Tennant (TNC - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 2. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of products for cleaning floors, parking lots and hospitals is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of -36.3%.
Revenues are expected to be $326.15 million, up 7.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Tennant?For Tennant, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.03%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Tennant will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Tennant would post earnings of $1.23 per share when it actually produced earnings of $0.83, delivering a surprise of -32.52%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Tennant doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Manufacturing - General Industrial industry, RBC Bearings (RBC - Free Report) , is soon expected to post earnings of $3.55 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +23.3%. Revenues for the quarter are expected to be $516.18 million, up 13.4% from the year-ago quarter.
The consensus EPS estimate for RBC Bearings has been revised 0.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.22%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that RBC Bearings will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
C3.ai, Inc. (AI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +17%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Computers - IT Services industry, which C3.ai falls in, has gained 11.9%. The key question now is: What could be the stock's future direction?
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 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
C3.ai is expected to post a loss of $0.22 per share for the current quarter, representing a year-over-year change of +12%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
For the current fiscal year, the consensus earnings estimate of -$0.76 points to a change of +43.7% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $0.46 indicates a change of +39.5% from what C3.ai is expected to report a year ago. Over the past month, the estimate has changed -2.1%.
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 C3.ai.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile 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 C3.ai, the consensus sales estimate of $53.09 million for the current quarter points to a year-over-year change of -29.4%. The $223.01 million and $248.78 million estimates for the current and next fiscal years indicate changes of -10.9% and +11.6%, respectively.
Last Reported Results and Surprise HistoryC3.ai reported revenues of $52.38 million in the last reported quarter, representing a year-over-year change of -25.4%. EPS of -$0.2 for the same period compares with -$0.37 a year ago.
Compared to the Zacks Consensus Estimate of $51.46 million, the reported revenues represent a surprise of +1.79%. The EPS surprise was +23.08%.
Over the last four quarters, C3.ai surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
C3.ai 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 C3.ai. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Tento týden přinese řadu důležitých makroekonomických údajů. Údaje o HDP budou reportovány napříč námi sledovanými regiony. Pozornost se zaměří také na rozhodnutí Fedu a ECB o úrokových sazbách. V Německu budou dále zveřejněny údaje o inflaci v podobě indexu spotřebitelských cen.
Pondělí (26. října) Dnes byla zveřejněna spotřebitelská a podnikatelská důvěra v ČR. Dále byl v Německu reportován index IFO očekávání a v USA index výrobní aktivity dallaského Fedu.
Úterý (27. října) V úterý budou reportovány objednávky zboží dlouhodobé spotřeby v USA. Ty podle agentury Bloomberg v září pravděpodobně vzrostly, částečně díky oživení objednávek komerčních letadel. Poptávka po kapitálových statcích pravděpodobně zůstala silná, podpořená pokračujícími investicemi souvisejícími s umělou inteligencí. Aktivita ve zpracovatelském průmyslu zůstala v září solidní díky zlepšující se poptávce, do budoucna se však očekává určité zpomalení v důsledku nákladových tlaků a narušení dodavatelských řetězců.
V USA bude zveřejněn index spotřebitelské důvěry za říjen, který podle odhadu agentury Bloomberg pravděpodobně poklesl. Přestože propouštění zůstává na nízké úrovni, nedávná oznámení o snižování počtu zaměstnanců naznačují, že umělá inteligence začíná v některých odvětvích omezovat poptávku po pracovní síle. Její dopady se zatím projevují především slabším náborem nových zaměstnanců, zejména na juniorských pozicích, což pravděpodobně negativně ovlivňuje důvěru mladších pracovníků.
Makroekonomické údaje - úterý 27. 10. (napříč regiony) Region Makroekonomický ukazatel Sledované období Odhad* Předchozí EC Peněžní zásoba M3 (y-y) září 3,4 % 3,5 % US Objednávky zboží dlouhodobé spotřeby září - předběžný 1,9 % -0,1 % US Zakázky na kapitálové statky bez zbraní a letadel září - předběžný 0,7 % 1,6 % US Index cen domů FHFA (m-m) srpen 0,2 % 0,3 % US Spotřebitelská důvěra podle Conference Board říjen 81 b. 81,9 b. US Index výrobní aktivity richmondského Fedu říjen 0 b. -2 b. US Prodeje nových domů září 650 tis. 684 tis. US Prodeje nových domů (m-m) září -4,5 % 6,4 % US Počet nově vydaných stavebních povolení září - konečný 1400 tis. 1400 tis. Středa (28. října) Americká centrální banka (Fed) na svém říjnovém zasedání podle odhadu agentury Bloomberg pravděpodobně ponechá úrokové sazby beze změny v pásmu 3,75–4,00 %, přičemž její postoj zůstane pravděpodobně jestřábí.
Makroekonomické údaje - středa 28. 10. (napříč regiony) Region Makroekonomický ukazatel Sledované období Odhad* Předchozí GE Spotřebitelská důvěra GfK listopad -30,3 b. -30,6 b. US Index žádostí o hypotéky MBA 23.října -- -5,3 % US Velkoobchodní zásoby (m-m) září - předběžný 0,5 % 0,5 % US Změna zásob surové ropy podle EIA 23.října -340 tis. -3060 tis. US Rozhodnutí FOMC (Fed) o sazbách (horní mez) 28. října 4,0 % 4,0 % US Rozhodnutí FOMC (Fed) o sazbách (dolní mez) 28. října 3,75 % 3,75 % Čtvrtek (29. října) Ve čtvrtek bude zveřejněna depozitní sazba Evropské centrální banky. Podle agentury Bloomberg ECB pravděpodobně ponechá úrokové sazby beze změny, neboť vyšší náklady na financování již přispívají ke zpřísňování finančních podmínek.
Makroekonomické údaje - čtvrtek 29. 10. (eurozóna) Makroekonomický ukazatel Sledované období Odhad* Předchozí Ekonomická důvěra říjen 97,5 b. 97,9 b. Důvěra v průmyslu říjen -3,8 b. -3,8 b. Důvěra ve službách říjen 5,8 b. 6,1 b. Spotřebitelská důvěra říjen - konečný -17,9 b. -17,9 b. Depozitní sazba ECB 29. října 2,5 % 2,5 % Refinanční sazba ECB 29. října 2,65 % 2,65 % Zápůjční sazba ECB 29. října 2,9 % 2,9 % V USA budou zveřejněny nové žádosti o podporu v nezaměstnanosti. Počet žádostí se nadále drží pod úrovněmi z loňského roku a zatím podle Bloombergu nic nenasvědčuje tomu, že by se měl tento trend změnit. Přestože v některých státech mírně vzrostla nezaměstnanost, nejsou patrné známky plošného nárůstu propouštění. Růst nezaměstnanosti tak může souviset především se slabším náborem nových zaměstnanců.
Makroekonomické údaje - čtvrtek 29. 10. (USA) Makroekonomický ukazatel Sledované období Odhad* Předchozí Osobní příjem září 0,3 % 0,2 % Osobní výdaje září 0,6 % 0,9 % Deflátor výdajů na osobní spotřebu (PCE) (m-m) září 0,5 % 0,3 % Deflátor výdajů na osobní spotřebu (PCE) (y-y) září 3,6 % 3,4 % Nové žádosti o podporu v nezaměstnanosti 24. října 198 tis. 194 tis. Jádrový deflátor výdajů na osobní spotřebu (PCE) (m-m) září 0,3 % 0,2 % Jádrový deflátor výdajů na osobní spotřebu (PCE) (y-y) září 3,1 % 3,0 % Pokračující žádosti o podporu v nezaměstnanosti 17. října 1720 tis. 1728 tis. Růst HDP (q-q) (anualizováno) 3Q - první, předběžný 3,2 % 2,2 % Osobní spotřeba 3Q - první, předběžný 3,4 % 3,8 % Deflátor HDP 3Q - první, předběžný 3,1 % 6,1 % Pátek (30. října) V pátek bude reportováno HDP v ČR. Trh očekává meziroční růst HDP o 1,6 %. Zveřejněny budou také údaje o měnové zásobě M2.
Makroekonomické údaje - pátek 30. 10. (ČR) Region Makroekonomický ukazatel Sledované období Odhad* Předchozí CZ HDP (q-q) 3Q - první, předběžný 0,5 % 0,3 % CZ HDP (y-y) 3Q - první, předběžný 1,6 % 1,8 % CZ Měnová zásoba M2 (y-y) září -- 5,5 % V pátek budou zveřejněny také předběžné údaje o HDP eurozóny za třetí čtvrtletí. Podle odhadu agentury Bloomberg ekonomika eurozóny mezičtvrtletně vzrostla o 0,2 %, a to navzdory energetickému šoku a zvýšené inflaci.
Makroekonomické údaje - pátek 30. 10. Region Makroekonomický ukazatel Sledované období Odhad* Předchozí GE Index importních cen (m-m) září 2,0 % 1,0 % GE Index importních cen (y-y) září 10,3 % 8,3 % GE Změna počtu nezaměstnaných říjen 5,0 tis. 12,0 tis. GE Míra nezaměstnanosti (sezónně očištěno) říjen 6,4 % 6,4 % GE HDP (sezónně očištěno) (q-q) 3Q - předběžný 0,1 % 0,3 % GE HDP (bez sezónního očištění) (y-y) 3Q - předběžný 1,2 % 1,0 % GE HDP (očištěno o počet pracovních dní) (y-y) 3Q - předběžný 1,1 % 1,0 % EC HDP (sezónně očištěno) (q-q) 3Q - první, předběžný 0,2 % 0,6 % EC HDP (y-y) (sezónně očištěno) 3Q - první, předběžný 1,0 % 1,2 % EC Míra nezaměstnanosti září 6,4 % 6,4 % US Index nákladů práce 3Q 0,8 % 0,9 % GE CPI (m-m) říjen - předběžný 0,1 % 0,6 % GE CPI (y-y) říjen - předběžný 3,0 % 3,3 % GE CPI - harmonizováno dle EU (m-m) říjen - předběžný 0,1 % 0,6 % GE CPI - harmonizováno dle EU (y-y) říjen - předběžný 3,1 % 3,3 % Zdroj: Bloomberg
The market expects Atlas Energy Solutions Inc. (AESI - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 2. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -100%.
Revenues are expected to be $255.72 million, down 1.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.86% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Atlas Energy Solutions Inc.?For Atlas Energy Solutions Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.86%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Atlas Energy Solutions Inc. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Atlas Energy Solutions Inc. would post a loss of$0.12 per share when it actually produced a loss of -$0.18, delivering a surprise of -50.00%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Atlas Energy Solutions Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerDT Midstream (DTM - Free Report) , another stock in the Zacks Oil and Gas - Integrated - United States industry, is expected to report earnings per share of $1.01 for the quarter ended September 2026. This estimate points to a year-over-year change of -10.6%. Revenues for the quarter are expected to be $333.93 million, up 6.4% from the year-ago quarter.
The consensus EPS estimate for DT Midstream has been revised 4.9% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.22%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that DT Midstream will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Petrobras (PBR - Free Report) Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities. The company operates in three main segments:
PBR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 4.37; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.18 to $5.99 per share. PBR boasts an average earnings surprise of +3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PBR should be on investors' short list.
Nebius CEO Arkady Volozh went on a podcast to reassure investors that his company can fund a gigawatt of AI capacity, but the words he chose to do it raised more questions than they answered.
Neocloud stocks drew attention Monday after Elon Musk said more than 200 of them face “guppy-level death and consolidation,” according to CNBC. Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) traded at $158.73 as of 10:51 a.m. ET, roughly flat and down 0.01% on the day. That leaves the stock down 29.95% over the past month and still up 89.63% year to date.
Nebius’s own chief executive had already acknowledged part of Musk’s point. Per Stocktwits, an excerpt from Arkady Volozh’s podcast, recorded on the sidelines of the NVIDIA (NASDAQ:NVDA) GTC conference in Berlin last week, circulated on X on Sunday. He said some sources of capital had temporarily dried up, including “asset-backed financing or debt markets.” TradingView reported his words as “some of the capital sources are temporarily closed.”
Volozh Hedges His Own Funding Claim
He followed with a more confident line, per Stocktwits: “We have a pretty healthy balance sheet. We always thought about being more conservative here. But we’re working now with customer advances and several other instruments, which will probably provide us enough finance to build this gigawatt at least.”
“Probably” makes the funding a likelihood, and “at least” ties it to one gigawatt. On the August earnings call, Volozh set a larger goal: “Yes, we want to build a gigawatt capacity per year.” He said Nebius plans to start doing that in 2027.
Why Neoclouds Live and Die by Debt
A neocloud is a company that builds data centers and rents out AI computing power, mostly running on NVIDIA chips. The chips and buildings cost a great deal upfront. Returns come later, and only if customers pay enough to cover the borrowing costs and the cost of running the hardware. When lenders pull back, building slows. The suppliers one rung back from the chips, power, cooling, networking, keep profiting either way, and we rounded up seven of them in a free AI infrastructure report.
Per Stocktwits, Musk said debt markets have almost entirely shut off financing for companies without substantial revenue independent of AI data centers. He said SpaceX is outside that group, recently secured $40 billion in debt to buy NVIDIA GPUs, and has no interest in buying a neocloud.
Citi Loan Buys Time While Customer Contracts Carry the Weight
Nebius said Thursday it secured a $3.5 billion debt facility from Citigroup (NYSE:C) to fund data center expansion and GPU purchases. The loan matures in October next year and also covers general corporate purposes. Chief Operating Officer Ophir Nave said, per Stocktwits, “Sequencing our financing is how we optimize our long-term cost of capital,” and “We still have a range of capital sources available to us to finance the next phase of growth.” He pointed to $40 billion in long-term customer contracts that could serve as collateral.
Those contracts include large deals with Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META). Nebius’s second-quarter results filed with the SEC showed $37.5B in remaining performance obligations and $8.04B in cash. Customer advances do much of the work. Chief Financial Officer Dado Alonso said in August that Nebius expected more than $9 billion of upfront prepayments in 2026, and that Q2 deal terms covered approximately 50% to 60% of associated capex.
Both Sides of the Ledger
The conservative reading: the Citi facility runs about a year, funding leans on customer advances, and Volozh framed the gigawatt as likely. Concentration adds risk, with three customers making up 24%, 21%, and 14% of Q2 revenue. The constructive reading: Citi lent $3.5 billion into a market Musk calls closed, and hyperscale customers keep signing multiyear commitments. That puts Nebius in the group Musk described as still able to borrow. For background on how shares responded to the Citi deal, see our recent coverage of Nebius’s decline despite fresh Citi financing.
What to Watch Before the Citi Loan Comes Due
Longer-term financing: whether Nebius replaces or extends the Citi facility with longer-dated debt before it matures next October.
Executive commentary: further remarks from Nebius and other neocloud leaders on whether asset-backed and debt markets reopen.
Lender behavior: how lenders treat neoclouds without contracts like Nebius’s Microsoft and Meta deals. A wave of distressed sales would support Musk’s consolidation call.
Volozh’s own words set the standard to measure against: enough capital for a gigawatt, probably. Every new financing announcement will show whether that “probably” firms up.
Contact [email protected] for any questions or corrections.
Key Takeaways The Zacks Consensus Estimate for GRMN's Q3 earnings is pinned at $2.38 per share, implying 19.6% YOY growth.Garmin's Fitness revenues are expected to rise 21.3% to $728.6M, led by advanced wearables.Garmin's Marine and Aviation segments expect growth, while Auto OEM revenue may decline 4.2%. Garmin (GRMN - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, before market open.
The Zacks Consensus Estimate for Garmin’s third-quarter 2026 earnings is pegged at $2.38 per share, implying a year-over-year increase of 19.6%.
Garmin’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.5%.
The Zacks Consensus Estimate for Garmin’s second-quarter 2026 revenues is pegged at $1.99 billion, suggesting year-over-year growth of 12.3%.
Let’s see how things have shaped up for this announcement.
Key Factors to Note for GarminGarmin’s expanding portfolio is expected to have been the key growth driver for its top-line growth in the third quarter of 2026.
In the Fitness segment, strong demand for advanced wearables is expected to have continued in the third quarter. The company's expanding lineup, including the Forerunner 70 and Forerunner 170 running watches and the CIRQA smart band, is likely to have supported revenue growth and further market share gains. The Zacks Consensus Estimate for revenues in the Fitness segment is pegged at $728.6 million, indicating a year-over-year increase of 21.3%.
Strong demand for the fenix smartwatch lineup, along with recently launched products such as the Approach Z10 laser rangefinder, is likely to have supported the Outdoor segment’s performance in the to-be-reported quarter. The consensus estimate for Outdoor revenues is pegged at $545.7 million, indicating a year-over-year rise of 9.6%.
The Marine segment is expected to have benefited from broad-based demand across multiple product categories. Newly launched products, including the Signal VHF Marine Radio and next-generation LiveScope 2 sonar system, which offers improved range and clarity, are likely to have supported the company’s third-quarter performance. The consensus estimate for Marine revenues is pinned at $299 million, up 11.5% from the figure reported in the year-ago quarter.
The Aviation segment is expected to have benefited from continued strength across both OEM and aftermarket product categories. New products, including the D2 Mach 2 Pro aviator smartwatch with inReach technology and the AXIS family of integrated cockpit display solutions, are likely to have supported the segment's performance in the third quarter. The consensus mark for Aviation revenues is pegged at $257.9 million, suggesting an increase of 7.5% from the figure reported in the year-ago quarter.
However, Garmin's Auto OEM segment is expected to have remained pressured in the third quarter as BMW-related production volumes have passed their peak. The consensus mark for Auto OEM revenues is pegged at $158.1 million, indicating a year-over-year decline of 4.2%.
What Our Model Says About GRMNOur proven model does not conclusively predict an earnings beat for GRMN this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
GRMN has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable CombinationHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Seagate Technology (STX - Free Report) has an Earnings ESP of +2.07% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Seagate Technology is set to report first-quarter fiscal 2027 results on Oct. 27. The Zacks Consensus Estimate for Seagate Technology’s first-quarter fiscal 2027 earnings is pegged at $7.44 per share, up by 10 cents over the past seven days, indicating a rise of 185.1% from the year-ago quarter’s reported figure.
Amphenol (APH - Free Report) has an Earnings ESP of +1.72% and carries a Zacks Rank #2 at present.
Amphenol is set to report third-quarter 2026 results on Oct. 28. The Zacks Consensus Estimate for Amphenol’s third-quarter 2026 earnings is pegged at 73 cents per share, up by a penny over the past seven days, indicating a rise of 55.3% from the year-ago quarter’s reported figure.
Corning (GLW - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2 at present.
Corning is slated to report third-quarter 2026 results on Oct. 27. The Zacks Consensus Estimate for Corning’s third-quarter 2026 earnings is pegged at 89 cents per share, up by a penny over the past seven days, indicating a rise of 32.8% from the year-ago quarter’s reported figure.
Applied Digital just posted the strongest quarter in its history, yet the stock cratered more than 30% immediately after. One analyst still sees nearly 400% upside from here, and the reasons behind that gap reveal a high-stakes bet on the…
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Applied Digital (NASDAQ:APLD) currently trades at $18.25, while the average analyst target stands at $62.44. That gap implies 242.1% upside.
Applied Digital builds and runs purpose-built AI data center campuses in North Dakota and the southern U.S. It leases capacity to CoreWeave (NASDAQ:CRWV) and investment-grade hyperscalers and holds about $36B in contracted revenue. The highest target on the Street is more aggressive still. Lake Street Capital Markets analyst Rob Brown holds a $90.00 target, which works out to 393.2% upside. With a gap that wide, the market and the analysts disagree sharply on this stock.
A Record Quarter Failed to Stop a Steep Slide
Applied Digital has fallen 32.98% in one month. That is a selloff of more than 30%, and it started right after the strongest quarter in company history. Shares stood at $25.45 when the company reported fiscal Q1 2027 revenue of $341.88M, beating the $124.57M consensus. Adjusted EPS of -$0.01 exceeded the -$0.3023 estimate, marking a 6th consecutive EPS beat.
Investors looked past those beats to the balance sheet. The company posted a GAAP net loss of $184.06M and spent $2.07B on capex in the quarter. It has $6.4 billion in total debt against about $3.7 billion in cash and restricted cash. Rising yields and a sliding Bitcoin (CRYPTO:BTC) price pressured the whole group. Rothschild & Co Redburn also initiated coverage at Neutral with a $22 target, highlighting execution, power and pipeline-conversion risks. As the stock hit a one-year low, co-founders Wes Cummins and Jason Zhang bought about $6.7 million in shares.
Why Analysts Kept Raising Targets Into the Selloff
The contracted backlog supports the bullish thesis. Applied Digital has about 1.41 GW of leased critical IT load, and the contracts reach ~$86B if all renewal options exercised. Management expects “to place over 600 megawatts into service versus the 250 megawatts over the past 12 months.”
Pricing is the next catalyst. Management expects about 250 megawatts of expansion leases by calendar year-end, with lease rates up “definitely north of 15%”. The ChronoScale compute unit is on track for $1 billion of ARR in 2027. The longer-range target is 3.5 to 4 gigawatts by the end of calendar year 2030.
Recent analyst moves have mostly been reiterations and upgrades. Wells Fargo kept its Overweight rating and lifted its target to $55. Morgan Stanley stayed at Equal-Weight but upgrades its target to $41. Jones Trading initiated at Buy with a $70 target. Needham and B. Riley hold targets in the $70–$85 range.
The consensus fiscal 2028 EPS estimate has slipped to -0.7844 from -0.2500 30 days ago, which means analysts expect losses to continue for at least two more years.
Neocloud Peers Fell Even Harder Than Applied Digital
The whole group sold off together, and Applied Digital held up better than its closest rivals.
IREN (NASDAQ:IREN) has dropped 47.07% in a month to $24.91. Its average target of $77.81 implies 212.4% upside, which is smaller than Applied Digital’s. Of its 20 analysts, two call it a Strong Buy, 13 a Buy and five a Hold. Its latest quarterly revenue of $137.20 million missed estimates.
Cipher Digital (NASDAQ:CIFR) has fallen 56.73% in a month to $7.94. Its average target of $29.36 implies 269.8% upside, which is larger than Applied Digital’s. Of its 22 analysts, five call it a Strong Buy, 15 a Buy and two a Hold, despite a Q2 EPS of -0.65 that missed estimates.
Cipher offers the biggest consensus upside among the three. Applied Digital has the most aggressive single target and is the only one of the three beating estimates. None of these targets is a guarantee.
Down 25.57% This Year While the S&P 500 Gained 11.45%
At $18.25, Applied Digital trades near its 52-week low of $17.65 and far below its high of $50.73. The 15 covering analysts average $62.44, which implies 242.1% upside. The ratings break down this way:
Strong Buy: 2
Buy: 11
Hold: 2
Sell: 0
The stock is down 25.57% so far this year, compared with an S&P 500 gain of 11.45%. Over one year, Applied Digital has lost 45.33%, against a 13.13% gain for the index. A beta of 6.0 explains why the moves in both directions are so large.
A Real Backlog Weighed Down by Real Debt
The bullish thesis improves if the 600-plus megawatts reach service on schedule and the expansion leases close at higher rates. Should both occur, base rent replaces one-time fit-out revenue and the 89% NOI margin on HPC operations starts to has the income statement. But the stock looks like a value trap if capital markets tighten before Polaris Forge 3 and the two Delta Forge campuses are financed. A free cash flow yield of -50.3% leaves little room for error.
The bullish thesis has support. The contracts are signed, insiders are buying, and Applied Digital is the only name in the group beating estimates. The $90 target needs years of flawless execution, so it reads as a ceiling, while the average target reflects a multiyear outlook. All of that AI data center expansion still has to be powered, cooled, and networked by somebody, and we rounded up seven suppliers doing exactly that in a free report on the AI boom beyond the chipmakers. Watch the stock around the next lease announcements.
Contact [email protected] for any questions or corrections.
SummaryNexGen Energy is a 'Buy' as Rook I construction advances, but capital structure uncertainty keeps valuation depressed.NXE's upside hinges on project execution, cost control, and securing favorable financing without excessive dilution or value transfer.Rook I boasts 239.6M lbs probable reserves, high grades, and strong competitive barriers but remains a single-asset, pre-revenue developer.Key risks are construction cost inflation, schedule delays, and uranium price volatility; monitoring budget adherence and financing terms is critical. Ployker/iStock via Getty Images
Construction Has Started, Financing Decides the Payoff Rook I has transitioned from a permitted uranium project to an active construction project. This will affect NexGen Energy (NXE) stakeholders in various ways. Information about previous drilling
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NXE over 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.
CoreWeave Inc. (NASDAQ:CRWV) shares are moving higher Monday after touching a new 52-week low this morning, with buyers apparently returning after a rough stretch.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BBW over 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.
Analysts on Wall Street project that Brinker International (EAT - Free Report) will announce quarterly earnings of $2.49 per share in its forthcoming report, representing an increase of 29% year over year. Revenues are projected to reach $1.45 billion, increasing 7.3% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Brinker International metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenue- Franchise and other revenues' will likely reach $14.23 million. The estimate points to a change of +3.1% from the year-ago quarter.
The consensus estimate for 'Revenue- Company sales' stands at $1.44 billion. The estimate suggests a change of +7.9% year over year.
Analysts predict that the 'Revenue- Company sales- Chili's' will reach $1.34 billion. The estimate points to a change of +8.4% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenue- Company sales- Maggiano's' of $99.40 million. The estimate indicates a year-over-year change of +0.2%.
It is projected by analysts that the 'Comparable Restaurant Sales - Chili's - YoY change' will reach 8.1%. The estimate is in contrast to the year-ago figure of 21.4%.
Analysts expect 'Company owned restaurants - Maggiano's - Domestic locations' to come in at 49 . Compared to the present estimate, the company reported 48 in the same quarter last year.
Analysts forecast 'Company owned restaurants - Chili's' to reach 1,124 . The estimate compares to the year-ago value of 1,113 .
Based on the collective assessment of analysts, 'Company owned restaurants - Total' should arrive at 1,173 . The estimate is in contrast to the year-ago figure of 1,161 .
According to the collective judgment of analysts, 'Total restaurants - Brinker International' should come in at 1,639 . Compared to the present estimate, the company reported 1,630 in the same quarter last year.
Analysts' assessment points toward 'Franchise restaurants - Total' reaching 468 . Compared to the present estimate, the company reported 469 in the same quarter last year.
The consensus among analysts is that 'Franchise restaurants - Chili's - International' will reach 373 . The estimate is in contrast to the year-ago figure of 367 .
The average prediction of analysts places 'Comparable Restaurant Sales - Company - owned' at 7.5%. The estimate compares to the year-ago value of 18.8%.
View all Key Company Metrics for Brinker International here>>>
Brinker International shares have witnessed a change of -11.8% in the past month, in contrast to the Zacks S&P 500 composite's -1.2% move. With a Zacks Rank #3 (Hold), EAT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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: Brinker International (EAT - Free Report) Brinker International, Inc. is based in Dallas, TX. The company owns, operates, develops and franchises restaurants under the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983. It completed the acquisition of Maggiano’s in August 1995.
EAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.87; value investors should take notice.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $13.17 per share. EAT boasts an average earnings surprise of +6.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EAT should be on investors' short list.
Komerční banka ve čtvrtek ráno představí výsledky za 3Q 2026, od 14:00 bude následovat konferenční hovor s managementem. Projektujeme 2% meziroční růst provozního zisku, čistý zisk by však měl kvůli nákladům na riziko poklesnout.
Projekce hospodaření Komerční banky za 3Q 2026 v mil. Kč Odhad Fio Konsensus trhu 3Q 2025 Čisté úrokové výnosy 6 622 6 682 6 501 Čisté poplatky a provize 1 833 1 816 1 673 Ostatní provozní výnosy 1 056 1 032 1 147 Provozní výnosy 9 511 9 530 9 322 Provozní náklady (4 116) (4 080) (4 044) Provozní zisk 5 395 5 450 5 277 Náklady na riziko (379) (194) 328 Čistý zisk 4 221 4 437 4 775 Čisté úrokové výnosy by měly meziročně vzrůst o 2 % na 6 622 mil. Kč díky vyššímu objemu úvěrového portfolia.
Čisté poplatky a provize by se dle naší projekce měly meziročně zvýšit o 10 %, zatímco ostatní provozní výnosy by měly naopak meziročně poklesnout.
Celkové výnosy by tak měly dosáhnout výše 9 511 mil. Kč, což představuje meziroční nárůst o 2 %.
Provozní náklady by měly meziročně vzrůst rovněž o 2 % kvůli vyšším mzdovým a administrativním nákladům.
Celkově by tak dle našich odhadů měla Komerční banka reportovat meziroční růst provozního zisku o 2 % na 5 395 mil. Kč.
Oproti minulému roku, kdy banka rozpouštěla opravné položky, očekáváme jejich čistou tvorbu ve výši 379 mil. Kč.
Na úrovni čistého zisku projektujeme, že Komerční banka vykáže meziroční pokles o 12 % na 4 221 mil. Kč.
Management by měl spolu s výsledky představit aktualizovanou strategii do roku 2029.
Akcie Komerční banky (BAAKOMB) uzavřely dnes na pražské burze na 1 003 Kč a na RM-SYSTÉMu také na 1 003 Kč.
, /PRNewswire/ -- Adorama, a leading photography, video, audio, drone, and computer retailer, and Klarna, the everyday finance network, today announced that Klarna is now available as a payment option on Adorama.com, with availability on sister sites Scuba.com and SunnySports.com to follow. Adorama is a destination for photographers, filmmakers and content creators who are looking to buy cameras, lenses, lighting and professional video equipment.
Starting today, Adorama customers shopping online can use Klarna to pay in full for smaller purchases like memory cards and camera bags, split the cost of a new lens or speedlight into four interest-free payments, or finance bigger investments, from professional camera bodies and drones to the laptops and editing rigs that turn footage into finished work.
"Our customers are buying gear they'll rely on for years, so convenient payment solutions is an important part of the buying decision," said Yoav Shargil, Chief Marketing Officer at Adorama. "Partnering with Klarna enables us to expand our reach to a new audience of shoppers, and adding this level of choice and flexibility underscores our commitment to making our offerings as accessible as possible."
"Camera and video equipment is exactly the kind of considered purchase where flexibility matters," said Lisa Robinson, Head of Partner Success, US East Coast and Canada at Klarna. "We're proud to partner with Adorama to give creatives a more flexible way to invest in the tools and ideas that power their craft."
To learn more, visit Adorama.com.
About Adorama Inc.
Adorama is a leading photography, video, audio, drone, and computer retailer, serving customers for over 50 years. Adorama has grown from its flagship NYC store to include four online retailers: Adorama, SunnySports, Scuba.com, and Printique. More than a camera store, Adorama works with creators throughout their journey, providing new, used and rental gear, education, and professional services, while fostering meaningful connections and lasting impact through community programs.
About Klarna
Klarna is the everyday finance network. With over 120 million global active Klarna users and 3.8 million transactions per day, Klarna's AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. Over 1.2 million retailers trust Klarna's innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.
GigaCloud Technology Inc. (GCT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +7.9% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Technology Services industry, to which GigaCloud Technology Inc. belongs, has lost 13.9% 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.
Revisions to Earnings EstimatesHere 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
GigaCloud Technology Inc. is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +29.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +20%.
The consensus earnings estimate of $4.92 for the current fiscal year indicates a year-over-year change of +37.1%. This estimate has changed +17.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.82 indicates a change of +18.3% from what GigaCloud Technology Inc. is expected to report a year ago. Over the past month, the estimate has changed +20.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for GigaCloud Technology Inc..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile 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 GigaCloud Technology Inc., the consensus sales estimate of $394.8 million for the current quarter points to a year-over-year change of +18.7%. The $1.59 billion and $1.75 billion estimates for the current and next fiscal years indicate changes of +23.4% and +9.9%, respectively.
Last Reported Results and Surprise HistoryGigaCloud Technology Inc. reported revenues of $411.64 million in the last reported quarter, representing a year-over-year change of +27.6%. EPS of $1.16 for the same period compares with $0.91 a year ago.
Compared to the Zacks Consensus Estimate of $383.7 million, the reported revenues represent a surprise of +7.28%. The EPS surprise was +36.47%.
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.
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.
GigaCloud Technology Inc. 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.
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 GigaCloud Technology Inc.. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
What goes up must come down -- and is PagSeguro (PAGS -26.62%) stock ever coming down fast today!
Shares of the Brazilian fintech stock and digital bank took off like a rocket earlier this month after conservative candidate Flávio Bolsonaro outpolled incumbent President Luiz Inácio Lula da Silva 47.3% to 44.8% in the first round of voting in Brazil's presidential election. But the second round of voting wrapped up last night, and "Lula" pulled off an upset, winning 51.8% of votes cast to Bolsonaro's 48.2%.
Investors are upset, and they're taking it out on every Brazil-related stock they can find. PagSeguro stock is down 26.4% as of 11:20 a.m. ET.
Image source: Getty Images.
Election Brazil 2026Bolsonaro is refusing to concede defeat and is challenging the election results, alleging the incumbent administration suppressed voting in key Bolsonaro-leaning districts. It's not clear whether the allegations have merit or have any chance of overturning yesterday's results, however.
Actually, the opposite seems more likely. Various South American heads of state have already made their calls to congratulate Lula on his victory.
PAGS PagSeguro Digital$8.40-$3.05 (-26.62%)
NYSE · As of 11:33 AM ET 10/26/26
What does any of this have to do with PagSeguro?When Bolsonaro seemed to be winning earlier this month, The Wall Street Journal reported that investors were upset with Lula's "stewardship of the economy" and hoped a change in administration might help shore up Brazilian finances, lower debt and tax costs, and generally improve the business climate. That no longer seems likely, and Lula will probably now remain in office through 2030.
This doesn't necessarily make PagSeguro stock a sell, however. Valued at just 7.7 times trailing earnings and expected by Wall Street analysts to grow earnings more than 10% annually over the next five years, PagSeguro stock looks cheap -- regardless of who wins the Brazilian election.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNDK 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.
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Sandisk Corporation (NASDAQ:SNDK) shares are in the spotlight Monday, with earnings on deck, guidance and the datacenter mix in focus, recent analyst activity and a technical setup showing a rebound attempt near the 200-day average all drawing attention.
SCHAUMBURG, Ill.--(BUSINESS WIRE)--Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), a specialty chemicals platform focused on the development, production, and distribution of tailored, performance-driven chemical solutions, will hold a conference call on Tuesday, November 4, 2026, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2026. The results will be reported in a press release prior to the conference call. Ascent manageme.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Key Takeaways Flex's Q2 earnings are projected to rise 32.9% year over year, with revenues expected to grow 20.2%.CPI revenues are projected to surge 45-55%, fueled by AI infrastructure and cloud power demand.Strong networking and industrial demand may boost growth, but capacity investments could pressure margins. Flex Ltd. (FLEX - Free Report) is slated to report second-quarter fiscal 2027 results on Oct. 28, before market open.
The Zacks Consensus Estimate for fiscal second-quarter revenues is $8.18 billion, which indicates an increase of 20.2% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at $1.05 per share, up 32.9% year over year.
For the quarter, the company expects net revenues of $7.95-$8.25 billion. Management expects adjusted earnings of $1.00-$1.07 per share.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.78%, on average.
In the past year, the stock has surged 18.4% compared with the Zacks Electronics - Miscellaneous Products industry’s growth of 6.3%.
Image Source: Zacks Investment Research
Factors Shaping FLEX’s Q2 ResultsFlex is expected to have benefited from robust demand for AI infrastructure, particularly across its Cloud and Power Infrastructure (CPI) segment, in the second quarter of fiscal 2027. Increasing investments in data center infrastructure, power management solutions and new customer programs are likely to have supported the company's performance.
The CPI segment is expected to have been the primary growth driver. On the last earnings call, management projected CPI revenues to increase 45-55% year over year in the fiscal second quarter, accelerating from 35% growth in the preceding quarter. The anticipated improvement reflects continued ramp-ups across cloud and power infrastructure programs. Management highlighted strong business visibility, with more than 90% of the segment's expected business already booked for the remaining three quarters of fiscal 2027. The Zacks Consensus Estimate for the CPI segment's net sales is pegged at $2.47 billion.
Increasing power requirements associated with next-generation AI workloads are likely to have strengthened demand for Flex's electrical and thermal management solutions. The company is advancing its 400-volt and 800-volt power technologies to address evolving data center requirements. Management highlighted growing customer interest in integrated power, cooling and compute solutions, including its modular infrastructure capabilities developed in collaboration with NVIDIA.
Flex is also expanding its manufacturing capacity to support accelerating demand. The company is investing in facilities, cooling infrastructure and manufacturing capabilities, alongside expanding modular power capacity in Dallas and Iowa. These initiatives, supported by the Crown and Electrical Power Products (EP²) acquisitions, are expected to facilitate new program deployments. Additionally, the company's JetCool business is progressing with customer qualification of coolant distribution units, while its expanding partnership with Cerebras Systems is supporting the scale-up of advanced AI accelerator manufacturing and cooling solutions.
Recently, Flex also completed its acquisition of EPC Power, a provider of intelligent power conversion solutions for data center and grid applications. EPC Power joins Flex’s Cloud and Power Infrastructure segment, enhancing capabilities across power, cooling and compute to meet rising AI data center demand.
Beyond CPI, strength in advanced networking is likely to have benefited the Integrated Technology Solutions (ITS) segment. Management expects ITS revenues to grow in the high single-digit to low double-digit range year over year in the fiscal second quarter. Sustained demand for high-speed switches, optical networking products and network interface technologies, supported by data center investments and market-share gains, is expected to have driven growth. The Zacks Consensus Estimate for ITS segment’s net sales is pegged at $3.02 billion.
The Regulated Manufacturing Solutions (RMS) segment is also expected to have witnessed healthy industrial demand. Management anticipates RMS revenues to increase in the mid-single-digit to high single-digit range, supported by energy infrastructure, robotics and warehouse automation. Increasing investments in electrical infrastructure and automation solutions remain favorable growth drivers. The Zacks Consensus Estimate for net sales of RMS segment is pegged at $2.66 billion.
However, continued weakness in consumer-related end markets is likely to have partially offset strength in ITS. Additionally, substantial capacity investments and expenses associated with new program ramps might have constrained near-term margins and cash flows. Costs related to the planned CPI spin-off, expected in the first quarter of calendar 2027, remain another concern.
Earnings Whispers for FLEXOur proven model does not predict an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
FLEX has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #1 at present.
STX is scheduled to report quarterly figures on Oct. 27, 2026. The Zacks Consensus Estimate for Seagate’s to-be-reported quarter’s earnings and revenues is pinned at $7.44 per share and $4.11 billion, respectively. Its shares are up 175.4% in the past year.
Intel (INTC - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2. INTC is scheduled to report quarterly earnings on Oct. 29, 2026. The Zacks Consensus Estimate for Intel’s to-be-reported quarter’s earnings and revenues stands at 39 cents per share and $16.44 billion, respectively. Its shares have gained 119.9% in the past year.
Vertiv (VRT - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on Oct. 28, 2026. The Zacks Consensus Estimate for Vertiv’s to-be-reported quarter’s earnings and revenues is pinned at $1.82 per share and $3.76 billion, respectively. Its shares are up 0.8% in the past year.
TripAdvisor is on AI-powered recovery from record lowsMakeMyTrip NASDAQ: MMYT reported 20.9% year-over-year growth in second-quarter fiscal 2027 gross bookings on a constant-currency basis, reaching $2.7 billion, as growth in hotels, ground transportation and ancillary services helped offset pressure on air travel.
Co-Founder and Group CEO Rajesh Magow said the travel company delivered its results amid a challenging environment for India’s travel industry. He cited the West Asia conflict, higher aviation turbine fuel prices, rupee depreciation and constrained airline capacity as factors that weighed on both domestic and international air-travel demand.
Get MakeMyTrip alerts:
Are These 3 Travel-Related Stocks Actionable After Big Rallies?“Our strong Q2 performance in a low leisure travel season quarter was led by domestic travel and short-haul international destinations for leisure purpose,” Magow said, adding that corporate travel within India remained resilient.
Adjusted operating profit was $46.2 million, up 13.8% from a year earlier in constant currency. Adjusted net profit before tax also rose 27% to $46.2 million. The company said rupee depreciation reduced reported year-over-year growth rates by roughly 10 percentage points because of translation effects.
Non-Air Mix Expands as Air Demand Declines
MakeMyTrip Stock is an Under-the-Radar PlayMakeMyTrip said its non-air business represented 63.2% of total business mix in the quarter, compared with 61.5% a year earlier. The company maintained a more than 30% share of India’s domestic air-ticketing market, according to management, while outperforming the market in international air ticketing.
However, air travel remained under pressure. Group COO Mohit Kabra said domestic departures declined 7% year over year, while international departures fell 4%, as higher fares and limited airline capacity reduced passenger volumes. Air fares increased about 25% to 30% year over year, according to Group CFO Dipak Bohra.
Air-ticketing adjusted margin increased 14.3% in constant currency to $108.6 million. Bohra said the company benefited from ancillary-product attachment and improved unit economics, though the rise in fares also increased payment-processing costs because those charges are linked to booking value while air-ticket revenue is tied largely to ticket volumes.
Adjusted operating margin was 1.7% of gross bookings, compared with 1.8% a year earlier. Bohra said the company expects the gap between revenue and payment-processing costs to narrow as fares and passenger volumes normalize.
Hotels, Buses and Other Services Drive Growth
The hotels and packages segment, which represented 40% of MakeMyTrip’s business mix, generated adjusted margin of $116.8 million, up 20.2% in constant currency. Hotel and package gross bookings grew 19.7%, while standalone hotel room nights rose 18.6%.
Domestic hotel room nights increased 20.4%, supported by demand for short-duration trips, drive-down holidays, pilgrimage travel and celebrations, management said. International hotel room nights rose at a mid-single-digit rate despite weakness in Middle East and long-haul travel demand.
The company’s domestic accommodation portfolio exceeded 105,000 properties across 2,080 Indian cities at quarter-end. Its directly contracted international hotel portfolio reached 40,000 accommodations, up 30% from a year earlier, spanning about 110 global destinations after the company added 45 cities over the past year.
MakeMyTrip said an AI-enabled recommendation system deployed across its apps increased visitor conversion by more than 2.5%, with nearly 6% gains for super-premium stays such as villas. In the homestay category, the company sold more than 29,400 unique properties across 1,185 cities during the quarter.
Bus ticketing, led by the redBus platform, posted 24.7% volume growth, 29.4% growth in gross bookings and 29% adjusted-margin growth in constant currency. Bus adjusted margin totaled $45.1 million. Kabra said nearly half of the segment’s growth came from inventory additions, particularly on overnight and pilgrimage routes, with the balance coming from market-share gains.
The company’s other segment, including intercity cabs, rail, insurance, foreign exchange, tours, activities and related services, recorded adjusted margin of $24.4 million, up 29.8% in constant currency. Magow said the intercity cab business is growing more than 40% year over year, albeit from a small base.
Company Highlights AI Adoption and Corporate Growth
Management emphasized its investment in artificial intelligence, arguing that travel platforms with bookable supply, transaction capabilities and customer-service infrastructure are positioned to benefit as AI changes travel discovery and planning.
MakeMyTrip said its AI travel assistant, Myra, handles more than 90,000 daily conversations and assists with more than 3,000 bookings each day. Customers who engage with Myra convert at roughly 1.7 times the rate of those who do not, while the conversion multiple exceeds 2.1 times in tier-two and tier-three cities, which account for about 55% of Myra conversations.
Myra resolved more than 53% of post-booking flight and hotel queries autonomously, the company said. AI-powered semantic search accounted for about 10% of hotel searches and delivered conversion rates approximately 24% higher than filter-led searches.
On the corporate side, MakeMyTrip’s myBiz platform served about 84,600 active corporate customers at quarter-end, up from about 75,500 a year earlier. Quest2Travel served 568 large customers, compared with 527 in the prior-year period. The company’s myPartner travel-agent platform added more than 26,000 unique agents transacting for the first time during the quarter.
Balance Sheet and India IPO Plans
MakeMyTrip ended the quarter with $815 million in cash and cash equivalents. It deployed $17.2 million toward its share-buyback program and said it has cumulatively repurchased 2.23 million shares, covering 37% of the share capital expected to be issued in connection with its 2028 convertible bonds.
The company also said it continues to pursue a proposed initial public offering for wholly owned subsidiary MakeMyTrip India Ltd. after making a confidential filing. Management said the timing will depend on regulatory approvals and market conditions, while noting that the confidential filing remains valid for roughly 18 months.
Looking ahead, Magow said the company remains cautious about geopolitical and macroeconomic conditions but continues to see long-term potential in India’s travel market, particularly in hotels, alternative accommodations, buses, cabs, tours and experiences where supply remains fragmented and online penetration is relatively low.
About MakeMyTrip (NASDAQ:MMYT)MakeMyTrip Limited is an online travel company serving consumers in India and international travelers booking trips to and from the country. Founded in 2000 by Deep Kalra, the company operates through a portfolio of travel brands, including MakeMyTrip, Goibibo and redBus.
The company provides online and mobile booking services for domestic and international flights, hotels and other accommodations, holiday packages, trains, buses, car rentals and airport transfers. Through redBus, it also offers bus ticketing services across India and selected international markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, October 26:
Hippo Holdings Inc. (HIPO - Free Report) : This property and casualty insurance company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Hippo’s shares gained 31.8% over the last three months compared with the S&P 500’s advance of 2.8%. The company possesses a Momentum Score of A.
The Cheesecake Factory Incorporated (CAKE - Free Report) : This restaurant company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.9% over the last 60 days.
Cheesecake Factory’s shares gained 24.5% over the last three months compared with the S&P 500’s advance of 2.8%. The company possesses a Momentum Score of A.
MSC Industrial Direct Company, Inc. (MSM - Free Report) : This metalworking and MRO products and services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 7% over the last 60 days.
MSC Industrial’s shares gained 9.3% over the last six months compared with the S&P 500’s advance of 6.2%. The company possesses a Momentum Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
Even though Space Exploration Technologies Corp. (NASDAQ: SPCX) stock has plunged over 16% since retesting its resistance level around $176 earlier in October 2026, Douglas Harned, a Wall Street analyst at Bernstein SocGen Group, expects a bull run to a new all-time high (ATH) over the next 12 months.
On Monday, October 26, Harned raised the firm’s 12-month price target of SpaceX stock to $268 from $248. He, however, maintained the firm’s 12-month rating of SPCX at ‘Outperform’.
With SpaceX stock trading at $148.30 at the time of writing, the firm signals a potential 80.71% upside. Bernstein SocGen Group raised its outlook for SPCX primarily due to expanding terrestrial artificial intelligence (AI) build plans.
Furthermore, Harned noted that the company’s compute capacity expectations increased by 5 gigawatts (GW), reaching 13 GW by the end of 2027 and expanding to 20 gigawatts in 2028. These additions require an estimated capital expenditure of $35 billion per gigawatt.
The analyst argued that outperformance in enterprise and government connectivity further supports SpaceX’s projected $500 billion to $1 trillion 2027 revenue run-rate. This outperformance also reinforces an updated conservative full-year 2028 revenue target of $424 billion.
“Flight 15 should be within a few weeks, with a plan to capture both booster and Starship. The company said the heat shield performed well on Flight 14, which could set up the first reuse of Starship on Flight 16. Reusability is key to making orbital data centers successful,” Harned noted.
SpaceX stock forecast for 12 months Following Harned’s SPCX stock 12-month forecast on Monday, 35 Wall Street analysts polled by TipRanks over the past 3 months have set an average rating of ‘Strong Buy’.
SpaceX stock price prediction for 12 months. Source: TipRanks Their average 12-month price forecast signals a bullish market to a new peak.
Is SPCX a good stock to buy? After hitting its post-IPO (initial public offering) capitulation bottom at approximately $105.17, SPCX recently retested a major resistance level around $176.93.
SPCX’s daily chart. Source: TradingView As a result, the company had a market capitalization of $1.9 trillion at the time of reporting.
With SpaceX’s increased expenditure on AI-focused products, Wall Street analysts are optimistic about a possible rally to a new ATH by October 26, 2027.
Featured image via Shutterstock
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U.S. Representative Maria Elvira Salazar is the only lawmaker among seven members of Congress to report a sale of SpaceX (NASDAQ: SPCX) stock since the company went public in June.
According to her trading disclosure, Salazar sold between $1,001 and $15,000 worth of SpaceX stock on September 24, 2026, at an average share price of $148.03. She disclosed the transaction on October 7.
The sale is notable because Salazar had purchased SpaceX shares on August 12 at an average price of $146.27, before selling shares approximately six weeks later.
Salazar serves on the House Foreign Affairs and Financial Services committees, though no evidence directly links her committee roles to the SpaceX sale.
SPCX Congress trades Meanwhile, despite being relatively new to the public market, SpaceX has attracted interest from members of Congress, with six lawmakers purchasing shares in Elon Musk’s company.
Gilbert Ray Cisneros Jr., William R. Timmons IV, John McGuire, Daniel Meuser, Jared Moskowitz and John James all reported purchases.
SPCX Congress trades. Source: MarketBeat Most of the Congress trades ranged from $1,001 to $15,000, while Timmons disclosed a purchase worth between $50,001 and $100,000.
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Notably, SpaceX went public in June 2026, pricing its IPO at $135 per share and a valuation of approximately $1.77 trillion.
SPCX stock fundamentals SpaceX’s expanding business spans rocket launches, Starlink satellite internet, and AI infrastructure. The company generated $27.08 billion in revenue during the first nine months of 2026 and $4.4 billion in third-quarter net income.
However, it spent $48.1 billion on capital expenditures and burned nearly $35 billion in cash over the same period.
Its high valuation, heavy investment needs, and ambitious projects, including Starship, could fuel share-price volatility despite strong revenue growth.
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Space Exploration Technologies Corp. (NASDAQ:SPCX) just had the quarter that changed what kind of company it is. "SpaceX's Q3 was the quarter the rocket company became an AI company," Sandeep Anand, said in his latest InvestAi Capital newsletter, titled “SpaceX Is the New Neocloud.
I'm watching Apple (NASDAQ:AAPL | AAPL Price Prediction) ahead of its fiscal fourth-quarter results, due Nov. 2 after the close. Shares are up 26.65% this year and the market cap stands near $5.07 trillion.
Apple (AAPL - 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 maker of iPhones, iPads and other products have returned +2% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Computer - Micro Computers industry, to which Apple belongs, has gained 1.2% 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.
For the current quarter, Apple is expected to post earnings of $2.00 per share, indicating a change of +8.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.
The consensus earnings estimate of $8.86 for the current fiscal year indicates a year-over-year change of +18.8%. This estimate has changed +0.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.6 indicates a change of +8.4% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
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, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
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 Apple, the consensus sales estimate of $112.95 billion for the current quarter points to a year-over-year change of +10.2%. The $477.34 billion and $521.76 billion estimates for the current and next fiscal years indicate changes of +14.7% and +9.3%, respectively.
Last Reported Results and Surprise HistoryApple reported revenues of $109.42 billion in the last reported quarter, representing a year-over-year change of +16.4%. EPS of $1.91 for the same period compares with $1.57 a year ago.
Compared to the Zacks Consensus Estimate of $108.75 billion, the reported revenues represent a surprise of +0.62%. The EPS surprise was +1.6%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time 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.
Apple 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.
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 Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
A leadership handoff, a supply-constrained iPhone, and an AI rollout colliding at once: Apple is navigating more moving parts than it has in years, and where the stock lands depends on which force wins out.
The 24/7 Wall St. price target for Apple (NASDAQ:AAPL | AAPL Price Prediction) is $398.25 over the next 12 months. That means 15.77% upside from $343.99. We rate the stock a buy, and our model holds high confidence in that call.
Metric
Value
Current Price
$343.99
Price Target from 24/7 Wall St.
$398.25
Upside/Downside
15.77%
Recommendation
BUY
Confidence Level
90%
Apple is heading into its most important stretch in years. A leadership handoff is underway, Siri AI is rolling out, and iPhone demand is running ahead of supply. Our model sees those forces adding up to meaningful upside, even after a strong run.
A Record June Quarter Fueled Apple’s 28% Rally
Shares have gained 1.57% over the past week, 2.24% over the past month, 8.35% over the past quarter and 28.12% year to date. That puts the stock near the top of its 52-week range of $242.76 to $348.15.
In fiscal Q3, revenue came in at $109.42 billion, up 16.4% and ahead of the $108.96 billion consensus. EPS of $2.02 exceeded expectations of $1.89.
iPhone revenue rose 22% and Mac grew 29%. Tim Cook said that July 30 call was his final one as CEO and that John Ternus was expected to lead future calls. This week, CNBC reported that the iPhone Duo is in short supply.
Why Bulls See $452 Within Reach
The bull case is $452.19, a 31.46% return. Apple has over two and a half billion active devices and more than one and a half billion paid subscriptions. Management expects Siri AI to push some users into higher iCloud+ levels.
The MacBook Neo is also pulling schools away from Windows and Chromebook devices. Guidance for the September quarter calls for 9%-11% revenue growth, with iPhone growth in the mid-teens.
On the Street, Apple has 6 Strong Buy and 19 Buy ratings, against 3 Sells and 3 Strong Sells.
Memory Costs Could Squeeze Apple’s Margins
The bear case is at $337.78, or -1.8%. Cook called the memory market “a 100-year flood” and warned that costs keep rising. Gross margin guidance of 47%-48% includes about one percentage point from one-time tariff refunds.
Those refunds also added $0.11 to Q3 EPS. Siri AI is still delayed in the EU and China. Among tracked institutions, 8 cut their positions in the June quarter. Berkshire Hathaway (NYSE:BRK-B) kept its 227,917,808 shares unchanged.
Bulls would point out that operating expenses rose 23% mainly because of R&D. That spending climbed to $11.73 billion from $8.9 billion, a planned investment in AI.
How Apple Compares to Microsoft and Alphabet
Because it is Apple’s closest rival for the title of most valuable company and competes for the same AI dollars, Microsoft (NASDAQ:MSFT) belongs here. The stock trades at a trailing P/E of 29 with a 40.3% net margin.
In mobile platforms and AI assistants, Alphabet (NASDAQ:GOOGL) competes with Apple. Its P/E of 14 is held down by a $99.03 billion equity gain. Alphabet also posted negative free cash flow and suspended buybacks.
Company
Trailing P/E
Latest Revenue Growth
Apple
45
16.4%
Microsoft
29
17.75%
Alphabet
14
24.23%
Apple carries a clear premium over both peers. Our target looks reasonable, but it relies on Apple’s capital returns and ecosystem lock-in rather than on further multiple expansion.
Apple Price Prediction 2026-2030
The 24/7 Wall St. price target of $398.25 supports a buy with high confidence. What tips the scale for me is iPhone demand exceeding supply.
The bull case improves if Siri AI drives upgrades and memory costs level off. The outlook weakens if gross margin falls below guidance once tariff refunds wear off. On balance, Apple’s ecosystem and demand trends support our long-term outlook.
This is where our model projects Apple could trade, assuming current trends hold. The 2026 figure reflects our model’s January 2027 update.
Year
Price Target from 24/7 Wall St.
2026
$351.30
2027
$397.25
2028
$443.95
2029
$491.53
2030
$523.62
These projections assume Apple keeps performing under new leadership. The biggest swing factors are Siri AI adoption and memory pricing.
Contact [email protected] for any questions or corrections.
The market expects Apple (AAPL - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 2, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of iPhones, iPads and other products is expected to post quarterly earnings of $2.00 per share in its upcoming report, which represents a year-over-year change of +8.1%.
Revenues are expected to be $112.95 billion, up 10.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.01% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Apple?For Apple, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Apple will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Apple would post earnings of $1.88 per share when it actually produced earnings of $1.91, delivering a surprise of +1.60%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Apple doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsApple (AAPL - Free Report) , another stock in the Zacks Computer - Micro Computers industry, is expected to report earnings per share of $2 for the quarter ended September 2026. This estimate points to a year-over-year change of +8.1%. Revenues for the quarter are expected to be $112.95 billion, up 10.2% from the year-ago quarter.
The consensus EPS estimate for Apple has been revised 1% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Apple will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Meta Platforms (META +0.33%) has made a habit this year of posting a strong quarter and then seeing its stock sink the next day. Shares fell around 7% on Oct. 22, after the company said third-quarter revenue rose 26% year over year. This followed post-earnings drops of about 9% on April 30 and 8% on July 30.
That's a big change from January, when the stock popped about 10% after Meta's fourth-quarter report.
The stock now trades near $649 as I write, about 17% under its Sept. 24 close of about $778 (its highest close in about a year). Yet, for all the selling, shares are down just about 3% for 2026.
Looking back at each report, I think the selling had more to do with what Meta is spending than with what it's earning.
Image source: Getty Images.
Spending, every timeThe first-quarter numbers in April were excellent on their own. Revenue climbed 33% year over year to $56.3 billion, Meta's fastest growth since 2021.
But management also lifted its 2026 outlook for capital expenditures (including principal payments on finance leases) to a range of $125 billion to $145 billion, up from $115 billion to $135 billion. CEO Mark Zuckerberg said on the first-quarter earnings call that most of the increase was "due to higher component costs, particularly memory pricing."
July's report showed what that spending does to cash. Free cash flow dropped to $784 million in the second quarter, from $8.5 billion the year before. And Meta's third-quarter revenue forecast pointed to year-over-year growth between 19% and 25%, down from 28%.
In October, free cash flow went negative, at minus $2.1 billion. Meta also raised the bottom of its 2026 spending range to $135 billion and said it plans to keep "investing aggressively" in 2027.
Meta's revenue growth has slowed a bit this year, from 33% in the first quarter to 28% in the second and 26% in the third. But for a social media company taking in around $64.6 billion a quarter, 26% growth is still impressive.
Showing how steady the main business has been, Meta's operating cash flow was $32.2 billion in the first quarter, $31.9 billion in the second, and $32.8 billion in the third. Capital expenditures, meanwhile, climbed every quarter, from $19.8 billion to $31.1 billion to $34.9 billion. In other words, nearly all of the slide in free cash flow came from spending, but the cash coming in hardly budged.
Of course, operating cash flow grew just 9% year over year in the third quarter, down sharply from 34% early in the year.
That said, advertisers are still paying up. The average price per ad rose 14% in the third quarter, accelerating from 12% in both prior quarters. And management's forecast of $73 billion to $76 billion for fourth-quarter revenue points to 22% to 27% growth year over year.
After the sell-offsBuying after a drop has played out very differently this year. After the April 30 sell-off, shares swung between around $543 and $681 before closing at about $586 the day of the July report -- below where they finished April 30.
But investors who bought after the July 30 drop, when the stock closed near $539, watched it rise about 44% to the Sept. 24 close.
The next report might mean more selling. Meta spent around $85.8 billion on capital expenditures through September, so its full-year range points to fourth-quarter spending of about $49 billion to $59 billion. Free cash flow may sink further below zero.
"[W]e don't have anything more specific or quantitative to share until we get to the Q4 call which is typically when we share guidance for the next year," CFO Susan Li said on the third-quarter earnings call, when asked about 2027.
META Meta Platforms$644.73+$2.11 (+0.33%)
NASDAQ · As of 11:13 AM ET 10/26/26
At around $649, the stock trades at about 19 times expected earnings in 2027. The S&P 500 (^GSPC +0.94%) trades at about 19 times forward earnings, so investors are paying about a market-average price for a company still growing revenue more than 20%.
Legal costs might drag down results, too. The third quarter had a $9.9 billion charge tied to an agreement with state attorneys general. Separately, a New Mexico judge ordered Meta on Oct. 21 to pay a $25 billion civil penalty under the state's consumer protection law. The company said it'll appeal.
But I think the stock is worth a look after this latest drop. Meta keeps pulling in around $32 billion in operating cash each quarter, even while the spending grows. With Meta's 2027 budget still unknown, I'd consider buying bit by bit. A fourth drop after the next report wouldn't surprise me.
SummaryMeta Platforms, Inc. delivered formidable 26% Y/Y revenue growth and strong Q4 guidance, with core ad business showing robust pricing power from AI-driven improvements.Despite operational strength, META's elevated CapEx and new Class C share structure signal a shift toward external funding, raising dilution and capital structure concerns.Impression growth is decelerating, and upcoming 2027 CapEx guidance, combined with potential share issuance, introduces downside risk to the investment thesis.I downgrade META stock to Buy from Strong Buy, as the company’s ambitions now require shareholder funding rather than internally generated free cash flow. Derick Hudson/iStock Editorial via Getty Images
Introduction It has been over 2 months since I last covered one of my largest holdings, Meta Platforms, Inc. (META), and it has fared relatively well since I last rated it
4.13K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of META 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.
Meta Platforms (META - 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 social media company have returned -14.5% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Internet - Software industry, to which Meta Platforms belongs, has lost 5.8% 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.
For the current quarter, Meta Platforms is expected to post earnings of $8.12 per share, indicating a change of -8.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $29.57 points to a change of +25.9% from the prior year. Over the last 30 days, this estimate has changed +2%.
For the next fiscal year, the consensus earnings estimate of $33.78 indicates a change of +14.2% from what Meta Platforms is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Meta Platforms.
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.
In the case of Meta Platforms, the consensus sales estimate of $75.05 billion for the current quarter points to a year-over-year change of +25.3%. The $255.63 billion and $311 billion estimates for the current and next fiscal years indicate changes of +27.2% and +21.7%, respectively.
Last Reported Results and Surprise HistoryMeta Platforms reported revenues of $64.6 billion in the last reported quarter, representing a year-over-year change of +26.1%. EPS of $7.4 for the same period compares with $7.25 a year ago.
Compared to the Zacks Consensus Estimate of $63.41 billion, the reported revenues represent a surprise of +1.88%. The EPS surprise was +13.5%.
Over the last four quarters, Meta Platforms surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time 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.
Meta Platforms is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Meta Platforms. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Have you evaluated the performance of Meta Platforms' (META - Free Report) international operations during the quarter that concluded in September 2026? Considering the extensive worldwide presence of this social media company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of META's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $64.6 billion, experiencing an increase of 26.1% year over year. Next, we'll explore the breakdown of META's international revenue to understand the importance of its overseas business operations.
Decoding META's International Revenue TrendsAsia-Pacific generated $16.99 billion in revenues for the company in the last quarter, constituting 26.3% of the total. This represented a surprise of +0.68% compared to the $16.88 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $16.07 billion (26.4%), and in the year-ago quarter, it contributed $14.3 billion (27.9%) to the total revenue.
Of the total revenue, $14.02 billion came from Europe during the last fiscal quarter, accounting for 21.7%. This represented a surprise of -3.78% as analysts had expected the region to contribute $14.57 billion to the total revenue. In comparison, the region contributed $14.01 billion, or 23%, and $11.57 billion, or 22.6%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Rest of the world contributed $7.37 billion in revenue, making up 11.4% of the total revenue. When compared to the consensus estimate of $7.88 billion, this meant a surprise of -6.53%. Looking back, Rest of the world contributed $6.86 billion, or 11.3%, in the previous quarter, and $5.66 billion, or 11.1%, in the same quarter of the previous year.
Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Meta Platforms will post revenues of $75.05 billion, which reflects an increase of 25.3% the same quarter in the previous year. The revenue contributions are expected to be 18% from Asia-Pacific ($13.51 billion), 23.3% from Europe ($17.49 billion) and 12.2% from Rest of the world ($9.14 billion).
For the full year, the company is projected to achieve a total revenue of $255.63 billion, which signifies a rise of 27.2% from the last year. The share of this revenue from various regions is expected to be: Asia-Pacific at 18.6% ($47.48 billion), Europe at 23.4% ($59.75 billion), and Rest of the world at 13.6% ($34.83 billion).
Concluding RemarksMeta Platforms' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Currently, Meta Platforms holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Meta Platforms' Recent Stock Market PerformanceOver the preceding four weeks, the stock's value has diminished by 14.5%, against a downturn of 1.2% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Meta Platforms among its entities, has depreciated by 7.7%. Over the past three months, the company's shares have seen an increase of 15.4% versus the S&P 500's 2.5% increase. The sector overall has witnessed an increase of 0.3% over the same period.
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.
Meta Platforms META shares fell in early trading on Monday before recovering, as the company announced a $35 billion equity raise to fund its artificial intelligence ambitions amid persistent investor concerns about its spending plans. Shares of Meta fell close to 2% in early trading but gained roughly 0.2% around 11:20 AM EST following last week's sharp sell-off.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
This article is intended to provide informational content and should not be viewed as an exhaustive analysis of the featured company. It should not be interpreted as personalized investment advice with regard to "Buy/Sell/Hold/Short/Long" recommendations. Financial models presented here, including DCF, rNPV, and scenario analyses, are illustrative tools based on the author's assumptions and are highly sensitive to inputs; small changes can materially alter outputs. The predictions and opinions presented reflect a probabilistic approach, not absolute certainty. Efforts have been made to ensure accuracy, but inadvertent errors may occur. Readers are advised to independently verify information and conduct their own research. Investing in stocks involves inherent volatility and risk. Before making any investment decisions, it is crucial for readers to conduct thorough research and assess their financial circumstances. The author is not liable for any financial losses incurred as a result of using or relying on the content of this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tesla Inc. (NASDAQ:TSLA) shares are trading higher Monday possibly due to the company's announcement that Latvia has authorized its Full Self-Driving system, making it the tenth European Union country to approve it.
A Barclays upgrade is pulling Tesla sharply away from its electric vehicle rivals, and the reason has less to do with cars than with a corporate combination that Elon Musk himself refuses to guarantee will happen.
A Barclays upgrade tied to merger potential is splitting the electric vehicle group, lifting its largest name while two smaller rivals slip. Tesla (NASDAQ:TSLA | TSLA Price Prediction) stock is up 6%, trading at $394.72, a gain that pushes a possible takeover premium into how the market values the car maker.
Meanwhile, Lucid Group (NASDAQ:LCID) stock is down 4% to $3.38, moving in the opposite direction from the rally in Tesla stock. Rivian Automotive (NASDAQ:RIVN) shares are slipping 2% to $11.64, a softer decline than the drop in Lucid stock that still lands on the losing side of the split.
Broader benchmarks show how concentrated the buying is around a single company. The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is up 0.5% to $29.50, a modest advance for a fund that spans the wider industry. Over on the large-cap tech side, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.7% to $708.97, leaving both funds well short of the jump in Tesla stock.
Barclays Upgrade Prices in a SpaceX Merger Premium Barclays analyst Dan Levy upgraded Tesla stock to Overweight from Equal Weight and raised his price target to $450. Levy’s note cited a potential takeover premium for Tesla shareholders from a possible merger, along with an expected return to growth in the automotive business driven by Full Self-Driving adoption and higher exports from the Shanghai factory. That combination layers a deal angle on top of the familiar automotive and self-driving case for Tesla shares.
The company on the other side of that potential deal is SpaceX (NASDAQ:SPCX). Last week, Tesla CEO Elon Musk confirmed that the two companies had formed independent committees to explore a combination, while emphasizing that a deal isn’t certain. Musk’s caution matters, since part of the Barclays case leans on an outcome the two companies haven’t agreed to.
Lucid and Rivian Sit Outside the Merger Story One reason the upgrade lands on a single name is Tesla’s business mix. Its lineup spans electric vehicles, energy storage systems, Full Self-Driving software and a robotaxi service. Rivian and Lucid are smaller car maker whose results rest mainly on vehicle sales. Neither Rivian nor Lucid is part of the merger discussion Barclays mentioned for Tesla.
Multiple issues now face Tesla stock: an operating story built on Full Self-Driving and Shanghai exports, plus a merger premium tied to SpaceX, and Barclays’ operating argument can stand on its own while the merger angle depends on a process that remains preliminary. If the committees fail to reach terms, the takeover premium in the Barclays note could fade from Tesla shares quickly.
What the Barclays Upgrade Means for Tesla Next up for Tesla is whether the independent committees produce a merger agreement with SpaceX. A signed agreement could firm up the premium, while a stalled process could shift attention back to the automotive business.
Musk’s own caution keeps the outcome open. The rally in Tesla stock already reflects part of the optimism in Barclays’ call, which leaves less room for error if the process slows down. Investors should consider keeping their position sizes modest until the Tesla and SpaceX merger question is clarified.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Tesla (TSLA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this electric car maker have returned 0% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Automotive - Domestic industry, to which Tesla belongs, has lost 2.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Tesla is expected to post earnings of $0.50 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -10.5%.
For the current fiscal year, the consensus earnings estimate of $1.69 points to a change of +1.8% from the prior year. Over the last 30 days, this estimate has changed -10.4%.
For the next fiscal year, the consensus earnings estimate of $2.23 indicates a change of +32.1% from what Tesla is expected to report a year ago. Over the past month, the estimate has changed -4.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tesla.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Tesla, the consensus sales estimate of $28.64 billion for the current quarter points to a year-over-year change of +15%. The $106.35 billion and $119.01 billion estimates for the current and next fiscal years indicate changes of +12.1% and +11.9%, respectively.
Last Reported Results and Surprise HistoryTesla reported revenues of $28.05 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $0.48 for the same period compares with $0.5 a year ago.
Compared to the Zacks Consensus Estimate of $27.78 billion, the reported revenues represent a surprise of +0.96%. The EPS surprise was +6.67%.
Over the last four quarters, Tesla surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tesla is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tesla. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Have you looked into how Tesla (TSLA - Free Report) performed internationally during the quarter ending September 2026? Considering the widespread global presence of this electric car maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Upon examining TSLA's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $28.05 billion, experiencing a decline of 0.2% year over year. Next, we'll explore the breakdown of TSLA's international revenue to understand the importance of its overseas business operations.
Trends in TSLA's Revenue from International MarketsDuring the quarter, China contributed $5.21 billion in revenue, making up 18.6% of the total revenue. When compared to the consensus estimate of $5.68 billion, this meant a surprise of -8.25%. Looking back, China contributed $4.68 billion, or 16.6%, in the previous quarter, and $5.65 billion, or 20.1%, in the same quarter of the previous year.
Other International generated $10.34 billion in revenues for the company in the last quarter, constituting 36.9% of the total. This represented a surprise of +12.82% compared to the $9.17 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Other International accounted for $10.35 billion (36.7%), and in the year-ago quarter, it contributed $7.84 billion (27.9%) to the total revenue.
Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Tesla will post revenues of $28.64 billion, which reflects an increase of 15% the same quarter in the previous year. The revenue contributions are expected to be 19.8% from China ($5.67 billion), and 32.4% from Other International ($9.27 billion).
For the full year, a total revenue of $106.35 billion is expected for the company, reflecting an increase of 12.2% from the year before. The revenues from China and Other International are expected to make up 19%, and 34.2% of this total, corresponding to $20.2 billion, and $36.32 billion, respectively.
In ConclusionTesla's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Tesla, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Tesla's Stock Price Movement in Recent TimesThe stock delivered no returns over the past month versus the Zacks S&P 500 composite's a decrease of 1.2%. In the same interval, the Zacks Auto-Tires-Trucks sector, to which Tesla belongs, has registered a decrease of 2%. Over the past three months, the company's shares saw an increase of 19.6%, while the S&P 500 increased by 2.5%. In comparison, the sector experienced a decline of 2.4% during this timeframe.
Tesla stock TSLA rose around 5% on Monday after Barclays upgraded the electric vehicle maker, citing a potential merger with SpaceX and improving prospects for its automotive, energy storage, and autonomous driving businesses. Barclays analyst Dan Levy upgraded Tesla to Overweight from Equal Weight and raised his price target to $450 from $370, implying nearly 19% upside from recent levels.
The boards of Tesla (TSLA +6.28%) and SpaceX (SPCX +1.10%) have each set up a special committee of independent directors to weigh a combination, Elon Musk, the CEO of both companies, said during SpaceX's third-quarter earnings call on Oct. 20. Neither committee has agreed to terms. And Musk said he can't join the talks because he's a conflicted party.
SpaceX is worth about $2 trillion on the market, versus almost $1.5 trillion for Tesla. Tesla stock, near $377 as I write, is about 23% under its record close of $489.88 in December 2025.
So, would a merger be good for Tesla stock? I think it depends almost entirely on the price Tesla shareholders get. And at today's prices, the deal looks less appealing than SpaceX's growth makes it seem.
Image source: The Motley Fool.
SpaceX is growing much fasterShowing how far apart the two companies have drifted, SpaceX's third-quarter revenue climbed 161% year over year to $14.6 billion. That's a step up from 92% growth in the second quarter, when revenue was $7.8 billion.
SpaceX's operating income (profit from the business before interest and taxes) swung to $2.8 billion, after the company lost money on that line in both the year-ago quarter and the second quarter.
Tesla's results went the other way. Its third-quarter revenue was flat at $28.0 billion, and its operating income fell to $718 million, 56% below the year-ago quarter. Its operating margin slipped to 2.6% from 5.8%. And net income shrank 43% year over year to $787 million.
At current market values, Tesla shareholders would own around 43% of a combined company, if neither side got a premium. Going by the third quarter, that slice would bring about twice the operating income Tesla made on its own.
The second quarter tells a different story. On these results, the same slice would have carried only around a quarter of Tesla's operating income.
Put another way, I think the case that a deal adds profit for Tesla shareholders hangs on one quarter.
SpaceX's $4.4 billion in third-quarter net income also got help from around $1 billion in other income and a tax benefit. In the first nine months of 2026, the company still lost $413 million.
SPCX Space Exploration Technologies$149.11+$1.62 (+1.10%)
NASDAQ · As of 11:17 AM ET 10/26/26
A much bigger spending billA combined company would also carry SpaceX's capital spending. SpaceX spent $48.1 billion on property and equipment in the first nine months of the year, mainly for its artificial intelligence business, versus around $13.0 billion at Tesla.
The gap shows up in free cash flow (cash from operations minus capital spending). Tesla produced around $1.9 billion of it in those nine months, but SpaceX's number was about negative $35 billion.
For a Tesla shareholder's 43% slice of the combined total, that positive cash flow becomes around $14 billion of spending above what the companies brought in.
Sure, SpaceX can pay for it, with about $90 billion in cash and marketable securities at the end of September. Management also forecast first-quarter 2027 revenue of $33 billion to $37 billion, over twice the third-quarter total. But Tesla shareholders might be signing up for a piece of that bet whether it pays off or not.
Would a deal make Tesla stock a buy?Tesla stock already trades at over 400 times earnings, a price that assumes its newer businesses pay off. Using annualized third-quarter revenue, Tesla trades at around 13 times sales, versus about 34 times sales for SpaceX.
A deal at market prices wouldn't make either stock cheaper. It could only blend them, at around 21 times annualized sales -- more than Tesla shareholders pay per dollar of sales today. Any premium paid to SpaceX shareholders could cut Tesla shareholders' slice further.
TSLA Tesla$395.61+$23.39 (+6.28%)
NASDAQ · As of 11:14 AM ET 10/26/26
Tesla shareholders do have a real say. Musk said Tesla would need approval from a majority of all its shares, not just the ones that vote.
At SpaceX, a deal would also need approval from its controlling shareholder, according to its quarterly filing. Musk has over half of SpaceX's voting power.
In the end, a merger could give Tesla shareholders a piece of a business growing far faster than their own. But at today's prices, they'd also be swapping a company that produces cash for a minority stake in one that spends tens of billions more than it brings in.
Is that a good deal for Tesla stock?
I don't think so, and I wouldn't buy shares hoping for one. The terms will settle it, and there aren't any yet.
As most veteran investors can attest, attempting to time your entries and exits with a stock's peaks and valleys can often do more harm than good. The stock market doesn't behave predictably enough to make it worth the risk.
Still, these same investors also know that -- sometimes -- there are common-sense exceptions to this rule. Coca-Cola (KO -0.69%) may be one of them right now. Shares of the beverage giant have recently reached record highs thanks to this year's 35% rally that's trounced the S&P 500.
$92.07-$0.64 (-0.69%)
NYSE · As of 11:12 AM ET 10/26/26
Although the performance is compelling, it's also a little bit intimidating. Should interested investors dive into this red-hot ticker or wait for a pullback? In this instance, you should probably hold out for a pullback. Here's why.
Rarely seen numbers Don't misunderstand. In most cases you should commit to a holding when you feel conviction for it as a long-term investment, regardless of that stock's price. Just be willing to recognize when a stock's valuation moves from being unusual to unsustainable. That's what's arguably happened with Coca-Cola shares of late.
Image source: Getty Images.
Yes, its (relatively) sky-high trailing price-to-earnings ratio of 28 is a key piece of evidence that KO stock has rallied to silly price levels. That's back to the peak P/E measure last seen in late 2024 and early 2025 when the company was first starting to digest the latest round of inflationary pressure.
It's not just an earnings multiple matter, though, which is largely just a function of managing costs relative to pricing. Compared to far more consistent revenue, Coca-Cola stock's trailing price-to-sales ratio has also reached a multi-decade high of just above 8. Even if an unusually large amount of this top line makes it all the way down to the bottom line, this ticker is still pushing its valuation limits.
Also note that the stock's trailing dividend yield now stands at a multi-year low of 2.2%, softening one of the key reasons most investors consider a stake in The Coca-Cola Company in the first place.
KO PE Ratio data by YCharts
They're just numbers, with no guarantee they won't get weirder before renormalizing. Nevertheless, if you're playing the odds, the odds are against newcomers here.
Right idea taken too far In light of the timing of bullishness that's carried KO to its current record high, what we're likely seeing is a flight to safety. That is to say, perhaps worried that a collapse of the fragile AI industry could impact the rest of the market, a sizable swath of investors is seeking out holdings in consumer staples companies that should remain unfazed by broad market weakness.
Coke's cash dividend is also resilient, having not only been paid like clockwork for decades, but raised every year for the past 64 consecutive years.
These defensive-minded investors have arguably overplayed their hand, though, bidding up a stock meant to offer above-average safety until there's little to no upside left -- even in the event of the very marketwide weakness they're hoping to sidestep. This might make the point: The analyst community's current consensus target price for KO shares stands at $96.29, which is just 2% above the stock's present price.
You can find similarly safe dividend payers with bigger net upsides.
Analysts on Wall Street project that Amazon (AMZN - Free Report) will announce quarterly earnings of $2.01 per share in its forthcoming report, representing an increase of 3.1% year over year. Revenues are projected to reach $202.11 billion, increasing 12.2% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Amazon metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Net Sales- AWS' reaching $45.42 billion. The estimate points to a change of +37.6% from the year-ago quarter.
It is projected by analysts that the 'Net Sales- North America' will reach $113.39 billion. The estimate points to a change of +6.7% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Sales- International' of $43.21 billion. The estimate indicates a year-over-year change of +5.7%.
Analysts expect 'Net Sales- Advertising services' to come in at $20.87 billion. The estimate suggests a change of +17.9% year over year.
The consensus estimate for 'Net Sales- Online stores' stands at $69.56 billion. The estimate indicates a year-over-year change of +3.2%.
Analysts forecast 'Net Sales- Subscription services' to reach $13.69 billion. The estimate suggests a change of +8.9% year over year.
The average prediction of analysts places 'Net Sales- Other' at $1.60 billion. The estimate points to a change of +13.2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Net Sales- Third-party seller services' should arrive at $44.83 billion. The estimate points to a change of +5.5% from the year-ago quarter.
According to the collective judgment of analysts, 'Net Sales- Physical stores' should come in at $5.74 billion. The estimate indicates a change of +2.9% from the prior-year quarter.
The consensus among analysts is that 'Subscription services - Y/Y Change' will reach 9.0%. The estimate compares to the year-ago value of 11.0%.
The combined assessment of analysts suggests that 'Online stores - Y/Y Change' will likely reach 3.4%. Compared to the current estimate, the company reported 10.0% in the same quarter of the previous year.
Analysts predict that the 'Third-party seller services - Y/Y Change' will reach 5.8%. The estimate compares to the year-ago value of 12.0%.
View all Key Company Metrics for Amazon here>>>
Over the past month, shares of Amazon have returned -0.7% versus the Zacks S&P 500 composite's -1.2% change. Currently, AMZN carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Will Big Tech earnings from Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and other be enough to reignite bullish momentum in the stock market? It's the question Kevin Hincks weighs as the AI trade clashes with an interest Rate decision from the Fed this week.
