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Meta Platforms META shares fell in early trading on Monday before recovering, as the company announced a $35 billion equity raise to fund its artificial intelligence ambitions amid persistent investor concerns about its spending plans. Shares of Meta fell close to 2% in early trading but gained roughly 0.2% around 11:20 AM EST following last week's sharp sell-off.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
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.
This article is intended to provide informational content and should not be viewed as an exhaustive analysis of the featured company. It should not be interpreted as personalized investment advice with regard to "Buy/Sell/Hold/Short/Long" recommendations. Financial models presented here, including DCF, rNPV, and scenario analyses, are illustrative tools based on the author's assumptions and are highly sensitive to inputs; small changes can materially alter outputs. The predictions and opinions presented reflect a probabilistic approach, not absolute certainty. Efforts have been made to ensure accuracy, but inadvertent errors may occur. Readers are advised to independently verify information and conduct their own research. Investing in stocks involves inherent volatility and risk. Before making any investment decisions, it is crucial for readers to conduct thorough research and assess their financial circumstances. The author is not liable for any financial losses incurred as a result of using or relying on the content of 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.
Tesla Inc. (NASDAQ:TSLA) shares are trading higher Monday possibly due to the company's announcement that Latvia has authorized its Full Self-Driving system, making it the tenth European Union country to approve it.
A Barclays upgrade is pulling Tesla sharply away from its electric vehicle rivals, and the reason has less to do with cars than with a corporate combination that Elon Musk himself refuses to guarantee will happen.
A Barclays upgrade tied to merger potential is splitting the electric vehicle group, lifting its largest name while two smaller rivals slip. Tesla (NASDAQ:TSLA | TSLA Price Prediction) stock is up 6%, trading at $394.72, a gain that pushes a possible takeover premium into how the market values the car maker.
Meanwhile, Lucid Group (NASDAQ:LCID) stock is down 4% to $3.38, moving in the opposite direction from the rally in Tesla stock. Rivian Automotive (NASDAQ:RIVN) shares are slipping 2% to $11.64, a softer decline than the drop in Lucid stock that still lands on the losing side of the split.
Broader benchmarks show how concentrated the buying is around a single company. The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is up 0.5% to $29.50, a modest advance for a fund that spans the wider industry. Over on the large-cap tech side, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.7% to $708.97, leaving both funds well short of the jump in Tesla stock.
Barclays Upgrade Prices in a SpaceX Merger Premium Barclays analyst Dan Levy upgraded Tesla stock to Overweight from Equal Weight and raised his price target to $450. Levy’s note cited a potential takeover premium for Tesla shareholders from a possible merger, along with an expected return to growth in the automotive business driven by Full Self-Driving adoption and higher exports from the Shanghai factory. That combination layers a deal angle on top of the familiar automotive and self-driving case for Tesla shares.
The company on the other side of that potential deal is SpaceX (NASDAQ:SPCX). Last week, Tesla CEO Elon Musk confirmed that the two companies had formed independent committees to explore a combination, while emphasizing that a deal isn’t certain. Musk’s caution matters, since part of the Barclays case leans on an outcome the two companies haven’t agreed to.
Lucid and Rivian Sit Outside the Merger Story One reason the upgrade lands on a single name is Tesla’s business mix. Its lineup spans electric vehicles, energy storage systems, Full Self-Driving software and a robotaxi service. Rivian and Lucid are smaller car maker whose results rest mainly on vehicle sales. Neither Rivian nor Lucid is part of the merger discussion Barclays mentioned for Tesla.
Multiple issues now face Tesla stock: an operating story built on Full Self-Driving and Shanghai exports, plus a merger premium tied to SpaceX, and Barclays’ operating argument can stand on its own while the merger angle depends on a process that remains preliminary. If the committees fail to reach terms, the takeover premium in the Barclays note could fade from Tesla shares quickly.
What the Barclays Upgrade Means for Tesla Next up for Tesla is whether the independent committees produce a merger agreement with SpaceX. A signed agreement could firm up the premium, while a stalled process could shift attention back to the automotive business.
Musk’s own caution keeps the outcome open. The rally in Tesla stock already reflects part of the optimism in Barclays’ call, which leaves less room for error if the process slows down. Investors should consider keeping their position sizes modest until the Tesla and SpaceX merger question is clarified.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Tesla (TSLA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this electric car maker have returned 0% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Automotive - Domestic industry, to which Tesla belongs, has lost 2.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Tesla is expected to post earnings of $0.50 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -10.5%.
For the current fiscal year, the consensus earnings estimate of $1.69 points to a change of +1.8% from the prior year. Over the last 30 days, this estimate has changed -10.4%.
For the next fiscal year, the consensus earnings estimate of $2.23 indicates a change of +32.1% from what Tesla is expected to report a year ago. Over the past month, the estimate has changed -4.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tesla.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Tesla, the consensus sales estimate of $28.64 billion for the current quarter points to a year-over-year change of +15%. The $106.35 billion and $119.01 billion estimates for the current and next fiscal years indicate changes of +12.1% and +11.9%, respectively.
Last Reported Results and Surprise HistoryTesla reported revenues of $28.05 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $0.48 for the same period compares with $0.5 a year ago.
Compared to the Zacks Consensus Estimate of $27.78 billion, the reported revenues represent a surprise of +0.96%. The EPS surprise was +6.67%.
Over the last four quarters, Tesla surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tesla is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tesla. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Have you looked into how Tesla (TSLA - Free Report) performed internationally during the quarter ending September 2026? Considering the widespread global presence of this electric car maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Upon examining TSLA's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $28.05 billion, experiencing a decline of 0.2% year over year. Next, we'll explore the breakdown of TSLA's international revenue to understand the importance of its overseas business operations.
Trends in TSLA's Revenue from International MarketsDuring the quarter, China contributed $5.21 billion in revenue, making up 18.6% of the total revenue. When compared to the consensus estimate of $5.68 billion, this meant a surprise of -8.25%. Looking back, China contributed $4.68 billion, or 16.6%, in the previous quarter, and $5.65 billion, or 20.1%, in the same quarter of the previous year.
Other International generated $10.34 billion in revenues for the company in the last quarter, constituting 36.9% of the total. This represented a surprise of +12.82% compared to the $9.17 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Other International accounted for $10.35 billion (36.7%), and in the year-ago quarter, it contributed $7.84 billion (27.9%) to the total revenue.
Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Tesla will post revenues of $28.64 billion, which reflects an increase of 15% the same quarter in the previous year. The revenue contributions are expected to be 19.8% from China ($5.67 billion), and 32.4% from Other International ($9.27 billion).
For the full year, a total revenue of $106.35 billion is expected for the company, reflecting an increase of 12.2% from the year before. The revenues from China and Other International are expected to make up 19%, and 34.2% of this total, corresponding to $20.2 billion, and $36.32 billion, respectively.
In ConclusionTesla's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Tesla, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Tesla's Stock Price Movement in Recent TimesThe stock delivered no returns over the past month versus the Zacks S&P 500 composite's a decrease of 1.2%. In the same interval, the Zacks Auto-Tires-Trucks sector, to which Tesla belongs, has registered a decrease of 2%. Over the past three months, the company's shares saw an increase of 19.6%, while the S&P 500 increased by 2.5%. In comparison, the sector experienced a decline of 2.4% during this timeframe.
Tesla stock TSLA rose around 5% on Monday after Barclays upgraded the electric vehicle maker, citing a potential merger with SpaceX and improving prospects for its automotive, energy storage, and autonomous driving businesses. Barclays analyst Dan Levy upgraded Tesla to Overweight from Equal Weight and raised his price target to $450 from $370, implying nearly 19% upside from recent levels.
The boards of Tesla (TSLA +6.28%) and SpaceX (SPCX +1.10%) have each set up a special committee of independent directors to weigh a combination, Elon Musk, the CEO of both companies, said during SpaceX's third-quarter earnings call on Oct. 20. Neither committee has agreed to terms. And Musk said he can't join the talks because he's a conflicted party.
SpaceX is worth about $2 trillion on the market, versus almost $1.5 trillion for Tesla. Tesla stock, near $377 as I write, is about 23% under its record close of $489.88 in December 2025.
So, would a merger be good for Tesla stock? I think it depends almost entirely on the price Tesla shareholders get. And at today's prices, the deal looks less appealing than SpaceX's growth makes it seem.
Image source: The Motley Fool.
SpaceX is growing much fasterShowing how far apart the two companies have drifted, SpaceX's third-quarter revenue climbed 161% year over year to $14.6 billion. That's a step up from 92% growth in the second quarter, when revenue was $7.8 billion.
SpaceX's operating income (profit from the business before interest and taxes) swung to $2.8 billion, after the company lost money on that line in both the year-ago quarter and the second quarter.
Tesla's results went the other way. Its third-quarter revenue was flat at $28.0 billion, and its operating income fell to $718 million, 56% below the year-ago quarter. Its operating margin slipped to 2.6% from 5.8%. And net income shrank 43% year over year to $787 million.
At current market values, Tesla shareholders would own around 43% of a combined company, if neither side got a premium. Going by the third quarter, that slice would bring about twice the operating income Tesla made on its own.
The second quarter tells a different story. On these results, the same slice would have carried only around a quarter of Tesla's operating income.
Put another way, I think the case that a deal adds profit for Tesla shareholders hangs on one quarter.
SpaceX's $4.4 billion in third-quarter net income also got help from around $1 billion in other income and a tax benefit. In the first nine months of 2026, the company still lost $413 million.
SPCX Space Exploration Technologies$149.11+$1.62 (+1.10%)
NASDAQ · As of 11:17 AM ET 10/26/26
A much bigger spending billA combined company would also carry SpaceX's capital spending. SpaceX spent $48.1 billion on property and equipment in the first nine months of the year, mainly for its artificial intelligence business, versus around $13.0 billion at Tesla.
The gap shows up in free cash flow (cash from operations minus capital spending). Tesla produced around $1.9 billion of it in those nine months, but SpaceX's number was about negative $35 billion.
For a Tesla shareholder's 43% slice of the combined total, that positive cash flow becomes around $14 billion of spending above what the companies brought in.
Sure, SpaceX can pay for it, with about $90 billion in cash and marketable securities at the end of September. Management also forecast first-quarter 2027 revenue of $33 billion to $37 billion, over twice the third-quarter total. But Tesla shareholders might be signing up for a piece of that bet whether it pays off or not.
Would a deal make Tesla stock a buy?Tesla stock already trades at over 400 times earnings, a price that assumes its newer businesses pay off. Using annualized third-quarter revenue, Tesla trades at around 13 times sales, versus about 34 times sales for SpaceX.
A deal at market prices wouldn't make either stock cheaper. It could only blend them, at around 21 times annualized sales -- more than Tesla shareholders pay per dollar of sales today. Any premium paid to SpaceX shareholders could cut Tesla shareholders' slice further.
TSLA Tesla$395.61+$23.39 (+6.28%)
NASDAQ · As of 11:14 AM ET 10/26/26
Tesla shareholders do have a real say. Musk said Tesla would need approval from a majority of all its shares, not just the ones that vote.
At SpaceX, a deal would also need approval from its controlling shareholder, according to its quarterly filing. Musk has over half of SpaceX's voting power.
In the end, a merger could give Tesla shareholders a piece of a business growing far faster than their own. But at today's prices, they'd also be swapping a company that produces cash for a minority stake in one that spends tens of billions more than it brings in.
Is that a good deal for Tesla stock?
I don't think so, and I wouldn't buy shares hoping for one. The terms will settle it, and there aren't any yet.
As most veteran investors can attest, attempting to time your entries and exits with a stock's peaks and valleys can often do more harm than good. The stock market doesn't behave predictably enough to make it worth the risk.
Still, these same investors also know that -- sometimes -- there are common-sense exceptions to this rule. Coca-Cola (KO -0.69%) may be one of them right now. Shares of the beverage giant have recently reached record highs thanks to this year's 35% rally that's trounced the S&P 500.
$92.07-$0.64 (-0.69%)
NYSE · As of 11:12 AM ET 10/26/26
Although the performance is compelling, it's also a little bit intimidating. Should interested investors dive into this red-hot ticker or wait for a pullback? In this instance, you should probably hold out for a pullback. Here's why.
Rarely seen numbers Don't misunderstand. In most cases you should commit to a holding when you feel conviction for it as a long-term investment, regardless of that stock's price. Just be willing to recognize when a stock's valuation moves from being unusual to unsustainable. That's what's arguably happened with Coca-Cola shares of late.
Image source: Getty Images.
Yes, its (relatively) sky-high trailing price-to-earnings ratio of 28 is a key piece of evidence that KO stock has rallied to silly price levels. That's back to the peak P/E measure last seen in late 2024 and early 2025 when the company was first starting to digest the latest round of inflationary pressure.
It's not just an earnings multiple matter, though, which is largely just a function of managing costs relative to pricing. Compared to far more consistent revenue, Coca-Cola stock's trailing price-to-sales ratio has also reached a multi-decade high of just above 8. Even if an unusually large amount of this top line makes it all the way down to the bottom line, this ticker is still pushing its valuation limits.
Also note that the stock's trailing dividend yield now stands at a multi-year low of 2.2%, softening one of the key reasons most investors consider a stake in The Coca-Cola Company in the first place.
KO PE Ratio data by YCharts
They're just numbers, with no guarantee they won't get weirder before renormalizing. Nevertheless, if you're playing the odds, the odds are against newcomers here.
Right idea taken too far In light of the timing of bullishness that's carried KO to its current record high, what we're likely seeing is a flight to safety. That is to say, perhaps worried that a collapse of the fragile AI industry could impact the rest of the market, a sizable swath of investors is seeking out holdings in consumer staples companies that should remain unfazed by broad market weakness.
Coke's cash dividend is also resilient, having not only been paid like clockwork for decades, but raised every year for the past 64 consecutive years.
These defensive-minded investors have arguably overplayed their hand, though, bidding up a stock meant to offer above-average safety until there's little to no upside left -- even in the event of the very marketwide weakness they're hoping to sidestep. This might make the point: The analyst community's current consensus target price for KO shares stands at $96.29, which is just 2% above the stock's present price.
You can find similarly safe dividend payers with bigger net upsides.
Analysts on Wall Street project that Amazon (AMZN - Free Report) will announce quarterly earnings of $2.01 per share in its forthcoming report, representing an increase of 3.1% year over year. Revenues are projected to reach $202.11 billion, increasing 12.2% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Amazon metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Net Sales- AWS' reaching $45.42 billion. The estimate points to a change of +37.6% from the year-ago quarter.
It is projected by analysts that the 'Net Sales- North America' will reach $113.39 billion. The estimate points to a change of +6.7% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Sales- International' of $43.21 billion. The estimate indicates a year-over-year change of +5.7%.
Analysts expect 'Net Sales- Advertising services' to come in at $20.87 billion. The estimate suggests a change of +17.9% year over year.
The consensus estimate for 'Net Sales- Online stores' stands at $69.56 billion. The estimate indicates a year-over-year change of +3.2%.
Analysts forecast 'Net Sales- Subscription services' to reach $13.69 billion. The estimate suggests a change of +8.9% year over year.
The average prediction of analysts places 'Net Sales- Other' at $1.60 billion. The estimate points to a change of +13.2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Net Sales- Third-party seller services' should arrive at $44.83 billion. The estimate points to a change of +5.5% from the year-ago quarter.
According to the collective judgment of analysts, 'Net Sales- Physical stores' should come in at $5.74 billion. The estimate indicates a change of +2.9% from the prior-year quarter.
The consensus among analysts is that 'Subscription services - Y/Y Change' will reach 9.0%. The estimate compares to the year-ago value of 11.0%.
The combined assessment of analysts suggests that 'Online stores - Y/Y Change' will likely reach 3.4%. Compared to the current estimate, the company reported 10.0% in the same quarter of the previous year.
Analysts predict that the 'Third-party seller services - Y/Y Change' will reach 5.8%. The estimate compares to the year-ago value of 12.0%.
View all Key Company Metrics for Amazon here>>>
Over the past month, shares of Amazon have returned -0.7% versus the Zacks S&P 500 composite's -1.2% change. Currently, AMZN carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Will Big Tech earnings from Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and other be enough to reignite bullish momentum in the stock market? It's the question Kevin Hincks weighs as the AI trade clashes with an interest Rate decision from the Fed this week.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Microsoft (MSFT - Free Report) Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company holds the leading position in the PC software market with its Windows operating system.
MSFT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. MSFT has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $19.66 per share. MSFT boasts an average earnings surprise of +9.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MSFT should be on investors' short list.
AMD has surged 156% this year while NVIDIA still dwarfs it on margins and data center scale, and the distance between those two realities is exactly what will determine whether AMD stock breaks out or stalls from here.
The 24/7 Wall St. price target for AMD (NASDAQ:AMD | AMD Price Prediction) is $546.06 over the next 12 months. That means 1.23% upside from the most recent close of $539.43.
Metric Value Current Price $539.43 24/7 Wall St. Price Target $546.06 Upside/Downside 1.23% Recommendation HOLD Confidence Level 90% AMD gets a hold rating from our model with high confidence. After a huge 2026 run, the stock sits near fair value.
The gap with NVIDIA (NASDAQ:NVDA) in data center scale and margins is still wide, and how much of it AMD closes through the Helios and MI450 ramp will decide where the shares go next.
A 156% Rally Hits an October Air Pocket AMD shares fell 9.31% over the past week and 1.91% over the past month. They are still up 156.42% year to date, compared with 18.43% for NVIDIA. The stock trades about 18% below its 52-week high of $658.52 and about 187% off its low.
In the second quarter, revenue came in at $11.54 billion, up 50.11% and ahead of the $11.31 billion estimate. Non-GAAP EPS of $1.66 beat the $1.6107 consensus. Data Center revenue grew 107% to $6.72 billion, and management guided third-quarter revenue to about $13 billion.
Why Bulls See $689 Within Reach Management says Helios delivers “up to 15% more throughput at the same rack power and up to 30% more tokens per dollar than the competition.” Anchor commitments include OpenAI at 6 GW, Meta Platforms (NASDAQ:META) at up to 6 GW and Anthropic at up to 2 GW.
AMD expects Data Center revenue to more than double in 2027, and Lisa Su expects to “significantly exceed” the company’s $20 annual EPS target.
Wall Street agrees: 45 analysts rate the stock Buy or Strong Buy, and none rate it Sell. If the optimistic scenario plays out, our model points to $689.35.
What Could Drag AMD Toward $433 AMD trades at a trailing P/E of 201x. NVIDIA’s Data Center revenue of $89.02 billion is about 13x AMD’s. CFO Jean Hu said that data center AI gross margin is “slightly below corporate average” during the ramp, and Helios yields are still improving.
Gaming revenue fell 31%. Free cash flow slid 9.89%, though that reflects capex rising 186.52% to fund capacity for the ramp. The bear case is $433.06.
AMD vs. NVIDIA and Broadcom on Scale and Growth NVIDIA is the GPU target AMD is chasing. Its trailing P/E of 44x is about in line with AMD’s forward multiple of 43x, and it gets a 75% non-GAAP gross margin against AMD’s 56%.
Broadcom (NASDAQ:AVGO) vies for the same hyperscaler budgets with custom silicon. Its AI semiconductor revenue reached $16.70 billion, up 221%. Both rivals are growing faster today, which makes our target look reasonable.
Company Market Cap Latest-Quarter Revenue Growth AMD $895.27B 50.11% NVIDIA $5.33T 105.85% Broadcom $1.61T 85.5% AMD Price Prediction 2026-2030 I rate AMD a hold with a 24/7 Wall St. price target of $546.06 and 90% confidence. Valuation tips the scale: the 2027 ramp already looks largely priced in.
I would turn more constructive if fourth-quarter Helios shipments step up on schedule and gross margins hold at 56% or better. I would remain conservative if yields lag or customer build-outs slid into late 2027.
The 24/7 Wall St. price target model projects where AMD could trade, assuming current trends hold.
Year 24/7 Wall St. Price Target 2026 $557.08 2027 $546.06 2028 $559.92 2029 $601.18 2030 $598.86 AMD needs to keep executing on its roadmap for these projections to hold. The biggest swing factors are the MI500 launch, which could add upside, and tighter export controls, which could take it away.
Contact [email protected] for any questions or corrections.
SummaryAdvanced Micro Devices receives a Strong Buy rating, with valuation now at 33x 2027 earnings, 22% below its high, despite an improved earnings outlook.Market concerns center on AI customer spending, but I see AMD’s EPYC server CPU business—forecasting a $220B market—as a major, underappreciated growth driver.Fourth-quarter guidance is key; a midpoint near $17B revenue and >70% server CPU growth outlook would reinforce the bullish thesis.Warrants tied to AI GPU deals could dilute shares by up to 19%, but dilution is offset by accretive revenue and profit from these major customer commitments.Getty Images
In September, Advanced Micro Devices (AMD) started shipping its first complete AI server rack, called Helios, so you'd think the stock would have had a good October. But instead, it lost about a fifth of its value, and from what I can
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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.
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Nokia just signed a five-year engineering deal that reaches deep into its AI infrastructure strategy, and the market responded fast. Whether that reaction holds depends on tensions Nokia flagged just last week.
A new India engineering partnership is pushing the AI infrastructure strategy at Nokia (NYSE:NOK | NOK Price Prediction) deeper into its technology base, and the network equipment maker is drawing buyers as a result. In morning trading, Nokia stock is up 3% to $8.35, a rebound that signals renewed appetite for the company’s AI-era network story. Stretching its engineering bench into India gives Nokia added resources for its fastest-growing business, which serves cloud and AI customers.
Meanwhile, Ericsson (NASDAQ:ERIC) stock is up 1% to $10.77, a smaller advance that leaves Nokia stock leading the two large carrier equipment names. Both companies compete for the same operator contracts, so the gap between their moves stands out, as that gap tracks a company-specific catalyst at Nokia that Ericsson doesn’t share.
Measured against the major index funds, the jump in Nokia stock looks even stronger. The iShares U.S. Technology ETF (NYSEARCA:IYW) is up 0.4% to $250.90, a modest gain for the sector fund. Also, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.5% to $763.46, leaving both funds well short of the move in Nokia stock.
India Engineering Deal Sparks Nokia Rally
Nokia signed a five-year contract, announced before U.S. markets opened, to support its engineering and research and development (R&D) work in India. L&T Technology Services is the partner, and it will set up a dedicated offshore development center along with an engineering team serving Nokia’s global technology operations. Work under the agreement spans next-generation wireless networks, intelligent automation, AI-driven operations and AI infrastructure, which lines up closely with the areas Nokia has tied to its growth plans.
This deal follows Nokia’s Q3 2026 results last week. Management highlighted AI and cloud customers as its fastest-growing business and pointed to quicker expansion in optical and data networking next year. Those same results showed supply constraints, higher restructuring costs and a lower cash conversion assumption, and Nokia stock fell sharply on the day they were released, yet against that background, the India contract signals that Nokia is still building engineering capacity to meet AI demand while it works through near-term friction.
Nokia’s AI Data Center Edge Sets It Apart From Ericsson
Nokia and Ericsson are the two large U.S.-listed suppliers of radio access and carrier transport equipment. Both sell to telecom operators whose overall spending Nokia expects to stay broadly flat.
Beyond carrier gear, Nokia sells optical and data networking equipment to cloud and AI data center customers, which management describes as the fastest-growing part of its business. Hyperscale build-outs give Nokia a growth path tied directly to AI infrastructure spending (we covered seven suppliers riding that same wave, from power to networking, in a free report here). Adding India-based engineers focused on AI infrastructure feeds that same engine.
Ericsson stock is trailing the advance in Nokia shares, leaving the carrier equipment gains led by the name with the clearer AI data center story. On the positive side, Ericsson stands as one of only two large U.S.-listed carrier equipment suppliers, which gives it scale with telecom operators. However, broadly flat operator spending remains a core risk for both companies.
What the India Deal Means for Nokia’s AI Push
This India agreement extends Nokia’s AI infrastructure push from its sales pipeline into its R&D base. A dedicated offshore team could help Nokia bring products to cloud and AI customers faster, which matters most if demand from those buyers keeps climbing. Extra engineering muscle won’t solve hardware shortages by itself, though.
Until supply eases, Nokia stock may stay sensitive to any update on restructuring or cash conversion. Investors weighing their NOK stock exposure should adjust their holdings carefully given those unresolved supply constraints.
Contact [email protected] for any questions or corrections.
Alibaba (BABA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this online retailer have returned -9.2%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Internet - Commerce industry, which Alibaba falls in, has lost 3.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Alibaba is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +139.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $6.37 points to a change of +63.8% from the prior year. Over the last 30 days, this estimate has changed -0.7%.
For the next fiscal year, the consensus earnings estimate of $8.71 indicates a change of +36.9% from what Alibaba is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Alibaba.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Alibaba, the consensus sales estimate of $40.35 billion for the current quarter points to a year-over-year change of +15.9%. The $166.54 billion and $184.75 billion estimates for the current and next fiscal years indicate changes of +14.5% and +10.9%, respectively.
Last Reported Results and Surprise HistoryAlibaba reported revenues of $39.64 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $1.26 for the same period compares with $2.06 a year ago.
Compared to the Zacks Consensus Estimate of $38.63 billion, the reported revenues represent a surprise of +2.61%. The EPS surprise was -35.05%.
Over the last four quarters, Alibaba surpassed consensus EPS estimates times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Alibaba is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alibaba. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Boeing's Q3 commercial deliveries rose 0.6%, while defense shipments increased 3.1% year over year.Boeing's 737-10 certification paves the way for deliveries, with 1,555 orders from more than 30 customers.EADSY is targeting aviation services market growth from $209B in 2026 to more than $420B by 2045.
The Boeing Company (BA - Free Report) and Airbus SE (EADSY - Free Report) are the leading manufacturers in the global aerospace sector, commanding the majority of the commercial aircraft market. Their aircraft form the backbone of airline fleets worldwide, positioning them to play a pivotal role in meeting the growing demand for air travel.
Beyond commercial aviation, Boeing and Airbus have established strong footholds in the defense, space and aviation services markets. Boeing supplies a broad range of military equipment and technologies to the U.S. armed forces, including combat aircraft, helicopters, satellites and autonomous systems. Airbus, meanwhile, serves governments and defense customers worldwide with military aircraft, helicopters, satellite systems and security-related solutions. Their presence across these diverse business segments provides multiple revenue streams and helps reduce reliance on commercial aircraft sales.
Looking ahead, both companies stand to benefit from increasing passenger traffic, the replacement of aging aircraft fleets, higher defense expenditures and rising demand for aviation-related services. A closer examination of their financial performance, growth prospects and valuation metrics can help identify which stock offers a more compelling investment opportunity at present.
Tailwinds for BA StockBoeing remains a leading global aircraft manufacturer, supported by its established relationships with airlines, aircraft lessors, governments and defense customers, as well as its extensive commercial aircraft portfolio. Its large installed fleet generates recurring revenues from maintenance, spare parts, training and upgrades. In the third quarter of 2026, Boeing’s commercial aircraft deliveries grew 0.6% year over year, reflecting continued recovery in production and delivery momentum. On the defense side, shipments increased 3.1% from the prior-year period’s level.
On Oct. 20, 2026, the U.S. Federal Aviation Administration (“FAA”) certified Boeing’s 737-10, the largest aircraft in its 737 MAX family, clearing the way for deliveries to begin in the coming months. The aircraft typically accommodates 185-210 passengers and offers enhanced fuel efficiency, reduced operating costs per seat and improved safety features. Boeing has received 1,555 orders from more than 30 customers for the 737-10, representing over 30% of the 737 MAX program’s outstanding order book. The certification is expected to support Boeing’s efforts to address its sizable order backlog, boost delivery revenues and strengthen cash flow as production gradually ramps up.
Tailwinds for EADSY StockOn Oct. 14, 2026, Airbus announced that its Defence and Space division had successfully integrated German and Swedish air defense systems into a unified network during NATO’s SPARTAN ARROW 26 exercise in Crete, Greece. The demonstration connected Germany’s IRIS-T SLM and Sweden’s Patriot missile defense systems to Germany’s Surface-to-Air Missile Operations Centre, while also incorporating Germany’s short-range air defense system to create a coordinated, multi-layered defense network against drones and cruise missiles. This development could benefit Airbus by strengthening its position as a provider of advanced defense integration and command-and-control technologies, creating opportunities for additional contracts as NATO members increase defense spending and modernize their air defense infrastructure.
Airbus forecasted that the global commercial aviation services market is expected to double from approximately $209 billion in 2026 to more than $420 billion by 2045, representing a compound annual growth rate (CAGR) of 3.8%. According to the company’s Global Services Forecast, growth will be driven by an expanding global aircraft fleet, rising passenger traffic, increased maintenance requirements, aircraft upgrades and greater adoption of digital connectivity solutions.
How Do Zacks Estimates Compare for BA & EADSY?The Zacks Consensus Estimate for Boeing’s 2026 earnings per share (EPS) indicates an increase of 89.85% year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Airbus' 2026 EPS indicates an increase of 9.09% year over year.
Image Source: Zacks Investment Research
Valuation for BA & EADSYBoeing shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.36X compared with Airbus' 1.64X.
Image Source: Zacks Investment Research
Liquidity of BA & EADSYBoeing and Airbus' current ratio is 1.14 and 1.15, respectively. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.
BA & EADSY’s Price PerformanceIn the past month, shares of Boeing have risen 2.1%, while those of Airbus have lost 2.4%.
Image Source: Zacks Investment Research
BA or EADSY: Which Is a Better Choice Now?Boeing is advancing its recovery through improving aircraft deliveries and FAA certification of the 737-10, which could accelerate backlog conversion, boost cash flow and strengthen its market position. Airbus is benefiting from growing defense demand and expanding aviation services opportunities, supporting revenue diversification and long-term growth prospects.
Our choice at the moment is Boeing, given its better price performance, stronger earnings growth and better valuation than Airbus. Both stocks have a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boeing (BA) reports earnings Tuesday as the stock hovers just above 52-week lows amid key production issues. Tom White takes investors through important headlines hitting investor sentiment and highlights a path for bulls to reclaim stock momentum.
Berkshire Hathaway (BRKA +0.33%) (BRKB +0.38%) CEO Greg Abel has made several significant changes to the $299 billion portfolio since he took over in January. The biggest change so far appears to be its concentration. The portfolio has shrunk to 29 stocks from 42 at the end of 2025, while assets have grown by 9%, from $274 billion to $299 billion.
The top five holdings made up around 70% of the portfolio at the end of 2025, when Warren Buffett stepped down as CEO. After the second quarter of 2026, the top five holdings were still right around 70%, 69% to be exact, but there is one notable difference.
Currently, Apple is the largest position at 22%, followed by American Express at 17.1%, Coca-Cola at 10.9%, Alphabet (GOOG +0.01%) (GOOGL +0.09%) at 9.4%, and Bank of America at 9.2%.
At the end of 2025, Apple was at 22.6%, American Express was at 20.5%, Bank of America was at 10.4%, Coca-Cola was at 10.2%, and Chevron was at 7.2%. Google's parent, Alphabet, accounted for just 2% of the portfolio and was the 10th-largest holding.
Aside from exiting more than a dozen positions, Abel's biggest move over the first two quarters has been piling assets into Alphabet. And when the third-quarter 13F comes out, I would not be shocked to see Abel boost his position in Alphabet even further.
Here's why Alphabet is a top buy in October.
A $514 billion backlog
Hedge fund managers were increasing their holdings of Alphabet stock in September, according to the latest Data Insights Crowding Report. The trend will likely continue in October mainly due to Alphabet's cheap valuation. The stock is trading at 16 times earnings. It hasn't been this cheap in at least 14 years going back to 2012, and probably longer.
But that is a bit misleading because the P/E was skewed lower in Q2 after Alphabet had a massive earnings gain of 335% year over year to $112 billion. About $98 billion of that came primarily from equity investments in Space Exploration Technologies and Anthropic.
GOOG Alphabet$317.31+$0.03 (+0.01%)
NASDAQ · As of 11:17 AM ET 10/26/26
But thes stock's forward P/E is still fairly low at 22, and it has a booming backlog of $514 billion within its cloud business, up 50% from the previous quarter. That's more than double the $240 billion backlog that Alphabet had at the end of 2025.
On the second-quarter earnings call, Alphabet CFO Anat Ashkenazi said the company expects to recognize just over 50% of the total cloud backlog as revenue over the next 24 months.
Apple to Alphabet
Alphabet presents an opportunity that Abel will likely not pass up like his predecessor, Buffett. Some 10 years ago, in the first quarter of 2016, Buffett bought Apple stock for the first time after its valuation sank with a price-to-earnings ratio of 10 -- its lowest in years at the time. Buffett kept loading up on Apple over the next several quarters, and by the end of 2017, it was Berkshire Hathaway's largest holding.
I expect to see a similar pattern here with Abel and Alphabet. Alphabet may not become Apple's largest holding, but the trajectory is similar. It has only been a year since Berkshire first added Alphabet to its portfolio in the third quarter of 2025. Just three quarters later, it's Berkshire's fourth-largest holding, and at this valuation, look for Abel to keep adding to the position.
It's not an apples-to-apples comparison (or Apple to Alphabet, as it were) given that Alphabet's low P/E ratio is skewed. But the speed at which Abel is adding Alphabet stock is reminiscent of how rapidly Buffett grew the Apple position.
The market is concerned about Alphabet's massive capital expenditures (capex), which it raised to $195 billion to $205 billion for fiscal 2026, up from the previous estimate of $180 billion to $190 billion. The increase is mostly due to an acceleration in capacity to meet surging demand. Alphabet expects capex spending to "increase significantly in 2027." This has drained Alphabet's free cash flow, which management anticipates will remain under pressure.
But during this once-in-a-generation AI boom, this is the cost of doing business for these hyperscalers to keep up with the insatiable demand. Amazon has made similar capex commitments, and it appears to be paying off. I'd expect Alphabet is making a similarly calculated move to meet demand.
Cadence Design Systems (CDNS.O) on Monday launched a portfolio of AI models tuned to help design computer chips, deepening its partnership with Nvidia (NVDA.O) and diverging from rival Synopsys's recent deal with OpenAI.
Both companies make software used to design computing chips — a process that involves arranging billions of transistors precisely to meet cost and performance targets — and are racing to have AI "agents" use those tools on behalf of human engineers to speed up the process.
The new suite, called Cadence Maestro, introduced on Monday, was built in part on Nvidia's open-weight Nemotron model and secured with Nvidia's OpenShell safety technology, the companies said.
Cadence said customers can run the models on its own cloud or any public cloud, or keep them entirely in-house behind their own firewalls and data centers.
They can also fine-tune the models on their own chip designs, and early results show up to 30% higher quality and up to five times better cost-efficiency versus general-purpose models, it added.
The Cadence approach contrasts with that of its largest competitor, Synopsys, which on September 30 said it would develop an AI model with OpenAI and share revenue with the ChatGPT maker. That model, GPT-Synopsys, will run on OpenAI-hosted infrastructure.
Paul Cunningham, a Cadence senior vice president, framed Maestro as model-agnostic, noting "there are more (AI) model providers out there than there are (chip design software) vendors."
When asked whether Cadence might strike its own deals with proprietary AI labs, Cunningham said both open- and closed-weight approaches are being "pursued equally," and that working with commercial labs is "part of the Maestro vision," though he declined to elaborate.
The first Maestro models reach select early-access customers in the fourth quarter, Cadence said.
Nvidia (NVDA) remains my clear 'Buy' over AMD (AMD), supported by superior margins, scale, and integrated AI systems. NVDA's gross margin, profitability, and vertical integration drive a valuation advantage, despite AMD's higher forward growth rates. AMD faces margin pressure from higher component costs and significant potential dilution from warrants issued to OpenAI and Meta.
NVIDIA just posted triple-digit revenue growth and Wall Street keeps raising its price targets, yet the stock is drifting lower. One upcoming catalyst could change that trajectory in a dramatic way.
The quarter NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just delivered would impress at a company one-tenth its size. Q2 fiscal 2027 revenue reached $96.22 billion, up 105.8% year over year. Data Center networking grew 138%, faster than compute.
Jensen Huang put it simply: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”
Shares are up 18.43% year to date at $220.36, but they fell 3.57% over the past week. Even rumors of a big China chip purchase failed to lift the stock. That break leaves room for a bigger move. NVIDIA’s path to $400 by late 2027 depends on rising earnings and a market-level multiple.
Wall Street Sees 49% Upside as Estimates Keep Climbing
The average analyst target is $328.72, which implies 49% upside. Ratings lean heavily positive, led by 10 Strong Buys, 49 Buys, 2 Holds and 1 Sell.
For fiscal 2028, analysts project revenue of $692.2 billion, up from $411.7 billion this year, or 68% growth. They expect EPS to rise about 71% to $15.9146. Management guides to similar growth.
CFO Colette Kress said “customer forecasts point to our growth doubling next year,” but NVIDIA expects roughly 70% because supply is tight.
Path to $400 Requires Only a Market-Level Multiple
NVIDIA currently trades at about 14x fiscal 2028 earnings. At $400, that rises to about 25x. That is a small premium to the S&P 500’s forward multiple of roughly 21-23x, and it would buy earnings growing at 71%.
What Could Push NVIDIA to $400?
Rising estimates: 90 days ago, analysts expected fiscal 2028 EPS of $12.7636. Today the figure is $15.9146, about 25% higher, following 7 raised estimates and zero cuts in the past 30 days.
Beat run: NVIDIA has beaten estimates for 5 consecutive quarters. In Q2 it earned $2.22 against an expected $2.09.
Vera Rubin ramp: Management expects the fastest product ramp in company history. Rubin brings in $40 billion per gigawatt, compared with $25 billion for Blackwell.
Hyperscaler spending: Capex at the top five hyperscalers is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027.
Supply relief and China: Huang said “the unconstrained number would be a lot higher.” The outlook includes no compute revenue from Chinese data centers, so any return there adds upside.
NVIDIA Has Topped This Gain Four Times Since 2016
Reaching $400 requires a gain of about 82%. NVIDIA has gone well beyond that before: shares rose 171% in 2024, 239% in 2023, 125% in 2021 and 224% in 2016.
With a market value of $5.33 trillion, repeating those returns is harder, but the stock has a track record of doing it.
$400 Is a Stretch, but the Math Holds Up
Hurdles remain: gross margin is expected to bottom at 71% to 72% in Q4, and days sales outstanding rose to 60 days. Reddit sentiment has also changed from bullish to neutral as concerns about AI financing grow.
Still, analysts already project 49% upside, and estimates are rising. NVIDIA trades at a forward multiple below the market’s. If Rubin ramps on schedule and supply eases, a 25x multiple on fiscal 2028 earnings would take the stock to $400.
That hyperscaler capex also has to be powered, cooled, and connected by someone, and we rounded up seven suppliers riding the same wave in a free report. Returns like this are rare, and this is how NVIDIA could deliver an outsized gain by 2027.
Contact [email protected] for any questions or corrections.
Almost every Wall Street analyst is pounding the table on Nvidia, yet a growing chorus of skeptics argues the entire AI spending boom rests on a foundation that has yet to deliver a single dollar of payoff outside of tech.
There are a couple of ways to look at it, but the picture is about the same. MarketBeat shows that 54 of the 55 analysts who cover Nvidia (NASDAQ: NVDA | NVDA Price Prediction) have a bullish call (“strong buy”, “buy”). Stock Analysis has the figure at 59 of 62 analysts. That is a range of over 95% to 98%. The news is either good or bad.
So many buy ratings are exceptional, as the stock continues its climb. At least a few analysts are skeptical. The average price target across all analysts is $325. The stock trades at $211 today. So, the assumption is that it can rise 54%. If the past means anything, the forecast is not crazy. Nvidia is up 725% in the last five years, but has done no better than the S&P 500 this year.
Nvidia’s stock price rests on two pillars. The first is 100% year-over-year revenue growth each quarter. In the most recently reported quarter, revenue was up 106% to $96 billion. On paper, by 2029, it should be the largest company in the US based on revenue, jumping ahead of Amazon (NASDAQ: AMZN). It would not take much of a dent in that growth to drive off some investors.
Nvidia’s growth rests on one simple premise: Data center growth will stay on fire. Megatech companies like Microsoft (NASDAQ: MSFT) will continue to have negative cash flow after decades of being positive. And Wall St. will need to fill in what these companies cannot. Skeptics have already argued that this is not sustainable. Apollo economist Torsten Slok notes, “Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech.” In other words, the forecasts based on customer demand are deeply flawed. If this continues, presumably customer demand will dry up.
A major anxiety about Nvidia is that it sells the chips at the heart of AI’s technology success and growth rate, making it the arms merchant to the entire industry. Over and over again, critics and analysts say that Nvidia funds the demand for its own products by investing in its own chip customers. Nvidia’s balance sheet, and to an extent its revenue, is built on a house of cards.
And fulfilling AI demand may not be entirely driven by profitability. Depending on who is counting, communities that do not want data centers have delayed 200 of them this year. It has become a rallying point for some politicians, and there is no reason it will go away. By itself, this could slow AI growth.
A reader may say this analysis adds nothing new. It does not. It is, however, a juxtaposition of analysts’ wild optimism set next to what may be a less-than-perfect outcome.
Contact [email protected] for any questions or corrections.
AT&T offers compelling long-term value after a 20% share price decline, with double-digit shareholder return potential. T's fiber and connectivity businesses drive robust revenue and EBITDA growth, with a 42.8% convergence rate and strong net adds. Despite a $150 billion debt load, T generates rising free cash flow, supports >5% dividend yield, and plans aggressive share repurchases.
Streaming giant Netflix (NFLX -2.57%) recently reported third-quarter earnings per share that was ahead of Wall Street consensus estimates -- while revenue came in line. However, investors came away disappointed after management said it expects full-year revenue of $51.1 billion, at the lower end of its outlook and slightly below consensus estimates.
Netflix attributed the softness to weaker ad revenue due to a slower-than-expected release of certain ad product capabilities. Still, the crux of the debate on Netflix, and likely overhang on the stock, concerns user engagement amid shifting consumer preferences.
During Netflix's third-quarter earnings call, Co-CEO Greg Peters told analysts, "We know that we can do better" when it comes to U.S. engagement. Should investors be worried?
Image source: Getty Images.
Adapting as content preferences shift
Netflix stock is now down over 47% in the past year, and a major reason for that decline is investor concerns about a shift in consumer viewing habits. Part of the shift can be attributed to short-form content on social media platforms and YouTube, while another concern is the disruption from artificial intelligence, as investors worry that the cost and barriers of creating content will come down.
During Netflix's earnings call, management was asked how engagement trends in the U.S. compare with those in other regions. Peters addressed this question, noting that overall subscriber retention remains healthy across all regions, despite price increases.
Peters also noted that engagement trends are strong in the Asia-Pacific region, Latin America, and Europe, the Middle East, and Africa (EMEA). Specifically, Peters highlighted India, where total viewed hours grew 24% year over year.
In the U.S., Netflix's largest and most mature market, Peters was slightly more reserved, but framed the U.S. as an opportunity. "Our engagement is solid, and it will allow us to continue to grow as we have for the last several years, but we know that we can do better. And that better is our upside. It's our goal to go from very good to great on the performance of that slate," he said.
NFLX Netflix$64.16-$1.70 (-2.57%)
NASDAQ · As of 11:15 AM ET 10/26/26
This may have concerned investors worried that there is little room left to grow in the U.S.
But later in the call, when Netflix Co-President Ted Sarandos was discussing Netflix's EMEA strategy, he cited Netflix's performance in the Nordic countries as evidence that the company is still succeeding in mature markets. "The content slate is killing it there. And it's proof that when we have the right focus, make the right choices and deliver creatively, we can drive outsized impact on the business around the world," he said.
Peters also said management is very excited about Netflix's slate for the fourth quarter, including shows like East of Eden, which is already out, season 4 of The Diplomat, the final season of Emily in Paris, as well as movies such as Bad Day and The Further Mis-Adventures of Cliff Booth written by Quentin Tarantino.
Netflix will also have NFL Christmas Day games.
The threat of AI and short-form content is definitely the big overhang on the stock, in my opinion. Trying to assess whether Netflix's entire business model will be disrupted by AI is just about as difficult as assessing AI's impact on every other sector. But I would bet that Netflix ends up being OK and leveraging AI to complement its business rather than being totally disrupted by it.
Billionaire investor Bill Ackman and his team at Pershing Square USA bought the dip on Netflix earlier this year. Part of their thesis is that the market's concerns on the company "understate the cost of generating long-form, high-quality video, which remains among the most compute-intensive AI tasks."
So it remains to be seen whether the barrier to making high-quality content will actually come down, and I still think there will be demand for it even if viewers continue to gravitate toward short-form content. Given the company's immense resources and industry expertise, I am sure Netflix will continue to add diverse content as consumer preferences evolve and remain one of the dominant streaming platforms in the sector.
Netflix (NFLX - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this internet video service have returned -7.4%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Broadcast Radio and Television industry, which Netflix falls in, has lost 4.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Netflix is expected to post earnings of $0.68 per share, indicating a change of +21.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -9.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $3.59 points to a change of +41.9% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $3.75 indicates a change of +4.5% from what Netflix is expected to report a year ago. Over the past month, the estimate has changed -2.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Netflix is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Netflix, the consensus sales estimate for the current quarter of $13.46 billion indicates a year-over-year change of +11.7%. For the current and next fiscal years, $51.15 billion and $56.7 billion estimates indicate +13.2% and +10.9% changes, respectively.
Last Reported Results and Surprise HistoryNetflix reported revenues of $12.87 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $0.87 for the same period compares with $0.59 a year ago.
Compared to the Zacks Consensus Estimate of $12.87 billion, the reported revenues represent a surprise of +0.05%. The EPS surprise was +6.1%.
Over the last four quarters, Netflix surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Netflix is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Netflix. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Have you evaluated the performance of Netflix's (NFLX - Free Report) international operations during the quarter that concluded in September 2026? Considering the extensive worldwide presence of this internet video service, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing NFLX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $12.87 billion, showing rise of 11.9%. We will now explore the breakdown of NFLX's overseas revenue to assess the impact of its international operations.
A Dive into NFLX's International Revenue TrendsAsia-Pacific accounted for 11.9% of the company's total revenue during the quarter, translating to $1.54 billion. Revenues from this region represented a surprise of +0.15%, with Wall Street analysts collectively expecting $1.53 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $1.51 billion (12%) and $1.37 billion (11.9%) to the total revenue, respectively.
During the quarter, Latin America contributed $1.6 billion in revenue, making up 12.5% of the total revenue. When compared to the consensus estimate of $1.61 billion, this meant a surprise of -0.67%. Looking back, Latin America contributed $1.58 billion, or 12.6%, in the previous quarter, and $1.37 billion, or 11.9%, in the same quarter of the previous year.
Of the total revenue, $4.11 billion came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 31.9%. This represented a surprise of -0.87% as analysts had expected the region to contribute $4.14 billion to the total revenue. In comparison, the region contributed $4.03 billion, or 32.1%, and $3.7 billion, or 32.1%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International MarketsThe current fiscal quarter's total revenue for Netflix, as projected by Wall Street analysts, is expected to reach $13.46 billion, reflecting an increase of 11.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia-Pacific is anticipated to contribute 12.1% or $1.63 billion, Latin America 12.2% or $1.64 billion and Europe, Middle East and Africa 32.1% or $4.32 billion.
For the entire year, the company's total revenue is forecasted to be $51.15 billion, which is an improvement of 13.2% from the previous year. The revenue contributions from different regions are expected as follows: Asia-Pacific will contribute 12% ($6.15 billion), Latin America 12.4% ($6.34 billion) and Europe, Middle East and Africa 32.2% ($16.49 billion) to the total revenue.
Final ThoughtsThe dependency of Netflix on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At the moment, Netflix has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Netflix's Recent Stock Market PerformanceOver the past month, the stock has seen a decline of 7.4% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 1.2%. The Zacks Consumer Discretionary sector, Netflix's industry group, has ascended 4.8% over the identical span. In the past three months, there's been a decline of 8.2% in the company's stock price, against a rise of 2.5% in the S&P 500 index. The broader sector has increased by 2.8% during this interval.
Netflix has been pumping out original content for so long and at such an immense scale that it recently released its second original movie entitled War Machine.
Although the Brad Pitt-starring first iteration sank like a stone in 2017, the unrelated new War Machine, led by Reacher’s Alan Ritchson, was reportedly a ratings smash, hitting 10th on Netflix’s all-time most-watched movies list, with 140 million views. So far, it’s the platform’s biggest movie this year.
If the dearth of online chatter around it is any indication, though, it’s gotten all too easy to have zero interest in or opinions about Netflix’s biggest projects.
Presumably, very few people got yelled at on social media for sharing War Machine spoilers, or felt slighted by a significant other for watching it without them. By all accounts, it’s a pretty good movie, but far from what could be considered an “event,” despite a sheen of event-ness being a reasonable expectation for any studio’s biggest film of the year.
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Instead, it feels more like a movie designed with the goal of capturing a Super Bowl number of eyeballs. That’s the main problem with 2020s Netflix: It gets eyeballs watching far more than it gets tongues wagging.
If a Super Bowl-size event takes place and nobody talks about it, does it even matter?
To be clear, Netflix is still an apex predator in the streaming wars (although it may be dwarfed by the world’s true streaming leader, YouTube). At the end of last year, Netflix topped 325 million subscribers, and in the first half of 2026, it logged 97.7 billion hours watched, landing 11 titles on Nielsen’s top 20 original series.
Analysts on Wall Street project that MasterCard (MA - Free Report) will announce quarterly earnings of $5.14 per share in its forthcoming report, representing an increase of 17.4% year over year. Revenues are projected to reach $9.63 billion, increasing 12% from the same quarter last year.
The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain MasterCard metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Net revenue by category- Payment network' to come in at $5.61 billion. The estimate indicates a year-over-year change of +8.2%.
According to the collective judgment of analysts, 'Net revenue by category- Value-added services and solutions' should come in at $4.04 billion. The estimate points to a change of +18.1% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Transaction processing assessments' will reach $4.64 billion. The estimate points to a change of +10.6% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Domestic assessments' should arrive at $3.15 billion. The estimate points to a change of +12.3% from the year-ago quarter.
Analysts predict that the 'Switched transactions' will reach 49.84 billion. The estimate compares to the year-ago value of 45.37 billion.
The combined assessment of analysts suggests that 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - Worldwide' will likely reach $2492.87 billion. The estimate is in contrast to the year-ago figure of $2280.00 billion.
The consensus among analysts is that 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - APMEA' will reach $531.71 billion. Compared to the present estimate, the company reported $484.00 billion in the same quarter last year.
Analysts forecast 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - Canada' to reach $73.74 billion. Compared to the current estimate, the company reported $69.00 billion in the same quarter of the previous year.
The consensus estimate for 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - Latin America' stands at $200.84 billion. Compared to the present estimate, the company reported $169.00 billion in the same quarter last year.
Analysts' assessment points toward 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - Europe' reaching $881.81 billion. The estimate compares to the year-ago value of $806.00 billion.
The collective assessment of analysts points to an estimated 'Purchase volume - All MasterCard Credit, Charge and Debit Programs - United States' of $794.22 billion. The estimate compares to the year-ago value of $752.00 billion.
The average prediction of analysts places 'Gross dollar volume - All Mastercard Credit, Charge and Debit Programs - Worldwide' at $3011.99 billion. Compared to the current estimate, the company reported $2747.00 billion in the same quarter of the previous year.
View all Key Company Metrics for MasterCard here>>>
Shares of MasterCard have experienced a change of +9.9% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), MA is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Visa is poised for a fiscal Q4 earnings beat, with EPS projected to rise 15.1% and revenues to grow 12.7%.Higher payment volumes, cross-border demand and digital transactions could fuel Visa's Q4 revenue growth.Visa's 16.3% YTD stock gain and premium valuation favor holding shares over buying ahead of earnings.
Visa Inc. (V - Free Report) is set to report its fourth-quarter fiscal 2026 results on Oct. 27, 2026, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.43 per shareon revenues of $12.08 billion.
The estimate for fiscal fourth-quarter earnings has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 15.1%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 12.7%.
Image Source: Zacks Investment Research
For fiscal 2026, the Zacks Consensus Estimate for Visa’s revenues is pegged at $45.84 billion, implying a rise of 14.6% year over year. The consensus mark for EPS is pegged at $13.22, suggesting a jump of about 15.3% year over year.
The payments juggernaut has a robust history of surpassing earnings estimates. It beat estimates in each of the last four quarters, with the average being 2.8%. This is depicted in the graph below:
Q4 Earnings Whispers for VisaOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Visa has an Earnings ESP of +0.66% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Visa’s Q4 ResultsVisa appears well positioned to deliver solid year-over-year growth in fiscal fourth-quarter results, supported by higher consumer spending, rising digital payment adoption and continued growth in cross-border transactions. The Zacks Consensus Estimate calls for a 7.5% increase in total Gross Dollar Volume from the year-ago quarter, while our model projects 7.7% growth.
As the company draws revenues as a set percentage of total transaction value every time a customer makes payments with a debit/credit card, higher spending means more revenue in the form of transaction processing fees. The Zacks Consensus Estimate for total processed transactions points to 9.6% year-over-year growth, slightly above our model's projection of 9.4%.
The consensus mark for total payment volumes indicates a 9.1% year-over-year increase. We expect the metric for U.S. operations alone to jump nearly 8% year over year. Similarly, our model predicts 15.6% year-over-year growth in Latin America and 11.2% in CEMEA.
The Zacks Consensus Estimate for data processing revenues indicates 15% growth in the fiscal fourth quarter from the year-ago level of $5.39 billion. Similarly, the consensus mark for service revenues suggests 12.6% year-over-year growth, whereas we expect the metric to grow 13.3% from $4.6 billion.
Furthermore, the consensus estimate for international transaction revenues indicates 8.9% growth from a year ago. Continuous growth in cross-border volumes is expected to have supported the metric. The factors stated above are expected to have positioned Visa for an earnings beat. However, rising expenses and client incentives (a contra-revenue item) are likely to have partially offset the positive impact of higher volumes.
We expect adjusted total operating expenses for the quarter under review to increase 11.6% year over year due to increased Personnel, Professional Fees, Marketing, and Network and Processing expenses. Meanwhile, the Zacks Consensus Estimate for client incentives is pegged at $4.98 billion for the to-be-reported quarter.
Visa Price Performance & ValuationVisa's stock has gained 16.3% in the year-to-date period. It has outperformed the industry’s 4.2% fall andthe S&P 500’s increase of 10.6%. In comparison, its peers like Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) have increased 9.2% and declined 15.3%, respectively, during this time.
YTD Price Performance – V, MA, AXP, Industry & S&P 500 Image Source: Zacks Investment Research
Now, let’s look at the value Visa offers investors at current levels.
The company’s valuation looks somewhat stretched compared with the industry average. Currently, Visa is trading at 26.97X forward 12-month earnings, above the industry’s average of 18.76X, and remains above its five-year median of 25.59X.
Image Source: Zacks Investment Research
In comparison, Mastercard is trading at 27.84X forward 12-month earnings. American Express, on the other hand, is trading at 15.86X now.
How Should You Play Visa Ahead of Q4 Earnings?Visa enters its fiscal fourth-quarter earnings report with plenty working in its favor. Steady consumer spending, higher transaction volumes and cross-border demand should support revenue and earnings growth. Its record of topping estimates adds to that case.
The longer-term story is also taking shape. Visa is expanding stablecoin-linked payments and settlement, building tools for AI-driven shopping and growing its Value-Added Services business. These efforts offer new ways to earn revenue beyond traditional card transactions, without straying far from the network that underpins its business.
Still, expectations are not low. After outperforming the industry and broader market this year, Visa trades above both its industry average and its own five-year median valuation. Higher operating expenses and client incentives could limit how much stronger payment activity flows through to earnings. Competition from alternative payment networks and regulatory scrutiny also remain concerns.
For existing shareholders, the company's strong core business and newer growth opportunities support staying invested through the report. New investors, however, may want to avoid chasing the stock ahead of earnings, particularly with its valuation leaving little room for disappointment.
Key Takeaways Walmart is expanding AI shopping through Agent Profiles and Agent Gateway to improve convenience.Walmart's global e-commerce sales rose 23% in Q2 fiscal 2027, while Marketplace sales surged 52%. Walmart's AI assistant Sparky saw usage jump 70%, with users spending 40% more per order than nonusers. Walmart Inc. (WMT - Free Report) continues to strengthen its digital retail business through investments in artificial intelligence (AI), automation and omnichannel capabilities. The retailer is increasingly using technology to simplify shopping, improve convenience and strengthen customer engagement. Its expanding AI capabilities could also help Walmart capitalize on evolving shopping preferences while creating additional opportunities for e-commerce growth.
Building on this strategy, Walmart recently announced Agent Profiles, Walmart Agent Gateway and dedicated operating rules for AI shopping agents. These initiatives are designed to enable customers to shop through third-party AI assistants while retaining control over purchases. Agent Profiles, expected to launch in November, will allow customers to set spending limits, authorize transactions and monitor purchases made by individual agents.
Meanwhile, Walmart Agent Gateway aims to streamline interactions between AI assistants and its shopping platform. The technology is being developed to help agents identify customers' preferred products without requiring access to their broader purchase histories. By simplifying routine purchases, these capabilities could encourage shopping frequency, improve convenience and strengthen customer loyalty.
Walmart's digital momentum provides a solid foundation for these initiatives. In second-quarter fiscal 2027, global e-commerce sales increased 23%, including 24% growth at Walmart U.S. Marketplace sales surged 52%, while global advertising revenues advanced 38%. Meanwhile, usage of its AI shopping assistant, Sparky, rose 70% year over year, with users spending 40% more per order than nonusers.
Walmart's growing AI ecosystem could further strengthen its competitive position by making product discovery and repeat purchases more convenient. Combined with its broad assortment, competitive pricing and fulfillment network, these capabilities may support sustained digital engagement and sales growth. However, the extent of the benefits will depend on customer adoption, effective execution and Walmart's ability to convert AI-driven shopping activity into profitable transactions.
What Do the Latest Metrics Say About Walmart?Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares gain 14.8% over the past year compared with the industry’s growth of 13.5%. Costco shares have climbed 7.9%, while Target has surged 56.2% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 38.29, higher than the industry’s 35.1. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.75) while trading at a discount to Costco (43.55).
Walmart's stock is closing in on a $1 trillion market cap, and the company just dropped a three-event holiday sales calendar to get there. But a strategy built on aggressive price cuts carries a profit risk that could make or…
Walmart (NASDAQ:WMT | WMT Price Prediction) announced three holiday shopping events on Oct. 26, with its stock close to a $1 trillion market value. As of 10:25 a.m. ET, shares traded at $121.59. That was up 1.42% on the day, 10.01% over the past month and 9.83% year to date, for a market value of about $966.67 billion.
Investors may be counting on a strong holiday season to carry Walmart past $1 trillion. Available sources link the rally to other factors. TIKR attributes the move to investors paying a higher valuation multiple, and TipRanks linked the Oct. 22 gain to comments from an Oppenheimer analyst. That puts a lot of weight on the holidays, because a richer valuation needs profit growth to back it up.
Three Holiday Sales Built Around Lower Prices
Walmart’s holiday calendar, per its press release:
Early Black Friday Deals: Nov. 12 to 15
Black Friday: Nov. 23 to 29. Both Black Friday sales open online at 12:01 a.m. ET and in stores at 6 a.m. local time.
Cyber Monday: Nov. 30 to Dec. 2, online only
Walmart said Walmart+ members get early access to hot deal drops for the first 24 hours of each Black Friday sale. Walmart’s own research found that 60% of shoppers say gift prices affect how they feel about the season, and Walmart said 70% say lower prices would make holiday shopping easier. Walmart is also promoting its new Walmart+ and Sam’s Club Plus bundle at $120 a year. Walmart’s Top Toys list includes 25 toys priced under $25.
Julie Barber, chief merchandising officer for Walmart U.S., summed up the pitch: “It’s all about helping our customers save more, discover more and make more room for what matters.”
A Higher Multiple Drove the Rally
TIKR data shows Walmart closed at $119.89 on Oct. 23, up 15.4% from $103.92 on Sept. 30. Over that period, TIKR shows analysts’ next-12-months earnings estimate stayed at $3.00 a share. The forward price-to-earnings ratio, which measures what investors pay for each dollar of profit expected over the next year, rose from about 35 times to about 40 times, per TIKR. In other words, investors paid more for the same expected earnings. TIKR puts the Street’s mean price target at $127.48, about 6% above the Oct. 23 close.
Why Price Cuts Can Squeeze Profit
Walmart has been putting its gains back into prices. Management said Walmart qualified for about $2.9 billion in tariff refunds and is using much of that money to fund more than 11,000 rollbacks. CEO John Furner said, “We’re investing heavily in price because customers need us to and because we believe it drives market share gains over time.”
TIKR names the main risk: if Walmart keeps reinvesting in lower prices, earnings could fall short. Oppenheimer’s Rupesh Parikh rates the stock Perform. According to TIKR, citing TipRanks, he said the bundle strengthens Walmart’s value proposition but noted a near-term profit headwind.
Higher-margin businesses help cover that cost. In the second quarter of fiscal 2027, global advertising rose 38% and membership fee revenue grew 17%. Adjusted EPS came in at $0.81, beating the $0.74 estimate, according to Walmart’s earnings release filed with the SEC. Even so, the stock fell 9.15% on the day of that report.
Nov. 19 Falls Between the Two Black Friday Sales
Walmart’s next report is expected on Nov. 19, though the company has not made that date official. That falls between its two Black Friday sales. The report covers the fall quarter, and holiday-quarter results won’t come until early next year, so Nov. 19 will give investors their first look at Walmart’s holiday outlook.
Walmart forecast to adjusted EPS of $0.62 to $0.64 for the quarter, and TIKR puts the year-earlier figure at $0.62 and the consensus estimate at $0.64. TIKR says results at or above consensus, along with Walmart’s full-year range of $2.80 to $2.87 held or raised, would support the higher multiple. A result at the low end of guidance would mean a stock TIKR values near 40 times forward earnings had reported flat quarterly earnings.
What to Watch Before the Holidays
The Nov. 19 report, and any update to Walmart’s holiday outlook and full-year guidance
How deep Walmart’s holiday discounts go, and whether management says they are weighing on margins
Whether Walmart’s $120 bundle brings in new members, since membership fees help offset lower prices
Contact [email protected] for any questions or corrections.
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Walt Disney (DIS - Free Report) Burbank, CA-based The Walt Disney Company has assets that span movies, television shows and theme parks. Revenues were $94.4 billion in fiscal 2025.
On March 23, 2020, DIS was added to the Focus List at $85.98 per share. Shares have increased 30.87% to $112.52 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $6.92. DIS boasts an average earnings surprise of 6.6%.
Additionally, DIS's earnings are expected to grow 16.7% for the current fiscal year.
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The upcoming report from Altria (MO - Free Report) is expected to reveal quarterly earnings of $1.51 per share, indicating an increase of 4.1% compared to the year-ago period. Analysts forecast revenues of $5.3 billion, representing an increase of 1% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Altria metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenues net of excise taxes- Oral Tobacco Products' will reach $694.43 million. The estimate suggests a change of +4.4% year over year.
Analysts forecast 'Revenues net of excise taxes- Smokeable Products' to reach $4.62 billion. The estimate indicates a year-over-year change of +0.6%.
The combined assessment of analysts suggests that 'Operating Companies Income- Reported OCI- Oral Tobacco Products' will likely reach $467.09 million. Compared to the current estimate, the company reported $459.00 million in the same quarter of the previous year.
Analysts' assessment points toward 'Operating Companies Income- Adjusted OCI- Smokeable Products' reaching $3.02 billion. Compared to the current estimate, the company reported $2.96 billion in the same quarter of the previous year.
View all Key Company Metrics for Altria here>>>
Shares of Altria have demonstrated returns of +8% over the past month compared to the Zacks S&P 500 composite's -1.2% change. With a Zacks Rank #2 (Buy), MO is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways TGT's Roundel gross billings surged nearly 20% in second-quarter fiscal 2026, boosting advertising revenues.Roundel helped drive 20.1% non-merchandise sales growth, supporting Target's gross margins and revenue mix.Target shares gained 8.9% in three months, outpacing the industry's 1% rise, while trading at a lower P/E.
Target Corporation's (TGT - Free Report) Roundel advertising business is gaining importance as the retailer continues to expand its higher-margin revenue streams. The platform's recent performance underscores the financial value of retail media, which provides an additional revenue opportunity alongside the company's core merchandise operations.
During the second quarter of fiscal 2026, Roundel's gross billings increased nearly 20% year over year, reflecting continued strength in Target's advertising operations. Reported advertising revenues, primarily associated with Roundel, reached $279 million, up from $217 million in the year-ago quarter. For the first six months of 2026, advertising revenues reached $525 million compared with $379 million in the prior-year period.
The momentum is particularly noteworthy because advertising represents a higher-margin revenue opportunity. Target indicated that continued growth in advertising and other non-merchandise sales supported its underlying gross margin performance during the quarter. This suggests that Roundel's expansion is contributing not only to revenue diversification but also to a more favorable business mix. Target reported 20.1% growth in non-merchandise sales during the quarter, citing Roundel advertising as one of the contributors.
Target is also investing in technology capabilities to strengthen its retail media business. These efforts reflect management's emphasis on developing advertising as an integral part of its broader retail operations. Roundel's continued expansion could make advertising an increasingly important component of Target's revenue mix.
How WMT & DG Are Scaling Retail Media Compared With TargetWalmart Inc. (WMT - Free Report) is scaling its retail media business rapidly, with global advertising growing 38% in second-quarter fiscal 2027 and Walmart U.S. advertising also up 38%. Walmart Connect, excluding VIZIO, advanced 43%, while advertising helped improve business mix and e-commerce economics. Walmart also strengthened the platform through its Vibe acquisition, aimed at expanding self-service tools and helping advertisers measure results against actual shopping behavior.
Dollar General Corporation (DG - Free Report) is similarly developing DG Media Network as a profit lever. Dollar General said the network reached $170 million in annual volume at the end of last year and is expected to grow meaningfully. Dollar General is expanding advertiser opportunities across stores, its app and website while increasing digital engagement. Dollar General also identifies DG Media Network growth among the initiatives expected to support gross margin expansion.
How Does Target Stack Up Against Its Industry?Target has seen its shares rally 8.9% over the past three months compared with the industry’s rise of 1%.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.75, lower than the industry’s 28.91. However, the stock is trading above its 12-month median level of 15.01.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?The Zacks Consensus Estimate for Target’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.1% and 37.8%, respectively. For the next fiscal year, the consensus estimate indicates a 3.1% rise in sales but a decline of 9.5% in earnings per share.
Image Source: Zacks Investment Research
Target’s Investment CaseTarget’s improving sales momentum, growing digital capabilities and expanding higher-margin businesses, including Roundel, strengthen its investment appeal. Continued investments in merchandising, technology and customer experience support sustainable growth and profitability. The stock’s attractive valuation relative to the industry, coupled with encouraging earnings expectations and improving business fundamentals, presents a compelling opportunity for investors seeking long-term growth. Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Exxon Mobil Holdings (XOM - Free Report) Over the past decade, ExxonMobil Holdings Corporation has undergone a significant transformation, reshaping its business to adapt to evolving energy demands, financial discipline and environmental considerations. Traditionally reliant on oil and gas, the company has streamlined operations and focused capital on high-return, low-cost projects. ExxonMobil has achieved nearly $16.3 billion in structural cost savings since 2019, strategically enhancing its earnings power and improving cost efficiency.
XOM is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.44; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.45 to $13.63 per share. XOM also boasts an average earnings surprise of +2.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XOM should be on investors' short list.
Ford F is slated to release third-quarter 2026 results on Oct. 28, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's EPS and automotive revenues is pegged at 39 cents and $45.67 billion, respectively.
Verizon Communications (VZ - Free Report) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.15%. A quarter ago, it was expected that this largest U.S. cellphone carrier would post earnings of $1.27 per share when it actually produced earnings of $1.3, delivering a surprise of +2.36%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Verizon, which belongs to the Zacks Wireless National industry, posted revenues of $34.31 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.43%. This compares to year-ago revenues of $33.82 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Verizon shares have added about 9.7% since the beginning of the year versus the S&P 500's gain of 11.4%.
What's Next for Verizon?While Verizon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Verizon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $37.27 billion in revenues for the coming quarter and $5.03 on $140.96 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless National is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, ATN International (ATNI - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 4.
This provider of telecommunications services is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ATN International's revenues are expected to be $184.9 million, up 1% from the year-ago quarter.
For the quarter ended September 2026, Verizon Communications (VZ - Free Report) reported revenue of $34.31 billion, up 1.5% over the same period last year. EPS came in at $1.31, compared to $1.21 in the year-ago quarter.
The reported revenue represents a surprise of -1.43% over the Zacks Consensus Estimate of $34.81 billion. With the consensus EPS estimate being $1.27, the EPS surprise was +3.15%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Wireless retail postpaid ARPA: $168.08 compared to the $168.77 average estimate based on three analysts.Wireless - Retail Core Prepaid Connections: 19.34 million compared to the 19.4 million average estimate based on three analysts.Churn rate - Wireless retail postpaid phone: 0.9% versus the three-analyst average estimate of 0.9%.Wireless - Retail Postpaid Connections: 126.83 million compared to the 126.85 million average estimate based on three analysts.Operating Revenues- Wireless equipment revenues: $5.12 billion compared to the $5.45 billion average estimate based on five analysts. The reported number represents a change of -9% year over year.Operating Revenues- Service revenues and other: $29.2 billion versus $29.29 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.Operating Revenues- Business: $7.02 billion versus the four-analyst average estimate of $7.19 billion. The reported number represents a year-over-year change of -1.7%.Operating Revenues- Consumer: $26.43 billion compared to the $26.9 billion average estimate based on four analysts. The reported number represents a change of +1.3% year over year.Operating Revenues- Business- Other: $2.47 billion compared to the $2.6 billion average estimate based on three analysts.Operating Revenues- Business- Wireless equipment: $839 million compared to the $831.97 million average estimate based on three analysts.Operating Revenues- Business- Mobility and broadband service: $3.71 billion compared to the $3.78 billion average estimate based on three analysts.Operating Revenues- Consumer- Other: $2.38 billion versus the three-analyst average estimate of $2.4 billion. The reported number represents a year-over-year change of +137.6%.View all Key Company Metrics for Verizon here>>>
Shares of Verizon have returned -5.1% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways VZ's Q3 earnings rose 8.3% to $1.31 per share, beating estimates, while revenues missed expectations.VZ added 406,000 postpaid phone subscribers as adjusted EBITDA rose 8% to a record $13.80 billion.Verizon raised its 2026 EPS outlook to $5.04-$5.06 and postpaid phone additions forecast to 1.1M-1.2M. Verizon Communications Inc. (VZ - Free Report) reported adjusted earnings of $1.31 per share in the third quarter of 2026, up 8.3% year over year and ahead of the Zacks Consensus Estimate of $1.27 by 3.15%.
Total operating revenues increased 1.5% year over year to $34.31 billion but missed the consensus mark of $34.81 billion by 1.43%. Strong service revenue growth, improved operating efficiency and robust subscriber additions supported profitability. Verizon delivered 406,000 postpaid phone net additions, its strongest third-quarter performance in five years.
Service Revenues Grow Despite Equipment WeaknessService revenues and other increased 3.5% year over year to $29.20 billion, supported by improving mobility and broadband trends. Wireless equipment revenues declined 9% to $5.12 billion, reflecting reduced upgrade activity and disciplined promotional spending.
Mobility and broadband service revenues reached $23.5 billion, increasing 2.9% year over year compared with 2.8% growth in the preceding quarter. Management attributed lower equipment sales to customers retaining devices longer and its strategy of reducing handset subsidies.
Consumer Segment Benefits From Service GrowthConsumer operating revenues increased 1.3% year over year to $26.43 billion. Mobility and broadband service revenues rose 3.6% to $19.78 billion, while wireless equipment revenues declined 10.3% to $4.28 billion. Other revenues grew 6% to $2.38 billion.
Consumer operating income improved 5.6% to $8.09 billion, with the operating margin expanding to 30.6% from 29.4%. Segment EBITDA increased 6.5% to $11.97 billion, while the corresponding margin improved 230 basis points to 45.3%.
Business Segment Records Higher ProfitabilityBusiness operating revenues rose 2.6% year over year to $7.02 billion. Mobility and broadband service revenues declined 0.8% to $3.71 billion, while wireless equipment revenues fell 1.6% to $839 million. Other revenues increased 10% to $2.47 billion.
Business operating income climbed 19.4% to $855 million, supported by lower selling, general and administrative expenses. Segment EBITDA advanced 13% to $1.94 billion, with the corresponding margin expanding to 27.6% from 25.1%.
Margins Expand Through Cost DisciplineTotal operating expenses declined 0.2% year over year to $25.66 billion. Selling, general and administrative expenses decreased 3.5% to $7.48 billion, while wireless equipment costs fell 10.2%. However, depreciation and amortization expenses increased 10.3% to $5.10 billion.
Operating income rose 6.7% to $8.65 billion. Consolidated net income increased 5.2% to $5.32 billion, while net income attributable to Verizon improved 5% to $5.20 billion. Adjusted EBITDA increased 8% to a record $13.80 billion, with the adjusted EBITDA margin expanding 240 basis points to 40.2%. Interest expenses increased 17.2% to $1.95 billion.
Wireless Gains Offset Slower Broadband AdditionsVerizon added 137,000 postpaid accounts, its best quarterly performance in more than a decade. Retail postpaid phone churn improved four basis points year over year to 0.94%, while Consumer postpaid phone churn declined to 0.87%.
Broadband net additions totaled 314,000, down from 322,000 a year earlier. Fiber broadband additions reached 155,000, while fixed wireless access contributed 159,000. Total broadband connections reached 17.4 million. The company also announced an agreement valued at more than $2 billion with Amazon Web Services to support AI infrastructure.
Cash Flow Strengthens Shareholder ReturnsThird-quarter operating cash flow increased 2.2% year over year to $11.52 billion, while free cash flow improved 12.1% to $7.80 billion. Capital expenditures totaled $3.72 billion, compared with $4.31 billion a year earlier.
For the first nine months, free cash flow increased 14.3% to $18.01 billion. Verizon returned $12.8 billion to shareholders through dividends and repurchases. Net unsecured debt stood at $123.72 billion, down from $128.68 billion in the preceding quarter. Net unsecured debt to adjusted EBITDA improved sequentially to 2.3 times.
VZ Raises 2026 Earnings and Subscriber OutlookVerizon raised its 2026 adjusted earnings guidance to $5.04-$5.06 per share, implying 7%-7.5% year-over-year growth, compared with its previous projection of 6%-7%.
The company increased its postpaid phone net additions forecast to 1.1 million-1.2 million. Mobility and broadband service revenue growth is expected in the upper half of the 2.5%-3% range, while free cash flow growth is projected to approach 12%. Capital expenditure guidance remains unchanged at $16-$16.5 billion.
Zacks RankVerizon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2026 earnings on Nov. 3. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting growth of 44% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 22.8%. Arista delivered an average earnings surprise of 8.9% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, indicating a 10.2% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.9%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.
GLOBALFOUNDRIES Inc. (GFS - Free Report) is set to release third-quarter 2026 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 51 cents per share, implying a rise of 24.4% from the year-ago reported figure.
GLOBALFOUNDRIES has a long-term earnings growth expectation of 21.2%. GFS delivered an average earnings surprise of 10.9% in the last four reported quarters.
Trhy sice zahajují týden relativně klidně, pod povrchem však narůstá řada rizik. Investoři budou sledovat, zda Fed a další centrální banky potvrdí jestřábí postoj vůči inflaci, zatímco technologický sektor čeká další test v podobě výsledků největších cloudových hráčů.
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Pražská burza zahájila nový týden růstem, když za podpory pozitivního sentimentu na globálních akciových trzích posílila měřeno indexem PX o 0,56 % na 2 598 bodů. Dařilo se akciím Erste Bank, které stouply o 2,31% na 2 568 Kč. Komerční banka si polepšila o 0,96 % na 1 003 Kč. Významný růst zaznamenala také zbrojovka CSG, jejíž akcie posílily o 3,10 % na 345 Kč, zatímco Colt CZ přidal 0,48 % na 833 Kč. ČEZ stagnoval na páteční úrovni 1 368 Kč a beze změny zakončila rovněž pojišťovna VIG na 1 680 Kč. Naopak Moneta Money Bank oslabila o 1,07% s oceněním nad 184 Kč.
Key Takeaways GS benefits from stronger deal activity, equity trading, wealth assets and alternative fundraising.C's improving net interest income, streamlined operations and private-market expansion support growth.GS and C trade below industry valuation multiples, with average price targets implying 21.6% and 23.4% upside. The third-quarter 2026 earnings season is in full swing now. Most of the major investment banks have reported their quarterly financial numbers. Here, we recommend two giant investment banks to buy for various reasons.
These are: The Goldman Sachs Group Inc. (GS - Free Report) and Citigroup Inc. (C - Free Report) . Both investment banks have reported solid third-quarter 2026 earnings results. Year to date, these stocks have significantly lagged the benchmark S&P 500 Index.
As a result, both stocks are currently available at attractive valuations along with impressive price upside potential in the short-term. Finally, each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
The Goldman Sachs Group Inc.Goldman Sachs benefited from strong revenue growth in the Global Banking & Markets and Asset & Wealth Management businesses. Improving deal activity and robust equity trading of GS should support fee-income growth.
Growing wealth assets, alternative fundraising and targeted acquisitions should expand GS’ recurring revenues. Its strong capital and liquidity position should support long-term growth and shareholder return. GS has a current dividend yield of 2.28%.
Strong Estimate RevisionsGoldman Sachs has an expected revenue and earnings growth rate of 28% and 10.9%, respectively, for fourth-quarter 2026. The Zacks Consensus Estimate for the current quarter’s earnings has improved 0.8% in the past seven days.
GS has an expected revenue and earnings growth rate of 1% and 4.3%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 0.5% in the past seven days.
Image Source: Zacks Investment Research
Attractive ValuationsThe stock has a forward P/E of 12.35X compared with the industry’s P/E of 12.80X and the S&P 500’s P/E of 18.63X. It has a P/S of 1.81X compared with the industry’s P/S of 1.88X and the S&P 500’s P/S of 3.10X. GS has a P/B of 2.04X compared with the industry’s P/B of 2.46X and the S&P 500’s P/B of 3.64X.
Impressive Price UpsideThe short-term average price target of brokerage firms represents an increase of 21.6% from the last closing price of $875.68. The brokerage target price is currently in the range of $875-$1,280. This indicates a maximum upside of 46.2% and no downside.
Image Source: Zacks Investment Research
Citigroup Inc.Citigroup benefited from higher net interest income (NII). Despite the Fed rate hike, improving loan demand is likely to aid NII in the future. C’s simplified operating structure is improving efficiency and directing capital toward higher-return businesses, while expanding Citi Token Services in Japan and the UAE to support transaction banking growth.
Expanding private-market capabilities may boost C’s fee income, while strong liquidity and improving efficiency support capital returns. Citigroup is broadening its private-credit and private-market capabilities through partnerships and product innovation. C has a current dividend yield of 2.22%.
Strong Estimate RevisionsCitigroup has an expected revenue and earnings growth rate of 15.9% and 32%, respectively, for fourth-quarter 2026. The Zacks Consensus Estimate for the current quarter’s earnings has improved 0.3% in the past seven days.
C has an expected revenue and earnings growth rate of 4.8% and 14.5%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 0.1% in the past seven days.
Image Source: Zacks Investment Research
Attractive ValuationsThe stock has a forward P/E of 10.55X compared with the industry’s P/E of 12.80X and the S&P 500’s P/E of 18.63X. It has a P/S of 1.17X compared with the industry’s P/S of 1.88X and the S&P 500’s P/S of 3.10X. C has a P/B of 1.06X compared with the industry’s P/B of 2.46X and the S&P 500’s P/B of 3.64X.
Impressive Price UpsideThe short-term average price target of brokerage firms represents an increase of 23.4% from the last closing price of $120.62. The brokerage target price is currently in the range of $110-$170. This indicates a maximum upside of 40.9% and no downside.
