Key Takeaways Costco's June total comparable sales rose 8.8%, slowing from May and April but showing healthy demand.Digitally enabled comparable sales grew 20.9% in June, continuing strong online momentum.Costco's June net sales rose 10.6% to $29.24 billion, supported by value and digital strength. Costco Wholesale Corporation’s (COST - Free Report) June sales data showed that consumer demand remains resilient, even as comparable sales growth moderated. The company continued to benefit from its value-driven pricing, quality merchandise, strong digital momentum and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.
Sneak Peek Into Costco’s Comparable Sales PerformanceFor the five weeks ended July 5, 2026, Costco reported an 8.8% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.6% in the United States, 3.7% in Canada and 4.7% in Other International markets. While this marked a slowdown from total comparable sales growth of 12.5% in May and 11.6% in April, the June performance still reflected healthy underlying demand.
Excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 7.6%, while Canada and Other International markets posted gains of 4.9% and 5.6%, respectively. Overall, total comparable sales, excluding these factors, rose 7% in June, following increases of 8% in May and 7.8% in April.
Digitally enabled comparable sales remained a standout, rising 20.9% in June, or 21.5% after adjusting for fuel and currency impacts. This followed gains of 21.1% in May and 18.8% in April, underscoring sustained momentum in Costco’s online channel.
Costco’s net sales for June increased 10.6% to $29.24 billion from $26.44 billion in the year-ago period. Although growth moderated from May’s 14.5% increase and April’s 13% gain, the retailer’s June performance suggests that its value proposition and digital strength continue to support solid sales momentum.
How Costco Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) continues to post resilient comparable sales growth despite a cautious consumer backdrop. Walmart reported 4.1% U.S. comparable sales growth (excluding fuel) in first-quarter fiscal 2027, supported by a 3% increase in transactions and 26% global e-commerce growth. Walmart also benefited from a stronger marketplace, advertising and Walmart+ membership performance, reinforcing traffic, customer engagement and market-share gains while sustaining healthy comparable sales momentum.
Meanwhile, Target Corporation (TGT - Free Report) is also demonstrating solid comparable sales momentum through strong traffic and digital growth. Target delivered 5.6% comparable sales growth in first-quarter 2026, driven by a 4.4% increase in traffic and 8.9% digital comparable sales growth, with strength across all six merchandise categories. Target continues to enhance comparable sales through merchandising innovation, Target Circle 360, same-day delivery and an improved omnichannel experience, positioning Target for sustained long-term growth.
What the Latest Metrics Say About CostcoCostco has seen its shares tumble 4.5% over the past three months compared with the industry’s decline of 3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.02, higher than the industry’s ratio of 30.43. However, it is trading below its 12-month median level of 46.34, indicating some moderation in valuation despite sustained investor confidence in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.46, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The move also follows a price-target cut from JPMorgan analyst Christopher Horvers, who maintained an Overweight rating on Costco but lowered the firm’s price target from $1,110 to $1,100.
Costco Wholesale stock is among today’s weakest performers. Why are COST shares down? What’s Driving Costco’s Recent Sales Growth?Costco said net sales reached $29.24 billion for the five weeks ended July 5, 2026, up 10.6% from the same period last year, with U.S. comparable sales also up 10.6% and Canada comps up 3.7%. For the first 44 weeks of the fiscal year, net sales totaled $250.43 billion, up 10.1%, though management flagged gasoline price deflation and foreign exchange as headwinds.
Costco’s regional split is also part of the read-through, with U.S. comps up 10.6% versus Canada at 3.7%, reinforcing that FX and local demand differences can matter even when the headline growth rate looks clean. That unevenness can amplify positioning moves when the stock is already trading heavy.
Critical Price Levels To Watch For COSTFrom a trend perspective, Costco is below its key moving averages, trading 4.7% under the 20-day SMA ($955.46), 7.7% below the 50-day SMA ($987.00), and 4.8% below the 200-day SMA ($956.93). The 20-day SMA sitting below the 50-day SMA keeps the near-term setup bearish, even though the longer-term "golden cross" (50-day above 200-day) that formed in March is still technically intact.
For momentum, MACD is below its signal line with a negative histogram, which typically means upside pressure is fading unless buyers can push the stock back above that baseline. Put simply: when MACD is under its signal line, rallies tend to lose steam faster, so bulls usually want to see that relationship flip before leaning in.
Key Resistance: $970.00 — a round-number area that also sits near the 50-day EMA ($972.88), where rebounds can stall Key Support: $908.50 — a nearby pivot zone just under the current price that can act as a "line in the sand" for dip buyers Costco’s Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for Costco Wholesale, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Costco Wholesale’s Benzinga Edge signal reveals a quality-led profile with weak near-term momentum and only middling value support. For longer-term bulls, that often means waiting for momentum to stabilize (or key support to hold) before treating dips as higher-conviction entries.
COST Stock Price Activity on ThursdayCOST Stock Price Activity: Costco Wholesale shares were down 4.46% at $910.64 at the time of publication on Thursday, according to Benzinga Pro data.
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NEW YORK, July 09, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar’s capacity to manage the impact of U.S. tariff policy on the Company’s business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar’s projected performance in the 2026 fiscal year; as a result, Defendants’ public statements were materially false and misleading at all relevant times.
What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/FSLR. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
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Prior results do not guarantee similar outcomes.
Enbridge (ENB - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and natural gas transportation and power transmission company have returned -2.4% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Enbridge belongs, has gained 2.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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.
Enbridge is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of -6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
For the current fiscal year, the consensus earnings estimate of $2.14 points to a change of -0.9% from the prior year. Over the last 30 days, this estimate has changed -2.9%.
For the next fiscal year, the consensus earnings estimate of $2.36 indicates a change of +10.2% from what Enbridge is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
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 Enbridge.
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 Enbridge, the consensus sales estimate of $11.03 billion for the current quarter points to a year-over-year change of +2.6%. The $50.87 billion and $48.91 billion estimates for the current and next fiscal years indicate changes of +9.2% and -3.9%, respectively.
Last Reported Results and Surprise HistoryEnbridge reported revenues of $16.3 billion in the last reported quarter, representing a year-over-year change of +26.5%. EPS of $0.71 for the same period compares with $0.72 a year ago.
Compared to the Zacks Consensus Estimate of $12.82 billion, the reported revenues represent a surprise of +27.09%. The EPS surprise was +2.9%.
Over the last four quarters, Enbridge 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.
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.
Enbridge is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Enbridge. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of o either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CF Industries (CF - Free Report) CF Industries Holdings, Inc., headquartered in Deerfield, IL, is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. The company’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN).
CF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Basic Materials stock. CF has a Momentum Style Score of A, and shares are up 7.1% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.68 to $17.24 per share. CF boasts an average earnings surprise of +11.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CF should be on investors' short list.
Airbnb is doubling down on New York City despite its years-long battle with local officials over short-term rental restrictions, buying its first office in the Big Apple.
The San Francisco-based home-sharing giant paid $81.5 million for the landmarked property at 281 Park Ave. South in Manhattan’s Gramercy neighborhood, the Wall Street Journal first reported.
An Airbnb spokesperson confirmed to The Post that the company purchased the building and said the transaction closed Wednesday.
Airbnb has purchased 281 Park Ave. South in Manhattan for $81.5 million, marking the short-term rental giant’s first New York City office building. Penske Media via Getty Images The six-story, 42,500-square-foot Beaux-Arts building will serve as a dedicated hub for Airbnb’s New York workforce, which numbers more than 600 employees in the region.
“This building reflects our long-term commitment to the city and will be home to one of our largest employee hubs outside of San Francisco,” Airbnb CEO and co-founder Brian Chesky said in a statement.
“We’re excited to keep investing in the city and the people who make it extraordinary,” Chesky added.
The sale comes as Airbnb continues to push city and state officials to loosen New York’s stringent restrictions on short-term rentals.
Local Law 18, which took effect in 2023, dramatically tightened enforcement of the city’s long-standing limits on short-term rentals by requiring hosts to register with the city and forcing booking platforms to verify registrations before processing reservations.
Supporters of the law argued it was necessary to preserve New York’s housing stock and prevent residential buildings from functioning as unlicensed hotels.
Airbnb’s newly acquired office at 281 Park Ave. South sits just north of Manhattan’s Gramercy Park. NurPhoto via Getty Images Airbnb has countered that the restrictions deprive residents of supplemental income and have failed to address the city’s housing affordability crisis.
According to the Journal, Airbnb contributed $10 million last year to its Affordable New York political action committee, which spent more than $1.3 million opposing mayoral candidates Zohran Mamdani, Brad Lander and Scott Stringer, all of whom have been critical of the company.
Despite maintaining a “work anywhere” policy since 2022 that allows employees to work remotely or relocate within the US without a change in pay, Airbnb said it expects to maintain a significant presence in New York for years to come.
Airbnb CEO and co-founder Brian Chesky said the company’s new Manhattan office reflects its “long-term commitment” to New York City. Bloomberg via Getty Images According to the company, many of its New York-based employees prefer to work from the office regularly, prompting the need for a dedicated employee hub.
The building was originally listed for sale in 2022 with an asking price of $135 million, according to Airbnb.
The seller, New York developer Aby Rosen’s RFR, bought the property in 2014. According to the Journal, Airbnb’s purchase price represented roughly a 63% gain over what RFR paid for the building more than a decade ago.
Built in 1894 and renovated in 2019, 281 Park Ave. South previously figured into one of New York’s most notorious recent fraud cases.
Anna Sorokin, who posed as wealthy German heiress Anna Delvey, allegedly used forged financial documents while attempting to lease the building for a private members’ club.
The project never materialized, and Sorokin was convicted in 2019 of defrauding banks, hotels and other businesses.
In this video, I will cover why I stepped away from Palantir (NASDAQ:PLTR) stock over a year ago and what has changed to bring me back as a buyer today. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of June. 30, 2026. The video was published on June. 30, 2026.
Neil Rozenbaum has positions in Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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PepsiCo (Nasdaq: PEP) stock fell 4% after earnings came in a penny light, even as revenue cleared expectations. The softer read came from the U.S. consumer, with management pointing to tighter household budgets, inflation pressure, and weaker North American beverage demand.
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Memory is becoming one of the clearest pressure points in the AI buildout. Global memory sales climbed 31.7% from the prior month to a record $74.6 billion, reflecting the strain that AI demand is putting on supply chains. NAND sales rose 40.7% to $25.8 billion, while DRAM reached $48 billion, reinforcing how much of the AI trade now depends on the chips that feed and store data.
UBS expects the squeeze to persist, with sharp price increases and supply shortages potentially lasting into mid-2028. That backdrop could favor Micron, Samsung, SK Hynix, and SanDisk. Bernstein is still bullish in the near term, but sees a slower pace of price gains ahead as weaker consumer demand starts to take some heat out of the market.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite pushed higher Thursday morning as chip stocks moved back into market leadership, giving tech investors a reason to look past another flare-up in U.S.-Iran tensions. The Nasdaq rose 0.6%, outpacing a 0.3% gain in the S&P 500, while the Dow hovered near the flatline. Semiconductors were the clearest pocket of strength. The VanEck Semiconductor ETF climbed about 4%, buoyed by a 7.9% jump in Micron (Nasdaq: MU) and a 6% gain in SanDisk (Nasdaq; SNDK), as investors returned to the AI memory trade after a rough stretch for chip names.
The rebound came against a more complicated macro backdrop. Renewed fighting around Iran and the Strait of Hormuz kept oil risk in focus, even as crude prices backed away from the worst-case scenario. Software stocks, meanwhile, were weaker after KeyBanc downgraded Salesforce (Nasdaq: CRM) adding pressure to the SaaS side of the tech trade just as semiconductors regained momentum.
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Here’s a look at where things stand as of pre-morning trading:
Dow Jones Industrial Average: 52,400 Up 0.10%
Nasdaq Composite: 29,705 Up 1.5%
S&P 500: 7,515 Up 0.44%
Market Movers SK Hynix is reportedly guiding its U.S. ADR offering at $149 per share, a 3.1% premium to its Korea close. The pricing keeps investor appetite for AI-linked memory names front and center.
Micron (Nasdaq: MU) is raising the stakes in U.S. chipmaking, saying it now expects to invest $250 billion domestically through 2035. The company also announced up to $3 billion in new spending aimed at strengthening the U.S. semiconductor supply chain and expanding the manufacturing base needed for next-generation technology.
Meta Platforms (Nasdaq: META) is reportedly moving deeper into custom silicon, with its Iris AI chip expected to enter production in September, according to Reuters. The chip is part of Meta’s in-house training and inference accelerator roadmap, a sign the company wants more control over the hardware powering its AI ambitions. Meta is also planning a roughly $10 billion data center in Sturgeon County, Alberta, marking its first such facility in Canada. The 1-gigawatt project, expected to rely largely on natural gas, would require about 3,000 construction workers and create roughly 300 full-time jobs.
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Micron Technology (NASDAQ:MU | MU Price Prediction) has been the wildest ride in the AI memory trade. The stock rallied from $119.73 a year ago to a 52-week high of $1,254.81, then pulled back to $938.38 after a Samsung-triggered memory selloff. My question: is another leg higher coming, or is fair value already in the price?
Our 24/7 Wall St. price target for Micron is $957.48 over the next 12 months, implying roughly 2% upside from here. That is a hold, but with a high confidence read of 90%. The stock is essentially at fair value after an epic run.
24/7 Wall St. Price Target Summary Metric Value Current Price $938.38 24/7 Wall St. Price Target $957.48 Upside 2.04% Recommendation HOLD Confidence Level 90% A 683% Rally, Then a Reset Micron is up 683.77% over the past year and up 228.99% year-to-date, but the tape has cooled off fast. Shares fell 18.69% in the past week after Samsung reported a record $58 billion Q2 operating profit that triggered a sector-wide sell-the-news reaction. Analysts view the pullback as a “healthy reset” within a memory supercycle.
The fundamentals do not look like a top. Fiscal Q3 2026 revenue hit $41.46 billion, up 345.72% YoY, with non-GAAP EPS of $25.11 beating consensus by 23.79%. GAAP gross margin expanded to 84.6% from 37.7% a year ago, and management guided Q4 revenue to $50.0 billion with EPS of $31.
Why Bulls See a Path to $1,486 The bull case is anchored by Wall Street itself. The consensus target sits at $1,486 across 40 buy or strong-buy ratings versus one strong sell. Our own bull scenario points to $1,333.31, a 42.09% return.
The catalysts are stacked: HBM4 is already in high-volume shipments, HBM4E on 1-gamma DRAM targets 2027 volume, and Micron just secured long-term memory supply agreements with Ford and General Motors for next-generation vehicles.
CEO Sanjay Mehrotra says “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability” of results. If those contracts anchor pricing into 2027, $1,300+ is defensible.
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What Could Go Wrong Memory is cyclical, and the biggest risk is a supply flood. SK Hynix is preparing a $28-29 billion Nasdaq IPO, with proceeds funding new fabs, and Apple is reportedly testing CXMT chips for China devices.
Add hyperscaler research into memory compression techniques and the demand side could soften faster than expected. Michael Burry has reportedly shorted the name citing “AI hype”. Our bear case lands at $698.10, a 25.61% decline.
The counterfactual for bears: capex is running at $7.83 billion a quarter, up 166.37% YoY, and while that pressures near-term free cash conversion, it reflects locked-in demand from Strategic Customer Agreements rather than speculative building.
Hold for Now, Buy the Reset My 24/7 Wall St. price target of $957.48 with 90% confidence keeps me at hold. The valuation gap between our model and the Street target is really a debate about whether HBM pricing normalizes in 2027 or holds firm.
I’d be a buyer here if Micron closes above $1,000 on Q4 results confirming the $50 billion revenue guide. I’d stay patient if SK Hynix’s IPO drains capital from the memory trade.
Year 24/7 Wall St. Price Target 2026 $957 2027 $1,050 2028 $1,000 2029 $1,060 2030 $1,121 These projections assume Micron continues executing on HBM4 and its Strategic Customer Agreements. Significant upside or downside could come from the pace of AI capex and how quickly Chinese and Korean supply reaches the market.
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Artificial intelligence has turned memory chips into one of the most valuable pieces of the semiconductor supply chain. Nvidia‘s (NASDAQ:NVDA | NVDA Price Prediction) AI accelerators grab the headlines, but high-bandwidth memory (HBM) has quietly become just as essential because advanced AI chips can’t deliver peak performance without it.
Until now, U.S. investors looking to capitalize on that trend have had few direct options beyond Micron Technology (NASDAQ:MU). That changes tomorrow when South Korean memory leader SK hynix begins trading on Nasdaq through American depositary receipts (ADR) priced at $149 each, giving investors another way to invest in one of AI’s hottest markets.
A Rare Opportunity Comes With Plenty of Excitement SK hynix — which will trade on Nasdaq under the ticker SKHY — priced its ADRs at $149, roughly a 3% premium to where its shares trade in South Korea. The company is expected to raise approximately $28 billion, making it one of the year’s largest listings and drawing comparisons to last month’s blockbuster SpaceX (NASDAQ:SPCX) debut.
That excitement makes sense. SK hynix sits at the center of the AI memory boom:
Company HBM Market Share DRAM Market Share SK hynix 58% 38% Samsung Electronics 21% 29% Micron Technology 21% 22% Together, Samsung, SK hynix, and Micron control essentially all HBM production and roughly 90% of the global DRAM market. That’s an enviable competitive position in an industry benefiting from AI data center spending that continues climbing.
Let’s also remember that U.S. investors have had limited access to this opportunity. Buying SK hynix previously required investing directly in the Korean market, making tomorrow’s Nasdaq listing a meaningful milestone.
The Memory Boom May Be Peaking That said, timing matters. Micron offers a useful reminder of how quickly sentiment can shift. After reaching record highs in late June, the stock has surrendered roughly one-quarter of its value as investors began questioning whether memory pricing has become too aggressive.
The concerns aren’t difficult to understand. Historically, memory has been among the semiconductor industry’s most cyclical businesses. High prices encourage manufacturers to expand production. Customers respond by delaying purchases or seeking lower-cost alternatives. Eventually supply catches demand, inventories build, and prices decline.
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We’re beginning to see early signs of that cycle again. Elevated memory prices are squeezing margins for consumer electronics manufacturers, particularly smartphone and PC makers. As procurement teams push back against rising costs, investors are wondering whether today’s record HBM pricing can last.
Ironically, SK hynix may be coming public just as enthusiasm begins cooling.
Granted, AI infrastructure spending remains robust, and memory demand could stay elevated longer than previous cycles because hyperscale cloud providers continue investing billions of dollars in AI data centers.
Still, investors should separate the business from the stock. SpaceX dominates the space sector and generated enormous excitement following its debut — but has given back all of its early gains. IPO enthusiasm often creates prices that reflect near-perfect expectations rather than realistic outcomes.
Key Takeaway In short, SK hynix deserves a place on every semiconductor investor’s watchlist, but that doesn’t automatically make its $149 debut price a bargain. The company is entering Nasdaq as the world’s HBM leader during an AI investment boom, yet history shows memory cycles rarely stay favorable forever.
With Micron already correcting about 25% from its recent highs and questions emerging about memory pricing, patience may prove the better strategy. Great businesses can still become mediocre investments when investors pay peak-cycle prices, and SK hynix may be arriving just as the memory trade begins to lose momentum.
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SummaryMicron Technology, Inc. delivered a record-breaking quarter, with revenue up 346% YoY and operating income surging 2,456%, driven by AI-fueled memory demand.MU’s growth is powered by Strategic Customer Agreements: 16 take-or-pay contracts locking in floor margins above historical peaks and $100B+ in minimum revenue.Guidance calls for Q4 revenue of $50B and 86% gross margin, with tight memory supply expected through 2027 and a commitment to return 100% of excess cash to shareholders.While SCAs cap upside for 40% of revenue at peak 2026 prices, the new floor transforms MU’s risk profile, justifying a Strong Buy rating despite some foregone upside. JHVEPhoto/iStock Editorial via Getty Images
Every once in a while, a company reports a quarter so loudly that the point gets drowned out by its own applause. Now, Micron Technology, Inc. (MU) has had runs like this before, and
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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.
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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The Micron Technology logo is displayed on a smartphone screen with the company's website in the background, in Creteil, France, on May 27, 2026. The American semiconductor company officially crosses the symbolic threshold of $1 trillion in market capitalization on Wall Street the previous day. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Micron (MU) shares have soared by almost 8x in the last year, elevating its market valuation to over $1 trillion. This surge has been driven by high-bandwidth memory (HBM), which complements the AI accelerators from Nvidia (NVDA) and AMD (AMD), forming the backbone of AI infrastructure development.
In the past, memory has consistently been one of the most cyclical sectors within the semiconductor business, with DRAM navigating through boom-and-bust trends every three to four years. Explore a detailed account of previous memory cycles for Micron.
This time around, however, numerous factors within the market appear distinct. AI clientele are entering into multi-year supply contracts, a limited number of hyperscalers account for a significant portion of demand, and HBM is closely coupled with AI accelerators rather than offered as an independent commodity.
The pressing question is whether these structural transformations are sufficient to alter the industry’s well-established patterns. That’s what investors need to ascertain.
Tighter Coupling, Fewer CustomersHBM has transitioned away from being a commodity memory solution. Unlike standard DRAM, which fits into separate memory slots, HBM is packaged directly with the AI accelerator through sophisticated chip packaging techniques. It is collaboratively designed and certified for a particular GPU generation, involving significantly lengthier qualification processes compared to commodity DRAM. As HBM is integral to the GPU package, each new GPU generation generally introduces a corresponding new generation of HBM.
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This alters Micron's customer composition. Rather than distributing memory to numerous PC manufacturers, server OEMs, and cloud service providers, HBM demand is now heavily concentrated among Nvidia, AMD, and a select few hyperscalers creating their own AI chips. The lengthy qualification processes benefit Micron. Once a memory supplier is approved for a GPU platform, clients hesitate to change suppliers since validating a new one can take years rather than just quarters. This leads to increased switching costs and enhanced revenue predictability.
The downside is the concentration of customers. A decrease in AI infrastructure expenditures from just one significant GPU client or hyperscaler could disproportionately affect Micron's HBM revenue. During prior memory cycles, declines in one market segment were often balanced by demand from others. In the case of HBM, this buffer is considerably smaller.
What’s Truly New: Take-Or-Pay ContractsThe most compelling evidence that this cycle might differ is the long-term take-or-pay agreements, a rarity in the DRAM sector. Micron has secured 16 multi-year take-or-pay contracts. Once all intended agreements are finalized, the company anticipates that more than half of its revenue will be secured by these contracts, with approximately 40% subject to fixed or ceiling pricing. Check Micron's growth and margins compared to peers.
These contracts don’t erase risk, but they alter the distribution of it. They offer Micron enhanced revenue visibility and lessen vulnerability to abrupt price declines. In exchange, clients agree to procure capacity even if market conditions deteriorate.
Nevertheless, this protection is only partial. Approximately half of Micron's revenue still resides outside these contracts. Should AI infrastructure investment fall short, or if future AI models become more memory-efficient than anticipated, pricing pressures might still arise in the non-contracted segment of the business.
Signs of Customer Hesitation Are Already SurfaceMajor technology firms are expected to allocate over $600 billion for capital expenditures this year. A significant portion of this expenditure is directed towards AI data centers along with the GPUs and HBM that support them. However, the entities ultimately funding AI services may start to adopt a more cautious approach.
Tesla has placed a cap of $200 per week on employee spending for AI tools as of July 6. Uber, Meta and Walmart have implemented similar restrictions as usage-based pricing has made AI expenses more apparent. While these measures are relatively minor, they demonstrate that companies are starting to closely evaluate AI expenditures rather than viewing them as boundless.
Concurrently, the uptake of enterprise AI has proven slower than many anticipated. Incorporating AI into established workflows, redesigning business processes, and promoting employee acceptance continue to present significant obstacles. If businesses struggle to achieve favorable returns on their AI investments, the rate of future infrastructure spending may eventually slow, challenging the assumption that the current high demand for HBM will endure for years.
Opportunities such as those presented by Micron illustrate how individual semiconductor stocks can experience significant increases during technological transitions, but they also entail focused exposure to industry cycles, capacity expansions, and execution risks. A disciplined portfolio strategy can help mitigate these risks while still engaging in long-term growth trajectories. Trefis’s High Quality (HQ) Portfolio has consistently outperformed its market benchmark since inception, with cumulative returns exceeding 105%.
Micron shares rose 7% on Thursday as the company announced a new round of investments aimed at boosting the U.S. semiconductor supply chain, and plans to accelerate its spending in the country through 2035.
The new strategic investment of up to $3 billion includes $500 million for Taiwanese-headquartered GlobalWafers to expand its wafer development and manufacturing in its Texas facilities, and also comes with a 10-year supply agreement for raw silicon wafer capacity.
"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," said Ben Tessone, Micron's chief procurement officer, in a press release.
In a separate announcement, the chipmaker said it will also raise its planned U.S. investment to $250 billion through 2035, roughly a $50 billion increase, as memory demand from the artificial intelligence buildout skyrockets.
Other names in the chip space rallied on Thursday, with Applied Materials, KLA Corp and Lam Research up 7%, ARM Holdings up 11%.
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Micron Technology Inc (NASDAQ:MU) shares rose 7% on Thursday after the company announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain and support future manufacturing capacity.
The investment includes $500 million in strategic financing support for GlobalWafers to advance development of its GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas.
The companies also plan to enter into a 10-year supply agreement that would provide Micron with access to additional raw silicon wafer capacity.
Micron said the investment is intended to improve supply assurance, increase long-term planning flexibility and support demand for advanced memory and storage solutions driven by artificial intelligence and other data-intensive applications.
“Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap,” Ben Tessone, senior vice president and chief procurement officer at Micron, said in a statement.
GlobalWafers CEO Doris Hsu added that the partnership with Micron would support the expansion of local semiconductor manufacturing capabilities and strengthen supply chain resilience in the US.
Micron and GlobalWafers also plan to explore collaboration on next-generation wafer technologies and process innovations.
The proposed transaction remains subject to definitive agreements, customary approvals and closing conditions.
The news also lifted shares across the broader semiconductor sector, with Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) gaining 7%, Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) rising 4%, Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) advancing 3%, Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) up 2% and Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) climbing 6%.
Memory chip and storage stocks staged a strong recovery on Thursday, with investors rushing back into the sector after a sharp selloff triggered by Samsung Electronics' quarterly earnings earlier this week.
Micron Technology climbed more than 7%, while SanDisk SNDK gained about 7.5%.
Western Digital advanced over 7.2%, and Seagate Technology rose more than 6.5%, recovering a significant portion of the losses suffered during the broader semiconductor rout.
The rebound follows Samsung's preliminary quarterly earnings that sparked profit-taking across global chip stocks despite the South Korean memory giant reporting stronger-than-expected results.
Samsung's shares declined after the earnings announcement as investors locked in gains following the stock's sharp rally, dragging semiconductor and AI-related stocks lower worldwide.
The selling pressure was particularly severe in South Korea, where the Kospi briefly slipped into technical bear-market territory on Wednesday, falling 22.8% from its June 22 peak.
Despite the recent volatility, market participants increasingly viewed the correction as a healthy pullback rather than a sign of deteriorating fundamentals for the AI memory industry.
Micron, for instance, had fallen about 32% from the record high it touched shortly after its earnings report in late June, making the stock attractive to investors looking to buy into the AI theme at lower valuations.
Fresh industry data also supported the recovery.
According to UBS' July Memory Monthly report, global memory sales reached a record $74.6 billion, rising 31.7% month-on-month and outperforming the typical seasonal trend by 2.8 percentage points.
The strong demand has prompted both UBS and Bernstein to forecast meaningful increases in memory contract prices over the coming quarters, although the two firms differ on how long the current upcycle can be sustained.
Another positive signal for the sector came from reports that SK Hynix's upcoming US listing has attracted overwhelming investor demand, suggesting institutional investors remain confident about the long-term outlook for AI memory suppliers despite recent share-price volatility.
Investor sentiment also received a boost after Micron announced plans to invest more than $250 billion in the United States through 2035 to expand memory manufacturing capacity.
The investment reflects growing confidence that demand for high-bandwidth memory and other advanced memory chips used in artificial intelligence servers will remain robust for years.
The latest commitment represents a substantial increase from the $200 billion investment plan Micron announced last year, which itself had already been revised upward from earlier estimates.
SanDisk also benefited from a Reuters report that Meta Platforms plans to begin manufacturing an artificial intelligence chip from September as it expands computing capacity to support its AI ambitions.
According to the report, Meta has secured long-term supply agreements with several hardware vendors to support the expansion of its AI infrastructure.
The agreements reportedly include Samsung Electronics for memory chips, SanDisk for flash storage products, and Sumitomo Electric for fiber-optic equipment, underscoring continued investment by hyperscale technology companies in AI data centers.
The report reinforced expectations that enterprise spending on storage and memory products will remain elevated as companies race to build AI infrastructure.
Wall Street remains bullish on memoryBrokerages also continue to maintain an optimistic view of the memory sector despite the recent correction.
Bank of America recently reiterated its $1,550 price target on Micron, describing the company as its preferred memory stock.
The brokerage estimates that memory now accounts for 35% to 40% of cloud AI capital expenditure, roughly two to three times historical levels, while memory stocks continue to trade at less than 10 times forward earnings.
According to the firm, investors remain concerned about pricing sustainability, future supply additions and customer concentration.
However, it believes the market is underestimating the industry's transition toward longer-term supply agreements and more predictable pricing.
As memory chips become increasingly critical to AI infrastructure rather than behaving like traditional commodity products, the brokerage expects sector valuations to improve over time.
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ChipsFeature
Cheaper Than Micron, Closer to Nvidia: The Massive New AI Stock Debut
South Korea’s SK Hynix is set to catapult into the top ranks of American tech stocks when it starts trading in the U.S. on Friday. It could be the next big winner in artificial intelligence.
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Fundstrat’s Tom Lee returned to CNBC’s Morning Call Sheet on Thursday, July 9, alongside JonesTrading’s Mike O’Rourke and Vital Knowledge’s Adam Crisafulli, to discuss a market that is simultaneously celebrating the AI build-out while rotating into value and defensive names.
Lee argued: “AI is probably one of the most important structural stories in our lifetime.” He paired that with a second observation that inflation could ease in the back half of 2026: “I think inflation pressures are actually easing. And I think there’s a lot of companies and groups that are going to benefit from that.” The disinflation backdrop supports his thesis. Core PCE was 3.41% year over year in May 2026, and WTI crude has dropped to $72.08 per barrel, down roughly 9.96% over the past month from an April spike to $114.58.
NVIDIA: Why the AI Infrastructure Boom Is Far From Over NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) remains the clearest embodiment of Lee’s structural call. Q1 FY2027 revenue reached $81.615 billion, up 85.23% year over year, with Data Center at $75.246 billion and networking growing 199%. CEO Jensen Huang described “the buildout of AI factories, the largest infrastructure expansion in human history” in the company’s SEC filing. Supply-related commitments now sit at $119.0 billion.
Despite these developments, shares are up only 9.58% year to date, a valuation compression that supports O’Rourke’s thesis: “The hyperscalers, their business models are changing. They’re becoming 21st-century industrial companies that may warrant lower multiples.”
Microsoft: Compressing Multiple, Expanding AI Business Microsoft (NASDAQ:MSFT) illustrates the tension. Satya Nadella disclosed that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year,” and Azure grew 40%. Even so, the stock is down 20.38% year to date, with capex ballooning to $30.88 billion in the quarter.
For readers interested in how AI power demand and infrastructure could create new opportunities, our team’s Free Report: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers) is worth reading.
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SK Hynix’s IPO Could Pressure Micron Micron (NASDAQ:MU) posted fiscal Q3 revenue of $41.46 billion, up 345.7%, with non-GAAP EPS of $25.11 and Q4 guidance of $50.0 billion ± $1.0 billion. CEO Sanjay Mehrotra tied the results to “the strategic value of memory in the AI era.” The stock is up 232.64% year-to-date and trades at a forward P/E near 6. The wildcard: SK Hynix, the world’s largest memory maker, begins U.S. trading tomorrow, and Reddit investors are debating whether capital will rotate from Micron to its newly listed peer.
Johnson & Johnson: The Value Rotation in Action Johnson & Johnson (NYSE:JNJ) captures the defensive bid Lee flagged. Q1 2026 revenue rose 9.9% to $24.06 billion, the dividend was raised 3.1% to $1.34 per quarter, marking 64 consecutive years of growth, and FY2026 adjusted EPS guidance now sits at $11.45 to $11.65. Shares are up 28.69% year-to-date with a beta of just 0.235, exactly the disinflation beneficiary profile Lee described.
What to Watch Lee’s argument is that both AI and defensive stocks can work if inflation continues to cool. AI remains the long-term structural growth story, but easing price pressures could allow sectors that have lagged during the AI rally to participate more meaningfully.
Q2 earnings will provide the first major test. Investors will be watching whether hyperscalers continue to support massive AI infrastructure spending while corporate results show improving breadth across the market. If both trends hold, the rally may become less dependent on a handful of AI leaders and more broadly supported across sectors.
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BlackBerry (BB - 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.
Over the past month, shares of this cybersecurity software and services company have returned +26.1%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Internet - Software industry, which BlackBerry falls in, has gained 3.2%. 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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
BlackBerry is expected to post earnings of $0.04 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 +20%.
For the current fiscal year, the consensus earnings estimate of $0.17 points to a change of +6.3% from the prior year. Over the last 30 days, this estimate has changed -2.5%.
For the next fiscal year, the consensus earnings estimate of $0.23 indicates a change of +33.3% from what BlackBerry is expected to report a year ago. Over the past month, the estimate has changed +10.6%.
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, BlackBerry is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven 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.
In the case of BlackBerry, the consensus sales estimate of $143 million for the current quarter points to a year-over-year change of +10.3%. The $612.37 million and $674.27 million estimates for the current and next fiscal years indicate changes of +11.5% and +10.1%, respectively.
Last Reported Results and Surprise HistoryBlackBerry reported revenues of $152.9 million in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $0.04 for the same period compares with $0.02 a year ago.
Compared to the Zacks Consensus Estimate of $136.1 million, the reported revenues represent a surprise of +12.34%. The EPS surprise was +33.33%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
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.
BlackBerry is graded F 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 BlackBerry. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In MercadoLibre (MELI) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in MercadoLibre and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.
Click here to participate in the action.
NEW YORK, July 09, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against MercadoLibre, Inc. (“MercadoLibre” or the “Company”) (Nasdaq:MELI) on behalf of MercadoLibre stockholders. Our investigation concerns whether MercadoLibre has violated the federal securities laws and/or engaged in other unlawful business practices. Investigation Details:
On May 7, 2026, MercadoLibre released its first quarter 2026 financial results and disclosed that loans which were "typically on average of 5 months" had now "moved to 8 months" and that the Company is "taking provisions in Brazil... related on the one hand, to extending the average term of our loans."On this news, the price of MercadoLibre shares declined by $246.49 per share, or approximately 13.12%, from $1,879.01 per share on May 7, 2026 to close at $1,632.52 on May 8, 2026. Next Steps:
If you purchased or otherwise acquired MercadoLibre shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Abbott (ABT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Abbott currently has an average brokerage recommendation (ABR) of 1.55, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.55 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 20 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 69% and 6.9% of all recommendations.
Brokerage Recommendation Trends for ABT
Check price target & stock forecast for Abbott here>>>
While the ABR calls for buying Abbott, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ABT a Good Investment?Looking at the earnings estimate revisions for Abbott, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.48.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Abbott. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Abbott.
Thermo Fisher Scientific Inc. is down 12.2% YTD, underperforming both the S&P 500 and the healthcare sector. Key risks include NIH funding uncertainty, China weakness, slow organic recovery, and integration risk from the $8.9B Clario acquisition. TMO trades at an 18% discount to its 5-year average P/E, reflecting much of the downside already priced in.
VanEck Pharmaceutical ETF (PPH 1.02%) offers concentrated exposure to global drugmakers, while Vanguard Health Care ETF (VHT 0.34%) provides a much broader, lower-cost entry point into the diverse healthcare landscape.
Both funds target the resilient healthcare industry but from different angles. VHT tracks the whole sector, from biotech to hospitals, while PPH focuses specifically on the pharmaceutical industry. For investors, this choice boils down to a preference for broad diversification versus a targeted bet on drug manufacturers.
Snapshot (cost & size)MetricVHTPPHIssuerVanguardVanEckShare price (as of July 2, 2026)$308.41$111.39Expense ratio0.09%0.36%1-yr return (as of July 2, 2026)25.7%28.7%Dividend yield1.6%2%Beta0.590.45AUM$20.4 billion$970 millionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is the clear leader in affordability, charging just 0.09% compared to the 0.36% for the VanEck offering. However, PPH provides a higher trailing dividend yield, currently sitting 0.40 percentage points above its peer.
Performance & risk comparisonMetricVHTPPHMax drawdown (5 yr)(17.7%)(20.3%)Growth of $1,000 over 5 years (total return)$1,323$1,666What's insideThe VanEck fund concentrates its assets in the healthcare sector, specifically targeting drug production and marketing. Its portfolio is highly concentrated, with just 26 holdings, and its largest positions include Eli Lilly (LLY 0.85%) at 20.38%, Novartis (NVS 0.68%) at 10.6%, and Merck (MRK 1.09%) at 9.74%. The fund was launched in 2011. The VanEck ETF has paid $2.17 per share over the trailing 12 months, which on its recent ~$111.39 share price works out to a 2% dividend yield.
Vanguard’s ETF offers 100% healthcare exposure but spreads its reach across 429 holdings, covering medical equipment and health services in addition to pharmaceuticals. Its largest positions include Eli Lilly at 14.01%, Johnson & Johnson (JNJ 1.32%) at 8.45%, and AbbVie (ABBV 0.87%) at 6.08%. The fund was launched in 2004. The Vanguard ETF has paid $4.72 per share over the trailing 12 months, which on its recent ~$308.41 share price works out to a 1.6% dividend yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsComparing these two funds, there's a lot to like about the VanEck offering. Its one- and five-year returns are both higher than VHT's. It sports a higher dividend yield as well.
That said, PPH does have elevated concentration risk given it owns just 26 stocks. Indeed, the VanEck fund's top five holdings alone account for about 50% of the portfolio's value. It also has a meaningfully higher expense ratio than VHT.
Finally, while Vanguard's ETF is much larger in terms of assets under management, the two funds have about the same average trading volume, so investors interested in PPH aren't missing out on liquidity. If the expense ratio and concentration aren't concerns, aggressive investors might want to take a small position in the VanEck fund.
Erin Kennedy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, and Merck. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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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.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Stock to Watch: Eli Lilly (LLY - Free Report) Indianapolis, IN-based Eli Lilly and Company, one of the world’s largest pharmaceutical companies, boasts a diversified product profile, including a solid lineup of new successful drugs. It also has a dependable pipeline in areas like obesity, diabetes and Alzheimer’s.
LLY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. LLY has a Growth Style Score of A, forecasting year-over-year earnings growth of 47.9% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $35.81 per share. LLY boasts an average earnings surprise of +14.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LLY should be on investors' short list.
CNBC’s Jim Cramer pushed viewers away from the usual semiconductor and hyperscaler chatter. Instead, he highlighted a group he says has quietly become the market’s leader. “There is a move in biotech that we have not talked about at all that is really extraordinary, and particularly since the change at the head of the FDA,” Cramer said. He added that “if you look at that chart, this is the group that’s the hottest group in the market.”
The data backs him up. The iShares Biotechnology ETF (NYSEARCA: IBB) is up 16.06% year to date and 19.15% over the past month, versus 9.22% YTD for the S&P 500. Over the past year, IBB has returned 51.45%.
This is Why Deals are Coming Cramer laid out the classic biotech playbook.
“You have many companies that get close to, if not having data that confirms a drug in a particular area. And more often than not, they don’t want to have to spend the money on a sales force… And they sell, right, usually at quite an inflated price.” He pinned the recent freeze on regulators, noting that under the prior administration takeovers were sparse after an Amgen deal “was almost blocked.” With the FDA leadership change, Cramer said his sources expect deals to “be flooding the market.” And that investors should be long biotech, a call he “has not said in ages.”
Lilly is the checkbook The clearest evidence is Eli Lilly (NYSE: LLY | LLY Price Prediction), the $1.16 trillion pharma giant that has already announced four acquisitions in Q1 2026. That includes Orna Therapeutics (cell therapies), Centessa Pharmaceuticals (sleep-wake disorders), Kelonia Therapeutics (in vivo CAR-T), and Ajax Therapeutics (myelofibrosis). That deal cadence is being funded by an obesity and diabetes franchise firing on all cylinders. Mounjaro revenue reached $8.66 billion (+125%). Zepbound hit $4.16 billion (+80%) in Q1, helping Lilly deliver EPS of $8.55 on $19.80 billion in revenue, up 55.5% year over year, per its SEC filing. Shares are up 13.34% YTD and 56.86% over the past year.
The other names in the picture Amgen (NASDAQ: AMGN) sits at the center of Cramer’s regulatory reference. The $27.8 billion Horizon Therapeutics deal cleared only after antitrust scrutiny. In addition, Amgen is now pushing its own MariTide obesity Phase 3 program. Q1 2026 revenue rose 5.8% to $8.62 billion, with IMDELLTRA sales up 219%.
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Vertex Pharmaceuticals (NASDAQ: VRTX) is the model Cramer describes: a company using tuck-in M&A (Alpine Immune Sciences, which was acquired for $4.9 billion) to build a fourth franchise in nephrology on top of cystic fibrosis.
Alnylam Pharmaceuticals (NASDAQ: ALNY) is a prime example of a biotech company with a powerful technology platform. Driven by the strong launch of AMVUTTRA for ATTR-CM, the company’s total TTR drug franchise revenue surged 153% year-over-year to $910 million. Because of this momentum, management expects full-year 2026 product revenue to hit between $4.90 billion and $5.30 billion. Despite these strong financial milestones, the stock has underperformed its peers. This gap between the company’s strong business performance and its lagging stock price creates a classic market dislocation. As a result, Alnylam is a highly attractive takeover target for major pharmaceutical companies.
What to watch Jim Cramer’s market thesis relies on two key factors: the FDA continuing to approve major biotech mergers and cash-rich giants like Eli Lilly maintaining their aggressive acquisition pace. However, this positive outlook may already be baked into the market. For the sector to launch its next leg higher, the market will likely need to see more buyout announcements to re-energize investors.
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FTSE 100 down 10 points to 10,479 AstraZeneca tumbles after clinical trial failure Computacenter and Playtech soar after trading updates 4.11pm: FTSE losses cut Losses for the FTSE 100 have been cut from almost 90 points in the morning part of the session to less than 20 in the past hour.
AstraZeneca's gone from a 13% plunge in initial trades to less than 8% now. Defence contractors BAE and Babcock are continuing falls begun earlier in the week, while BAT is down 2.4% after its shares went ex-dividend.
There are other heavyweight fallers too, with Shell and BP both down over 1%.
Also at the other end, Computacenter has seen a lot of the oomph go out of its strong early surge, and it is still up 6.5%.
The leaderboard shows miners in demamd as metals prices rise, while housebuilders Persimmon and Barratt Redrow have also gained, alongside lenders, led by Standard Chartered, HSBC and Barclays.
There are also gains for industrials such as Rolls-Royce and IMI.
3.41am: US tech earnings season kicks off next week As the end of the week looms, some investors will be looking ahead to what's coming in the next one, when we will face a busier period for corporate earnings, with Wall Street banks kicking off the US reporting season alongside updates from several big UK companies.
Tuesday sees full-year results from Watches of Switzerland and a trading update from recruiter Robert Walters. Then it's the turn of the big US banks, with JPMorgan, Bank of America, Goldman Sachs and Citigroup kickingoff the US bank earnings season. US inflation data is also due.
Wednesday brings a trading update from Barratt Redrow, full-year results from Cohort and a trading statement from Hunting. In the US, investors will be watching results from ASML, Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS), BlackRock and United Airlines, alongside producer price inflation.
Thursday is another busy day in the UK, with half-year results from Ocado and Crest Nicholson plus trading updates from Dunelm, Diploma and Wise. US earnings include UnitedHealth, Netflix and Seagate, while UK GDP and US retail sales data are also scheduled.
The week ends on Friday with the latest GfK consumer confidence survey, providing a fresh reading on UK household sentiment.
3.29pm: Pension funds should feel duty to invest more in UK PLC Business secretary Peter Kyle has turned up the heat on UK pension funds, warning they should invest more in British companies or face legislation forcing them to do so.
Speaking to the Guardian at an event at Lloyds Banking Group’s London HQ, Kyle said fund managers should feel "a patriotic duty in making Britain a success" and urged them to "get off their high horses".
While insisting compulsory investment was not his preferred option, he added: "I'll use it if I have to, because I'm in a rush."
The comments add to growing government pressure on the pensions industry to channel more retirement savings into UK businesses, infrastructure and growth assets.
With the number of takeovers of UK companies over the last few years, it suggests that others are seeing more value here that our own fund industry. UK equities have fallen from around 32% of defined benefit pension scheme assets in 2006 to under 2% by 2023, while gilt holdings have surged. Meanwhile, the rise of defined contribution pensions has led to much higher exposure to the US and much lower exposure to UK-listed companies, as most use global market-cap weighted indices as default options.
It's also a consequence of UK investors taking money out of UK-focused funds (fresh data showed another £260 million left UK equity funds in June).
The government's rhetoric can make it sound as though pension funds have simply chosen to ignore the UK, whereas the reality is a combination of investor preferences, regulation, demographics and market structure.
2.42pm: AI trade lifts Wall Street The main US stock indices have opened higher on Thursday, with chipmakers once again leading the market after another bout of rotation back into the semiconductor sector.
The Nasdaq has cranked 0.6% higher, with the S&P 500 up 0.4%. After an initial wobble in the red, the Dow has edged just above flat, held back by losses in heavyweight technology and consumer names including IBM, Salesforce and Microsoft.
On the Nasdaq and S&P, semiconductor stocks dominated the leaderboard, with Lam Research, Applied Materials and KLA all jumping more than 7%.
Micron has buzzed up over 6% after plans mentioned below to invest up to $3 billion in the US semiconductor supply chain, while Arm, AMD, Marvell and Western Digital also posted strong gains as the AI infrastructure trade is in investors' good books again.
2.29pm: GSK ends $2bn neuroscience partnership It's not just AstraZeneca with news among UK big pharma.
Last night, it was revealed that GSK has walked away from its neuroscience partnership with US biotech Alector after both experimental drugs at the heart of the collaboration failed in clinical trials, drawing a line under a deal struck in 2021.
GSK made a $700 million upfront payment, targeted at treatments for frontotemporal dementia and Alzheimer's disease.
With both programmes now scrapped, GSK has served notice to terminate the agreement from January 2027, meaning most of the remaining milestone payments will never be made.
Alector shares fell 5% yesterday, with this marking a second major pharma partner exit in less than two years after AbbVie abandoned a separate Alzheimer's collaboration in 2025.
1.46pm: Micron invests $3bn in US semiconductor supply chain Micron said it plans to invest up to $3 billion to strengthen the US semiconductor supply chain, including $500 million to support Taiwan-based GlobalWafers' new 300mm silicon wafer plant in Texas.
In a statement, it said the two companies will also sign a 10-year supply agreement, giving Micron long-term access to critical wafer capacity as it expands production to meet growing AI-driven demand for memory chips.
The company has got a few comments frm politicians to add to its statement.
US Secretary of Commerce Howard Lutnick says Micron’s investment to strengthen the US semiconductor supply chain "is making the United States stronger in a sector that is vital to our economy and our technological leadership".
12.50pm: Segro and Prologis not giving up Segro has issued a response to an announcement by suitor Prologis this morning, following a trading update from the REIT yesterday.
Prologis stepped up its pursuit by publishing a fresh presentation urging the UK warehouse owner to enter "constructive engagement" over a potential takeover.
The US logistics group said it offers a "superior platform and a larger data center opportunity", pushing its arguments that its scale, balance sheet and expertise would create "the best outcome" for shareholders.
It again urged the Segro board to engage so a binding offer could be put to investors, which is worth 886p per share.
In the response, Andy Harrison, Segro chairman, said: "The board takes its fiduciary duties very seriously, but the value of Prologis's current, rejected proposal does not reflect any basis for further engagement."
He reiterated that the announcement and presentation are "consistent with its attempt to buy Segro on the cheap".
Segro urged shareholders to take no action in relation to Prologis's proposal.
12.24pm: Markets lose momentum, but US chip stocks set to continue rally Markets have lost some early momentum, with the Stoxx 600 now up just 0.2% and Germany's DAX having flirted in the red and now up around 0.2%.
London's Footsie remains the outlier, down 0.7%, as AstraZeneca's 8%-plus slide continues to outweigh strength in mining stocks and Computacenter. AZ has over an 8% weighting on the index, so with such a big fall it's having a large effect.
US futures are mixed, with Nasdaq futures up 0.5%, possibly with investors continuing to rotate back into chip stocks, while Dow Jones futures have edged 0.1% lower, with the S&P 500 in between, up 0.1%.
Kathleen Brooks at XTB says this comes as the market "normalizes to the latest flare up of tensions in the Middle".
Brent crude, after slipping back below $77 a barrel, has climbed back above $78. Bond yields, which also had eased earlier, have also been pushed higher.
"Although the events of recent days are another sign that the path to a long-term peace will have many twists and turns, the market seems well placed to absorb the current tensions," Brooks reckons.
Amidst the angst about the Iran war, there was a rotation out of broader tech stocks and back into chip stocks.
"Ahead today, we could see a continued rally in chip stocks. SanDisk and Nvidia are pointing to further gains today, while the hyperscalers like Microsoft and Alphabet are declining in the pre-market, suggesting that the rotation within the AI trade continues," she says.
"From an economic standpoint, initial jobless claims are worth watching later today as the focus remains on the strength of the US labour market. The dollar is broadly lower today as the oil price comes under pressure and yields fall.
"The weaker dollar impulse could continue if the initial jobless claims data support signs of a softer labour market."
11.40am: BP boss stresses simplicity BP chief executive Meg O'Neill marked her first 100 days by pledging stricter capital discipline, lower costs and a simpler business, saying the oil major must make "fewer, better choices" as it sharpens its focus on oil and gas.
O'Neill, who took over as CEO in April, said in a LinkedIn post that BP needed to be "deliberate about where we invest and where we don’t".
"We need to make fewer, better choices and hold ourselves to account."
She outlined three priorities to make BP "simpler, stronger and more valuable": operational excellence, improved accountability and strong discipline in costs, cash and capital.
A month ago, BP announced a reorganisation from three to two business segments, upstream and downstream, to cut complexity, clarify accountability and speed up decision-making as it pursues higher returns.
O'Neill said it would make life simpler for employees and investors.
10.58am: UK housing slightly less bad The latest RICS survey suggests the housing market is slightly less bad in recent weeks, with house prices continuing to fall in June, with the headline balance at -33%, while new buyer enquiries and agreed sales both stayed firmly negative, albeit improving for a third month.
The biggest wrinkle is supply, where new instructions from would-be sellers fell to their weakest level in more than a year, suggesting fewer homes are coming onto the market just as demand shows tentative signs of stabilising.
"June’s survey results offer some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass," says RICS head of market and analysis Tarrant Parsons, hailing the "less negative direction" for a second consecutive month.
"That said, any nascent improvement remains fragile and is now being tested by renewed political uncertainty on the domestic front.
"While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment, even if the recent decline in oil prices is a welcome development.
"Until there is greater clarity over both the political backdrop and the path of interest rates, housing market activity is likely to remain relatively subdued in the near term."
The rental market tells a different story, with tenant demand strengthened to its highest since May 2025 while landlords remained reluctant to add properties, pointing to further rent increases over the coming year.
10.26am: Playtech on a hot streak in Americas Playtech shares have rolled almost 17% higher after the gaming tech firm said first-half trading was stronger than the market expected, helped by rapid growth in the Americas.
The gambling technology group expects adjusted EBITDA of more than €155 million for the first six months of the year, and at least €270 million for the full year.
Analyst Ivor Jones at Peel Hunt says the full-year guidance is 20% higher than his forecast, with key drivers being Hard Rock Digital in the US, along with Mexico and Colombia.
"We see clear upside potential to our forecasts for FY27E and beyond, but we intend to wait for greater clarity to emerge with the 1H26 results in September, including in relation to the 'significant partnership in Brazil', before making changes to outer years."
10am: Oil volatile after US and Iran exchange more strikes Brent crude has slipped below $77 a barrel on Thursday despite fresh military action between the US and Iran, suggesting traders remain unconvinced the conflict will disrupt oil supplies.
The US said this morning it had struck another 90 Iranian targets, taking the total to 170 over the past 48 hours.
Iran launched retaliatory attacks targeting US military sites in Bahrain, Qatar and Kuwait. Air defence systems intercepted incoming drones and missiles, with no immediate reports of damage.
President Trump said that he would not stop negotiations but that "I just don’t know if they’re worthy of making a deal. I don’t know that they’re going to honor the deal."
Analysts at Deutsche Bank say the resurgent oil prices are leading to repricing of rate expectations.
The probability of a Fed hike as soon as this month was up 3.2 basis points to 30.5% by the close, and the amount of hikes priced by December was up 4.8bps on the day to 42.2bps.
For the ECB, there was an even bigger repricing, with the amount of hikes by December up 12.7bps on the day to 39.5bps.
"And given the ECB already hiked in June, that pricing implies a growing chance that they might end up hiking 3 times by the end of the year."
Later on, the minutes from last month’s Fed meeting were released, which the analysts say "added further credence to the hawkish market pricing seen since the meeting last month.
"While much of the committee agreed that inflation would cool as energy prices fell and one-off tariff impacts subsided, there were some worries of persistent underlying price pressures."
The build-out of AI infrastructure for many members of the Federal Open Markets Committee meant that ongoing strong demand "would likely sustain upward pressure on prices for technology products and electricity", while there was greater concern among the committee that consumers and businesses are increasingly expecting higher prices.
"However, most Fed officials said in the minutes that they put more weight on financial market measures of inflation expectations rather than surveyed responses."
9.31am: European markets rebound, apart from the FTSE After an hour and a half of trading, European markets are broadly higher, with the London benchmark the only one in red, with AstraZeneca the point of difference.
On the Continent, Spain's IBEX and Italy's FTSE MIB up 1% and 0.8%, while the German DAX has gained 0.4%.
The pan-European Stoxx 600 is up 0.4%, with AZ's 9% loss offset by an 11% jump for Computacenter, while Nokia gained after reporting a new contract win.
Semiconductor stocks are also in demand, with STMicroelectronics (NYSE:STM), ASM International and BE Semiconductor among the leading risers alongside London miners Antofagasta and Glencore.
Market analyst Dan Coatsworth at AJ Bell says markets are staging a comeback after yesterday’s downbeat session.
"Many of yesterday’s losers dominated the risers’ list, including miners and banks as investors took the view that Donald Trump might not let the Iran war rage on.
"He hinted that Iran still wanted to make a peace deal, giving the market hope that a resolution is still possible."
With oil prices easing back 1% to $77.30 per barrel, he says this provides "some relief to those who feared new inflationary pressures".
"The problem is that the news flow continues to change direction at the click of a finger and it’s impossible to say with any certainty what could happen next."
8.57am: AZ failure hits 'water-tight' trial reputation AstraZeneca's market value has so far taken a £20 billion hit from today's drug trial news, with its market cap falling below £200 billion.
It is still the second largest company on the Footsie, behind £248 billion HSBC and ahead of £169 billion Shell.
Jefferies analyst Michael Leuchten says the failure of the CARDIO-TTRansform trial was "surprising", putting circa 2% of AZ's net present value at risk, equivalent to about $2.5 billion in risk-adjusted sales.
But he believes the shares could fall by twice that amount because of concerns over management credibility.
"This does not jeopardise the company's 2030 $80 billion sales target, but mgmt had been very confident around the primary endpoint and the ability to hit in combination use.
"Given AZN is meant to be able to design trials that are mostly water-tight, we suspect the share price reaction will go beyond the NPV impact."
He said the stock "may not recover until the next volatility catalyst (AVANZAR) is out of the way".
8.21am: AstraZeneca's trial setback Digging through pharma analyst notes, it seems AstraZeneca's trial setback wipes out one of its biggest late-stage pipeline opportunities.
In a note earlier this year, Citi analysts had forecast peak annual sales of more than $6 billion from Wainua and estimated the programme accounted for about 2.8% of its valuation.
The CARDIO-TTRansform trial of Wainua was investigating its ability to treat transthyretin-mediated amyloid cardiomyopathy. The company said the treatment did not significantly reduce cardiovascular deaths and recurrent cardiovascular events versus placebo.
8.14am: AstraZeneca drags FTSE into red The FTSE 100 opened higher in the first two minutes of trading but has slumped into the red for one main reason: a 9% plunge for AstraZeneca.
Earlier, the drug giant announced that a Phase III trial of drug Wainua failed to meet its primary endpoint of treating a rare, progressive heart disease.
The study found no statistically significant reduction in cardiovascular deaths and recurrent cardiovascular events versus placebo, although a prespecified subgroup receiving Wainua alone showed a nominally significant benefit.
Elsewhere, Computacenter jumped over 13% on the back of its positive trading update.
Miners Antofagasta, Anglo American and Glencore are next, all up 3% or more.
8.03am: Energy System Operator issues heatwave warning The National Energy System Operator (NESO) has issued an electricity margin notice after forecasting tight electricity margins for tomorrow evening's peak demand period.
Pressure on the system is being driven by the current extreme temperatures across Europe, which have reduced the availability of some electricity generation.
NESO stressed: "There is no risk to customer electricity supplies. An EMN is a routine operational tool NESO uses to balance the electricity system. We will continue to monitor conditions closely and take any actions necessary to maintain secure electricity supplies."
8am: Seraphim Space deal under-valued Seraphim Space Investment Trust has completed the sale of portfolio company ALL.SPACE to NYSE-listed York Space Systems, though the deal's value has fallen below its last reported carrying value after a decline in York's share price.
The FTSE 250-listed space-tech investor received initial consideration of approximately $17.9 million (£13.4m) in cash and 1.24 million York shares, with up to a further $8.1 million (£6.1m) in cash held in escrow pending post-completion adjustments.
Based on York's closing price on Tuesday, the total initial consideration should rise to around £40.7 million if all escrow funds are released, compared to a fair value of £57.4 million ascribed to the holding at 31 March.
7.56am: Capita takes up to £40m hit from civil service pensions issues Capita has cut its financial guidance after warning that problems on the civil service pension scheme contract revealed earlier in the week will have a bigger hit to profits and cash flow than previously expected.
Even after mitigating actions across the business, the outsourcing group now expects the issues on the contract, together with the knock-on effect on its wider pension solutions arm, will reduce adjusted operating profit by £25-40 million this year.
A £35-50 million impact on free cash flow is expected, leading management to delay the target of becoming free cash flow positive to next year.
7.33am: Computacenter ups outlook Computacenter has upped its outlook for the year as its first-half profits are set to double after a stronger-than-expected second quarter.
The FTSE 100 technology and services provider said preliminary results indicated adjusted profit before tax for the first six months of 2026 will be roughly double last year's £81.5 million.
Trading in the second quarter exceeded its expectations following what it described as an excellent first quarter.
FTSE 100 Live pre-open Blue-chip stocks in London and mainland Europe are set to rebound on Thursday after reports that the US and Iran could agree a new ceasefire deal.
FTSE 100 futures pointed to a gain of 36 points, a day after the index plunged almost 177 points to end at 10,489.04.
Trading in New York overnight was mixed, as the Dow Jones fell 1.1% and the S&P 500 declined 0.3%, but support for some AI-related stocks helped the Nasdaq to advance 0.2%.
Asian markets are mostly higher this morning, with Hong Kong's Hang Seng the exception.
In commodities, oil prices dropped after an Axios reporter tweeted that President Trump had told reporters on Air Force One that Iran "called a short while ago" and said they "want to make a deal".
Brent crude dipped just below $78 a barrel, having risen from $72 to $79 earlier in the week.
The Axios reporter reported that Trump added that the White House is "preparing for what could turn into a round of fighting with Iran around the Strait of Hormuz that will last several days and perhaps even several weeks", depending on Tehran's next steps.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about ServiceNow (NOW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
ServiceNow currently has an average brokerage recommendation (ABR) of 1.29, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.29 approximates between Strong Buy and Buy.
Of the 45 recommendations that derive the current ABR, 38 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 84.4% and 6.7% of all recommendations.
Brokerage Recommendation Trends for NOW
Check price target & stock forecast for ServiceNow here>>>
The ABR suggests buying ServiceNow, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is NOW Worth Investing In?In terms of earnings estimate revisions for ServiceNow, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.13.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for ServiceNow. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for ServiceNow.
Intuit (INTU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of TurboTax, QuickBooks and other accounting software have returned -4.3% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Computer - Software industry, to which Intuit belongs, has lost 11% 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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Intuit is expected to post earnings of $3.59 per share for the current quarter, representing a year-over-year change of +30.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $23.86 for the current fiscal year indicates a year-over-year change of +18.4%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $27.3 indicates a change of +14.4% from what Intuit is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
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 Intuit.
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 Intuit, the consensus sales estimate for the current quarter of $4.27 billion indicates a year-over-year change of +11.6%. For the current and next fiscal years, $21.37 billion and $23.87 billion estimates indicate +13.5% and +11.7% changes, respectively.
Last Reported Results and Surprise HistoryIntuit reported revenues of $8.56 billion in the last reported quarter, representing a year-over-year change of +10.4%. EPS of $12.8 for the same period compares with $11.65 a year ago.
Compared to the Zacks Consensus Estimate of $8.52 billion, the reported revenues represent a surprise of +0.45%. The EPS surprise was +2.56%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time 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.
Intuit is graded B on this front, indicating that it is trading at a discount 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 Intuit. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Goldman Sachs said Thursday it won deals to manage a combined $70 billion in retirement assets for Verizon Communications and Lockheed Martin, one of the larger recent announcements in the fast-growing market for outsourced corporate investing.
The mandates include about $30 billion in pension assets for Verizon and Lockheed Martin and $40 billion in Verizon defined-contribution retirement assets, which are typically 401(k)s, according to Goldman.
The moves underscore how some of America's largest employers are increasingly handing responsibility for managing retirement assets to outside firms such as Goldman as portfolios become more complex and require expertise across public and private markets.
Competition in the multitrillion-dollar market for retirement assets is fierce among managers including Goldman, BlackRock, Russell Investments and Mercer, because the long-term institutional mandates generate steady fee revenue.
By growing that business, Goldman hopes to increase its share of revenues that are seen as stable and recurring, unlike the more volatile trading and investment banking operations.
"Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs," Marc Nachmann, Goldman's global head of asset and wealth management, said in a statement.
Goldman's outsourced chief investment officer business had about $480 billion in assets as of March 31, while the firm's broader asset and wealth management division oversees roughly $3.7 trillion worth of investments.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$410.11▼
$692.00Dividend Yield2.66%
P/E Ratio25.15
Price Target$609.68
Global rearmament cycles are actively reshaping the physical economy. Investors are witnessing a rapid transition in which government defense budgets shift from discretionary spending debates to mandatory restocking mandates.
When sovereign nations realize their munitions and aircraft are depleted, capital flows into the defense sector with absolute certainty. Lockheed Martin NYSE: LMT currently operates more like a highly regulated, government-backed utility than a traditional aerospace manufacturer.
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Powering Up the Ultimate Defense Utility GridThink of a public utility. Consumers pay their water bill regardless of economic conditions because the service is essential. Defense spending has entered this paradigm. Governments are prioritizing national security above all other fiscal concerns, effectively guaranteeing revenue for prime contractors.
Lockheed Martin sits at the center of this structural shift, turning geopolitical tension into predictable, compounding cash flow. Lockheed Martin recently added $607 million in localized Department of Defense contracts to an already record-breaking $194 billion revenue backlog. Despite recent index exclusions and fixed-price margin compression, a strategic $3.45 billion sub-sea acquisition and an impending second-quarter earnings rebound position Lockheed Martin for potential multiple expansion. The underlying data reveals a business engineered for multi-decade revenue visibility. This provides a unique opportunity for those evaluating capital deployment in an increasingly fractured geopolitical landscape.
Building an Impenetrable Revenue FortressRevenue visibility is the lifeblood of institutional capital. Lockheed Martin effectively secured its near-term cash flow with a two-pronged DoD award totaling $607.4 million. The bulk of this capital is a $502.4 million Army contract focused on sustainment for the AH-64 Apache's targeting and night-vision systems. A secondary $105 million Air Force order secures upgrades to GPS ground control.
Sustainment contracts carry significant weight for fundamental investors. Selling an airframe generates revenue once. Sustaining its avionics and targeting systems generates recurring cash flow for decades. This $194 billion backlog serves as an impenetrable moat, insulating Lockheed Martin from the typical macroeconomic demand destruction.
International developments are providing secondary tailwinds. Following the July 2026 NATO Summit in Ankara, Lockheed Martin established a PAC-3 Missile Sustainment Facility in Europe. This localized footprint, paired with fresh joint ventures to scale missile production alongside industry peers, ensures Lockheed Martin remains entrenched in European rearmament logistics.
The broader market heavily discounts the value of these long-tail sustainment facilities. Yet, they consistently provide the baseline cash flow required to fund dividend growth and share repurchases. When evaluating Lockheed Martin's fundamental strength, investors should look beyond the initial point of sale and recognize the multi-decade service agreements that keep allied forces operational.
Ultra Maritime Drops Anchor on New GrowthA pragmatic evaluation of any equity requires acknowledging fundamental friction. The first quarter of 2026 delivered operational headwinds for Lockheed Martin. Earnings per share landed at $6.44 against a consensus estimate of $6.79, while segment operating margins compressed from 11.6% down to 10.1%.
This margin decay traces directly back to unfavorable adjustments on F-16 production and cost pressures within classified aeronautics programs. Inflationary environments are notoriously hostile to fixed-price government contracts. When supply chain costs rise, the defense contractor absorbs the difference, squeezing margins before the contract can be renegotiated.
Management is actively pivoting to offset these aeronautics losses through aggressive vertical integration. The recent $3.45 billion acquisition of Ultra Maritime brings highly specialized anti-submarine warfare technologies into Lockheed Martin's Rotary and Mission Systems portfolio.
Acquiring advanced sonobuoy and acoustic countermeasure manufacturing allows Lockheed Martin to capture high-margin naval defense market share. The global demand for anti-submarine capabilities is surging as naval theaters become more contested.
Integrating Ultra Maritime directly addresses this need, offering investors a clear pathway to margin expansion that circumvents the bottleneck of traditional aircraft assembly lines. This strategic maneuver moves the revenue mix slightly away from heavily scrutinized fixed-price aircraft programs and toward consumable, high-tech maritime defense systems that command stronger pricing power.
Lockheed Martin’s Low Beta and Strong Dividend Support Its Defensive AppealInvestors analyzing recent price action might notice localized weakness that seems disconnected from the broader defense sector rally. Understanding the mechanics of institutional rebalancing clarifies this discrepancy.
Overall MarketRank™97th Percentile
Analyst RatingHold
Upside/Downside17.2% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.82 Insider TradingN/A
Proj. Earnings Growth7.99%
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Lockheed Martin was recently dropped from the Russell 1000 Value-Defensive Index. Index exclusions trigger forced liquidations in passive funds and exchange-traded funds that track that specific benchmark. This creates a temporary supply glut of shares on the open market, depressing the price independently of Lockheed Martin's actual financial health.
Surface-level insider trading data also shows a cluster of executive selling over the past six months, particularly within the Aeronautics division. Context changes the narrative entirely. Aeronautics President Greg Ulmer retired on June 1, 2026, handing leadership to Orlando Sanchez, Jr. Executive retirements frequently trigger the liquidation of vested stock options for tax and estate planning purposes. Framing this routine action as a bearish sign of internal confidence is a misreading of standard corporate succession mechanics.
While passive funds rebalance and executives transition, the underlying equity mechanics remain highly defensive. The stock carries a heavily muted Beta of 0.11. A Beta this low indicates the equity moves almost completely independently of broader market volatility. When paired with a robust $13.80 annualized dividend payout, recently reinforced by a $3.45 per share second-quarter payout on June 26, Lockheed Martin presents a structural floor. Investors often utilize this specific low-Beta, high-yield combination as a portfolio hedge to mitigate downside risk during periods of macroeconomic uncertainty.
Will Q2 Earnings Turn the Fundamental Tide?The true test of management's ability to halt margin decay arrives with the second-quarter earnings report on July 23, 2026. Analysts expect consensus earnings of $7.23 per share, demanding a sharp operational recovery from the first-quarter miss.
Hitting or exceeding this target will validate the thesis that fixed-price contract friction has peaked and that the Ultra Maritime acquisition is already providing margin relief. Conversely, a subsequent miss could signal that supply chain costs remain sticky, potentially testing the company's foundational support levels.
Investors evaluating defensive allocations might consider watching the upcoming earnings call closely to see if management can successfully translate a record-breaking $194 billion backlog into expanded operating margins and predictable cash flow. The data suggests the backlog is unshakeable, but the execution of converting that backlog into bottom-line profitability will dictate the next major move for Lockheed Martin.
Should You Invest $1,000 in Lockheed Martin Right Now?Before you consider Lockheed Martin, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lockheed Martin wasn't on the list.
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While some segments of the artificial intelligence (AI) investing trend have done well over the past few months, others haven't. However, most of these companies are still doing all right; it's just that market sentiment has shifted. The thing about market sentiment is that it always comes back around eventually, especially if a company continues to report stellar growth.
I think that's the case with a handful of companies, and with a bit of an AI sell-off going on, investors would be smart to load up on these three established players with major upside potential.
Image source: Getty Images.
1. Nvidia At the top of my list is Nvidia (NVDA 0.92%). This may seem like a boring AI pick, but sometimes these are the best stocks to invest in. Nvidia has led the AI build-out for the last three years, and is doing it again despite the stock not having a great year. Nvidia is down around 17% from its all-time high, but I could see it rocketing back up over the next few months as companies report Q2 earnings.
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Nvidia won't report earnings until August, but when it does, Wall Street analysts expect a record-setting quarter. On average, they expect 96% revenue growth to $91.7 billion. Nvidia tends to outperform analysts' expectations, so don't be surprised to see a growth rate above 100%.
Demand for Nvidia GPUs (graphics processing units) is off the charts, and it may not let up for some time, especially if Nvidia's projection of $3 trillion to $4 trillion in global annual data center capital expenditures by 2030 proves true. With shares trading for an attractive 21.7 times forward earnings, now is a perfect time to load up on Nvidia stock.
2. Taiwan Semiconductor Next up is Taiwan Semiconductor Manufacturing (TSM +1.28%), Nvidia's primary logic chip fabricator. Taiwan Semiconductor also supplies most of the companies Nvidia competes with, making it a great neutral investment in the AI realm. Essentially, as long as there is more spending on data center computing equipment, Taiwan Semiconductor is slated to see strong growth.
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That sentiment has propelled Taiwan Semiconductor to be one of the best AI stock picks so far in 2026, rising more than 40% this year. It's down nearly 10% from its all-time high, so it's not nearly as much of a deal as the other two, but it's still a worthwhile AI stock pick.
Taiwan Semiconductor reports earnings on July 16, and Wall Street analysts expect about 35% revenue growth in New Taiwan Dollars. If it delivers an earnings beat, the stock could still go higher and drag some of its peers along with it.
3. Broadcom Last is Broadcom (AVGO +3.21%), which is down the farthest of this trio. It has fallen around 25% since early June when it reported its Q2 earnings. The reason for its tumble was silly: Wall Street wanted it to increase its 2027 revenue guidance for custom AI chips from its already lofty $100 billion target. Broadcom didn't budget, and the stock sold off.
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The growth that Broadcom expects from its AI semiconductor division is impressive and will likely blow away this $100 billion figure in due time. However, investors need to be patient, but only for a little while, as several of its core clients' custom AI chips are starting to reach the production phase.
This will be a huge growth catalyst for Broadcom, and Wall Street analysts expect its fiscal 2027 revenue to top $172 billion -- nearly a triple in two years from $64 billion at the end of its fiscal 2025. That's huge growth in a short time frame, and will lead to major gains for the stock. However, not all of that is priced into its stock, and it actually looks quite attractive (alongside the rest of the trio) when next year's earnings projections are used.
NVDA PE Ratio (Forward 1y) data by YCharts
Now is the perfect time to load up on Broadcom stock and the rest of this trio, as they won't stay beaten down for long.
Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) are up 7% to $555.26 in early trading Thursday, leading a broad semiconductor rebound. Intel (NASDAQ:INTC) shares are up 5% to $116.14, and Broadcom (NASDAQ:AVGO) shares are up 2% to $396.
The bounce reverses a rough stretch for chip names after several sessions of selling. The iShares Semiconductor ETF is confirming the move, with the ETF up 6% to $593.77. That’s a concentrated basket, so single-name leadership matters here.
Tom Lee Frames the Selloff as a Buying Opportunity The trigger is a widely circulated call from Fundstrat’s Tom Lee, who told CNBC that the “structural bull case to own these is intact, so it’s a buying opportunity.” Lee argued that the semiconductor and memory unwind is in its later stages.
He pointed to a technical tell: the Momentum Index fell 8% over five sessions, which has happened only five times in three years, each marking a selloff bottom. That framing gave dip buyers cover to step back in across AMD, Intel, Broadcom, and memory names.
The fundamental backdrop is cooperating here. AMD posted Q1 2026 revenue of $10.25 billion, up 38% year over year, with the Data Center segment up 57% year over year to $5.78 billion. CEO Lisa Su called it an “outstanding first quarter, driven by accelerating demand for AI infrastructure.” Broadcom’s Q2 FY2026 AI semiconductor revenue reached $10.8 billion, up 143% year over year.
Memory Strength and Geopolitics Add Fuel Overseas action set the tone for tech stocks in general. South Korea’s SK Hynix jumped 5% in Seoul, and Samsung ripped higher after posting preliminary Q2 operating profit of roughly 89.4 trillion won, or $58.44 billion, up about 19 times year over year on revenue up 129% year over year. The selloff from earlier this week now looks like profit-taking against those numbers rather than a fundamental crack.
Two secondary tailwinds helped. President Trump said Iran called seeking a deal, easing geopolitical anxiety and lifting futures. Also, SK Hynix is set to price its U.S. IPO Thursday, refocusing investor attention on high-bandwidth memory demand tied to AI training.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.
Micron Technology (NASDAQ:MU) is riding the same wave, with MU shares up 8% in early trading to $1,027.81. Micron’s Q3 FY2026 revenue came in at $41.46 billion, and CEO Sanjay Mehrotra emphasized the “strategic value of memory in the AI era.”
NVIDIA Lags as the Rally Broadens NVIDIA (NASDAQ:NVDA) is the notable outlier, with NVDA shares down 1% to $201.92. Polymarket traders assign a 69% probability that NVIDIA closes down today, suggesting rotation into laggards like Intel and AMD rather than fresh money chasing the mega-cap leader.
The rotation story shows up in the tape. AMD stock is up 142% year to date, and INTC stock is up 199% across the same period, meaning traders are pressing recent momentum names rather than the AI incumbent.
The bear case hasn’t disappeared, though. Valuations are rich after a huge run, memory pricing remains cyclical, and Chinese competition (highlighted by DeepSeek’s reported in-house AI chip effort) keeps the long-term debate polarizing. Investors should consider keeping their position sizes measured even as share prices rise.
What to Watch The SK Hynix U.S. IPO pricing this evening is the next real-time data point. A strong book would validate Lee’s structural read on memory demand and could extend the rebound into Friday. However, a soft result could stall momentum and reopen the profit-taking narrative that dominated last week.
Intraday, traders can watch for whether AMD stock holds above the $550 level into the afternoon. That level, plus the semiconductor ETF’s ability to close near its intraday high, will tell investors whether today’s bounce is the start of a new leg or another countertrend pop inside a choppier range.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Broadcom didn't make the cut. Grab the names FREE today.
Broadcom stock price rose by 5% on Wednesday after extending its relationship with Apple. AVGO rose to $395, a 10% increase from its lowest level this month. It remains in a local bear market after falling by 20% from its highest point this year. So, will it rebound and retest its all-time high?
Broadcom, a top company valued at over $1.85 trillion, has made several deals in the past few months, helping it become one of the biggest beneficiaries of the artificial intelligence boom.
In a statement on Tuesday, Apple said that it was expanding its partnership with Broadcom in a multi-year deal valued at over $30 billion. As a result, the partnership will lead to a boost in production of over 15 billion US-made chips. It will also see Broadcom expand its facility in Colorado.
Broadcom has also made a major deal with OpenAI, the creator of ChatGPT. This deal has seen OpenAI design its own custom chips, with Broadcom being the manufacturer. They recently showcased these chips, which are now in testing.
This deal is expected to be highly profitable for Broadcom, with Blayne Curtis, a Jefferies analyst, predicting that it will make it over $50 billion by 2028.
Broadcom also has extended its deal with Meta Platforms and Alphabet, the parent company of Google.
These deals have boosted Broadcom’s business in the past 12 months. Its recent results showed that its revenue jumped by 48% in the second quarter to over $22.1 billion. Its closely-watched AI semiconductor revenue jumped by 143% YoY to $10.8 billion, and is being driven by the rising need for custom AI accelerators and AI networking solutions.
Analysts are highly optimistic about its future growth. Yahoo Finance data shows that the average estimate is that its revenue will jump by 84% in the third quarter to $29.4 billion. Its fourth fiscal quarter’s revenue is then expected to rise by 93% to $34.9 billion, bringing its annual figure to $106 billion. Its next fiscal year revenue is expected to grow to $172 billion.
These are strong numbers for a company that was started in 1961 and is a sign that it has continued to transform itself over time. This transformation has been through organic and inorganic means. It acquired VMware in a $61 billion deal, CA Technologies and Symantec Enterprise Security in deals worth $19 billion and $10.7 billion, respectively. Its other top buyouts were LSI Corporation and Brocade Communications.
Still, there are some concerns about the company’s valuation, with the forward price-to-earnings ratio being 40, higher than other companies, including Nvidia and Micron.
On the positive side, the company’s Rule-of-40 metric is encouraging, with its net profit margin being 39% and its revenue growth being 32%. This gives it a multiple of 71%.
Broadcom stock chart | Source: TradingView
AVGO stock has been in a bull run in the past few months, rising from $138 in April last year to a record high of $495. This rally stalled after its recent earnings, with the stock falling to a low of $356.
It has moved slightly below the key support level of $414, its highest swing in December last year. On the positive side, it has found substantial support above the 200-day moving average.
Therefore, the outlook is bullish as long as it is above this moving average. If this happens, the stock may resume rising, potentially to the year-to-date high of $495.
NVDA stock is moving. See the chart and price action here. Wide-Moat AI Leaders on SaleMorningstar classifies both Nvidia and Broadcom as wide-moat businesses, reflecting durable competitive advantages in chip design, software and ecosystem lock-in.
For Nvidia, the moat is built on its dominance in GPUs, CUDA software and high-speed networking that power the current wave of generative AI buildouts.
Broadcom’s moat leans more on proprietary chip architectures and sticky enterprise and telecom software, reinforced by switching costs and long-term customer relationships.
Crucially, Morningstar argues that the market is underpricing that moat strength. Nvidia, a core holding on its "best AI stocks to buy now" screen, is flagged as roughly 30% undervalued versus Morningstar’s fair value estimate of $280 per share.
Broadcom looks even cheaper on that framework, with shares trading more than 40% below a $650 fair value estimate tied to its AI accelerator and networking opportunity.
Broadcom: Custom AI silicon at a DiscountBroadcom’s recent share pressure has been driven by investor anxiety around Google’s TPU roadmap and perceived competition from rival chip vendors.
Morningstar’s take is that those fears are overdone. Broadcom has secured long-term agreements with Alphabet and is shipping custom AI silicon at scale to multiple hyperscalers, including OpenAI, alongside a diversified base of cloud and enterprise customers.
On the numbers, Broadcom is guiding explosive AI chip revenue growth and still trades at a steep discount to intrinsic value, even as other AI hardware suppliers command premium multiples.
Layer in its VMware-driven software franchise and recurring infrastructure revenues, and Morningstar sees current pricing as an attractive entry point into a broad AI infrastructure and networking story rather than a narrow Google-dependent bet.
Nvidia: Still The AI KingNvidia’s stock has cooled from its euphoric peaks, but Morningstar argues the market is underestimating how long AI demand can stay "insatiable," as described by CEO Jensen Huang.
The company remains the go-to supplier for data-center GPUs, full-stack AI systems, and related software tools, with visibility into multi-year orders for its Blackwell and Rubin platforms.
Revenue growth is broad-based across hyperscalers, enterprise, and emerging AI workloads, while margins sit at levels most chipmakers can’t touch.
That mix leads Morningstar to a wide-moat rating and a valuation call that paints Nvidia as a surprisingly cheap way to play AI, not an overhyped momentum relic.
The Bottom LineBetween Nvidia’s compute leadership and Broadcom’s position in custom accelerators, networking and software, Morningstar’s "cheap stocks" list highlights a rare window where two of the AI cycle’s leaders are trading meaningfully below long-run value estimates.
NVDA, AVGO Stock Price Activity: Broadcom stock was up 2.4% at $398.00 and Nvidia shares were down 1.22% at $201.69 at the time of publication Thursday, according to Benzinga Pro data.
Photo: M-SUR / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
Key Takeaways First Majestic raised its 2026 silver and gold production guidance after a stronger first half.AG's Q2 silver production rose 3% y/y, led by gains at La Encantada and Santa Elena.First Majestic hiked its 2026 guidance for San Dimas, Los Gatos, La Encantada and Santa Elena. First Majestic Silver Corp. (AG - Free Report) announced that its silver production reached 3.8 million ounces in the second quarter of 2026, marking a year-over-year increase of 3%. The upside was driven by solid performances at the La Encantada and Santa Elena mines. The company’s gold production also increased 2% year over year to 34,660 ounces.
First Majestic also produced 16.5 million pounds of zinc, 9 million pounds of lead and 252,938 pounds of copper.
First Majestic’s Mine Performances in Q2In the second quarter of 2026, the San Dimas mine produced 1.06 million ounces of silver, marking a 15% decrease from the second quarter of 2025. The mine’s gold production fell 1% year-over-year to 12,385 ounces. The downside was led by a delay in mine haulage.
The Santa Elena mine produced 422,571 ounces of silver (up 38% year over year) and 21,468 ounces of gold, which increased 4% year over year.
La Encantada produced 1.03 million ounces of silver, up 65% from the second quarter of 2025. The upside was driven by 14% growth in ore processed and a 27% increase in silver grades.
Los Gatos contributed 1.28 million ounces of silver and 772 ounces of gold. It also contributed 16.4 million pounds of zinc, 9 million pounds of lead and 235,886 pounds of copper to First Majestic’s total production number.
First Majestic has started its 2025 drilling program at the Jerritt Canyon mine in the third quarter of 2025. The company completed 12,495 meters of surface drilling using two reverse circulation rigs, alongside about 320 meters of underground drilling with a single diamond rig during the second quarter.
AG’s Updates 2026 GuidanceFirst Majestic expects gold production of 72,000-76,000 at the Santa Elena mine, marking an increase of 10% at the mid-point from the previous guidance. The upside will be driven by higher gold grades and slightly increased gold recoveries. The mine’s silver output is projected between 1.4 million and 1.5 million ounces, revised to be near the upper limit of the company's initial forecast.
The company’s Los Gatos mine is expected to produce 5.1-5.5 million ounces of silver in 2026, marking a 5% increase at the mid-point from the previous guidance. In contrast, the La Encantada mine’s silver guidance is expected to increase 19% at the midpoint from the previous guidance to 3.4-3.6 million.
San Dimas’s production is expected to increase 13% at the mid-point from the prior guidance to 4.6-4.9 million ounces of silver for 2026. The upside will be driven by higher throughput rates.
Driven by the strong first-half performance, the company hiked its production outlook for 2026. It expects the total silver production to be 14.6-15.5 million ounces, marking a 10% increase from the previous guidance of 13-14.4 million ounces. Total gold production for 2026 is expected to be 128,000-135,000 ounces, up 7% at the mid-point from the previous forecast.
First Majestic’s Peer Performance in Q4Endeavour Silver Corp. (EXK - Free Report) produced 1.94 million ounces of silver in the second quarter of 2026. This reflected a 31% increase from the year-ago quarter, driven by the addition of the Kolpa operation in May 2025. Endeavour Silver’s total gold production in the quarter grew 35% year over year to 10,474 ounces. The company’s silver-equivalent ounces production increased 36% year over year in the quarter.
AG Stock’s Price PerformanceThe company’s shares have skyrocketed 87.8% in the past year compared with the industry's 72.5% surge.
Image Source: Zacks Investment Research
First Majestic’s Zacks Rank & Stocks to ConsiderAlbemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 124% so far this year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 62.7% in a year.
The Zacks Aerospace-Defense industry continues to enjoy favorable long-term fundamentals, supported by rising global defense spending, military modernization initiatives, and increasing geopolitical tensions that are driving demand for advanced defense systems and long-term procurement programs. Commercial aviation also offers attractive growth prospects as global air travel is expected to expand steadily over the coming decades. However, persistent supply-chain disruptions, labor shortages, and component constraints continue to challenge the industry by delaying aircraft production and deliveries and slowing fleet modernization efforts. The leading companies in the aerospace-defense industry that you might want to keep an eye on are GE Aerospace (GE - Free Report) , RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) .
About the Industry The Zacks Aerospace-Defense industry comprises companies that primarily design and manufacture heavy-built products like commercial as well as military jets and helicopters, tankers and other combat vehicles, missiles, combatant ships as well as auxiliary ships, submarines, bombs, guns, space transportation vehicles, military satellites and a few more. The industry also includes cybersecurity players that offer information technology services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions. A portion of its revenues comes from defense contractors offering spare parts, aircraft modification, ship repair and overhaul services, and supply-chain management services.
3 Major Trends in the Aerospace-Defense Industry Growing Defense Spending & Geopolitical Tensions: Heightened geopolitical uncertainty is prompting governments worldwide to accelerate defense modernization and expand military expenditures. As defense priorities shift toward strengthening national security, contractors are increasingly securing long-term procurement programs that extend beyond initial equipment sales to include sustainment, modernization, training, and lifecycle support. These multi-year programs provide greater revenue visibility, improve cash flow stability, and support sustained earnings growth. Reinforcing this trend, the U.S. Department of War unveiled President Trump's proposed fiscal 2027 defense budget in April 2026, seeking a record $1.5 trillion in funding — approximately 42% higher than current levels. The proposal allocates more than $756.8 billion toward new military capabilities, highlighting continued investment in next-generation defense technologies and the expansion of the U.S. defense industrial base.
Air Traffic View Boosts Opportunities: According to a report by the International Air Transport Association (“IATA”), global air passenger demand is expected to grow 2.1% year over year in 2026. This marks a significant deceleration from the 5.3% growth recorded in 2025. The Middle East region faces a deep traffic contraction due to strictly closed airspaces, forcing massive traffic rerouting. However, according to IATA’s long-term outlook, global air passenger demand is expected to more than double by 2050, at a compound annual growth rate (CAGR) of 3.1% to reach 20.8 trillion Revenue Passenger Kilometers (RPKs). Defense companies, especially those tied to aerospace manufacturing and technology, benefit through technological advances and improved production economics.
Supply-Chain Issues Continue to Act as a Headwind: The Aerospace and Defense industry continues to face supply-chain challenges that originated during the pandemic, when a sharp decline in aircraft demand led suppliers to reduce production capacity, scale back investments, and shrink their workforces. Although demand has recovered strongly, many suppliers are still struggling to ramp up production, resulting in shortages of critical components, longer lead times, and delays in aircraft manufacturing and deliveries. According to IATA, these supply-chain constraints are limiting airlines' ability to expand capacity to meet robust passenger demand while slowing the replacement of older aircraft with newer, more fuel-efficient models, thereby delaying progress toward the industry's CO??? emissions reduction goals. IATA also noted that constrained aircraft availability, labor shortages, and bottlenecks across the global aerospace supply chain remain significant challenges, affecting the timely production and delivery of aircraft and other essential aerospace systems.
Zacks Industry Rank Reflects Bright Outlook The Zacks Aerospace-Defense industry is housed within the broader Zacks Aerospace sector. It currently carries a Zacks Industry Rank #105, which places it in the top 43% of more than 246 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. 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.
Before we present a few aerospace-defense stocks that you may want to add to your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Lags S&P 500 & Sector The Aerospace-Defense industry has underperformed the Zacks S&P 500 composite and its sector over the past year. The stocks in this industry have collectively surged 4.5%, while the Zacks Aerospace sector has soared 8.9% during the said time frame. The Zacks S&P 500 composite has gained 23.2%.
One-Year Price Performance
Industry's Current Valuation On the basis of trailing 12-month EV/Sales, which is used for valuing capital-intensive stocks like aerospace-defense, the industry is currently trading at 2.91X compared with the S&P 500’s 5.87X and the sector’s 3.28X.
Over the past five years, the industry has traded as high as 3.34X, as low as 1.99X and at the median of 2.73X.
EV-Sales Ratio TTM
3 Aerospace-Defense Stocks to Buy GE Aerospace: Headquartered in Evendale, OH, GE Aerospace is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. In June 2026, GE Aerospace and Wolfspeed signed a memorandum of understanding to accelerate the adoption of high-voltage silicon carbide technology by developing standardized power modules for aerospace, defense, industrial electrification, and solid-state transformer applications. The collaboration strengthens GE Aerospace's next-generation electrification portfolio by enabling more compact, efficient, and reliable power systems, enhancing its competitive position in advanced aerospace and defense platforms while building a more resilient domestic supply chain for critical semiconductor technologies.
The Zacks Consensus Estimate for GE’s 2026 sales calls for an increase of 15.2% year over year. The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an improvement of 17.4% year over year. It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: GE
RTX: Based in Waltham, MA, RTX has emerged as an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. In July 2026, RTX's Raytheon and NATO launched feasibility studies to expand AMRAAM missile production in Europe by qualifying additional regional suppliers, increasing manufacturing capacity, accelerating deliveries, and strengthening the missile supply chain for U.S. and allied forces. The initiative reinforces the company’s leadership in missile systems, expands its long-term production pipeline through greater NATO demand and improves supply-chain resilience.
The Zacks Consensus Estimate for RTX’s 2026 sales calls for an increase of 6% year over year. The Zacks Consensus Estimate for 2026 EPS indicates a rise of 9.9% year over year. RTX currently has a Zacks Rank #2.
Price & Consensus: RTX
General Dynamics: Headquartered in Falls Church, VA, General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. At the end of the first quarter of 2026, General Dynamics witnessed a solid backlog of $130.84 billion, driven by a strong order inflow. The estimated contract value, which combines the total backlog with the potential contract value, totaled $188.44 billion at the end of the first quarter of 2026. The strength of the order flow was driven by strong demand across the company’s product and services portfolio.
The Zacks Consensus Estimate for GD’s 2026 sales calls for a 4.7% improvement year over year. The Zacks Consensus Estimate for 2026 EPS indicates an increase of 7.3% year over year. GD currently has a Zacks Rank #2.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Dynamics (GD - Free Report) Headquartered in Falls Church, VA, General Dynamics Corporation engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company was incorporated in February 1952.
GD is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Aerospace stock. GD has a Momentum Style Score of B, and shares are up 9.8% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $16.59 per share. GD boasts an average earnings surprise of +5.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GD should be on investors' short list.
Accenture (ACN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this consulting company have returned -19.5% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Computers - IT Services industry, to which Accenture belongs, has lost 6.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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, Accenture is expected to post earnings of $3.21 per share, indicating a change of +5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.
The consensus earnings estimate of $13.84 for the current fiscal year indicates a year-over-year change of +7%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $14.68 indicates a change of +6% from what Accenture is expected to report a year ago. Over the past month, the estimate has changed -1.7%.
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, Accenture is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Accenture, the consensus sales estimate for the current quarter of $18.01 billion indicates a year-over-year change of +2.4%. For the current and next fiscal years, $73.54 billion and $76.55 billion estimates indicate +5.5% and +4.1% changes, respectively.
Last Reported Results and Surprise HistoryAccenture reported revenues of $18.72 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $3.8 for the same period compares with $3.49 a year ago.
Compared to the Zacks Consensus Estimate of $18.79 billion, the reported revenues represent a surprise of -0.37%. The EPS surprise was +2.7%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
Accenture is graded A on this front, indicating that it is trading at a discount 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 Accenture. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
ServiceNow stock is showing downward pressure. What should traders watch with NOW? What Is Driving ServiceNow’s Stock Momentum?The latest push follows a rollout with Accenture of two AI-focused offerings: managed security services built on the ServiceNow AI Platform and an Accenture AI-powered automation solution aimed at lowering the cost and complexity of modernizing enterprise risk and security operations.
The setup also got a boost from Guggenheim upgrading the stock to Buy and arguing software valuations are pricing in "extinction," framing the pullback as a better entry.
ServiceNow also picked up a high-visibility nod on TV, with Stephanie Link calling it a buy as one of CNBC’s "Final Trades," keeping the Guggenheim July 1 upgrade in focus for momentum traders.
In the same segment, Microsoft was highlighted after announcing 4,800 job eliminations, and that kind of mega-cap cost discipline provides a benchmark for ServiceNow because tighter enterprise budgets can accelerate demand for workflow automation and AI-driven efficiency tools like NOW’s platform.
Critical Price Levels To Watch For NOWFrom a longer-term lens, the chart is still trying to repair damage: the stock is down 48.63% over the past 12 months and remains 20.3% below its 200-day SMA ($131.21), which is why rallies can still run into "prove it" selling. Even after the bounce, the moving-average stack is mixed, with the 20-day SMA still below the 50-day SMA (bearish) and the death cross from August 2025 (50-day below 200-day) still acting as a trend headwind.
Near term, price is back on top of the key shorter averages—about 3.5% above the 20-day SMA ($100.99) and about 3.1% above the 50-day SMA ($101.39)—which helps explain why dips have been getting bought. Momentum is best read through RSI here: at 51.31 it’s neutral, suggesting the rebound isn’t stretched yet and still needs follow-through to turn into a sustained uptrend rather than just a bounce.
Key Resistance: $111.00 — a round-number area that can act as a nearby "speed bump" for rebounds – Key Support: $89.50 — a prior demand zone that sits above the $81.24 52-week low area How ServiceNow Automates Business ProcessesServiceNow provides software that helps enterprises structure and automate business processes through a SaaS model, with its roots in IT service management. Over time, it expanded across IT workflows and pushed workflow automation into customer service, HR service delivery, and security operations, while also offering an application development platform as a service.
That matters for Thursday’s move because the Accenture tie-up is aimed directly at security operations and risk workflows—areas where big customers often want a packaged solution plus implementation help. If those AI-led offerings translate into faster adoption and clearer monetization, it can help the stock’s longer-term trend catch up to the improving near-term tape.
ServiceNow Earnings Preview: What Analysts ExpectThe countdown is on: ServiceNow is set to report earnings on July 22, 2026 (confirmed).
EPS Estimate: 76 cents (Down from 82 cents YoY) Revenue Estimate: $3.93 billion (Up from $3.21 billion YoY) Valuation: P/E of 64.2x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $138.21 (high: $236.00; low: $85.00) across 50 analysts. Recent analyst moves include:
Guggenheim: Upgraded to Buy (Target $125.00) (July 1) BTIG: Buy (Maintains Target $150.00) (June 29) Benchmark: Buy (Raises Target $130.00) (June 15) ServiceNow’s Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for SERVICENOW, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: SERVICENOW’s Benzinga Edge signal reveals a growth-heavy profile with weak value and weak momentum. For longer-term bulls, the cleaner setup is a sustained reclaim of major long-term averages; for traders, the risk is that rallies fade quickly if momentum doesn’t keep improving into earnings.
NOW Stock Price Activity on ThursdayNOW Stock Price Activity: ServiceNow shares were trading 1.35% lower at $106.33 at the time of publication on Thursday, according to Benzinga Pro data.
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Key Takeaways Accenture won a seven-year NATO contract to support the Protected Business Network.Accenture and Leonardo will build a secure cloud platform for about 29,000 NATO users.The deal expands Accenture's role in defense tech and may support recurring revenue opportunities. Accenture (ACN - Free Report) has secured a multi-million-euro contract from the NATO Communications and Information Agency (“NCIA”) to support the Protected Business Network (“PBN”) program, a major initiative aimed at building NATO’s secure, cloud-enabled digital enterprise. The company will execute the seven-year contract in collaboration with Italy’s Leonardo. The agreement, valued at approximately €200 million over the contract period, marks a significant milestone in NATO’s digital transformation efforts.
The Protected Business Network will serve as the foundation for classified digital operations across the NATO Enterprise. It is designed to enable military personnel and decision-makers across multiple domains to communicate, collaborate and access critical information through a standardized, scalable and secure cloud environment that offers greater resilience against cyber threats and operational disruptions.
The program is intended to replace legacy systems with a modern digital infrastructure based on a common cloud operating model, standardized engineering practices and a secure platform for developing, deploying and maintaining digital services more efficiently. This framework is expected to improve the agility and security of NATO’s digital ecosystem while supporting future technological capabilities.
Under the contract, Accenture and Leonardo will design, implement and operate the core Protected Business Network platform across NCIA’s multi-cloud environment. The platform will facilitate the phased deployment and long-term adoption of secure cloud services for approximately 29,000 users across the NATO Alliance. Leonardo will also implement a Zero Trust Architecture secured by its proprietary Global Cybersec Platform, an AI-powered multi-agent cyber defense platform, to strengthen cyber resilience.
According to Accenture, the project represents one of the most significant digital transformation initiatives undertaken by the Alliance and emphasized that, together with Leonardo, it will provide the cloud and cybersecurity capabilities needed to build a resilient, interoperable and future-ready digital backbone for NATO.
The contract further strengthens Accenture’s position in the defense and public-sector technology market by expanding its role in delivering large-scale, mission-critical cloud transformation projects. The long-term, seven-year engagement provides recurring revenue opportunities while showcasing the company’s expertise in cloud computing, cybersecurity and digital modernization. Successfully executing a high-profile NATO program is also likely to enhance Accenture’s credentials for securing similar government and defense contracts globally.
Similar Contracts Won by ACN’s Fellow Sectoral PlayersIn 2024, CACI International (CACI - Free Report) , housed in the same sector as Accenture, won a five-year task order worth $1.3 billion to provide communications and information technology services. Under the contract, CACI will modernize and enhance critical software and hardware systems, improve network IT and communications, and provide end-user support to more than 11,000 personnel across 60 locations in Europe and Africa. This modernization effort will support global multi-domain digital operations, enterprise software deployment, and secure interoperability among mission partners across the European theater.
In 2024, Science Applications International (SAIC - Free Report) secured a $229 million contract from the U.S. Department of Defense to deliver critical IT solutions under the NORAD/USNORTHCOM Information Technology Enterprise Services (“NITES”) program. The contract enables Science Applications International to support the modernization, innovation, and operational efficiency of the NITES program. To achieve this, the company provides skilled professionals and expertise in IT service management, network modernization, automation of existing IT systems, cloud migration, and cybersecurity. Science Applications International also works across all branches of the U.S. military to deliver mission-ready solutions that help maintain a strategic advantage.
Price Performance, Valuation & EstimatesAccenture has lost 51.2% in the past year compared with a 24.2% decline in its industry.
Image Source: Zacks Investment Research
1-Year Price ComparisonFrom a valuation standpoint, ACN trades at a forward price-to-sales ratio of 1.2, way below the industry’s 11.64.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for ACN’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
ACN’s Zacks RankACN currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nikesh Arora, chairman and CEO at Palo Alto Networks, joins 'Squawk on the Street' to discuss concerns around high token costs, OpenAI's newest model and more.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Roblox To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Roblox between October 30, 2025 and April 30, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - July 9, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Roblox Corporation ("Roblox" or the "Company") (NYSE: RBLX) and reminds investors of the August 7, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Watch our latest video highlighting the key allegations: https://youtu.be/rFoJC-j0rW0
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
According to the complaint, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Roblox's organic growth potential; notably, that Roblox would see a significant slowdown in its growth rates as enrollment in the age verification rollout would quickly taper, compounding the resulting slowdown in on-platform communication, resulting in app store rating reductions and a swift reduction in organic growth. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Roblox's securities at artificially inflated prices.
On April 30, 2026, Roblox announced its financial results for the first quarter of fiscal 2026. Management slashed bookings growth guidance down to 8-12% and a corresponding decline to margin expectations. Defendants disclosed the age verification rollout had caused much more significant impacts engagement and organic growth than management had previously suggested and age check adoption had only increased to 51% global daily active users, from 45% at the end of the previous quarter.
Investors and analysts reacted immediately to Roblox's revelation. The price of Roblox's common stock declined dramatically. From a closing market price of $55.26 per share on April 30, 2026, Roblox's stock price fell to $45.13 per share on May 1, 2026, a decline of about 18.33% in the span of just a single day.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Roblox's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Verra class action, go to www.faruqilaw.com/RBLX or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Roblox Corporation Securities Class Action Lawsuit:
What is the Roblox Corporation securities fraud lawsuit about?
The Roblox Corporation securities fraud lawsuit is a federal securities class action alleging that Roblox Corporation (NYSE: RBLX) and its executives made false and misleading statements to investors by concealing that the Company's age verification rollout would cause a significant slowdown in growth rates, reduce on-platform communication, lead to app store rating reductions, and materially impair Roblox's organic growth potential. As the truth emerged on April 30, 2026 - when Roblox announced Q1 fiscal 2026 results, slashed bookings growth guidance to just 8-12%, disclosed margin deterioration, and revealed that age verification adoption had only reached 51% of global daily active users (up from just 45% the prior quarter), signaling far greater engagement impacts than management had previously suggested - RBLX's stock price fell from $55.26 to $45.13 per share, a decline of approximately 18.33% in a single day, causing significant losses for investors.
Who may be eligible to participate in the Roblox Corporation class action lawsuit?
Investors who purchased or acquired Roblox Corporation (RBLX) securities between October 30, 2025 and April 30, 2026 - the Class Period - and suffered financial losses may be eligible to participate in the Roblox securities class action. Participation as a class member does not require taking any affirmative legal action; eligible investors may recover losses simply by remaining members of the class. Whistleblowers, former Roblox employees, and others with relevant information about the Company's conduct are also encouraged to come forward.
What is a lead plaintiff, and how can I seek appointment in the Roblox Corporation lawsuit?
A lead plaintiff in the Roblox Corporation class action is a court-appointed investor - typically the one with the largest financial interest in the case - who directs and oversees the litigation on behalf of all class members. Any Roblox investor who purchased RBLX securities during the Class Period may move the Court to serve as lead plaintiff through counsel of their choice. The deadline to seek lead plaintiff appointment is August 7, 2026. Importantly, choosing not to seek the lead plaintiff role does not affect an investor's ability to share in any recovery obtained for the class.
What should investors do if they purchased Roblox Corporation stock during the Class Period?
Investors who purchased Roblox Corporation (RBLX) securities between October 30, 2025 and April 30, 2026 and suffered losses should contact Faruqi & Faruqi, LLP immediately to discuss their legal rights. The deadline to seek appointment as lead plaintiff in the Roblox Corporation securities class action is August 7, 2026. To speak directly with securities litigation partner Josh Wilson, call 877-247-4292 or 212-983-9330 (Ext. 1310), or visit www.faruqilaw.com/RBLX for more information.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304586
Source: Faruqi & Faruqi LLP
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Shares of Spotify (SPOT) continue to hit a "sour note," says Rick Ducat, who points out the streaming giant's underperformance compared to peers in the space. He highlights several key resistance levels shares need to break through for a long-term bull run to manifest.
Spotify (SPOT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this music-streaming service operator have returned -3.6% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Internet - Software industry, to which Spotify belongs, has gained 3.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather 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, Spotify is expected to post earnings of $3.29 per share, indicating a change of +785.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $14.62 for the current fiscal year indicates a year-over-year change of +23%. This estimate has changed -0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $18.29 indicates a change of +25.1% from what Spotify is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
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, Spotify is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Spotify, the consensus sales estimate for the current quarter of $5.6 billion indicates a year-over-year change of +17.7%. For the current and next fiscal years, $22.67 billion and $25.92 billion estimates indicate +16.7% and +14.3% changes, respectively.
Last Reported Results and Surprise HistorySpotify reported revenues of $5.3 billion in the last reported quarter, representing a year-over-year change of +20.3%. EPS of $4.04 for the same period compares with $1.13 a year ago.
Compared to the Zacks Consensus Estimate of $5.36 billion, the reported revenues represent a surprise of -1.09%. The EPS surprise was +8.6%.
Over the last four quarters, Spotify surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Spotify 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 Spotify. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
In the working world, paychecks show up every two weeks. Or at least, every month. Which keeps up with the pace of monthly bills, charges, and expenses.
In the stock market world, payouts (dividends!) arrive every quarter. That’s 30 days in between bills, but a full 90 days spanning divvies.
Hence the appeal of monthly dividends. These management teams know that the investors who hold their stock are here for the payment. It’d better show up every 30 days, and it’d better be the same amount. No cuts allowed.
Problem is, some of these monthly payers are writing checks their business can’t cash. So let’s “audit” the last decade of receipts from the six biggest monthly payers in America. We’re asking two questions:
Did the monthly check arrive on time and in full?And were investors able to cash their checks without taking down the price of the stock?The 6 Biggest Monthly Dividend PayersHere’s the list, along with a spoiler: half of these monthly dividend companies couldn’t keep the checks coming for a full decade.
Monthly Dividend Stocks
Contrarian Outlook
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Why the focus on 10-year total return when we are here for the dividends? Because we’re not interested in a melting share price! When we retire on dividends we want our principal to stay intact (or, even better, to appreciate).
As you can see this is not a “close your eyes and buy” shopping list. We have some problem children. To name names, landlord EPR Properties (EPR) was a compelling buy for retirees. It collects rent checks from “experience venues” focused on activities like Topgolf and ski resorts. Younger generations spend their money on experiences versus collecting “things” so, perfect, right?
Kind of—until 2020 came along! The world shut down in March and by May, EPR had suspended its monthly payout. The “temporary freeze” ended up lasting fourteen months because it took a while for the world to reopen.
Then we have the “other Apple,” Apple Hospitality (APLE), a hotel landlord whose roughly 220 old properties fly the Marriott and Hilton flags. Business travel is a big driver of APLE’s business and that came to a halt in March 2020. And likewise, its monthly payout skidded to a stop!
When APLE resumed payments in March 2021, they were not every month. They were quarterly, and even then, only a penny per share. The monthly check didn’t return until March 2022—two full years after it vanished.
Agree Realty (ADC) delivered the second-best total return in our audit, 135% over the 10-year period. More than a double, through rents from the Walmarts and Tractor Supplys of the world.
Agree is new to the monthly game, though. It paid a quarterly dividend until January 2021, when its marketing team flipped to a monthly payout, which Agree has paid on time ever since. Five of the ten years it’s been paying the monthly—but hey, let’s note it’s a recent convert to Monthly Land.
Realty Income (O) deserves its own line. It literally trademarked “The Monthly Dividend Company,” and to its credit, it has dished checks every 30 days for decades. Problem is, a 48% total return over an entire decade is sort of terrible!
AGNC Investment Corp (AGNC) is quietly another dog, even though it always pays a generous headline yield. And monthly, too! So what’s not to like?
The not-so-great total returns, that’s what.
The company is a mortgage REIT, which means it buys mortgages. These are relatively safe mortgage-backed securities from government agencies like Fannie and Freddie, so there’s not a big problem there. The issue is that these mortgage bonds don’t pay a lot of money, so AGNC “levers up”—it borrows to buy more to increase its income. Then money is too expensive and this eats into AGNC’s profitability.
In March 2020 AGNC chopped the monthly payout from $0.16 to $0.12—and never restored it. This stock is more of a breakfast beer than a long-term holding. There’s a time and a place, but you don’t want to make a daily habit out of it. Investors who held over the past decade earned just 88%, which isn’t very good—it means AGNC compounded at only 6.5% per year. This stock dishes a monthly dividend of 12.9% and loses nearly 6% per year in price. Not ideal!
AGNC Returns
Contrarian Outlook
The monthly champion is a favorite of ours here at Contrarian Outlook, business development company (BDC) Main Street Capital (MAIN). Main was early on the monthly train, paying its divvie every single month (without a cut!) since its 2007 IPO.
And MAIN grew investors’ wealth, too. The shares themselves are up 59% over our decade, before a single dividend. Add the payout and you’re at 236%, the top of our audit table.
What makes MAIN the bluest of BDC blue chips? Two engines instead of one. Most of its competitors simply lend money and collect interest. MAIN lends and takes equity stakes alongside the debt.
Make no mistake: Management is bullish. It just declared its 19th consecutive quarterly “bonus” dividend—that’s on top of the regular monthly payout, which it raised 4% this year. That adds up to an 8.4% yield, including special payouts. And it teased another likely bonus for September! And for those of us paying strict attention to net asset value (NAV), there has been no blip whatsoever. MAIN’s NAV grew to a record high.
Here’s another great thing at MAIN. Insiders own 3.8% of the company, roughly 3.7 million shares. That’s unusual and high for a BDC. They run the place like they own it, because… they do!
Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: Your Early Retirement Portfolio: Huge Dividends—Every Month—Forever.
