketBeat have rendered a split decision. Rosenblatt Securities upgraded CMCSA from Neutral to Buy and raised its price target from $24 to $31. Deutsche Bank also upgraded the stock from a Hold to a Buy, but lowered its price target to $32 from $34.

Next Up...EarningsInvestors won’t have to wait long to learn about the company’s next steps. Comcast is expected to deliver its Q2 2026 earnings report on July 23. While information about the company’s strategy is important, the more vital question may be when investors can expect to see a return on that investment, as it relates to margins and earnings.

They may be waiting a little while. In its prior earnings report, the company reported that residential broadband net losses improved 117K year-over-year to (65K) , and the company had added 435K wireless lines. It was the best quarterly result on record.

However, it also showed that the broadband market is mature. Without a new catalyst, what should investors realistically expect?

The Technical Picture Shows Slowing MomentumOver a long period of time, a stock chart tells a story. After a spike in 2020, CMCSA has been in a steady decline. The Versant spinoff and now this new transaction have done nothing to reverse the slide.

In the short term, though, charts can indicate momentum. In this case, any momentum Comcast had is already starting to fade.

Know What You OwnNone of this is to suggest that CMCSA isn’t worth owning. For starters, the company is attractively valued with a forward price-to-earnings (P/E) ratio of 6.8x. That’s not only a significant discount to the broader market, but it’s also a discount to its own historical average.

But investors have to know what they own. In the case of Comcast, that amounts to a utility stock. It has a legacy business that tends to deliver sticky revenue. Plus, the company has a near monopoly in the areas in which it operates.

But it's not a high-growth business. Even though broadband is something most consumers won't give up, Comcast's pricing power is limited by growing competition from satellite offerings. Consumers may not have many alternatives, but they have enough to keep Comcast's prices in check.

That matters for how investors should size a position. Comcast isn't fighting for market share the way a growth stock would. It's managing decline at the margins while defending pricing power where it still has it. The spinoffs, Versant and now the NBCUniversal transaction are best read as portfolio triage rather than a turnaround story.

Management is narrowing its focus to the parts of the business that still throw off predictable cash, which is a defensible strategy for a mature operator, but it's not one that typically re-rates a stock higher. Investors chasing the next catalyst may be disappointed. Investors looking for income backed by a durable, if slow-growing, business have more reason to stick around.

One reason for investors to stick around would be a safe dividend that yields 5.6% as of the market close on July 1. Plus, the company has increased the dividend for 18 consecutive years. There’s a place for CMCSA in some portfolios, but it shouldn’t be confused with a growth stock.  

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Companies Showcase Ongoing Buildout of Manufacturing Infrastructure at K2 to Address Growing Demand for NAND Flash

TOKYO & MILPITAS, Calif.--(BUSINESS WIRE)--Kioxia Corporation, a subsidiary of Kioxia Holdings Corporation (TOKYO: 285A) and Sandisk Corporation (Nasdaq: SNDK) today announced the start of production for their 10th-generation 3D Flash memory technology at Fab2 (K2) at the Kitakami Plant in Iwate Prefecture in Japan. The milestone comes as the companies continue to drive meaningful, multi-year bit growth to address the strong demand for their innovative flash memory technology.

In conjunction with the start of production, the companies held an unveiling ceremony for the K2 facility. Opening in September 2025, the facility has produced the companies’ 8th-generation 3D flash memory products and will begin to scale production with the introduction of their 10th-generation products. Both generations of 3D flash memory adopt innovative CBA (CMOS directly Bonded to Array) technology and offer high performance, high capacity, and low power consumption.

The Fab2 facility has an earthquake-absorbing architectural structure and a design that utilizes state-of-the-art energy saving manufacturing equipment. The facility uses artificial intelligence for enhanced production efficiencies and employs a space-efficient facility design that enlarges the space available for manufacturing equipment in its clean rooms.

Kioxia and Sandisk recently announced the extension of their joint venture framework through December 2034. The Sandisk-Kioxia partnership has driven decades of NAND flash memory innovation. Continued investments in the K2 fab will fuel the joint venture’s long-term success and ability to deliver leading-edge flash memory innovations at scale and with stability, in line with each company’s previously stated target bit growth.

Koichiro Shibayama, President and CEO of Kioxia Iwate Corporation, which operates the Kitakami Plant, said, “We are pleased to begin production of our advanced 10th-generation flash memory here in Kitakami. The eighth and further generation flash memory products produced at the Fab2 will deliver new value to the rapidly growing AI market. Leveraging the partnership and scale advantages, Kioxia will continue to manufacture leading-edge flash memory products and achieve sustainable corporate growth. Kioxia will continue to contribute to the advancement of the semiconductor industry and the development of local and domestic economies.”

“For decades Sandisk and Kioxia have driven innovation in NAND flash memory,” said Alper Ilkbahar, Chief Technology Officer of Sandisk Corporation. “Beginning production of our 10th-generation 3D flash memory at our Kitakami facility marks an important milestone for the two companies as demand for high-performance flash technologies continues to increase. Through our K2 facility we will continue to support our customers with the world’s leading NAND technology, while providing new economic opportunities for the communities we operate in and serving as an example of strong U.S.-Japan economic relations.”

Kioxia and Sandisk have shared a successful joint venture partnership for over 25 years and will continue to strengthen synergies and competitiveness through joint development of 3D flash memory and capital investments.

About Sandisk

Sandisk (Nasdaq: SNDK) delivers innovative Flash solutions and advanced memory technologies that meet people and businesses at the intersection of their aspirations and the moment, enabling them to keep moving and pushing possibility forward. Follow Sandisk on Instagram, Facebook, X, LinkedIn, YouTube. Join TeamSandisk on Instagram.

© 2026 Sandisk Corporation or its affiliates. All rights reserved. Sandisk and the Sandisk logo are registered trademarks or trademarks of Sandisk Corporation or its affiliates in the US and/or other countries. All other marks the property of their respective owners.

About Kioxia

Kioxia is a world leader in memory solutions, dedicated to the development, production and sale of flash memory and solid-state drives (SSDs). In April 2017, its predecessor Toshiba Memory was spun off from Toshiba Corporation, the company that invented NAND flash memory in 1987. Kioxia is committed to uplifting the world with “memory” by offering products, services and systems that create choice for customers and memory-based value for society. Kioxia's innovative 3D flash memory technology, BiCS FLASH™, is shaping the future of storage in high-density applications, including advanced smartphones, PCs, automotive systems, data centers and generative AI systems.

Forward-Looking Statements

Sandisk

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including statements regarding expectations for: Sandisk Corporation’s and Kioxia Holdings Corporation’s product roadmap, production scaling plans, and continued ability to drive multi-year bit growth; demand for high-performance flash technologies; the performance, capacity and capabilities of the companies’ 3D flash memory technology; the capabilities and efficiencies of the Fab2 facility; Sandisk’s continued investment strategy in its long-standing joint venture with Kioxia; and the joint venture's long-term success, operational synergies, capital efficiency, competitiveness, and ability to deliver leading-edge 3D flash memory innovations at scale. These forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse changes in global or regional economic conditions, including the impact of evolving trade policies, tariff regimes and trade wars; volatility in demand for Sandisk’s products; pricing trends and fluctuations in average selling prices; exposure to execution, financial and market risks due to long-term agreements; inflation; changes in interest rates and a potential economic recession; the impact of business and market conditions; the impact of competitive products and pricing; the development and introduction of products based on new technologies and management of technology transitions; risks associated with strategic initiatives, including restructurings, acquisitions, divestitures, cost saving measures and joint ventures; risks related to product defects; difficulties or delays in manufacturing or other supply chain disruptions; reliance on strategic relationships with key partners, including Kioxia Corporation; the attraction, retention and development of skilled management and technical talent; risks associated with the use of artificial intelligence in business operations; changes to relationships with key customers or consolidation among the customer base; compromise, damage or interruption from cybersecurity incidents or other data system security risks; reliance on intellectual property; fluctuations in currency exchange rates; actions by competitors; risks associated with compliance with changing legal and regulatory requirements; and other risks and uncertainties listed in Sandisk’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the SEC on August 21, 2025 and Quarterly Report on Form 10-Q filed with the SEC on May 1, 2026, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Sandisk undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

When a stock by close to 40%, investors usually assume something has gone wrong with the company. Perhaps sales are slowing. Maybe customers are leaving. Or perhaps the company's competitive advantage is fading. That's a reasonable assumption.

In Palantir Technologies's (PLTR +2.99%) case, however, it's largely the wrong one.

Despite the sharp decline in its share price since its late-2025 peak, Palantir's business has arguably never been stronger. Revenue continues to grow rapidly, demand for its AI software remains robust, and the company continues to win large commercial customers.

So what happened to trigger this tumble? The answer has less to do with Palantir's business -- and almost everything to do with how Wall Street values great companies.

Image source: Getty Images.

The business keeps getting stronger If you looked only at Palantir's operating results, you'd probably struggle to explain why the stock has sold off from its November peak. The company has been delivering some of the strongest results in its history.

In the first quarter of 2026, revenue jumped 85% year over year to $1.6 billion, and management raised its full-year guidance as U.S. demand continued to accelerate.

Even more encouraging was the commercial business.

For years, skeptics argued Palantir was little more than a government contractor. That argument is becoming increasingly difficult to defend. Its U.S. commercial revenue surged more than 130% year over year, highlighting just how quickly enterprises are adopting the company's software.

Palantir also remains highly profitable, with a 46% operating-income margin and a 57% free-cash-flow margin even as it continues to invest heavily in growth.

By almost every operating metric, the business is stronger today than it was when the stock was making new highs in 2025.

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The market isn't questioning the state of the business Here's where many investors get caught out. A falling stock price doesn't always mean a weakening company.

Sometimes the opposite happens. The business keeps improving while the stock falls. That's because investors have moved from asking, "Is this a great business?" to asking a much harder question: "Is this business worth this price?"

That's exactly what appears to have happened with Palantir.

During the early phases of the AI boom, investors were willing to pay extraordinary premiums for the companies they believed would dominate the next generation of software. Eventually, expectations became so high that even outstanding business results were insufficient to justify those stocks' valuations.

We've seen this movie before.

Companies like Microsoft and Amazon have experienced periods when their businesses continued to improve while their stocks corrected sharply, as investors became less willing to pay extreme multiples to own them.

Why valuation matters when investing in a stock Imagine buying a business that's expected to earn $1 next year. If you're willing to pay $100 for it today, you're basing that price on the assumption of years of exceptional growth.

Now imagine the company performs exactly as you expected. Revenue grows. Profits improve. Customers keep coming. But investors later decide they're only willing to pay $60 instead of $100. Nothing has changed inside the business. Yet the stock still falls 40%.

That's essentially what happened to Palantir. The company continued executing. The market simply became less willing to pay an extraordinary premium for the hope of future growth. For perspective, Palantir -- as of Thursday down by 37% from its peak -- still trades at a price-to-earnings (P/E) ratio of 146. 

For long-term investors, that's an important lesson. A declining stock doesn't always signal a deteriorating business. Sometimes it simply reflects a reset in expectations.

What does it mean for investors? Palantir remains one of the most compelling enterprise AI companies in the market today. Its commercial business is expanding rapidly, its products are gaining traction across industries, and management continues to execute at a high level.

But investing has never been just about finding great companies. It's also about understanding what expectations are already built into the stock price.

On one end, an average business can deliver outstanding returns for shareholders if expectations for it were previously low. Likewise, after expectations become unrealistic, even an exceptional business can disappoint investors if the market loses some of its undue optimism.

Palantir's recent sell-off is a timely reminder that business performance and stock performance don't always move together.

Zscaler's (ZS +0.72%) stock price has dipped by roughly 34% year to date as continued net losses and a decelerating revenue growth rate weigh down on the cybersecurity stock. The company may get a boost as its cybersecurity solutions can safeguard artificial intelligence (AI) agents, which are expected to become more popular. However, there are meaningful hurdles that can prolong this correction.

Image source: Getty Images.

Zscaler's revenue growth has been steadily decelerating When a stock delivers substantial year-over-year revenue growth, it's easier to look over high net losses and focus on the bullish thesis. However, those same losses become more central to a stock analysis once revenue growth slows.

That has been the case for Zscaler in recent years. It has a five-year annualized revenue growth rate of 44% that drops to 34.8% for its three-year CAGR. Zscaler only reported 25% year-over-year revenue growth in its fiscal 2026 third quarter. It's a sign that growth has slowed down considerably, and the company remains unprofitable.

Zscaler mentioned in its Q3 FY26 press release that it is attracting new customers and expanding relationships with existing ones while hinting at a focus on "driving profitable growth across multiple vectors."

Profitability may be on the way soon, based on the company only posting a -1.6% net profit margin in its fiscal 2026 third quarter. However, the excitement about profitability may be muted by a steady trend of slower revenue growth.

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It's really hard to value Zscaler, but guidance suggests the overall picture will worsen Investors can't use the P/E ratio to assess Zscaler since it is unprofitable. The stock has a 6.6 price-to-sales ratio, which is much lower than those of CrowdStrike and Fortinet. It's not the best metric to use, since a company on the verge of bankruptcy can have a price-to-sales ratio below 1, but other valuation metrics like the P/E and PEG ratios aren't suitable at this stage.

While Zscaler has a healthy balance sheet that includes $4.6 billion in total current assets, its long-term outlook isn't great. Although the company touted agentic AI as a meaningful opportunity, guidance suggests that revenue deceleration will continue.

Zscaler anticipates 16% to 17% year-over-year revenue growth in fiscal 2027. It's a far cry from the 44% annualized revenue growth rate over the past five years. The company's financial growth rates are well removed from what they were when Zscaler commanded a price of almost $400 per share back in 2021.

Decelerating growth, combined with guidance suggesting more of the same, doesn't mean the AI opportunity is as groundbreaking as the company suggests. Artificial intelligence has been a major catalyst for many companies, but the numbers suggest this type of transformation isn't currently underway at Zscaler.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Fortinet, and Zscaler. The Motley Fool has a disclosure policy.

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SummarySpaceX is evolving into an integrated launch, connectivity, and AI infrastructure platform, with AI expected to become its primary long-term growth driver.Starlink reached 10.3 million subscribers in Q1 2026, while AI hosting agreements imply approximately $26 billion in annualized recurring revenue.Starship V3 is expected to increase payload capacity twentyfold and reduce launch costs per kilogram by roughly ten times, strengthening internal economics.Despite strong growth prospects, SPCX reported a $4.94 billion FY2025 net loss, a $4.28 billion Q1 2026 loss, and raised $25 billion through bonds.Investors should monitor AI hosting revenue, operating margin improvement, and cash burn, as execution will determine whether the premium valuation remains justified. Walter Cicchetti/iStock Editorial via Getty Images

Investment Thesis SpaceX's (SPCX) post-IPO investment story extends well beyond launch services. It is becoming an end-to-end infrastructure platform covering space transport, connectivity, and AI computing. Now that SpaceX has gone public, investor attention is more likely

17.14K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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

The logo of BioNTech is pictured at Biontech's research laboratory for individualised vaccines against cancer in Mainz, Germany, July 27, 2023. REUTERS/Wolfgang Rattay Purchase Licensing Rights, opens new tab

CompaniesBERLIN, July 3 (Reuters) - BioNTech (22UAy.DE), opens new tab has held confidential talks with potential buyers about ​the German sites that the ‌COVID‑19 vaccine maker plans to close, which has now grown to four locations, ​the Handelsblatt newspaper reported on ​Friday.

The German company had said in ⁠May that it would close three ​sites in Germany - Idar-Oberstein, Marburg and ​Tuebingen - by the end of 2027, and also end operations in Singapore by the ​first quarter of next year, ​affecting up to 1,860 jobs.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

According to Handelsblatt, ‌the ⁠Berlin-based BioNTech subsidiary JPT Peptides is also being put up for sale.

The maker of peptides used in ​immunology and ​drug ⁠discovery is no longer profitable, and BioNTech plans to ​close it by the end ​of ⁠this year, the report said, citing people familiar with the decisions.

BioNTech ⁠and ​JPT Peptides did not ​immediately respond to emailed requests for comment.

Writing by ​Miranda Murray; Editing by Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles., opens new tab

At Wednesday's close, one share of CrowdStrike (CRWD +0.52%) cost $772.74. On Thursday morning, it cost about $193. Nothing about the company changed overnight -- shareholders simply woke up with four times as many shares, each worth a quarter as much. The cybersecurity specialist's first-ever stock split, a 4-for-1 move announced alongside its earnings report in June, took effect with Thursday's trading.

A dramatically lower share price has a way of making a stock feel more affordable. And that feeling invites the classic post-split question: Is CrowdStrike a buy at today's price?

The honest answer starts with an unsatisfying truth: The split itself tells us nothing.

Image source: Getty Images.

What a split does -- and doesn't do CrowdStrike executed the split as a stock dividend, giving investors of record on June 25 three additional shares for every one they owned, distributed after the market closed on July 1. Companies typically do this after a big run-up, partly to make shares feel accessible to smaller investors and employees.

But a split adds no value. The business is worth what it was worth on Wednesday. And with most brokerages now offering fractional shares, the practical benefit of a lower share price is smaller than it once was. At most, a first-ever split reads as a statement of confidence from management -- a signal the company expects its best days to continue. That's nice, but it isn't an investment case.

The investment case has to come from the business and the valuation. So let's look at both.

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What $193 actually buys The good news for would-be buyers is that CrowdStrike's business is genuinely accelerating. Revenue in the company's fiscal first quarter of 2027 (the period ended April 30, 2026) rose 26% year over year to $1.39 billion. That was an acceleration from 23% growth in the prior quarter and 22% growth for all of fiscal 2026.

The demand signals underneath look even better. CrowdStrike added $255.8 million of net new annual recurring revenue during the quarter -- a first-quarter record, and up 32% year over year -- bringing total annual recurring revenue to $5.51 billion, up 24%. When net new recurring revenue grows faster than the existing base, it points to demand that is strengthening, not maturing. Management credits the artificial intelligence (AI) boom, as companies deploying AI need to secure the new systems and data that come with it.

"CrowdStrike is AI security infrastructure, critical to successful AI adoption," said founder and CEO George Kurtz in the company's fiscal first-quarter earnings release.

Profitability is finally showing up, too. CrowdStrike swung to generally accepted accounting principles (GAAP) net income of $27.8 million in the quarter, compared to a $104.3 million loss a year earlier. Free cash flow hit a record $468 million -- an impressive 34% of revenue. And management raised its full-year outlook, now guiding for about $5.9 billion in revenue, implying roughly 23% growth.

So the business earns high marks. The problem is that the market has known all of this for a while, and it has bid the stock accordingly.

At about $193 per share as of this writing, CrowdStrike trades at more than 150 times the midpoint of management's non-GAAP (adjusted) earnings guidance for fiscal 2027, and at about 33 times this year's expected revenue. On a GAAP basis, the company has only just crossed into profitability -- that $27.8 million of net income came on $1.39 billion of revenue. A multiple like that assumes the current acceleration persists for years while profits scale dramatically the whole way.

So, does a $193 price tag make CrowdStrike a buy? Not on its own. The split changed the share price, not the price of the business -- and the business, as wonderful as it is, still costs as much as it did on Wednesday. And I wouldn't sell a company executing this well. But I also wouldn't start a position just because the sticker looks smaller, either. Personally, I'd wait for the valuation to come down before buying -- whether through a lower stock price or through a few more years of the earnings growth CrowdStrike keeps delivering.

CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA), today announced that it has entered into a non-binding Heads of Agreement (the "HOA") with the Government of Canada, the Province of Alberta, Trans Mountain Corporation, and Alberta Petroleum and Marketing Commission, to participate in a proposed nation-building energy infrastructure initiative intended to strengthen Canada's energy transportation network and expand market access for Canadian crude oil. Pembina will contribute its development and execution expertise to a multi-stakeholder initiative connecting Canadian energy to global markets. Pembina's participation remains subject to satisfaction of certain conditions.

A first-of-its-kind initiative in Canada

The HOA contemplates the development of a new approximately one million barrel per day crude oil pipeline system connecting Alberta to Canada's West Coast, and a related export terminal (the "Project"). The proposed pipeline will leverage the existing Trans Mountain pipeline right of way, also known as the southern route. The Project is being advanced as a national priority that brings together the Government of Canada, the Province of Alberta, Indigenous partners, and industry. Under the framework in the HOA, the Project would be held through a development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina, with a working interest to be reserved for Indigenous partners to acquire at commercial operations. Pembina's economic interest through construction will be 10 percent with the opportunity for up to an additional 10 percent once the Project enters commercial operation. Trans Mountain Corporation will serve as the lead Project proponent, responsible for construction of the Project, the regulatory process, stakeholder and Indigenous engagement, and subsequent operation of the asset.

A defined, expertise-led role

Pembina would participate as an experienced industry operator able to provide an independent perspective on cost, schedule, and execution — complementing, rather than replacing, the lead Project proponent. In this capacity, Pembina would bring more than 70 years of safe, disciplined and cost-effective project development and execution working alongside the experienced team at Trans Mountain Corporation. As part of this, Pembina, through the HOA, is in early stages of reviewing the development plans and initial capital cost estimates for the Project; this due diligence work stream will continue until signing of definitive agreements, which is targeted for September 2026.

A measured, disciplined and risk-managed approach

Consistent with its long-standing approach to capital allocation, Pembina will evaluate participation in the Project through a disciplined and rigorous investment framework. The proposed multi-stakeholder structure is intended to appropriately align risk and responsibility among participants and includes protection for Pembina related to matters such as cost overruns and returns. Pembina has full discretion over any final investment decision ("FID") for its interest and shall have no at-risk development capital prior to FID. Pembina will assess the opportunity against defined Project milestones throughout the development period and will evaluate its participation in the context of its longstanding prudent capital allocation guardrails and its broader development portfolio. The Company intends to provide updates at appropriate milestones as the evaluation of the Project progresses.

"The Project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada's economy and expands access to global markets for Canadian energy," said Scott Burrows, President and Chief Executive Officer of Pembina. "We are proud to bring our development and execution expertise to a project of this national significance. Our participation will be evaluated through the same disciplined lens we apply to every capital decision. We have approached our involvement in a way that is measured, that preserves our financial flexibility, and that incorporates meaningful protections — so that any participation remains consistent with our financial guardrails and creates durable value for our shareholders."

About Pembina

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.

Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements relating to: the development, scope, capacity, location and development path, regulatory approval process, timing and benefits of the Project; the terms and conditions of the definitive agreements with respect to the Project and timing for completion of such agreements; Pembina's review of the development plans and initial capital cost estimates for the Project, including the timing thereof; Pembina's potential participation in the Project and the contemplated structure, ownership and governance of the Project; the anticipated role of Pembina, the Government of Canada, the Province of Alberta, Indigenous partners and Trans Mountain Corporation; the nature, timing and extent of Pembina's potential capital commitments, including its assessment against its investment framework, and the economic protections contemplated; the anticipated designation of the Project as being in the national interest; the expected approach to Indigenous consultation and ownership; and the timing of a potential FID in respect of the Project.

These forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release, including, among other things: the completion of satisfactory due diligence and with respect to the Project; prevailing commodity prices, cost estimates, financing conditions and market conditions; the continued participation and alignment of the other stakeholders in the Project; oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; prevailing commodity prices (including long-term average historical pricing and frac spreads), interest rates, carbon prices, tax rates, exchange rates and inflation rates; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects, including the Project, and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any required definitive agreements with respect to the Project, including commercial agreements, can be reached in the manner and timing and on the terms expected by Pembina; that all required corporate, regulatory, governmental and environmental approvals can be obtained on acceptable terms and in a timely manner; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects, including the Project; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy).

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: that the stakeholders will be unable to reach an agreement on the definitive agreements with respect to the Project in the manner and timing and on the terms expected by Pembina or otherwise; that FID in respect of the Project may not occur on the timing expected by Pembina or otherwise; the regulatory environment and decisions, including the outcome of regulatory hearings, and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contractual counterparties; actions by governmental or regulatory authorities, including changes in laws and treatment, changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; geopolitical risks; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina's Annual Information Form and Management's Discussion and Analysis, each dated February 26, 2026 for the year ended December 31, 2025 and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking information and financial outlooks contained in this news release have been approved by management as of the date of this news release. The purpose of these financial outlooks is to assist readers in understanding Pembina's expected and targeted financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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BiCS10 TLC delivers up to 4.8Gb/s** NAND interface speed, 59 percent bit density improvement compared to BiCS8 and enhanced power efficiency

MILPITAS, Calif.--(BUSINESS WIRE)--Sandisk Corporation (Nasdaq: SNDK) today announced it is sampling its BiCS10 1Tb TLC, its 10th-generation 3D NAND flash memory technology. BiCS10 applies advanced lateral scaling techniques to achieve industry-leading 1Tb TLC memory density greater than 29Gb/mm2, improving bit density by 59 percent while delivering up to 4.8Gb/s** interface speed, a 33 percent improvement compared with 8th generation 3D flash memory currently in mass production.

Built on Sandisk’s proven Bit-Cost Scalable (BiCS) 3D NAND architecture and CMOS directly Bonded to Array (CBA) technology, BiCS10 TLC also enhances data input/output power efficiency, reducing power consumption by 10 percent for input and 34 percent for output compared to the previous BiCS8 generation.

“As the world becomes more connected, data-intensive and intelligent, NAND plays an increasingly mission-critical role in delivering the performance, efficiency and scale modern computing requires,” said Alper Ilkbahar, CTO at Sandisk. “BiCS8 set a new benchmark for 3D NAND by combining our wafer bonding capabilities with meaningful gains in density, performance, and efficiency. With BiCS10 TLC, we build upon that proven foundation to deliver faster interface speeds, higher bit density and improved power efficiency for our customers.”

NAND flash memory is one of the most scalable semiconductor technologies today, and the foundation of what Sandisk builds. BiCS10 advances Sandisk’s long-term roadmap for scaling NAND through continued innovation in density, power efficiency, and architecture. It builds upon Sandisk’s CBA technology, which fabricates CMOS logic and the memory array on separate wafers before bonding them together with high-precision wafer-to-wafer alignment. BiCS10 TLC increases the number of memory layers to 332 and incorporates Toggle DDR6.0, SCA protocol and PI-LTT technology to support high-speed, low-power operation.

The sampling milestone extends Sandisk’s BiCS roadmap with advancements that push density, power efficiency, and endurance in ways designed to support the next generation of data-intensive and AI-driven workloads. Key BiCS10 TLC technology highlights include:

Up to 4.8Gb/s** NAND interface speed, a 33 percent improvement.* 332 memory layers with optimized floor plan efficiency, improving bit density by 59 percent.* Enhanced data input/output power efficiency, reducing power consumption by 10 percent for input and 34 percent for output.* Support for Toggle DDR6.0, SCA protocol1 and PI-LTT technology2 to enable high-speed, low-power operation. Sandisk leads the way in flash innovation, from increasing bits per cell over time to advancing technologies in controller architecture, firmware, packaging, and system flash that improve the performance, efficiency, and utility of flash at scale. With a unique portfolio of leading IP and global manufacturing footprint, Sandisk controls its entire production lifecycle from design to manufacturing to final assembly with global operations, resulting in exceptional quality control, cost efficiency, faster time to market, and strong supply chain resilience.

About Sandisk

Sandisk (Nasdaq: SNDK) delivers innovative Flash solutions and advanced memory technologies that meet people and businesses at the intersection of their aspirations and the moment, enabling them to keep moving and pushing possibility forward. Follow Sandisk on Instagram, Facebook, X, LinkedIn, YouTube. Join TeamSandisk on Instagram.

*Compared with 8th-generation 3D flash memory currently in mass production (BiCS8).

** 1Gb/s is calculated as 1,000,000,000 bits/second. This value is obtained under specific our test environment and may vary depending on use conditions.

1 Technology wherein the bus for Command/Address input and the bus for data transfer are completely separated into different buses and are used in parallel. This reduces data input/output time.

2 Technology wherein power sources for existing 1.2V and additional lower voltage are utilized for the NAND interface power source. This reduces power consumption during data input/output.

© 2026 Sandisk Corporation or its affiliates. All rights reserved. SANDISK and the SANDISK logo are registered trademarks or trademarks of Sandisk Corporation or its affiliates in the US and/or other countries. All other marks are the property of their respective owners. Product specifications subject to change without notice. Pictures shown may vary from actual products.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding the expected performance, enhanced capabilities, and industry-leading positioning of Sandisk’s BiCS10 TLC technology; the role of NAND flash memory as a highly scalable, mission‑critical technology for modern computing; Sandisk’s continued advancement of its long-term roadmap; and the impact, advancements and efficiency of Sandisk’s flash solutions in supporting next-generation data-intensive and AI-driven workloads. These forward-looking statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.

Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse changes in global or regional economic conditions, including the impact of evolving trade policies, tariff regimes and trade wars; volatility in demand for Sandisk’s products; pricing trends and fluctuations in average selling prices; exposure to execution, financial and market risks due to long-term agreements; inflation; changes in interest rates and a potential economic recession; the impact of business and market conditions; the impact of competitive products and pricing; the development and introduction of products based on new technologies and management of technology transitions; risks associated with strategic initiatives, including restructurings, acquisitions, divestitures, cost saving measures and joint ventures; risks related to product defects; difficulties or delays in manufacturing or other supply chain disruptions; reliance on strategic relationships with key partners, including Kioxia Corporation; the attraction, retention and development of skilled management and technical talent; risks associated with the use of artificial intelligence in business operations; changes to relationships with key customers or consolidation among the customer base; compromise, damage or interruption from cybersecurity incidents or other data system security risks; reliance on intellectual property; fluctuations in currency exchange rates; actions by competitors; risks associated with compliance with changing legal and regulatory requirements; and other risks and uncertainties listed in Sandisk’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the SEC on August 21, 2025 and Quarterly Report on Form 10-Q filed with the SEC on May 1, 2026, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Sandisk undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

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Highlights

Nike’s earnings results suggest brands are rethinking how they measure D2C success.

The next phase of D2C centers on loyalty, payments and customer relationships that extend across every shopping channel.

As consumers become more selective, retailers are prioritizing reach and convenience alongside first-party data.

The shorthand of direct-to-consumer (D2C) might boil down to selling through a brand’s own website or brick-and-mortar location. But writ large, the model is about controlling the customer relationship.

Consumer brands poured resources into owned channels, betting that higher margins, richer customer data and stronger loyalty would outweigh the costs of acquiring customers themselves.

Recent events across retail suggest that calculation is changing. Several of the companies that helped define the D2C era have spent the past few years abandoning the idea that growth depends on steering every customer into owned channels.

By way of example, mattress seller Casper ultimately agreed to go private after years of struggling to produce sustainable returns as a public company.

SmileDirectClub entered bankruptcy.

Most recently, Allbirds agreed to sell assets and focus on artificial intelligence.

While each company faced its own challenges, together they illustrate a broader lesson. Building a recognizable brand and building an efficient distribution model are not necessarily the same exercise.

Nike’s fourth-quarter earnings results released Tuesday (June 30) provided the latest and perhaps clearest indication that even the industry’s largest brands are recalibrating the balance between owned channels and wholesale distribution. During the quarter, Nike Direct revenue fell 9%, including a 12% decline in Nike Digital, while wholesale revenue increased 1%. In North America, wholesale revenue climbed 10% as the company continued rebuilding relationships with retail partners.

“The integrated marketplace is one of our most important areas of transformation,” Nike President and CEO Elliott Hill said during a Tuesday earnings call. “We’ve been rebuilding our wholesale relationships, expanding our outreach and improving how we show up across channels.”

Hill outlined a strategy in which owned stores, digital channels and wholesale partners each contribute to the customer relationship. He also said Nike is “discounting less on Nike Digital” while continuing to invest in stores that fit its long-term strategy.

The broader read-across extends beyond Nike. As digital advertising costs have increased and consumers have become more willing to compare prices across retailers, marketplaces and brand sites, the economics of insisting that every purchase occur through an owned channel have become less compelling.

Brands still want first-party data. They still want loyalty. They still want recurring engagement. However, they arguably appear less concerned about whether the transaction itself occurs on a proprietary website.

Relationships Matter More Than Channels PYMNTS Intelligence’s latest “Global Digital Shopping Index,” commissioned by Visa Acceptance Solutions, found that merchants’ own mobile apps remain their strongest individual growth channel, with 57% reporting higher sales over the past year. At the same time, websites, physical stores, third-party marketplaces and delivery platforms all generated growth for roughly half of merchants surveyed.

The message is that consumers are buying wherever it is most convenient, and merchants are adapting by investing across all of them.

Merchants’ mobile apps generally offer a better shopping experience. Merchants are more likely to provide biometric authentication, digital wallet autofill, stored credentials, one-click checkout and QR code payments inside their apps than on their websites. Those capabilities reduce friction, shorten checkout and make repeat purchases easier. Ensuring that loyalty accounts, payment credentials and personalized offers recognize the customer are critical wherever that customer chooses to shop.

Consumers are growing more deliberate about spending. PYMNTS Intelligence’s latest research on household spending found that roughly two-thirds of consumers are trimming purchases or actively looking for ways to reduce everyday expenses. Under these conditions, shoppers are less inclined to remain loyal to a single retailer or website. They compare prices, search across multiple merchants, and expect checkout to be fast and familiar regardless of where they complete the purchase.

Brands face changing D2C economics. Customer acquisition costs have risen, and forcing every shopper into an owned channel risks sacrificing reach at a time when consumers are moving fluidly among retailer websites, marketplaces, social commerce and physical stores. The objective becomes preserving first-party relationships even when distribution broadens.

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NEW YORK--(BUSINESS WIRE)--Pershing Square Inc. (NYSE:PS) (“Pershing Square” or the “Company”) today announced that its Board of Directors has declared a quarterly cash dividend of $0.122 per share of its common stock for the third quarter of 2026, payable on July 21, 2026 to shareholders of record as of the close of business on July 13, 2026.

This cash dividend marks Pershing Square’s first quarterly cash dividend since its initial public offering. The declaration and amount of any future quarterly cash dividends are at the sole discretion of the Company’s Board of Directors and may be variable from quarter to quarter. See Part I. Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity – Dividend Policy” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for additional information.

About Pershing Square Inc.
Pershing Square Inc. is the parent company of Pershing Square Capital Management, L.P., an SEC-registered investment advisor to investment funds and other companies, based in New York.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When Pershing Square uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, Pershing Square is making forward-looking statements. Forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. Pershing Square undertakes no obligation to update any "forward-looking statement" made in this press release, whether as a result of new information, changed assumptions, the occurrence of unanticipated events, or otherwise, except as required by law.

Category: (PS: Corporate Actions)

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