Tesla (NASDAQ:TSLA | TSLA Price Prediction) is the most polarizing stock in the S&P 500. Automotive gross margin snapped back to 21.1% in Q1 2026 from 16.2% a year earlier, FSD active subscriptions hit 1.28 million (+51% YoY), and shares still sit down 6.66% year to date at $419.77. The question is whether Tesla can trade at $700 by July 2029, roughly three years from today.
Why Tesla Shares Are Stuck Despite Margin Recovery The market is worried about two things. First, Q4 2025 vehicle deliveries fell 16% YoY to 418,227 units and automotive revenue dropped 11%, so the core business is not obviously growing.
Second, operating expenses are surging. OpEx grew 37% YoY in Q1 2026 as AI R&D swallows every incremental dollar of gross profit. With a beta of 1.802, Tesla amplifies every macro wobble. Prediction markets currently assign a 70% probability to a down day today.
Wall Street Sees Almost No Upside. Our Model Sees More. Consensus is uninspired. The analyst target of $423.40 implies essentially zero return from today, with 5 Strong Buys, 18 Buys, 18 Holds, 4 Sells and 2 Strong Sells. That is 49% bullish, 38% neutral.
Our 3-year framework is more constructive. The base case lands at $488.85, the bull case at $627.76, with 90% confidence. Services revenue grew 42% YoY to $3.75 billion, and unsupervised Robotaxi rides just launched in Dallas and Houston. That is a different business than 2023 Tesla.
The Path to $700 Per Share Reaching $700 from today’s price of $419.77 would require a gain of 66.8%. With forward EPS of $1.90, a price of $700 implies a forward P/E of 368x. Our base case of $488.85 already implies 232x, meaning the bold target requires additional multiple expansion on today’s forward earnings.
That sounds absurd until you remember the number that matters is 2029 EPS, not 2026. If Cybercab, Tesla Semi, and Megapack 3 hit volume production in 2026 as management has guided, the forward multiple compresses naturally as EPS climbs.
Q1 2026 operating income of $941 million (+136% YoY) and record free cash flow of $6.22 billion for FY 2025 (+73.69% YoY) show the earnings engine is turning. Management stated that “hardware-related profits are expected to be accompanied by an acceleration of AI, software, and fleet-based profits.”
The primary risk is that Robotaxi expansion stalls under regulatory friction, with markets pricing only an 11.5% probability of a California launch by year-end 2026.
Where Tesla Trades Today vs Its Earnings Power At $419.77 against forward EPS of $1.90, Tesla trades at roughly 220x forward earnings. Shares sit 15% below the 52-week high of $498.83 and well above the 52-week low of $293.55.
Longer term, Tesla has returned 2,804.58% over the past ten years. The valuation only works if you underwrite AI, autonomy, and energy as separate profit streams by 2029.
Can Tesla Really Hit $700? My Verdict Hitting $700 by 2029 requires a 66.8% gain, and I think it is a stretch rather than a base case.
Three things need to go right: Cybercab and Semi reach real volume, Robotaxi scales beyond the current Dallas and Houston footprint, and automotive gross margin holds above 20%. A regulatory setback in the US or China derails the thesis. We’ve outlined the blueprint for how Tesla could reach $700 in 2029.
These are bubbly days for Coca-Cola (KO 0.26%). Shares of the pop star hit another all-time high this week. With a carbonated stock chart, this might seem to be the worst time to warm up to the chilly refreshment provider. It's not.
From the syrupy sweet cadence of dividend hikes to what should be another modest earnings beat later this month, Coca-Cola has earned its upticks. With its generational appeal across a broad range of beverage categories, this could be a great month to consider owning a piece of this iconic brand. Let's take a closer look at some of the reasons why Coca-Cola is worth buying, even with the stock trading higher than ever right now.
Image source: Getty Images.
1. It's a recession-resistant winner This is an interesting time to be in the market. Investors woke up on Wednesday to news that the ceasefire in Iran has been called off, sending crude oil prices higher and stock prices -- initially -- lower. The possibility of inflationary-battling rate hikes later this year is starting to feel more like a probability. Consumer sentiment is dragging near a historic multi-year low.
It's against this backdrop that Coca-Cola is often at its best. It's a high-margin business doling out a liquid escape for pocket change. The beverage stock provides a creature comfort at an uncomfortable time for market creatures.
Coca-Cola doesn't deliver monster growth. The stock isn't cheap. However, what it consistently pours out is stability. Its five-year beta of 0.35 implies that Coca-Cola has had a little more than a third of the volatility of the general market over the past several years. Zoom in, and its one-year beta is roughly zero. Coca-Cola marches to its own sugary beat. If you're worried about the market right now, a perpetual low-beta name could be a thirst quencher for your portfolio.
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2. Dividend, we stan Coca-Cola stock is a money machine. All it does is sell high-margin syrup and bottling rights to local distributions that bear the grunt work of production and fulfillment. Its trailing net margin of 27.8% -- meaning that nearly $0.28 of every dollar in revenue makes it to the bottom line after taxes -- is at a 15-year high.
Longtime investors know about the timeless, perpetual growth of Coca-Cola, even if they aren't as avid followers of its financials as you and I. They see it in their quarterly dividend checks, which keep getting higher with every passing year.
Coca-Cola's current yield of 2.5% might not compete with a high-yielding money market fund, but it's almost certain to keep increasing over time. Coca-Cola has delivered 64 consecutive years of hikes, one of just dozens of Dividend King stocks. These aren't tiny hikes, either. Coca-Cola's dividend rate has more than doubled over the past 14 years.
3. And the beats keep coming If you need one final reason to own Coca-Cola this month, you may want to circle July 28 on your calendar. Coca-Cola will announce its second-quarter results that morning. Earnings season is often a time for investors to brace for volatility, but it's already established that Coca-Cola -- while not a risk-free investment -- has historically been less volatile than the market.
Coca-Cola's full-year guidance announced back in April calls for adjusted organic revenue growth of 4% to 5% for all of 2026. Adjusted earnings per share should clock in slightly higher. Analysts see that playing out in the second quarter later this month, with revenue rising 4% to $13.1 billion and adjusted earnings per share climbing 7% to $0.93.
It's a fair bet that the bottom line will come in a couple of pennies above that. Just see how reality has consistently exceeded expectations for more than two years.
The beats on the bottom line have been positive but modest. Its latest quarter's beat of 6% may not seem like a lot, but it's a two-year high. It's just one more way that Coca-Cola is consistent heading into what should be a topsy-turvy earnings season for many investors. Coca-Cola's all-weather appeal and a steady beat of dividend hikes every February and earnings beats every quarter should continue to serve shareholders well.
SummaryLatest earnings estimates and the web traffic data suggest Alphabet Inc. will become a consistent winner per the rule of 40 for the years to come.Consensus projects 20.8% YOY revenue growth to $116.74B and a normalized net margin of 31.9%, yielding an R40 score for GOOG stock of 52.7.Forward estimates imply a 12.4% CAGR and sustained net margins above 30%, positioning GOOG as a structural rule of 40 compounder.Web traffic momentum, AI adoption, and reasonable P/E multiples underpin GOOG’s long-term alpha potential despite competitive risks.Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More » vzphotos/iStock Editorial via Getty Images
GOOG stock: FQ2 earnings report outlook I last covered Alphabet Inc. (GOOG, GOOGL) on May 20. That article served as a review of its FQ1 2026 earnings report (ER) and rated the stock
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Microsoft remains a Strong Buy as the market misreads recent headlines and undervalues its AI-driven strategy. Meta Compute's entry pressures neoclouds, not MSFT, and validates AI infrastructure pricing above build cost, supporting MSFT's CapEx returns. The MAI model insourcing directly addresses gross margin compression, with Copilot and product consolidation enhancing cost efficiency and future profitability.
Microsoft (MSFT 1.34%) stock fell after the company announced layoffs in its Xbox unit. Despite double-digit increases in revenue during the third quarter of fiscal 2026 (ended March 31), revenue in its Xbox unit decreased by 5% annually in that quarter, likely drawing attention to that segment.
The restructuring announcement is likely welcome news after the recent drop and could improve the company's financial performance. Nonetheless, investors should probably not expect a dramatic recovery in the tech stock because of this move. Here's why.
Image source: The Motley Fool.
Microsoft's ongoing struggles Admittedly, the Xbox unit looks like the obvious target for a restructuring, as it was Microsoft's worst-performing unit. Also, the division that oversees the Xbox unit, "More Personal Computing," reported a 1% annual decrease in revenue in fiscal Q3, even as Microsoft's overall revenue rose by 18% during the quarter.
To get Xbox on track, Microsoft is laying off 4,800 employees, a 2.1% reduction in its overall workforce. Also, four studios will go independent. It is quite possible these moves will stem the revenue declines for both Xbox and More Personal Computing overall.
Moreover, the company's P/E ratio has fallen to 23, just above multiyear lows. That arguably makes it a deep value stock, increasing the odds of a turnaround in Microsoft's stock price.
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Unfortunately for investors, the cloud has long driven the growth in Microsoft stock. Since Microsoft Cloud revenue increased by 29% over the last year, one might think the stock should be surging.
However, the earnings report glosses over challenges the company has faced with AI. Like its peers, Microsoft has spent heavily on capital expenditures (capex), allocating over $80 billion in the first nine months of fiscal 2026.
Unfortunately, Microsoft has relied heavily on OpenAI, which has burned cash at an alarming rate. Also, with around 45% of Microsoft's $627 billion backlog tied to OpenAI, Microsoft faces significant uncertainty.
Additionally, adoption of Copilot, Microsoft's AI-powered assistant, has underwhelmed the market with only about 4.7 million paid subscriptions in fiscal Q2, less than the 9 million for ChatGPT. This calls into question whether it can compete with OpenAI or peers such as Anthropic's Claude or Gemini, developed by Google parent Alphabet.
That factor also makes it less likely investors are watching the Xbox unit closely, which could mean the restructuring may go unnoticed.
Expect few changes in Microsoft stock Ultimately, restructuring the Xbox unit is unlikely to help Microsoft's stock.
On the surface, addressing the worst-performing business unit could make its financials appear more sound. Amid the company's falling P/E ratio, such a move should reduce stock losses.
Unfortunately, the company's deepest struggles with Microsoft's stock appear to stem from its AI performance relative to competitors'. Even though its AI adoption has grown, it appears that growth has lagged that of Anthropic or Google. That makes it increasingly likely that Microsoft will need to address that competitive gap for the stock to outperform the market for the foreseeable future.
Most of China's top technology stocks are participating in Wednesday's broad turnaround. Leading the charge, however, is Alibaba Group (BABA +11.51%). As of 12:22 p.m. ET shares of the e-commerce giant are up 11.2%... its best day in nearly a year.
Thank UBS, mostly, although several different developments are contributing to the bullish effort.
Analysts provide the catalyst Down by nearly half since its October peak, BABA shares started today's trading session already ripe for a rebound. UBS's Kenneth Fong triggered it, though, noting on Wednesday that the company likely produced marginwidening revenue growth during the quarter ending in June, led by 45% top-line growth from its cloud computing unit. Most analysts expect to see accelerating revenue growth in August's release of the company's fiscal Q1 results, in fact, largely driven by growth of its artificial intelligence business. Jefferies' analysts also added this morning "macro headwinds and softness in consumer sentiment are in the price."
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Analysts' fresh optimism regarding Alibaba isn't the only bullish factor at work on Wednesday, however. Although it's not company-specific, similar gains from shares of other Chinese tech names like Baidu (BIDU +5.39%) and JD.com (JD +4.42%) point to a broad turnaround effort for most of the region's beaten-down technology stocks.
This tailwind also allows investors to look at recent news about Alibaba through a more bullish lens. This includes Monday's decision from a U.S. federal judge to block -- albeit only temporarily -- the Pentagon from designating Alibaba as a Chinese military company under its Section 1260H rules, which would prevent it from lobbying within the United States.
A hint worth taking for risk-tolerant investors A big day like today is a tough act to follow. As such, don't be surprised if BABA shares show some weakness as soon as Thursday.
Just don't lose perspective on the way this stock and its peers ebb and flow. Most artificial intelligence stocks tend to move as a herd as the sentiment surrounding the AI revolution evolves. Rather than lasting a mere single day, these moves can last weeks, if not months. They often simply start with that one decisive reversal of an aging trend... like today's bounce from a pullback that began months ago.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu and Jefferies Financial Group. The Motley Fool recommends Alibaba Group and JD.com. The Motley Fool has a disclosure policy.
Alibaba Group (BABA, Financials), the Chinese technology company best known for its e-commerce platforms, cloud business and digital services, jumped more than
Despite rising earnings forecasts, investors rotate into other semiconductor stocks while Nvidia's valuation falls below the S&P 500. Summary
Analysts still see over 50% upside despite the valuation reset.
Nvidia NVDA, a major chipmaker whose graphics processing units dominate artificial intelligence data centers, has seen its stock valuation fall to its cheapest level since early 2019 after losing roughly $1 trillion in market value in less than two months. Nvidia shares have declined 16% since reaching an all-time high on May 14, even as the company's GPUs continue to hold a leading position in the AI data center market. The stock is now trading at about 18 times projected earnings over the next 12 months, below the S&P 500 Index at more than 20 times and the Nasdaq 100 Index at almost 23 times, suggesting investors may be reassessing one of the market's most crowded AI trades.
The decline appears less connected to weakening fundamentals and more tied to a rotation within the semiconductor sector. Wall Street analysts have continued raising Nvidia's profit estimates, while investors have shifted attention toward Micron Technology MU, a memory-chip maker benefiting from stronger high-bandwidth memory pricing, as well as Advanced Micro Devices AMD and Intel INTC, competing chipmakers whose shares have doubled or even tripled this year. Nvidia is still expected to deliver the fourth-fastest revenue growth in the S&P 500 SPY this year, but its shares are up only 5.6% in 2026, trailing the S&P 500's 9.6% gain, the Nasdaq 100's 16% rise, and the Philadelphia Stock Exchange Semiconductor Index's 74% jump.
Nvidia's market position still appears strong, with the company holding 97% of the server GPU market at the end of 2025, up from 95% at the end of 2024, according to Bloomberg Intelligence data cited in the source. The company is projected to generate $228 billion in profit on $393 billion in sales in fiscal 2027, which ends Jan. 31, representing expected growth of 90% and 82%, respectively, while its profit estimate has risen 13% over the past three months. Of the 82 analysts tracked by Bloomberg, only three rate the stock a hold and one recommends selling, while the average price target of $302 implies more than 50% potential upside over the next 12 months, leaving investors to weigh whether Nvidia's valuation reset could mark a temporary pause or a deeper shift in AI market leadership.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Nvidia stock with a price target of $350.
The Analyst TakeawaysArya says Nvidia has "durable high-quality growth" in a new investor note.
One of the key points from Arya is the forward price-to-earnings ratio of Nvidia, which now stands at a seven-year low.
"We strongly disagree with the EPS discount and see as an enhanced buy opportunity for a unique, durable growth franchise," Arya said.
The analyst said investors may be overstating high bandwidth memory (HBM) and underestimating Nvidia’s pricing power and scale. Arya expects Nvidia’s gross margins to remain in the mid-70% range going forward.
Arya said Nvidia’s current stock valuation already bakes in a 30% to 35% headwind for earnings per share.
Here are the price-to-earnings ratios for 2026, 2027 and 2028 based on estimates from the analyst.
Nvidia is in the middle of the pack for 2026 estimates on a price-to-earnings ratio valuation. The stock jumps to being the cheapest using this valuation method for both 2027 and 2028 based on the estimates.
"We expect upcoming NVDA earnings to reinforce its moats in products, pricing and supply chain."
The analyst said Nvidia should maintain its dominant market share of AI capex over the long term.
"We expect upcoming earnings call to be a positive catalyst, clarifying NVDA’s durable moats across its products, pricing and supply chain."
Nvidia Stock Price ActionNvidia shares were up 0.43% at $197.77 on Wednesday versus a 52-week trading range of $161.16 to $236.54. Nvidia stock is up 4.5% year-to-date in 2026.
Photo: Blossom Stock Studio / Shutterstock
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Hedge funds have net-sold U.S. technology stocks for four straight weeks, with semiconductor and hardware names at the center of the unwind, according to Goldman Sachs prime brokerage data cited by Reuters. The AI signal is cautious, not abandonment: sophisticated traders appear to be trimming crowded chip winners after a major run, even as semiconductor exposure remains historically elevated.
The Selling: Four Straight Weeks Out of Tech According to Goldman Sachs prime brokerage data circulated the week ending July 3, hedge funds net-sold U.S. information technology for a fourth consecutive week, with semiconductors leading the outflows. The writing was on the wall. The Philadelphia Semiconductor Index (SOX) fell 4.2% over that stretch, and info tech was the single most net-sold sector across the book. Positioning flows moved into commercial services, consumer staples, real estate, and energy, alongside broad index and ETF products, per Reuters reporting on the Goldman note. On the surface, that pattern looks like leadership giving up.
But Not Everyone Is Selling The counterweight comes from Whale Rock Capital, the roughly $19 billion tech-focused hedge fund that Bloomberg reports gained 72.5% year-to-date through mid-year, with its long-only fund up 82%. The returns did not come from NVIDIA. They came from a concentrated bet on the layer beneath it: SanDisk (NASDAQ:SNDK | SNDK Price Prediction), up more than 850% in H1 2026; SK Hynix, up more than 300% (foreign-listed currently); and printed-circuit-board maker TTM Technologies (NASDAQ:TTMI), up roughly 170% in H1 2026, per Bloomberg data. Whale Rock also holds a stake in private AI lab Anthropic at a reported valuation near $965 billion.
Verified year-to-date price moves through July 7 line up with that thesis. TTM Technologies is up 108.81%, Micron Technology (NASDAQ:MU) is up 229.2%, and Western Digital (NASDAQ:WDC) is up 211.7%, versus the S&P 500 at 9.25%.
Rotation, Not Exit Despite what it seems, the two threads are not in conflict with each other. Broad hedge-fund selling of mega-cap semiconductors reads as profit-taking after a historic run, while Whale Rock’s performance is precisely why there is profit to ring. The smart money is rotating within the artificial intelligence trade, toward memory (SanDisk, Micron), storage (Western Digital), components (TTM), and private AI, and away from the most-owned mega-cap leader.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Analyst books support the rotation: SanDisk carries 15 Buy and 3 Strong Buy ratings with a $1,930.50 target, Micron shows 31 Buy and 9 Strong Buy ratings with a $1,486 target, and Western Digital carries 18 Buy and 4 Strong Buy ratings with a $600.29 target.
NVIDIA as the Anchor NVIDIA (NASDAQ:NVDA) illustrates the compressed leadership premium. Year-to-date through July 8, the stock is up 8.6%, trailing the S&P 500’s 9.2%, and is down nearly 7% over the past month, according to TradingView data. That price action sits against fundamentals that remain intact. Q1 FY27, reported May 20, delivered revenue of $81.615 billion, up 85.23% year over year, non-GAAP EPS of $1.87 versus $1.7738 consensus, and Q2 guidance of $91.0 billion in revenue. CEO Jensen Huang described the moment as “the buildout of AI factories, the largest infrastructure expansion in human history.”
The disconnect between beat-and-raise fundamentals and range-bound, distribution-like share price action is the definition of a crowded position getting trimmed.
The Signal for Retail Investors The rotation is a message about repositioning. AI capital expenditure remains the load-bearing wall of this market, but leadership at the top has narrowed and crowded. Hedge funds are moving where the incremental dollar of margin sits: memory, storage, and the physical infrastructure below the GPU layer. For context on where analysts see the next wave of AI beneficiaries, see 24/7 Wall St.’s Next Nvidia Playbook. The takeaway for retail is patience over chasing, diversification within the AI theme rather than out of it, and a clear-eyed read that the smart money is repositioning. The melt-up is changing hands.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Netflix, Inc. shares have fallen over 40% in 12 months, creating a compelling entry point given robust operating performance. NFLX trades at a 34% discount to its 5-year average EV/EBIT despite 18% YoY EBIT growth and resilient membership economics. Strong operating leverage, low churn, and accelerating ad revenues—projected to double to $3B—support a Strong Buy rating.
Vivek Arya, a Wall Street analyst at Bank of America Corp. (NYSE: BAC), has maintained a bullish outlook for Nvidia Corp. (NASDAQ: NVDA), as investors wonder why Nvidia stock is down as of July 8.
Arya reiterated a Buy rating for Nvidia stock on July 7 in a note to clients. He further set his 12-month price target for NVDA shares at $350, implying a potential rally of about 77.4%, as the company’s stock traded at about $197.30 at press time.
The analyst argued that the recent Nvidia stock pullback aligns with historical weak seasonal patterns. Nonetheless, Arya anticipates the company’s stock market to rebound in the near term, fueled by rising global cloud demand amid growth in AI (Artificial Intelligence) infrastructure.
Specifically, Arya’s bullish Nvidia stock forecast for 2026 and beyond is bolstered by the ongoing tokenization of real-world assets (RWA) and the adoption of AI agents amid supply-constrained infrastructure. As such, the bank concluded that the company offers investors high-quality and durable growth.
The analyst emphasized Nvidia’s robust pricing power, noting that the expected $200,000 to $300,000 rise in High-bandwidth memory (HBM) costs per server rack with the Rubin platform transition could be offset by $2 million to $3 million increases in complete server selling prices.
Nvidia stock forecast 2026 and performance Following Arya’s bullish NVDA stock forecast for 2027 and beyond, 37 Wall Street analysts surveyed by TipRanks over the past three months have set an average 12-month price target of $309.93.
NVDA stock forecast 2026. Source: TipRanks As a result, these analysts have signaled a strong Buy for MVDA stock forecast 2026. With NVDA shares trading at about $197.30 at press time, Wall Street analysts anticipate about 56.8% upside.
Nvidia stock YTD stock. Source: Finbold Year-to-date (YTD), NVDA shares have gained 4.47%, reinforcing bullish sentiment among Wall Street analysts.
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Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) remains well positioned to maintain its dominant share of artificial intelligence infrastructure spending, according to Bank of America, which reiterated its ‘Buy’ rating on the chipmaker and said current valuation levels already reflect an overly cautious earnings outlook.
In a note addressing key investor concerns around gross margin pressure, custom AI chip competition, concentrated ownership and capital allocation, Bank of America analysts wrote that Nvidia could sustain a 65% to 70% or greater share of AI capital expenditure over the long term.
The firm argued that the company’s current valuation does not reflect the strength of its AI franchise and may already price in a 30% to 35% downside risk to 2027 and 2028 earnings estimates.
Bank of America said Nvidia shares are trading at around 18 times forward earnings, which it described as a seven-year low valuation, and argued that the discount compared with other large technology companies does not reflect Nvidia’s growth opportunity.
The analysts highlighted concerns around rising high-bandwidth memory (HBM) costs, but said investors may be overstating the impact on Nvidia’s profitability. Bank of America estimated that HBM content per rack could increase by approximately $200,000 to $300,000 from Nvidia’s Blackwell platform to its upcoming Rubin architecture, while rack pricing could rise by $2 million to $3 million due to upgrades across computing, networking and software.
As a result, the analysts expect Nvidia’s gross margins to remain around the mid-70% range, supported by the company’s pricing power, scale and supply-chain position.
Bank of America also addressed competition from custom AI accelerators, noting that Nvidia’s GPU revenue has grown roughly 700-fold since Google introduced its Tensor Processing Unit in 2015. The firm pointed to the development of competing chips from companies including Amazon and Meta but said Nvidia has continued to gain share, with hyperscaler sales rising 115% year over year, nearly twice the pace of cloud capital expenditure growth.
The analysts also noted that Nvidia’s ownership concentration and strategic investments remain areas of investor focus. Nvidia’s strategic investments, which total about $65 billion, represent less than 35% of free cash flow, according to Bank of America, leaving capacity for potential dividends and share buybacks.
Bank of America believe that upcoming Nvidia earnings could further demonstrate the company’s advantages in products, pricing and supply-chain execution.
Despite its position in AI infrastructure, Nvidia shares are up about 3% year to date, compared with an 82% gain for the Philadelphia Semiconductor Index, according to the firm. Shares traded hands at $199 on Wednesday afternoon.
Item 1 of 2 A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS/Brendan McDermid
[1/2]A Bank of America logo is seen on the entrance to a Bank of America financial center in New York City, U.S., July 11, 2023. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
CompaniesJuly 8 (Reuters) - Bank of America (BAC.N), opens new tab has extended a $520 million credit line to OpenAI, its first loan to the AI company that is preparing for an initial public offering, a person familiar with the matter told Reuters on Wednesday.
The loan makes BofA one of OpenAI's largest lenders and bolsters its credentials as a market leader in AI-related capital markets financing, the source said, requesting anonymity to discuss confidential information.
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BofA has helped raise nearly $500 billion in capital for AI-related companies since 2025, accounting for 60% of such fundraising across investment-grade debt, leveraged finance and equity capital markets, according to internal data seen by Reuters.
The second-largest American lender is also eyeing advisory roles on the planned IPOs of OpenAI and Anthropic, according to a second source familiar with the matter.
The move follows its role in SpaceX's blockbuster IPO, where it was a joint bookrunner and led the U.S. retail distribution effort. The rockets-to-AI company led by Elon Musk debuted in June at a valuation of more than $2 trillion after pulling off the world's largest IPO.
OpenAI confidentially filed for a U.S. IPO last month. Reuters has reported that the ChatGPT maker, a key player in the AI race, is targeting a valuation of more than $1 trillion in a listing that could come as soon as this year.
Mega IPOs are typically very lucrative for Wall Street banks, generating hundreds of millions of dollars in fees while opening the door to years of follow-on business.
OpenAI did not immediately respond to Reuters' request for comment. The news of BofA handing the company a credit line was first reported by Bloomberg earlier on Wednesday.
The AI company was founded in 2015 as a research-focused nonprofit, but created a for-profit arm four years later to help fund the soaring costs of developing AI systems.
Reporting by Saeed Azhar in New York and Manya Saini in Bengaluru; Editing by Diti Pujara
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Bloomberg's Ed Ludlow breaks down mixed tech markets following US-Iran jitters, which revived risk-off sentiment and sent oil higher. Plus, OpenAI gets a $520 million credit line from Bank of America, while the ChatGPT maker prepares to roll out its most advanced model on Thursday.
Investors with an interest in Media Conglomerates stocks have likely encountered both Walt Disney (DIS) and Pearson (PSO). But which of these two stocks offers value investors a better bang for their buck right now?
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider United Airlines (UAL - Free Report) . This company, which is in the Zacks Transportation - Airline industry, shows potential for another earnings beat.
This airline has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.11%.
For the last reported quarter, United came out with earnings of $1.19 per share versus the Zacks Consensus Estimate of $1.08 per share, representing a surprise of 10.19%. For the previous quarter, the company was expected to post earnings of $2.98 per share and it actually produced earnings of $3.1 per share, delivering a surprise of 4.03%.
Price and EPS Surprise
For United, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
United currently has an Earnings ESP of +1.26%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 15, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways UAL is set to report Q2 2026 results on July 15, with revenues expected to rise 13.1%. UAL's passenger, cargo and other revenue estimates point to y/y growth in the June 2026 quarter.UAL has topped earnings estimates in the past four quarters, while rising costs may weigh on results. United Airlines Holdings, Inc. (UAL - Free Report) is scheduled to report second-quarter 2026 results on July 15, after market close.
The Zacks Consensus Estimate for UAL’s second-quarter 2026 earnings per share has been revised downward by 8.3% over the past 60 days to $1.78. The consensus mark for earnings implies a 54% increase from the year ago actuals. The Zacks Consensus Estimate for UAL’s second-quarter 2026 revenues is pegged at $66.8 billion, indicating 13.1% growth year over year.
United Airlines has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 4.95%.
Let’s see how things have shaped up for United Airlines this earnings season.
Factors Likely to Have Influenced UAL’s Q2 PerformanceWe expect the UAL’stop line in the to-be-reported quarter to have been bolstered by improvement in air-travel demand, driven by its ongoing network expansion and customer-focused initiatives.
The Zacks Consensus Estimate for passenger revenues is pegged at $16.12 billion, which indicates an increase of 16.4% from the second-quarter 2025 actuals. Meanwhile, the consensus estimates for cargo and other revenues for the June-end quarter of 2026 are pegged at $458.9 million and $1.06 billion, respectively, indicating increases of 6.7% and 9% year over year.
On the contrary, the high fuel costs are expected to have weighed on UAL’s bottom-line performance in the to-be-reported quarter. Elevated fuel expenses, coupled with higher labor costs, are expected to have driven up the airline's overall operating costs, putting pressure on margins and profitability.
The Zacks Consensus Estimate for average fuel cost per gallon is pegged at $4.27, which is higher than the $2.34 reported in the second quarter of 2025. The Zacks Consensus Estimate for non-fuel unit cost or cost per available seat mile (CASM: adjusted) is pinned at 13.01 cents compared with 12.36 cents reported in the second quarter of 2025.
What Our Model Says About UALOur proven model predicts an earnings beat for United Airlines this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
UAL has an Earnings ESP of +1.26% and 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.
Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD is set to report second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for Expeditors’ second-quarter 2026 earnings has been revised 3.21% upward over the past 60 days. EXPD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, delivering an average beat of 13.96%.
Schneider National (SNDR - Free Report) has an Earnings ESP of +3.76% and a Zacks Rank #3 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised downwards by 4.35% over the past 60 days to 22 cents. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Exxon Mobil (XOM - Free Report) , which belongs to the Zacks Oil and Gas - Integrated - International industry, could be a great candidate to consider.
When looking at the last two reports, this oil and natural gas company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.10%, on average, in the last two quarters.
For the last reported quarter, Exxon came out with earnings of $1.16 per share versus the Zacks Consensus Estimate of $1.07 per share, representing a surprise of 8.41%. For the previous quarter, the company was expected to post earnings of $1.68 per share and it actually produced earnings of $1.71 per share, delivering a surprise of 1.79%.
Price and EPS Surprise
For Exxon, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Exxon currently has an Earnings ESP of +4.40%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Marcus by Goldman Sachs (NYSE:GS | GS Price Prediction) is the consumer banking arm of a Wall Street investment bank. Its flagship product is a plain online high yield savings account with no fees, no minimum balance, and no branches. It suits savers who want a straightforward place to park cash at a competitive rate and do not need checking, debit card access, or in-person service.
What Marcus Is and Who Stands Behind It Marcus is the retail deposit brand of Goldman Sachs Bank USA, an FDIC insured banking subsidiary of Goldman Sachs. Deposits carry the standard federal insurance ceiling of $250,000 per depositor, per ownership category. The parent has been a household name in institutional finance for over a century. Everything happens through the Marcus website or mobile app, with customer service available by phone during extended hours.
How the Marcus Online Savings Account Works The savings account has no monthly maintenance fee, no minimum balance to open, and no minimum to earn the posted rate. Interest compounds daily and posts monthly. Funding and withdrawals move through linked external accounts by ACH transfer, and you can link multiple outside banks. Wire transfers are supported for larger movements. Marcus typically pays a multiple of the FDIC national savings average, which hovered near 1.65% on comparable insured products in mid 2026.
Marcus removed the old federal six per month withdrawal cap after Regulation D was eased, so outbound transfers are not artificially limited. Interest is reported to the IRS on a 1099-INT, and the account can be held individually or jointly. There is no promotional rate that steps down. The rate you see is the rate everyone gets.
How Marcus Certificates of Deposit Work Marcus offers fixed rate CDs across terms from a few months to six years, plus a No Penalty CD in shorter terms that lets you withdraw the full balance after the first week without forfeiting interest. The standard CDs have a modest minimum to open, typically a few hundred dollars. Early withdrawal penalties scale with the term, running from a few months of interest on shorter maturities up to about a year on the longest ones.
Marcus honors a rate guarantee window on new CDs. If the posted rate for the same term rises within ten days of funding, you get the higher rate automatically. With the federal funds target at 3.75% as of July 8, 2026 and one year Treasury bills yielding around 4.00%, CD shoppers have real alternatives, and the rate guarantee narrows the risk of locking in too early.
Real Strengths The core case for Marcus is simplicity plus a credible balance sheet.
Fee structure: No monthly fees, no minimum balance fees, no excess transaction fees, no wire fees on incoming wires, and no fee to close the account. CFPB complaint data shows that fee disputes and unexpected charges are among the most common frustrations consumers file about deposit accounts.
Consistent rate: Marcus does not use teaser tiers, and the same rate applies whether you deposit a few hundred dollars or a few hundred thousand.
Stable platform: The app is unremarkable in a good way. Money moves when it is supposed to, statements are clear, tax documents show up on time, and customer service is answered by a person during business hours and into the evening.
Notable Drawbacks Marcus is deliberately narrow. There is no checking account, no debit card, and no ATM access on the savings side. Every withdrawal must be routed to a linked outside bank by ACH or wire, which takes a business day or two to settle. If you need same day access to cash, this is the wrong home for it.
There are no branches, which rules Marcus out for anyone who wants to sit down with a banker, get a cashier’s check the same afternoon, or handle a complicated estate matter in person. The product menu is thin. No money market account with check writing, no brokerage integration for retail customers, and no credit card tie-in after Marcus wound down that business.
Rate leadership is also not guaranteed. Marcus is usually competitive, but on any given week a handful of online only banks and credit unions will post a higher headline yield.
How Marcus Compares to the Alternatives Against other online high yield savings accounts from banks like Ally, Discover, Capital One 360, American Express, and Synchrony, Marcus lands in the same neighborhood on rate and beats most on the absence of gotchas. The tradeoff is that Ally and Capital One offer checking, debit, and ATM networks that Marcus does not.
Against a money market fund at a brokerage, Marcus gives up a bit of yield in exchange for FDIC insurance and true liquidity. Against Treasury bills bought directly, Marcus loses on yield when the curve favors short bills, as it does now with the one year bill near 4.00%, but wins on flexibility. Against a local bank savings account paying the national average, there is no contest. The rate gap is large enough that on a five figure balance the difference over a year is real money.
Who Should Use Marcus and Who Should Not Marcus is a good fit for savers who already have a checking account elsewhere and want a separate home for their emergency fund, a house down payment being staged, a tax reserve, or cash waiting to be invested. It suits people who value low friction and a recognizable name over squeezing an extra fraction of a percent from a smaller online bank. It works well for CD ladders, thanks to low minimums and the rate guarantee.
It is a poor fit for anyone who wants savings and checking under one login with a debit card attached, for people who need branch service, for savers who chase the absolute top rate every month, and for those who need frequent same day access to cash.
Frequently Asked Questions Is Marcus by Goldman Sachs Safe? Marcus deposits are held at Goldman Sachs Bank USA, an FDIC insured institution. Balances are insured up to $250,000 per depositor, per ownership category. That protection is identical in strength to what any other insured US bank offers.
How Long Does It Take to Move Money in and out of Marcus? Standard ACH transfers to and from a linked external bank typically settle in one to three business days. Wires move faster, usually the same day if initiated before the cutoff. Marcus does not offer a debit card or ATM network on the savings account, so all withdrawals route through a linked bank.
Does Marcus Offer a Checking Account? No. Marcus offers a high yield savings account and certificates of deposit. There is no checking account, no debit card, and no branch network.
Can I Break a Marcus CD Early? Yes, but the standard fixed rate CDs charge an early withdrawal penalty that scales with the term, from a few months of interest on shorter maturities up to about a year on the longest ones. The No Penalty CD lets you withdraw the full balance after the first seven days from funding without forfeiting interest.
How Does the Marcus Rate Compare to Inflation? With CPI running above the Fed’s 2% target through much of the past year, a top tier high yield savings rate at Marcus tends to keep pace with or modestly outrun inflation, while the FDIC national average of 1.65% on a comparable insured product does not. The real return on cash is small in most environments, which is why savings accounts are meant for short term and emergency money rather than long term wealth building.
The popular Invesco QQQ exchange-traded fund has been around for more than 25 years, but all of a sudden it is facing stiff competition. BlackRock disclosed today that it plans to launch the iShares Nasdaq 100 ETF as early as this Thursday, just two weeks after State Street launched its own ETF to rival the QQQ: the State Street SPDR Portfolio Nasdaq 100 ETF.
PepsiCo (PEP) reports earnings ahead of Thursday's opening bell, and Doug Butler considers the brand strong compared to peers in consumer staples. He makes the case the current stock price is "attractive" as he believes global growth remains promising despite slowing U.S. sales.
Key Takeaways PayPal expects at least $1.5B in gross run-rate savings through AI and simplification over 2-3 years.PYPL plans to reinvest savings in checkout, Venmo, payment processing and platform modernization.PayPal posted 7% revenue growth and 11% TPV growth, while non-GAAP operating margin narrowed. PayPal Holdings (PYPL - Free Report) is putting artificial intelligence (AI) at the center of its latest reset. In the first quarter of 2026, the company said it expects at least $1.5 billion in gross run-rate savings over the next two to three years through simplification, fewer organizational layers and faster AI adoption.
CEO Enrique Lores framed the effort as more than cost-cutting. On the earnings call, he said PayPal needs to “become a technology company again,” modernize its platform and use AI to improve developer productivity and shorten time to market. The company also created an AI transformation and simplification team reporting directly to him.
Management said the savings will help fund growth areas rather than simply drop to the bottom line. PayPal is now organized around three business models: Checkout Solutions & PayPal, Consumer Financial Services & Venmo and Payment Services & Crypto. The company plans to reinvest savings in checkout, Venmo financial services, payment processing and platform modernization.
The timing is important because PayPal continues to invest even as margins face pressure. First-quarter 2026 revenues rose 7% to $8.35 billion, while non-GAAP operating income fell 5% to $1.54 billion. The non-GAAP operating margin contracted 229 basis points to 18.4% as the company increased spending on technology, product development and marketing.
The operating picture remains mixed. Total payment volume (TPV) grew 11% to $464 billion. However, branded checkout TPV increased only 2% on a currency-neutral basis, while the company’s full-year guidance still calls for non-GAAP EPS growth ranging from a low-single-digit decline to slightly positive.
How Are Intuit & Block Restructuring?Intuit (INTU - Free Report) announced in May 2026 that it would cut about 17% of its full-time workforce, affecting roughly 3,000 employees globally. The company said the restructuring is designed to simplify operations, eliminate overlapping functions and accelerate its AI-first strategy across products like TurboTax, Credit Karma and Mailchimp.
Block (XYZ - Free Report) is pursuing one of the most aggressive efficiency overhauls in fintech. In February 2026, Block’s CEO, Jack Dorsey, announced plans to reduce more than 40% of the company’s workforce as part of an AI-driven restructuring. It said AI tools and automation would replace layers of operational work while improving speed and productivity.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 4.5% in the past three months against the broader industry and the S&P 500 Index rise.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 8.24X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.17X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.32 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 0.19%.
Image Source: Zacks Investment Research
PayPal currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intel (NASDAQ:INTC | INTC Price Prediction) has done the unthinkable. Shares are up 443.35% over the past year, transforming a left-for-dead turnaround story into one of the market’s most talked-about rallies. The question is whether the run has more room or whether the price has outrun the fundamentals.
Our 24/7 Wall St. price target for Intel is $103.26 over the next 12 months, implying 15.5% downside from the current $122.20. Our model signals meaningful overvaluation at current levels, with a confidence reading of 90%.
Metric Value Current Price $122.20 24/7 Wall St. Price Target $103.26 Upside/Downside -15.5% Model Signal Overvalued Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits below where Intel trades today. Real upside could come from faster-than-expected Intel 18A ramp or from NVIDIA, Google, and SoftBank partnerships translating into durable foundry wins. Treat our number as one datapoint.
From $22 to $122 in a Year Intel bottomed near $21.58 after Q2 2025, when the company posted a $2.918 billion net loss and $1.90 billion in restructuring charges tied to a 15% workforce reduction.
Q1 2026 delivered non-GAAP EPS of $0.29 on revenue of $13.577 billion, beating expectations by 9.22%. Data Center and AI grew 22% year-over-year to $5.052 billion, and Intel Foundry climbed 16%. Shares are up 231.17% year to date, though they cooled 7.23% in the past week from a peak near $127.86.
The Case for $125+ Bulls argue earnings power is coming. CEO Lip-Bu Tan says “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems, and the multiyear Google partnership on custom ASIC IPUs adds a second flagship hyperscaler. Q1 non-GAAP gross margin expanded to 41%, and CFO commentary flagged that demand is exceeding supply into 2026. The bull case models a $119.26 target with an upper band of $125.81.
What Could Go Wrong Intel Foundry lost $2.3 billion in Q3 alone, and management warned Intel 14A could be paused if customer demand disappoints. Insider activity is concerning: CFO David Zinsner sold 18,353 shares at $109.82, and Foundry EVP Naga Chandrasekaran sold shares at up to $118.28.
Bulls note these disposals coincided with vesting events and that Q1’s $3.728 billion net loss was distorted by a $4.07 billion Mobileye impairment. The bear case points to $77.40, roughly 36.66% lower.
Where the Model Lands Our model reads Intel as meaningfully overvalued with 90% confidence, anchored on the 24/7 Wall St. price target of $103.26. The forward P/E of 137x and the $100.88 Wall Street consensus target both sit meaningfully below spot, and insiders are trimming into strength.
The setup would look more constructive if Intel Foundry showed a clear path to breakeven and a marquee customer signed on Intel 18A at volume. Until then, the stock trades at more than 11x sales on TTM losses, which keeps the risk-reward skewed unfavorably.
Here is where our model projects Intel could trade, assuming current growth trajectories and market conditions hold.
Year 24/7 Wall St. Price Target 2026 $103.26 2027 $99.50 2028 $97.75 2029 $96.90 2030 $96.18 These projections assume Intel executes on its foundry turnaround and AI CPU roadmap. Significant upside could come from a breakout Intel 18A customer win, while downside risk builds if foundry losses widen or geopolitical tensions disrupt the Arizona and Ireland manufacturing ramp.
Broadcom (NASDAQ:AVGO | AVGO Price Prediction) stock is outperforming the semiconductor sector today, climbing 5% to $390 after Apple announced an expanded multiyear chip agreement with the company. Meanwhile, Intel (NASDAQ:INTC) stock is down 2% to $108, while Advanced Micro Devices (NASDAQ:AMD) stock is lower by 1% to $513.
The contrasting moves suggest that investors are rewarding Broadcom for a company-specific catalyst rather than broadly rotating away from semiconductor stocks. Intel stock and Advanced Micro Devices stock are posting relatively modest declines, indicating today’s trading is more about Broadcom’s positive news than widespread weakness across the chip industry.
Apple‘s (NASDAQ:AAPL) announcement also reinforces the growing importance of custom silicon as technology companies continue investing in next-generation hardware. At the same time, Intel, Broadcom, and Advanced Micro Devices each occupy different positions within the semiconductor ecosystem, making today’s divergence less surprising than it may first appear.
Apple’s Expanded Deal Gives Broadcom a Lift Broadcom stock gained momentum after Apple announced an expanded chip agreement reportedly worth more than $30 billion through 2031. The agreement calls for Broadcom to design and manufacture custom wireless connectivity technologies while producing more than 15 billion U.S.-made chips over the life of the partnership.
Apple’s commitment also includes plans that support expanded semiconductor manufacturing in the United States. Broadcom is expected to increase production capacity through an expansion of its Colorado facilities, reinforcing its long-term relationship with one of its largest customers.
For Broadcom, the announcement strengthens an already important revenue stream while highlighting the company’s expertise in custom chip design. Investors appear to view the agreement as another indication that Broadcom remains well positioned to benefit from continued demand for specialized semiconductor solutions.
Intel and AMD Face a Quieter Trading Session Intel stock and Advanced Micro Devices stock are drifting lower today despite the absence of significant company-specific negative news. Their relatively modest declines suggest investors are concentrating more on Broadcom’s positive catalyst than on changing expectations for the broader semiconductor industry.
Intel continues executing its long-term manufacturing and foundry strategy while seeking to strengthen its competitive position across multiple chip markets. Advanced Micro Devices remains focused on expanding its presence in artificial intelligence accelerators, data center processors, and high-performance computing.
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However, a strong catalyst for one semiconductor company doesn’t necessarily translate into immediate gains for its peers. Investors often direct fresh capital toward the company generating the day’s biggest headline while leaving other industry leaders little changed.
Different Strengths Across the Semiconductor Industry Although Broadcom, Intel, and Advanced Micro Devices all operate within the semiconductor industry, they address different customer needs and competitive markets. Broadcom derives significant business from networking, connectivity, and custom silicon, while Intel and Advanced Micro Devices compete more directly in processor markets.
That distinction helps explain why Apple’s announcement had such a pronounced impact on Broadcom stock. The agreement reinforces one of Broadcom’s core businesses rather than reshaping the competitive landscape for Intel or Advanced Micro Devices.
The broader outlook for semiconductor companies also continues to be supported by investment in artificial intelligence infrastructure and cloud computing. Those long-term trends may benefit multiple chipmakers even if individual stocks respond differently to company-specific developments.
What to Watch Next Investors can watch for whether Broadcom continues building on today’s momentum as additional details about the Apple agreement emerge. Traders might also take note if Intel stock and Advanced Micro Devices stock begin recovering as attention shifts back toward company fundamentals and the broader artificial intelligence investment cycle.
The bulls can point to Broadcom’s strengthened relationship with Apple and the semiconductor industry’s favorable long-term demand outlook. On the other hand, the bears can point to elevated expectations across many technology stocks and the possibility that investors become more selective after a strong rally.
For now, today’s trading action illustrates how a single corporate announcement can produce sharply different outcomes within the same industry. Investors should consider keeping their position sizes measured while monitoring whether strong operational execution continues supporting long-term opportunities across the semiconductor sector. Also, if you’re seeking a more diversified approach to semiconductor-sector investing, you might consider an ETF like the iShares Semiconductor ETF (NASDAQ:SOXX).
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Shopify Inc (TSX:SH., NYSE:SHOP) has been awarded a ‘Buy’ rating and a $150 price target in reinstated coverage, citing the company’s potential to benefit from the evolution of AI-driven “agentic commerce,” as well as ongoing international expansion and enterprise adoption.
The firm’s price target is based on a valuation of 22 times estimated calendar 2027 enterprise value to gross profit. Bank of America wrote that Shopify could become a key beneficiary of AI-native commerce as its payments and checkout infrastructure become increasingly important to transactions conducted through artificial intelligence-powered shopping experiences.
The analyst noted that concerns over AI disrupting Shopify’s position in the commerce ecosystem have weighed on investor sentiment, but argued that the company is positioned to benefit from the shift rather than be bypassed.
“We believe Shopify could be a core beneficiary of the shift toward AI-driven, agentic commerce rather than being disintermediated by it,” Bank of America wrote.
The firm expects agentic commerce to become a meaningful part of e-commerce over the coming years and believes value will increasingly concentrate around transaction and infrastructure layers, where Shopify has an established presence.
Bank of America also highlighted international growth and expansion into larger merchants as additional long-term growth drivers. The firm noted that international gross merchandise volume grew 45% year over year in the first quarter of fiscal 2026, while payments volume outside the U.S. increased more than 70%. Non-U.S. revenue currently represents 37% of Shopify’s total revenue.
The analyst also pointed to continued momentum among enterprise customers, noting that merchants with more than $25 million in gross merchandise volume are growing at the fastest pace and that Shopify Plus revenue increased 20% year over year.
Bank of America forecasts Shopify revenue growth of 24% to 28% from fiscal 2026 through fiscal 2028, with gross margins expected to remain in the mid-to-high 40% range. The firm expects operating margins to expand from 17.1% in 2025 to 20.5% in 2028, while free cash flow margins are forecast to increase from 17.4% to 20.3% over the same period.
The firm noted that Shopify’s payments-focused business model results in structurally lower gross margins, making enterprise value to gross profit a more relevant valuation measure. Its 22-times target multiple is above the peer group average of 18.1 times, reflecting Shopify’s growth outlook and expected margin expansion.
Shares of Shopify were down 5% at $115 in Wednesday trading.
Investors in American Express Company (AXP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept 18, 2026 $150.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for American Express share, but what is the fundamental picture for the company? Currently, American Express is a Zacks Rank #3 (Hold) in the Financial - Miscellaneous Services Industry that ranks in the Bottom 37% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their estimates for the current quarter, while three have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to remain flat at $4.39 per share in the same time period.
Given the way analysts feel about American Express right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways UnitedHealth plans to invest nearly $1.5B in AI across insurance, pharmacy, care and technology operations.UNH's AI tools speed prior authorizations, automate claims and expand digital healthcare capabilities.Optum Real is expected to process 2.5B transactions in 2026, supporting software growth opportunities. UnitedHealth Group Incorporated (UNH - Free Report) is making artificial intelligence a core pillar of its long-term strategy, committing nearly $1.5 billion to AI initiatives in 2026. Rather than limiting AI to back-office automation, the company is embedding it across insurance, pharmacy, care delivery and technology operations. It aims to simplify healthcare processes, improve user experience and create scalable technology platforms that support future growth.
The investment is already translating into measurable improvements. UnitedHealthcare is expanding AI-powered digital tools for members, while automation is accelerating prior authorization decisions and reducing administrative burden for providers. At Optum Rx, the company's PreCheck Prior Authorization capability cuts prescription approval times from more than eight hours to under 30 seconds. Meanwhile, Optum Health is deploying AI-enabled scheduling and workflow tools to improve access and enhance clinical productivity.
UNH is extending these capabilities beyond its own operations through Optum Insight. Its AI-first solutions help payers and providers automate claims processing, coverage validation and other administrative tasks. The company expects its Optum Real platform to process more than 2.5 billion transactions in 2026, while several AI products are gaining traction among healthcare organizations, creating opportunities beyond traditional insurance operations.
Although the financial benefits will take time to fully materialize, UnitedHealth appears to be pursuing a strategy that extends well beyond cost reduction. By combining AI with its broad healthcare ecosystem, the company is building new technology capabilities that could strengthen customer relationships, expand software revenue opportunities and reinforce its competitive position in an increasingly digital healthcare industry.
How Are Competitors Faring?Some of UNH’s major competitors in the healthcare service provider space are Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) .
Humana is expanding AI across care management, prior authorization and member engagement to improve efficiency and health outcomes. HUM is also using predictive analytics to identify high-risk members earlier, supporting value-based care while helping manage medical costs and streamline healthcare delivery.
Centene is primarily using AI to strengthen payment integrity and manage rising healthcare costs. CNC’s advanced analytics help detect suspicious claims, identify billing anomalies and improve medical cost management, supporting margins while enhancing oversight across its government-sponsored healthcare programs.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 41.4% in the past year compared with the industry’s rise of 31.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 21.84, above the industry average of 18.18. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.32 per share, implying 12.1% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The unraveling of the fragile U.S.–Iran ceasefire on Wednesday quickly reshaped the oil backdrop, pushing crude prices and perceived risk premiums higher.
As traders reassess the odds of supply disruptions and chokepoint tension in the Strait of Hormuz, oil and heavyweight oil producers are climbing.
XOM stock is up. See the chart and the price action here. Trump Threatens Escalation On Wednesday, President Donald Trump spoke of potential blockades and even the idea of taking control of key Iranian oil infrastructure, reinforcing that sense of risk.
“We attacked Kharg Island last night,” Trump said about Tuesday’s attacks on Iran. “I said don’t touch the oil because maybe we’ll take over Kharg Island.”
Markets treat this kind of rhetoric as a real option on future supply shocks, especially around Kharg Island and the Strait of Hormuz, through which a large share of global seaborne crude once moved.
Even when plans are walked back, the signal to traders is that policy remains fluid and the energy trade sits on a live geopolitical fault line.
Oil and Energy Stocks ClimbThe United States Oil Fund (NYSE:USO), which had already surged this year alongside conflict‑driven crude strength, sits near triple‑digit territory after more than a 40% run‑up earlier in the conflict phase.
That leverage offers a powerful upside channel if tensions escalate and oil grinds higher, but it also leaves these stocks exposed to sharp reversals if diplomacy unexpectedly cools the risk premium or if macro growth fears start to dominate the trade.
More Stocks To WatchOther oil stocks to watch include:
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Shares of Occidental Petroleum (NYSE:OXY | OXY Price Prediction) are up 4% at midday Wednesday, trading at $53.90. The move puts Occidental well ahead of integrated peers ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX).
ExxonMobil stock is off 1% at $140.51, essentially flat. Meanwhile, Chevron shares are higher by 1% to $176.07, a modest gain that trails Occidental by a wide margin on the session.
The gap reflects a company-specific catalyst layered on top of a broad energy tailwind. Occidental has both today, while the oil majors ExxonMobil and Chevron have only one catalyst.
Evercore Upgrade and Crude Spike Drive OXY Evercore ISI upgraded Occidental stock to Outperform from In-Line, with analyst Stephen Richardson lifting his OXY price target to $65 from $58. The firm’s thesis leans on deleveraging and capital efficiency rather than production growth.
Evercore projects that Occidental’s free cash flow per share to grow 8% annually through 2030 at a flat $75 WTI crude oil, with a potential resumption of share buybacks in the second half of 2028. That framing lands well against Occidental’s Q1 2026 earnings report, which delivered an 80% adjusted EPS beat and $7.10 billion in principal debt repaid.
The second factor is the crude oil price. WTI crude oil is up 6% over the past 24 hours to $74.58 per barrel, driven by renewed threats of U.S. military strikes tied to Iran and Strait of Hormuz disruption. Occidental Petroleum carries the highest oil-price beta among U.S. majors, which amplifies the move.
Peers Get the Oil Lift, Not the Upgrade ExxonMobil and Chevron shares are participating in the crude rally, just without a company-specific driver to match Evercore’s Occidental call. The Energy Select Sector SPDR Fund (NYSEARCA:XLE), a broad energy ETF that holds all three names, is up 1%. ExxonMobil and Chevron together account for a heavy 41% of the ETF, so the fund’s muted move mirrors the majors.
Chevron stock did get a bullish note earlier this week: Wolfe Research upgraded Chevron stock to Outperform with a $210 target, citing Guyana growth and sustainable cash generation. Yet, the enthusiasm was partially offset by Mizuho’s price target cut on ConocoPhillips (NYSE:COP) on capex concerns that spilled across the group.
ExxonMobil’s recent re-domiciliation to Texas was largely viewed as administrative, offering little to no sentiment lift. Other oil-levered names are also participating in today’s sector bid, but they don’t share Occidental Petroleum’s specific catalyst today.
Bull and Bear Views on OXY Stock The bull case leans on the deleveraging story and Berkshire Hathaway’s ownership footprint. Berkshire Hathaway (NYSE:BRK-B) remains a major Occidental backer, and Evercore’s $65 target is roughly in line with the $65.30 average analyst target.
The bear case matters too. Evercore itself flagged that Occidental’s free cash flow growth trails Diamondback Energy (NASDAQ:FANG), ConocoPhillips, and Chevron. The analyst rating mix still skews to Hold (14 Holds versus 8 Buys), and Occidental stock was still down 9% over the past month heading into today. Investors may want to keep their position sizes measured given crude’s volatility.
What to Watch The $65 target sits below Occidental stock’s 2026 high of $67 from late March, so the remaining upside after today’s gain is narrower. Traders can watch for whether OXY holds above $53 into the close and how crude oil settles as Strait of Hormuz headlines evolve. The next scheduled event is Occidental’s Q2 2026 earnings on August 5.
Positioning matters here. Today’s move rewards investors who were already long the most oil-levered major heading into the crude spike, but chasing after a 4% single-session gain carries obvious risk if Middle East tensions cool or if the Evercore thesis gets faded by other desks.
For investors weighing the oil majors, the setup remains a choice between Occidental’s upside torque to crude and the steadier, dividend-anchored profiles of ExxonMobil and Chevron. Today’s tape favors the former, but a single session doesn’t settle that debate.
Key Takeaways Caterpillar acquired Skycatch to add near-real-time spatial data and AI to its mining technology offerings. CAT will integrate Skycatch with RPM and MineStar to improve mine safety, productivity and predictability. CAT's earnings estimates for 2026 and 2027 have increased over the past 90 days, signaling improved outlook. Caterpillar Inc. (CAT - Free Report) has strengthened its mining technology capabilities by acquiring Skycatch, Inc., a provider of spatial data capture, processing and analytics solutions for the mining industry. The acquisition supports Caterpillar’s broader strategy of helping its mining customers address increasingly complex operational challenges through data-driven technologies.
This follows the acquisition of Australian mining software company RPMGlobal (“RPM”) in February 2026. By integrating Skycatch’s near-real-time, high-resolution spatial data into both RPM and CAT MineStar solutions, Caterpillar aims to improve mine site performance by enhancing safety, productivity and predictability across their operations.
Skycatch specializes in capturing high-frequency, high-precision, large-scale spatial data and pairs it with a suite of Artificial Intelligence capabilities that identify, measure and interact with the data to deliver improved operational performance. This enables mine operators to monitor site conditions continuously, detect changes quickly and adjust mine plans accordingly in near real time, helping reduce operational disruptions and improve efficiency.
A key advantage of Skycatch’s technology is its ability to generate a near-real-time digital twin of the mining site. When integrated with existing software platforms, these digital replicas provide accurate, up-to-date information that can be incorporated directly into planning and execution workflows.
The mining industry is increasingly embracing automation, Artificial Intelligence and digitalization as companies seek to improve efficiency, reduce costs, address labor shortages and support their decarbonization goals. Last month, BHP Group (BHP - Free Report) , Rio Tinto (RIO - Free Report) and Caterpillar launched a trial of two Cat 793 XE Early Learner battery-electric haul trucks at a mine-site demonstration in Western Australia’s Pilbara as part of an industry-first collaboration focused on reducing emissions from mining operations.
BHP has been expanding the use of AI and advanced analytics across its operations, leveraging improvements in data quality, digital platforms and internal capabilities to optimize performance. Rio Tinto has similarly integrated data from automated drills, trucks, shovels, conveyors, trains and ships with analytics, Artificial Intelligence, machine learning and automation technologies to enhance safety, productivity and operational efficiency.
CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 133.8% in a year, outperforming the manufacturing - construction and mining industry's 120.7% growth. In comparison, the Zacks Industrial Products sector and the S&P 500 have advanced 23.4% and 8.9%, respectively.
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CAT is currently trading at a forward 12-month P/E of 33.83X, a premium compared with the industry’s 32.66X.
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The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 29.6%, while the 2027 estimate implies growth of 25%, reflecting improving confidence in the company’s earnings trajectory.
Image Source: Zacks Investment Research
Earnings estimates for CAT have moved up for both 2026 and 2027 over the past 90 days.
Image Source: Zacks Investment Research
Caterpillar stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Since I last checked on the gold Canadian miner Agnico Eagle Mines Limited in September 2025, its price has gone nowhere. But it has seen wide fluctuations in between. Price weakness has been apparent since the war in late February, which coincides with a decline in the price of gold on expected interest rate increases and U.S. dollar strengthening. But AEMs market multiples were elevated too, not a good sign in a bearish gold market. At the same time, the company's fundamentals are robust.
Oracle (NYSE:ORCL | ORCL Price Prediction | ORCL Price Prediction) has quietly become one of the most important AI infrastructure companies on the planet, yet its stock is behaving as if the story is falling apart.
Shares closed at $143.76 on July 6, 2026, down 25.37% year to date, even after the company posted a $638 billion contracted revenue backlog. Market cap sits at roughly $412 billion. Can Oracle punch through $400 per share and become the next trillion-dollar tech giant by 2028?
Why Oracle Shares Are Stuck Despite a Record Backlog Oracle is down 2.15% in the past week, 32.34% in the past month, and 38.47% over the past year. With a beta of 1.712, the swings cut both ways.
The issue is cash conversion. Free cash flow ran -$23.686 billion in FY2026 against $55.663 billion in capital expenditures. Management guided to another $70 billion in CapEx and a $40 billion debt and equity raise for FY2027.
One Tech Times headline captured the mood: “Record Earnings Mask -$24B Cash Drain.” Investors are also fixating on customer concentration risk tied to OpenAI. Until cash conversion improves, the multiple stays compressed.
Wall Street Sees 75% Upside. Our Model Sees Less Consensus is loudly bullish. The average analyst target is $251.85, with 6 Strong Buy, 30 Buy, 6 Hold, and 1 Sell ratings across 43 analysts. That is 84% bullish sentiment.
Our base case is more measured. The model lands at $211.32, or 47% upside, with 90% confidence. The bull scenario stretches to $350.29 and the bear stops at $184.26. The Street’s $252 target underrates the RPO. When 31% long-term revenue CAGR through FY2030 is management’s reconfirmed target, a $252 tag is oddly polite.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.
The Path to $400 Per Share Reaching $400 from today’s price of $143.76 would require a gain of 178.2%. With forward EPS of $9.30, a price of $400 implies a forward P/E of 43x. Our base case of $211.32 already implies 19x, meaning $400 requires roughly 24 turns of additional multiple expansion.
That is achievable if earnings inflect. Safra Catz projected OCI revenue climbing to $144 billion by FY2030. Q4 IaaS grew 93% YoY, and Multicloud database revenue jumped 404%. Co-CEO Clay Magouyrk told analysts, “Everything we see shows this market size is in the trillions of dollars per year.
Combined with our previously outlined 30% to 40% margin profile, OCI should grow into an extremely large and extremely profitable business.” If EPS compounds toward $15 by FY2028, a 27x multiple gets you to $400. The primary risk is that CapEx keeps outrunning cash flow and forces dilutive equity raises that cap the multiple.
Where Oracle Trades Today vs Its Earnings Power Oracle currently trades at a forward P/E of 15x on $9.30 in forward EPS. For a business growing cloud revenue 58% to 64% next quarter, that is cheap. Shares sit 27% below the $343.01 52-week high and just above the $134.57 low. Over ten years, the stock is up 309.16%. The valuation reset has already happened. The question is whether earnings power catches up.
Is $400 Realistic? My Verdict Reaching $400 by 2028 requires a 178.2% gain and a re-rating to 43x forward earnings, or a base case where FY2028 EPS lands closer to $15 and the multiple settles near 27x.
Three things need to break right: RPO must convert to reported revenue on schedule, OCI margins must hold above 30%, and the $40 billion capital raise cannot dilute the equity story. What derails it is a stalled AI capex cycle or a major customer default. We’ve outlined the blueprint for how Oracle could reach $400 in 2028.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.
A month has gone by since the last earnings report for Campbell's (CPB - Free Report) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Campbell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Campbell's Q3 Earnings Surpass Estimates Despite Sales WeaknessThe Campbell's Company reported third-quarter fiscal 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, while sales missed expectations. Both earnings and revenues declined year over year, reflecting continued top-line softness, inflationary pressures and tariff-related costs.
Adjusted earnings per share (EPS) were 50 cents, down 32% year over year due to lower adjusted earnings before interest and taxes (EBIT). However, the bottom line surpassed the Zacks Consensus Estimate of 48 cents.Net sales of $2,366 million decreased 4% year over year and missed the Zacks Consensus Estimate of $2,387 million. Organic net sales also declined 4%, primarily due to lower volume and unfavorable product mix, partially offset by positive net price realization. The quarter included a modest headwind from the noosa divestiture.
Adjusted gross profit declined 12% to $656 million. Adjusted gross margin contracted 240 basis points (bps) to 27.7%, mainly due to cost inflation, tariffs and other supply-chain costs. These pressures were partly offset by supply-chain productivity improvements, cost-savings initiatives and favorable pricing. Tariffs alone represented a gross margin headwind of about 310 bps during the quarter. Adjusted marketing and selling expenses increased 2% to $211 million, reflecting higher brand-building investments and marketing spending. Adjusted administrative expenses decreased 1% to $149 million due to savings initiatives and lower incentive compensation, partly offset by higher general administrative costs. Adjusted EBIT declined 24% to $274 million, primarily due to lower adjusted gross profit and higher marketing investments. Adjusted EBIT margin contracted 300 bps to 11.6%.
Decoding CPB’s Segmental PerformanceMeals & Beverages: Net sales decreased 4% to $1,426 million. Organic net sales also declined 4% due to an unfavorable volume/mix of 5%, partly offset by 1% favorable net price realization. The segment faced a difficult comparison against strong soup demand in the prior year and a roughly 1% headwind related to shipment timing associated with the Sovos Brands ERP implementation and prior winter-storm delays. U.S. soup sales plunged 8%, though the company continued to benefit from resilient at-home cooking trends and strong performances from Rao’s, Swanson and Pacific Foods. Segment operating earnings fell 16% to $213 million due to inflation, tariffs and lower volume.
Snacks: Net sales declined 4% to $940 million, with organic net sales also down 4%. Volume/mix reduced sales by 6%, partially offset by 2% favorable price realization. Weakness stemmed primarily from salty snacks, crackers, fresh bakery products, third-party partner brands and contract manufacturing sales. Segment operating earnings decreased 32% to $95 million due to elevated inflation, tariffs, supply-chain costs and lower volumes, partly offset by productivity gains, pricing actions and cost savings. Management noted encouraging signs in Snacks, particularly in Goldfish, where core products remained stable for a second consecutive quarter, and in Pepperidge Farm fresh bakery, where service levels and in-stock performance improved. The company has also begun implementing a simplification strategy across its salty snacks portfolio to strengthen performance and profitability.
CPB: Strategic Highlights and Brand PerformanceCampbell’s continued to benefit from durable at-home cooking trends, which supported growth in key cooking-oriented brands. Rao’s remained a standout performer, delivering 15% consumption growth during the quarter, with pasta sauce consumption increasing 13%. Rao’s generated approximately 75% of the total Italian sauce category growth and maintained its leadership position in dollar share across all regions. Subsequent to the end of the quarter, Campbell’s completed its acquisition of a 49% stake in La Regina on May 4, 2026, strengthening its commitment to the Rao’s platform and long-term growth strategy. The company also announced that all leadership brands have successfully transitioned to natural colors ahead of schedule, with the remaining regional Snacks brands expected to complete the transition by July 2026.
CPB’s Other Financial MetricsAt the end of the third quarter, Campbell’s had cash and cash equivalents of $402 million and total debt of $7,010 million. Cash flow from operations for the first nine months of fiscal 2026 totaled $839 million compared with $872 million in the prior-year period. Capital expenditures were $297 million during the period. The company returned $380 million to shareholders year to date, primarily through dividends, while share repurchases totaled $26 million. Campbell’s delivered approximately $20 million in savings during the quarter, bringing cumulative savings to $200 million toward its fiscal 2028 target of $375 million. Management expects these savings to help offset tariff and inflationary pressures while funding investments in growth initiatives.
CPB Reaffirms Fiscal 2026 GuidanceCampbell’s reaffirmed its previously issued fiscal 2026 outlook. The company continues to expect organic net sales to decline 1-2% year over year. Adjusted EBIT is projected to decrease 17-20%, while adjusted EPS is expected in the range of $2.15-$2.25, representing a decline of 23-26% from the adjusted fiscal 2025 base. Management expects low-single-digit core inflation excluding tariffs, productivity benefits equivalent to roughly 5% of cost of products sold, and approximately $70 million in enterprise cost savings for fiscal 2026. The company also anticipates adjusted net interest expense of $320-$325 million and capital expenditures of roughly $370 million. While management acknowledged ongoing consumer and cost pressures, it expressed confidence in the long-term strength of Campbell’s portfolio, the resilience of at-home cooking trends and the progress being made to improve execution and profitability across the Snacks business.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -8.36% due to these changes.
VGM ScoresAt this time, Campbell has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Campbell has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Becton Dickinson (BDX - Free Report) , which belongs to the Zacks Medical - Dental Supplies industry.
This medical device manufacturer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 3.94%.
For the most recent quarter, Becton Dickinson was expected to post earnings of $2.77 per share, but it reported $2.9 per share instead, representing a surprise of 4.69%. For the previous quarter, the consensus estimate was $2.82 per share, while it actually produced $2.91 per share, a surprise of 3.19%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Becton Dickinson lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Becton Dickinson currently has an Earnings ESP of +2.66%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Investors looking for stocks in the Banks - Major Regional sector might want to consider either U.S. Bancorp (USB - Free Report) or BNY (BNY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both U.S. Bancorp and BNY are holding a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
USB currently has a forward P/E ratio of 12.32, while BNY has a forward P/E of 17.16. We also note that USB has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BNY currently has a PEG ratio of 1.10.
Another notable valuation metric for USB is its P/B ratio of 1.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BNY has a P/B of 2.63.
These are just a few of the metrics contributing to USB's Value grade of B and BNY's Value grade of F.
Both USB and BNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that USB is the superior value option right now.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In First Solar To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in First Solar between February 26, 2025 and February 24, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - July 8, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against First Solar, Inc. ("First Solar" or the "Company") (NASDAQ: FSLR) and reminds investors of the August 24, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business; (2) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (3) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on January 7, 2026, when Jefferies downgraded First Solar to Hold from Buy, noting that during 2025, the Company had lowered guidance, faced significant de-bookings and experienced margin compression through 2025. Jefferies also flagged that "[international] facilities remain a pain point while tariffs exist" and "underutilization at [international] facilities remains a concern." The Jefferies analyst also predicted that First Solar's deployment opportunities were likely to be more limited in 2026.
On this news, First Solar's stock price fell $27.67 per share, or 10.29%, to close at $241.11 per share on January 7, 2026.
Then, on February 24, 2026, First Solar issued a press release "announc[ing] financial results for the fourth quarter and year ended December 31, 2025." Among other items, First Solar announced earnings that missed expectations by a wide margin and issued lower-than-expected FY 2026 revenue guidance, citing customer headwinds such as permitting delays under the Trump administration. Following First Solar's announcement, Baird Research downgraded its stock to Neutral from Outperform, citing "several question marks in forward outlook".
On this news, First Solar's stock price fell $33.09 per share, or 13.61%, to close at $210.12 per share on February 25, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding First Solar's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the First Solar, Inc. class action, go to www.faruqilaw.com/FSLR or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the First Solar, Inc. Securities Class Action Lawsuit:
What is the First Solar securities fraud lawsuit about?
The lawsuit alleges that First Solar, Inc. and certain executives violated federal securities laws by making false or misleading statements and failing to disclose material information regarding the impact of U.S. tariff policies, production facility utilization, and risks to the Company's projected 2026 financial performance.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired First Solar (NASDAQ: FSLR) securities during the applicable Class Period and suffered losses may be eligible to participate in the securities class action. Eligibility will depend on the specific circumstances of each investor's transactions and losses.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation. Any eligible investor may seek appointment as lead plaintiff by filing the appropriate motion with the court on or before the August 24, 2026 deadline.
What should investors do if they purchased First Solar stock during the Class Period?
Investors who purchased First Solar securities during the Class Period and experienced losses should review their legal rights and options. They may contact counsel to discuss the lawsuit, determine whether they qualify to participate, and learn more about seeking appointment as lead plaintiff before the applicable deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased First Solar securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304422
Source: Faruqi & Faruqi LLP
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Key Takeaways Realty Income declared its 673rd consecutive monthly dividend, reinforcing its long dividend track record.O posted 6.6% AFFO growth, 98.9% occupancy and a 103.4% rent recapture rate in Q1 2026.Realty Income expanded growth efforts through $2.8 billion in investments and new strategic partnerships. Realty Income (O - Free Report) , popularly known as "The Monthly Dividend Company," has once again reinforced its reputation for dependable income. The real estate investment trust declared its 673rd consecutive monthly dividend, keeping the payout unchanged at 27.10 cents per share. Shareholders of record as of July 31, 2026, will receive the dividend on Aug. 14, 2026. The latest declaration follows the company’s June 9 dividend increase, which raised the monthly payout from 27.05 cents to 27.10 cents and marked its 135th dividend hike since 1994.
On an annualized basis, the dividend now stands at $3.252 per share. Realty Income’s record of more than 31 consecutive years of annual dividend growth has secured its place in the S&P 500 Dividend Aristocrats Index, underscoring its appeal to income-focused investors.
The company's fundamentals continue to support this payout profile. In first-quarter 2026, adjusted funds from operations (AFFO) rose 6.6% year over year to $1.13 per share, while occupancy remained strong at 98.9%. Realty Income also reported a 103.4% rent recapture rate on re-leased properties, highlighting the pricing resilience across its portfolio.
With 15,500 properties across the United States, U.K and eight other European countries, Realty Income benefits from broad diversification and steady rental cash flows. Its $2.8 billion in quarterly investments, $1 billion retail joint venture with Apollo, expanded institutional funding partnerships and planned $1.4 billion push into hyperscale data centers suggest that it is still positioning for growth. The company’s raised 2026 AFFO guidance of $4.41-$4.44 per share further supports the case that Realty Income can retain its edge.
Dividend Appeal of Other Net Lease REITsVICI Properties (VICI - Free Report) remains a dependable pick for investors who value consistent dividend income. The company pays 45 cents per share each quarter or $1.80 annually, while its first-quarter 2026 AFFO per share climbed 4.5%, leading to higher full-year guidance. Since going public in 2018, VICI Properties has delivered annual dividend increases and maintained full portfolio occupancy, reflecting the durability of its long-term lease model.
Agree Realty (ADC - Free Report) also fits the income case, supported by monthly payouts and healthy dividend coverage. The company’s latest payout of 26.70 cents per share translates to $3.204 annually, marking a 4.3% increase from the prior year. First-quarter dividends of Agree Realty consumed only 69% of AFFO, while its portfolio of 2,756 properties and 65% investment-grade tenant exposure provides a solid foundation for stable cash flow.
O’s Price Performance, Valuation and EstimatesShares of Realty Income have gained 13.5% so far this year, underperforming the industry’s growth of 19.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, O trades at a forward 12-month price-to-earnings of 14.15, below the industry but ahead of its one-year median of 13.62. It carries a Value Score of C.
Image Source: Zacks Investment Research
Over the past seven days, estimates for 2026 have been unchanged, while estimates for 2027 FFO per share have been revised slightly upward.
Image Source: Zacks Investment Research
At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider SSR Mining (SSRM - Free Report) . This company, which is in the Zacks Mining - Miscellaneous industry, shows potential for another earnings beat.
This precious metals mining company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 45.56%.
For the last reported quarter, SSR Mining came out with earnings of $1.15 per share versus the Zacks Consensus Estimate of $0.81 per share, representing a surprise of 41.98%. For the previous quarter, the company was expected to post earnings of $0.59 per share and it actually produced earnings of $0.88 per share, delivering a surprise of 49.15%.
Price and EPS Surprise
For SSR Mining, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
SSR Mining has an Earnings ESP of +8.73% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in New York, American International Group (AIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -5.25%. The insurer is paying out a dividend of $0.50 per share at the moment, with a dividend yield of 2.47% compared to the Insurance - Multi line industry's yield of 1.97% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $2.00 is up 14.3% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AIG for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.98 per share, with earnings expected to increase 12.55% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? American International Group (AIG - Free Report) , which belongs to the Zacks Insurance - Multi line industry, could be a great candidate to consider.
This insurer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.38%.
For the last reported quarter, American International Group came out with earnings of $2.11 per share versus the Zacks Consensus Estimate of $1.9 per share, representing a surprise of 11.05%. For the previous quarter, the company was expected to post earnings of $1.89 per share and it actually produced earnings of $1.96 per share, delivering a surprise of 3.70%.
Price and EPS Surprise
For American International Group, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
American International Group has an Earnings ESP of +0.93% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Palantir Technologies Inc. (NASDAQ:PLTR) stock slid by more than 3% on Wednesday as risk appetite cools across growth-leaning tech names and traders lean defensive.
The Nasdaq is down 0.55% while the S&P 500 has shed 0.76%.
The company faces mounting scrutiny as political backlash, internal tensions, customer concerns and competition for AI talent converge around the controversial data analytics company.
• Palantir Technologies stock is among today’s weakest performers. What’s pressuring PLTR stock?
Political Backlash Raises Business RisksThe company generated nearly $2.2 billion in federal contract revenue in the 12 months after Trump returned to office, up 65% from the prior year, while its commercial revenue more than doubled.
AI Competition and Talent Pressure IntensifyPalantir also faces pressure from AI rivals. Michael Burry has argued that Anthropic is "eating Palantir’s lunch" and placed a large bet against Palantir’s stock.
Palantir chief Alex Karp pushed back, saying large AI models create problems as well as solve them, while Palantir helps customers solve those problems themselves.
Technical AnalysisFrom a trend perspective, Palantir is still working through a longer-term downtrend: it’s trading 18.6% below its 200-day SMA ($157.31) and 7.9% below its 100-day SMA ($139.05), even though it’s 2.5% above the 20-day SMA ($125.06). The moving-average stack stays bearish, with the 20-day SMA below the 50-day SMA and the Death Cross (50-day below 200-day) that formed in February still in effect.
Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the Aug. 3 (estimated) earnings report.
EPS Estimate: 33 cents (Up from 16 cents year-over-year) Revenue Estimate: $1.81 billion (Up from $1.00 billion YoY) Valuation: P/E of 151.0x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $174.10. Recent analyst moves include:
DA Davidson: Upgraded to Buy (Raises target to $175 on July 2) Wolfe Research: Upgraded to Peer Perform (on June 16) Rosenblatt: Buy (Maintains Forecast to $225 on June 5) Top ETF ExposureSignificance: Because PLTR carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
PLTR Price ActionPLTR Stock Price Activity: Palantir Technologies shares were down 3.84% at $129.21 at the time of publication on Wednesday, according to Benzinga Pro data.
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Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) now carries a market capitalization of a little more than $300 billion as of July 3, 2026, which has taken many investors on a nice ride, given the company’s the software-with-a-defense-flavor story. Palantir is now arguing for a seat inside the mega-cap conversation, alongside the AI infrastructure names its own CEO likes to invoke.
What It Means A valuation this size implies specific operational realities, and Palantir’s Q1 2026 filing supplies them. Revenue reached $1.632 billion this past quarter, growing nearly 85% year over year. That’s the highest reported growth rate in the company’s history as a public company. Additionally, the engine of the company (U.S. revenue) climbed 104% year over year to $1.282 billion, crossing 100% growth for the first time since the direct listing. U.S. commercial revenue rose 133% year over year to $595 million.
It’s not only a revenue story. In fact, Palantir’s profitability has closely correlated with its revenue growth. This past quarter, GAAP operating income landed at $754 million, up 328.29% from a year earlier, with the company posting a 46% operating margin. Adjusted operating margin expanded to 60% from 44% a year earlier, and free cash flow reached $924.63 million, up 204.08%. The Rule of 40 score hit 145%, a level the CEO framed as company territory shared only with NVIDIA (NASDAQ:NVDA), Micron (NASDAQ:MU) and SK hynix.
As a result of these numbers, Palantir raised its guidance considerably. The company now guides for full-year 2026 revenue between $7.650 billion to $7.662 billion, which amounts to roughly 71% year over year growth. That’s impressive, because this is 10 percentage points above the prior quarter’s outlook. U.S. commercial guidance is in excess of $3.224 billion, calling for at least 120% growth.
Market Reaction The stock has not tracked the fundamentals in a straight line. PLTR closed at $129.30 on July 2, 2026, versus $177.75 to start the year, a 27.26% year to date decline. The stock’s one-month change is -15.03%, so clearly momentum has flipped hard in the last week. That said, over five years, Palantir stock is still up 429.05%.
Bull Case The case for long-term holders leans on three facts, all in the filing. First, the business is doubling in the U.S. with expanding, not compressing, margins. Growth of 104% year over year in the U.S. paired with a 60% adjusted operating margin is the profile investors typically pay up to own.
Second, the backlog validates the growth rate. Total remaining deal value reached $11.8 billion, up 98% year over year. Remaining performance obligations climbed to $4.5 billion, up 134% year over year, with net dollar retention hit 150%. This was driven by the fact that Palantir closed 206 deals of $1 million or more and 47 deals of $10 million or more in the quarter.
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Third, cash generation is real and rising. Operating cash flow reached $899.17 million in the quarter, and the balance sheet holds $8 billion in cash, equivalents, and short-term U.S. Treasuries. As CEO Alex Karp put it on the Q1 call, “Our free cash flow this quarter is larger than our revenue a year ago in the same quarter.” Full-year adjusted free cash flow guidance is $4.2 billion to $4.4 billion.
Prediction market participants have started to reflect the shift. Polymarket assigns a 70.5% probability to PLTR hitting $138 in July, with 47.5% for $144 and 32.5% for $150. Sub-$100 outcomes carry 10.5% or less.
Bottom Line For retirement-focused holders, the story is the combination of an 84.71% growth rate, a 60% adjusted operating margin, and a raised full-year outlook calling for 71% growth, layered onto a $296.88 billion market cap.
Certainly, Palantir’s valuation remains rich, with a forward P/E near 80 and a price to sales ratio of 53.54, and the filing lists real risks. Those can best be described as long sales cycles, contracts terminable for convenience, and $201.6 million in quarterly stock-based compensation.
The next test is the company’s upcoming Q2 2026 report, where management has guided revenue of $1.797 billion to $1.801 billion. If Palantir’s U.S. commercial engine holds triple-digit growth into a second consecutive quarter, the $100 billion narrative stops being a narrative.
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Palantir Technologies (PLTR 3.12%) stock tumbled 4% through 12:45 p.m. ET Wednesday.
You can probably blame Michael Burry for that.
Image source: The Motley Fool.
Did Burry just bury Palantir? As StreetInsider.com reports, Burry -- famed for calling the 2008 housing market meltdown before it happened -- has placed short bets against multiple high-profile artificial intelligence names, of which Palantir may have been one. (Specific tickers targeted by Burry have not yet been confirmed.)
And here's the thing: Selling off Palantir on one investor's say-so -- even Burry's -- seems less than prudent, especially when there are so many other, more logical AI names that might be targeted. And when you consider further that we don't even know for sure that Burry sees anything wrong with Palantir stock, and may not be shorting it at all, selling Palantir seems even less prudent.
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Palantir versus the rest Is Palantir an AI stock? Sure. But it's also very much a defense stock selling heaps of (AI-enhanced) high-tech weapons systems to the government in an increasingly dangerous world. This would seem to make Palantir less vulnerable to worries that investment spending to build out AI can't be supported by the revenues AI brings in for the companies selling it.
Is Palantir an expensive stock? At 145 times trailing earnings, it looks expensive. In contrast to more direct AI plays, however, Palantir boasts impressive free cash flow -- $2.7 billion last year, more than its reported net income -- and a slightly more palatable price-to-free cash flow ratio of 115.
With a long-term growth forecast of 54% annually, the stock's not quite cheap enough for me to buy it just yet. But Palantir's advantages over other "AI stocks" look substantial enough that I wouldn't sell it now, either.
Not even if Michael Burry is shorting it.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Palantir Technologies (PLTR 3.12%) is having a down year after a strong multiyear run: So far in 2026, it's off more than 20%. However, one analyst sees the stock having about 30% upside from here.
Earlier this month, analyst Gil Luria of DA Davidson upgraded the stock from neutral to buy and raised his price target from $165 to $175. Luria argued that Palantir has advantages over other software-as-a-service (SaaS) stocks, saying that more enterprises are realizing they need an AI orchestration layer like the one that Palantir has.
Luria also pointed out that building a solution using an orchestration tool that can switch out AI models is paramount, noting that it would have been disastrous for a company if it built a solution on top of an AI model that later got pulled from the market. This happened to Anthropic's Claude Fable 5 and Claude Mythos 5 models, which the company pulled from the market after the U.S. government issued an order prohibiting anyone who was not a U.S. citizen from using them.
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Palantir is one of the most interesting stocks in the market. It trades at a high premium, with a forward price-to-sales (P/S) ratio of 45.5 and a forward P/E of nearly 93.
However, the company has indeed created an important AI orchestration layer that helps reduce AI hallucinations and makes AI more useful for enterprise applications. It can do this because its solution can gather information from a variety of disparate sources and organize it into an ontology, which it then links to real-world objects and processes. The Palantir AIP (Artificial Intelligence Platform) can help customers across industries tackle a multitude of problems, which is why it has been attracting new customers and growing its sales to existing customers.
Image source: The Motley Fool.
This was evident last quarter, when it grew its U.S. commercial revenue by an incredible 133%. Its customer count climbed by 42% year over year, while its net dollar retention was a remarkable 150%. That is the sign of a company whose products are resonating deeply with its customers, as these customers are rapidly expanding their spending with Palantir. The company also tends to have a rapid sales cycle, as it uses its AIP "boot camps" to help potential customers solve some of their actual problems within seven days, demonstrating the value of the product.
While the stock is not cheap, I think that, given Palantir's unique position in the AI ecosystem, it has the potential to become one of the largest companies in the world over the next decade. As such, investors can consider buying shares during dips like those we've seen this year.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Citi Wealth’s CIO Weekly Bulletin flags a subtle but important shift in the global memory landscape: China’s domestic memory chips are now "gaining international recognition."
SNDK stock is moving. See the chart and price action here. Citi Warns On Global Pricing PressureAs buyers start to view Chinese DRAM and NAND as acceptable alternatives rather than last‑resort substitutes, pricing power at established leaders could erode.
Citi points directly to global price pressure risk: China’s chips "gaining international recognition" could "pressure global memory pricing."
In practice, that means hyperscalers and other customers suddenly have more credible suppliers to play off against Micron and SanDisk in contract negotiations.
Even if Chinese producers remain a step behind on power efficiency or density, their willingness to compete aggressively on price can cap upside in contract DRAM and NAND, particularly in commoditized segments like client SSDs, mobile LPDDR, and mid‑range enterprise storage.
When the memory cycle turns down, additional low‑cost capacity from China makes each downturn harsher and delays the usual healing via disciplined supply cuts, warns Citi.
From Oligopoly to Margin OverhangFor Micron and SanDisk, the threat is less about an overnight loss of share and more about a persistent "margin overhang" narrative.
Investors have historically paid up when a handful of global champions could consolidate supply, ride demand shocks from AI and cloud, and then restore profitability through controlled capital spending.
A world in which Chinese DRAM and NAND become standard line items for global procurement desks complicates that playbook. It suggests lower peak margins in up‑cycles, deeper troughs in down‑cycles, and more volatile returns on incremental fabs and technology transitions.
The Citi bulletin captures this asymmetry: recognition for China’s memory producers is a positive development for the new entrants, but it is a valuation headwind for incumbents whose earnings power rests on the assumption that the supply remains tight.
Going forward, a key question for Micron and SanDisk is whether they can differentiate enough to offset the pressure coming from China’s newly recognized memory chip suppliers.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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The company warned that surging demand for artificial intelligence would keep memory supplies tight for years, fundamentally reshaping an industry long known for boom-and-bust cycles.
Now, two of the technology industry’s biggest names appear to be illustrating different sides of that same story.
For Micron investors, Apple’s pricing decision and Samsung’s latest profit outlook aren’t isolated events. Together, they suggest the AI memory thesis Micron outlined is beginning to play out across the broader technology ecosystem.
Apple Showed the Cost of Tight SupplyLast month, Apple raised prices on several hardware products, citing higher costs for memory and storage components as AI infrastructure spending tightened supply.
The move surprised many investors because it highlighted something rarely seen in consumer electronics: memory costs becoming significant enough to influence retail pricing.
For Micron, however, it echoed what management had already been saying.
During its fiscal third-quarter earnings call, CEO Sanjay Mehrotra said the company still had “no line of sight” to when memory supply would catch up with AI-driven demand, adding that tight market conditions were expected to persist beyond calendar 2027.
Samsung Showed Who BenefitsIf Apple demonstrated where those higher costs ultimately land, Samsung’s latest outlook illustrated where much of the pricing power is flowing.
This week, the South Korean electronics company forecasted a sharp year-over-year increase in second-quarter operating profit, driven largely by continued strength in AI memory demand.
While Samsung and Micron report on different fiscal calendars, the guidance reinforces the broader industry dynamic Micron has been describing: AI infrastructure spending is creating a more favorable environment for memory suppliers.
One Thesis, Two OutcomesThe contrast is striking. On one side, device makers such as Apple are paying more for memory and, in some cases, passing those costs on to consumers.
On the other hand, memory manufacturers are reporting stronger profitability as tighter supply improves pricing power.
Micron argued weeks ago that AI had transformed memory from a cyclical commodity into a strategic technology bottleneck.
Recent developments at Apple and Samsung suggest that transformation is becoming increasingly visible beyond Micron’s own earnings reports.
Why It Matters for InvestorsMicron also disclosed roughly $22 billion in long-term customer commitments for its high-bandwidth memory products, underscoring confidence that AI-driven demand will remain strong as hyperscale cloud providers continue to expand their infrastructure.
Apple’s price increases showed the downstream effects of tighter memory markets.
Samsung’s profit forecast highlighted the upstream benefits.
Taken together, they reinforce a thesis Micron has been making for months: as AI spending accelerates, memory is no longer simply another semiconductor component—it’s becoming one of the industry’s most valuable constraints.
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A systemic margin cascade emanating from the KOSPI index triggered a violent, automated liquidation across the broader semiconductor sector on Tuesday. When highly leveraged positions in Asian markets face abrupt margin calls, global hedge funds are frequently forced to liquidate their most liquid holdings to raise cash quickly.
ASML Today
$1,774.94 +27.66 (+1.58%)
As of 02:42 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$683.48▼
$1,999.96Dividend Yield0.61%
P/E Ratio63.68
Price Target$1,854.13
This selling pressure dragged shares of ASML Holding N.V. NASDAQ: ASML down by more than 5% during intraday trading.
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When a macroeconomic liquidity crunch forces trading halts and ETF liquidations, underlying business fundamentals are temporarily ignored. Automated trading algorithms sell what they must to balance their books rather than what they want to sell based on valuation. A high beta of 1.78 exposes ASML to these vicious macroeconomic liquidity vacuums, but these moments often create a mirage of weakness in an otherwise impenetrable fundamental story.
Wall Street Upgrades the Road MapBeneath the superficial chaos dragging ASML down, institutional equity desks are rewriting their valuation models. Wall Street analysts are hiking price targets toward the €2,300 (approx. $2,484) level. These institutions are correctly pricing in a structural $190 billion semiconductor capital expenditure cycle that stretches well into the end of the decade.
The Dutch lithography giant operates an absolute monopoly on the specialized machinery required to manufacture next-generation logic chips. ASML stands as a non-negotiable tollbooth for the artificial intelligence hardware ecosystem. For capital willing to look past short-term noise, the June 7 pullback offers a compelling entry point into one of the market's widest economic moats. Smart money understands that the physical buildout of the artificial intelligence revolution cannot happen without ASML equipment.
The Only Bridge to Next-Gen SiliconTo accurately value the pricing power of ASML, you have to look at the physical limitations of modern silicon manufacturing. Keeping pace with Moore's Law and making smaller, faster, and more power-efficient processors requires drawing impossibly tiny circuitry on silicon wafers.
This requires manipulating light at wavelengths of 13.5 nanometers. ASML controls 100% of the extreme ultraviolet lithography market and holds a 98.5% grip on immersion lithography. Legacy competitors like Canon OTCMKTS: CAJPY and Nikon OTCMKTS: NINOY remain confined to lower-margin, lagging-edge deep ultraviolet systems.
As foundries like Taiwan Semiconductor Manufacturing Company Ltd. NYSE: TSM and Intel Corporation NASDAQ: INTC push toward 2-nanometer and 14A process nodes, they are forced to upgrade to the latest technological breakthrough from ASML. These new High-NA extreme ultraviolet systems cost upward of €350 million (approx. $378 million) each.
Because there is literally no alternative supplier engineering the required optics and illumination sources, these foundries possess zero pricing leverage. ASML dictates the commercial terms entirely. This dynamic structurally provides ASML with a 27.65% net profit margin and a 48.69% return on equity.
Capitalizing on Sovereign RoadworkRetail traders often panic during sector-wide selloffs, but institutional asset managers view these liquidity events as prime accumulation zones. Over the past week, several elite research desks have sharply raised their forward valuations for ASML.
These analysts are tracking the wave of sovereign semiconductor infrastructure spending currently unfolding worldwide. Driven by the CHIPS Act and European industrial subsidies, Western nations are aggressively financing domestic fab construction to reduce reliance on Asian supply chains. This localized capacity buildout requires vast fleets of new extreme ultraviolet systems, effectively insulating ASML's multi-year order book from localized consumer electronics slumps.
Bookings Accelerate Past Delivery LagsAs ASML approaches its July earnings call, market focus will center on second-quarter net bookings rather than recognized revenue. This is a critical accounting mechanic that frequently trips up algorithmic trading models and creates actionable mispricings for investors.
High-NA extreme ultraviolet systems require complex, multi-month on-site installation, followed by rigorous testing at customer fabrication plants, before ASML can officially recognize revenue on its income statement. This structural delivery lag often creates artificial quarterly revenue misses. A financial headline might broadcast that ASML missed quarterly sales estimates, triggering an automated algorithmic sell-off, while the actual backlog of multi-hundred-million-dollar orders quietly continues to swell.
Smart capital looks past delayed revenue recognition and focuses solely on net bookings. Robust order bookings confirm that the $190 billion capital expenditure cycle remains intact and that leading foundries are maintaining their aggressive purchasing timelines for High-NA equipment.
Merging Into the AI SuperhighwayShares of ASML currently trade at a trailing price-to-earnings ratio of around 62. While that multiple appears steep on the surface, aggressive order growth models push the forward price-to-earnings ratio down to a much more digestible 48. This is heavily supported by a projected earnings growth rate of 35.12%. Paying a valuation premium for a true monopoly is a standard equity-market mechanism, especially when that monopoly exercises absolute pricing power over the world's most critical technological supply chain.
Overall MarketRank™77th Percentile
Analyst RatingModerate Buy
Upside/Downside4.7% Upside
Short Interest LevelHealthy
Dividend StrengthWeak
News Sentiment0.44 Insider TradingN/A
Proj. Earnings Growth35.12%
See Full Analysis
While the 0.62% dividend yield appears negligible, ASML heavily supplements its capital return program through aggressive share repurchases. Recent July executions saw ASML confidently repurchasing shares at €1,696.17 (approx. $1,831.86), signaling strong executive conviction in the forward backlog.
Operating a flawless business model does not make ASML immune to equity market volatility. Geopolitical friction presents a persistent headline risk. The Dutch trade ministry is continuing discussions on localized export curbs to China. Aggressive Western fab buildouts largely offset the impact of restricted lagging-edge shipments to Asia, but any unexpected delays in United States or European construction timelines could temporarily stall revenue realization.
The structural necessity of advanced lithography in the AI hardware ecosystem fundamentally decouples ASML from cyclical consumer demand. As long as the sovereign and corporate race for advanced logic continues, leading silicon foundries have no choice but to pay the toll.
Investors aiming to capitalize on the ongoing global semiconductor capital expenditure cycle might consider using beta-driven pullbacks to steadily build a position in ASML before the delayed revenue from High-NA system shipments hits the balance sheet. Cautious investors may prefer to wait for post-earnings clarity on second-quarter net bookings before committing capital to the trade.
Should You Invest $1,000 in ASML Right Now?Before you consider ASML, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ASML wasn't on the list.
While ASML currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Eli Lilly (LLY 0.79%) stock has been winning big when it comes to earnings and stock performance in recent years. And this has a lot to do with the company's leadership in a type of drug that's taken the world by storm: GLP-1 drugs for weight loss. Lilly dominates the market, and its drugs have been bringing in blockbuster revenue.
With the obesity drug market on track to reach nearly $100 billion by the end of the decade, the success story may be far from over. Still, Lilly stock has climbed 400% over the past five years and now trades for more than $1,200. Is it too late to get in on shares of the pharma giant? Let's find out.
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Lilly's story so far Before we talk about the stock's valuation and the company's long-term prospects, here's a look at what's happened so far. Lilly sells a broad range of drugs across treatment areas, and these have driven earnings higher over time. Like many other pharma companies, Lilly offers investors a certain sense of security since patients need their treatments in any economic situation -- and this supports revenue during any environment.
On top of this, over the past few years, Lilly has also offered investors significant growth, and this is due to the company's weight loss portfolio. At the heart of it is tirzepatide, a dual GLP-1/GIP receptor agonist that Lilly sells under the name Mounjaro for type 2 diabetes and as Zepbound for weight loss. In the recent quarter, these products brought in a total of more than $12 billion in sales, helping push Lilly to a total sales gain of 56%.
GLP-1 drugs have become incredibly popular because they're easy to self-administer by injection on a weekly basis, and they've helped people safely and quickly lose weight. This type of drug acts on hormonal pathways involved in digestion, and therefore helps the body manage insulin levels and appetite. GLP-1s act on one hormonal pathway, while dual GLP-1/GIPs act on two.
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60% of the GLP-1 market Novo Nordisk competes with Lilly in this market and originally was the market leader. But over the past year, Lilly progressed and now holds 60% of the U.S. market and 53% of the international one. Both companies recently released oral GLP-1 drugs -- the first of this class in pill format -- and uptake of these has been strong.
At the moment, these two companies dominate, but competition could be on the horizon as other pharma companies and biotech players are studying weight loss candidates. One to note is Viking Therapeutics, which has a phase 3 trial ongoing for its candidate in injectable format and aims to start a phase 3 trial for the oral format before the end of the year. If all goes smoothly, Viking could be among the next to join this valuable market. So Lilly may face increasing competition, though I wouldn't expect a smaller company like Viking to unseat the pharma giant. The good news is that demand is so high for weight loss drugs that there's room for more than just a player or two to succeed.
Lilly's long-term prospects Now, let's consider Lilly's long-term prospects. The idea that there's room for competitors and that Lilly still may maintain its dominance is positive. It's also important to note that Lilly's oral weight loss drug, Foundayo, launched just recently, so it's in the early days of its growth story.
On top of this, Lilly has a strong weight loss drug pipeline, with a very promising candidate in phase 3 studies. This is retatrutide, which acts on three hormonal pathways involved in weight loss and has demonstrated its ability to help people who need to lose a significant amount of weight. Retatrutide delivered strong phase 3 results, and the company plans to share more phase 3 data later in the year.
All of this is reason to be optimistic about Lilly's prospects. But what about valuation? Lilly isn't dirt cheap, but it's less expensive than it was in recent years -- when revenue levels were lower.
So, is it too late to buy Lilly after its gains in recent years? Not at all. The company's weight loss portfolio is driving growth, and the pipeline could reinforce this well into the future. Meanwhile, the stock looks reasonably priced at today's level, making now a great time to buy.
