Key Takeaways Block's Square GPV rose 13% year over year to $61.2B in Q1 2026, with strong international growth.Square expanded in larger merchants as food and beverage GPV and mid-market seller GPV each topped 20% growth.Block added commerce tools and customer wins that support higher payment activity and future GPV growth. Block Inc.'s (XYZ - Free Report) Square business is positioned for faster Gross Payment Volume (“GPV”) growth as international expansion, stronger traction with larger sellers and new commerce solutions drive higher payment activity across its ecosystem. Square's GPV, a key measure of payment activity, increased 13% year over year to $61.2 billion in the first quarter of 2026, or 11.5% on a constant-currency basis.
Growth was broad-based. U.S. GPV rose 8.2% year over year, while international GPV jumped 35%, or 26% on a constant-currency basis. International markets accounted for 22% of total Square GPV, up from 18% a year ago, reflecting the platform's expanding global presence.
Momentum is also accelerating in high-value segments. Food and beverage GPV increased 21% year over year, while mid-market seller GPV grew 22%, marking the strongest growth in both categories since the first quarter of 2023. Larger merchants typically generate higher payment volumes, creating a favorable mix for sustained GPV growth.
Product innovation is opening additional transaction opportunities. Square's Drive-Thru solution enables quick-service restaurants to manage drive-thru, kiosk and in-store orders on one platform, while Neighborhoods, which connects Square sellers with Cash App consumers, expanded to merchants representing $320 million in annualized GPV, up 190% from December.
Customer wins further support GPV’s growth prospects. Square is expanding across larger and multi-location merchants, including Steak Escape, GOLFTEC, Magnolia Soap & Bath Co., Sofive Soccer Centers and Ladurée Canada, aiding continued GPV acceleration.
How Are Block’s Competitors Faring?Toast (TOST - Free Report) supports restaurant POS, payments, ordering and kitchen workflows. In first-quarter 2026, Toast’s ARR grew 26% year over year to $2.2 billion. It added about 7,000 net new locations and generated $126 million of net income plus $179 million of adjusted EBITDA. This scale makes Toast a strong rival in restaurants and QSRs.
Shift4 Payments (FOUR - Free Report) offers integrated payments for restaurants, hospitality, stadiums, gaming and larger merchants. In first-quarter 2026, Shift4 reported $549 million of revenues, up 49% year over year, with EPS of 97 cents. Its strength in high-volume merchant categories makes it relevant as Square moves further upmarket.
XYZ’s Price Performance, Valuation & EstimatesShares of Block have rallied 24.1% over the past three months, outperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.35X, which is at a discount to the Zacks Internet Software industry’s 27.03X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward marginally. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Globe Life (GL - Free Report) Based in McKinney, TX, and founded in 1979, Globe Life Inc. (formerly known as Torchmark Corporation) is an insurance holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products, which include traditional whole life, term life and other life insurance. Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans.
GL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. GL has a Momentum Style Score of A, and shares are up 10.9% over the past four weeks.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.22 to $15.64 per share. GL boasts an average earnings surprise of +1.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GL should be on investors' short list.
Costco (NASDAQ:COST | COST Price Prediction) keeps quietly compounding while the stock market debates AI and rate cuts. Membership fees hit $1.37 billion last quarter, worldwide renewals sit at 89.7%, and comparable sales just accelerated to 9.8%.
Cost stock trades at $950.25, up 10.51% year to date but still 3.18% below where it traded a year ago. Can this stock double to $1,900 by 2032?
Why Costco Shares Are Stuck Despite Accelerating Fundamentals The business is firing, and the stock has done nothing for a year. Costco is down 2.22% over the past month and roughly flat over the last week at 0.38%. Shares peaked near $1,096.50 before rolling over.
The issue is valuation. A trailing P/E of 48 on a consumer defensive name with a beta of 0.872 leaves little cushion when growth expectations reset. The composite prediction sentiment score sits at 53.68, down 9.1 points over 30 days. Tariffs, FX volatility, and rising labor costs keep resurfacing in filings. None of that breaks the story. It just caps the multiple until earnings catch up.
Wall Street Sees Modest Upside. The Long Game Is Bigger The analyst consensus target is $1,082.94, split across 3 Strong Buy, 19 Buy, 13 Hold, 1 Sell, and 1 Strong Sell ratings. Our base case model lands at $1,037.96 with 9.23% upside, and confidence sits at 90%. The bull case tops out at $1,137.96, the bear at $953.83.
Wall Street is anchored to a 12-month window. Analyst bullishness sits at 59%, and earnings acceleration is running at 0.455 year over year. Stretch that six years out and the picture changes materially. Consensus is calibrated for 2026, but 2032 requires a different lens.
The Path to $1,900 Per Share Reaching $1,900 from today’s price of $950.25 would require a gain of 99.9%. That is a clean double.
With forward EPS of $21.69, a price of $1,900 implies a forward P/E of 88x. Our base case of $1,037.96 already implies 48x, meaning the bold target requires roughly 40x of additional multiple expansion unless EPS grows into the number. If Costco compounds EPS at a low double-digit pace through 2032, the forward P/E at $1,900 compresses back toward today’s multiple.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.
Net income grew 15.19% in Q3, membership fee income keeps expanding at 10.7% to 14%, and digitally-enabled comp sales are running 21.5% higher. COO Ron Vachris put the international runway plainly: “We feel very good about the future from ’27 on in our international markets as we continue to see performance both in Asia and Europe to be very strong.”
Warehouse expansion is targeting 30+ new openings per year, and the 247Factor adjustment lands at 1.082. The primary risk is a demand shock that stalls comp sales and forces multiple compression before EPS catches up.
Where Costco Trades Today vs Its Earnings Power At $950.25 against forward EPS of $21.69, Costco trades at a forward P/E of 44x. That is expensive by any historical retail standard, but this is a business with 29.1% return on equity and 21.5% quarterly revenue growth.
Shares sit between a 52-week low of $841.69 and high of $1,096.50. Over the past decade, the stock delivered a 580.09% total return. Doubling from here by 2032 is a slower pace than that.
Is $1,900 Realistic? To reach $1,900 by 2032, Costco needs a gain of 99.9% from today’s price. That is a stretch, but not a fantasy.
Three things need to go right: EPS compounds at a low double-digit rate, international expansion delivers on the 30-warehouse-per-year target, and the forward multiple holds above 40x while earnings grow into it. A prolonged consumer downturn that breaks the comp sales streak derails it. We’ve outlined the blueprint for how Costco could reach $1,900 in 2032.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.
The S&P 500 has soared in recent years amid excitement about artificial intelligence (AI) stocks. Investors piled into these exciting growth stories. In more recent times, though, companies specifically focused on AI have experienced some headwinds, from general worries about the economic environment to concerns about the level of spending on AI. This weighed on the performance of some -- and has pushed certain investors into looking for other growth opportunities.
The AI story certainly isn't over. Demand for AI products and services remains high, and the technology is just starting to be applied in the real world, signaling earnings growth potential ahead. But investors looking for another growth theme, one that may offer a bit more stability, might turn to certain consumer goods players.
Amazon (AMZN 1.83%), Walmart (WMT +1.74%), and Costco Wholesale (COST +1.41%) are excellent options. But, of the three, which is the smartest buy for the second half? Let's find out.
Image source: Getty Images.
Amazon actually is an AI stock, thanks to its Amazon Web Services (AWS) cloud computing arm -- the unit offers AI products and services to its customers, and this has resulted in a $150 billion annual revenue run rate for AWS. But the company also is an e-commerce giant, selling essentials, general merchandise, and even entertainment like books and movies to its customers.
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This e-commerce business has built a significant track record of earnings strength. And earnings may become even stronger in the quarters to come, thanks to Amazon's revamp of its cost structure a couple of years ago. The company cut certain jobs, shifted its U.S. fulfillment system to a regional model from a national one, and made other moves to favor profitability.
Amazon's focus on fast delivery, its broad range of products, and its global presence should keep customers coming back and earnings climbing.
The case for Costco What I like most about Costco's business model is that you, as a customer, generate revenue for the company before you even set foot in a warehouse to shop. This is through membership fees, and these fees are high-margin for the company -- and they actually drive Costco's profit growth.
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To make the story even better, Costco's renewal rates are extremely high. In the company's biggest markets of the U.S. and Canada, renewal rates have topped 90% quarter after quarter. This is fantastic because it offers us visibility regarding earnings ahead. The membership model also is great because once shoppers pay the fee, they will want to amortize it -- so they will likely shop as much as possible at Costco.
All of this has helped this warehouse giant increase earnings over time -- and this business model sets Costco up for victory over the long run too.
The case for Walmart Walmart's focus on low prices makes it a favorite of customers and gives it an advantage in any market environment. The company has also made progress in areas such as digital sales -- something that helps it compete with Amazon -- and membership -- something that helps it compete with Costco. In the recent quarter, worldwide e-commerce sales rose 26%, and membership fee revenue advanced 17%.
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This retail giant also has benefited from its advertising business, offering brands the ability to advertise to gain attention for their products across Walmart's digital platforms and in stores. The business generated 37% growth in the latest quarter.
So, Walmart offers investors a certain level of revenue stability and the potential for growth, a combination that has helped the stock price soar in recent years.
Which retailer is the better buy? Each of these players has proven itself over time and offers solid long-term prospects -- so you can't go wrong by investing in any of them. And each has seen a bit of a sell-off recently, offering investors a potential buying opportunity. But if I could only invest in one of these retail winners for the second half, I would choose Amazon. The company trades for a lower valuation than Walmart and Costco, yet it offers superior revenue growth.
AMZN PE Ratio (Forward) data by YCharts
At the same time, Amazon may benefit from the AI boom, but it also could be a winner during times of slower economic growth, thanks to its e-commerce business and focus on value for the customer. All of this makes Amazon a reasonably priced stock to buy now -- it's one that could excel during any environment in the second half of 2026 and beyond.
M&T Bank Corporation (MTB - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 15, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $4.66 per share in its upcoming report, which represents a year-over-year change of +8.9%.
Revenues are expected to be $2.48 billion, up 3.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.89% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for M&T Bank?For M&T Bank, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.13%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that M&T Bank will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that M&T Bank would post earnings of $4.02 per share when it actually produced earnings of $4.18, delivering a surprise of +3.98%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
M&T Bank appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Dates and Disclosure Events First Solar Shareholders Need to Know: From Tariff Reassurances to a 13.61% Single-Day Stock Collapse
, /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of First Solar, Inc. (NASDAQ: FSLR) securities of a pending securities class action.
THE CASE: A class action seeks to recover damages for investors who purchased FSLR securities between February 26, 2025 and February 24, 2026.
YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Shares declined 33.09 per share on February 25,2026, a drop of 13.61%, closing at 210.12. This followed a prior $27.67 per share decline on January 7, 2026. Investors have until August 24, 2026 to seek lead plaintiff status.
Chronology of Material Events
The lawsuit chronicles a pattern of repeated public assurances spanning nearly twelve months, each allegedly designed to maintain investor confidence while concealed operational realities worsened.
February 25, 2025: FY 2024 Earnings Call Sets the Stage
Management announced reduced Series 6 module output at international facilities, citing an "uncertain U.S. policy environment" and supply-demand imbalance. Despite these acknowledged headwinds, the Company reassured investors that U.S. module prices remained stable and solar energy represented the most efficient near-term capacity solution.
April 2, 2025: Reciprocal Tariffs Announced
President Trump announced reciprocal tariffs including rates of 24% on Malaysia and 46% on Vietnam, directly threatening the economics of First Solar's international production. These rates were later reduced to 10%.
April 29, 2025: Q1 Earnings Call Minimizes Impact
The filing states that management characterized the tariff environment as "long term favorable" and described facility idling as a temporary, strategic measure. The Company acknowledged it "may need to further reduce or idle production" at Malaysia and Vietnam sites but framed the long-term solar demand outlook as "strong."
July 31, 2025: Q2 Earnings Call Reinforces Optimism
As set forth in the complaint, management stated that policy and trade developments had "strengthened" First Solar's competitive position. Guidance was updated to incorporate tariff impacts, but underutilization was positioned as creating future flexibility.
October 30, 2025: Q3 Earnings Call Reveals BP Default
The Company disclosed termination of 6.6 gigawatts of bookings following defaults by British Petroleum affiliates at a base price of 0.294 per watt. A new 3.7-gigawatt U.S.facility was announced, with an estimated 330 million total program cost. The complaint alleges management did not disclose that international facility underutilization could persist throughout 2026.
November 14, 2025: South Carolina Facility Announced
First Solar confirmed the new facility location, projecting commercial operations in the second half of 2026.
January 7, 2026: Jefferies Downgrades to Hold
The analyst flagged that international facilities remained "a pain point" and underutilization was "a concern." Shares fell $27.67, or 10.29%.
February 24, 2026: The Full Picture Emerges
First Solar reported Q4 and FY 2025 results that missed expectations and issued lower-than-expected FY 2026 revenue guidance, citing customer headwinds and permitting delays. Shares fell an additional $33.09, or 13.61%.
See if you can recover losses from your FSLR investment or call (212) 363-7500.
"Timely disclosure of material developments is fundamental to fair and efficient markets. The timeline in this case raises questions about why investors were repeatedly reassured even as operational challenges compounded quarter after quarter," stated Joseph E. Levi, Esq.
Timeline of Alleged Disclosure Failures
February 2025: Management frames international production cuts as strategic while assuring investors of stable U.S. pricing and strong solar demand April 2025: After tariff announcement, management describes the environment as "long term favorable" despite acknowledging potential need to idle facilities July 2025: Management claims trade developments "strengthened" the Company's position while international operations faced growing tariff headwinds October 2025: BP defaults eliminate 6.6 gigawatts of contracted volume; $330 million onshoring commitment announced without disclosure of 2026 underutilization risk January 2026: Analyst downgrade identifies international facilities as ongoing "pain point," triggering first material stock decline February 2026: Full-year results miss expectations and FY 2026 guidance disappoints, triggering a second sharp decline Submit your information to join the FSLR recovery action or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
INSTITUTIONAL INVESTOR REPRESENTATION — Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years. Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the FSLR Lawsuit
Q: When did First Solar allegedly mislead investors? A: The class period runs from February 26, 2025 to February 24, 2026. During this period, the Company allegedly made repeated reassurances about its ability to manage tariff impacts and the favorability of the trade environment, while international facility underutilization and onshoring challenges were mounting.
Q: How much did FSLR stock drop? A: Shares fell approximately 10.29%, or 27.67 per share,on January 7, 2026 following a Jefferies downgrade. Shares then fell an additional 13.61%, or 33.09 per share, on February 25, 2026 after disappointing FY 2025 results and lower-than-expected FY 2026 guidance were announced.
Q: What is the FSLR lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 24, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What do FSLR investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my FSLR shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
New York, New York--(Newsfile Corp. - July 8, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FSLR, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302694
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Stocks with high dividend yields can look very rewarding. Who doesn't like getting 4%, 5%, even 6% or more back on their investment each year, before factoring in capital gains? But these stocks can just as easily woo investors, only for major problems to surface. Next thing you know, a company cuts the dividend, and investors are sitting on steep losses.
It doesn't have to be that way. Some stocks have high dividend yields and strong business fundamentals. These stocks can be game changers for investors looking to boost their portfolios with dividend income.
Here are two top high-yield dividend stocks to buy and hold. They can easily afford their huge dividends, and their compelling price tags make them strong buys for 2026.
Image source: Getty Images.
1. A 6.6% yield and solid earnings growth make Verizon a no-brainer Verizon Communications (VZ +0.95%) is a wireless carrier and one of only three companies that dominate the U.S. communications market. Verizon has approximately 146.8 million wireless retail connections and 16.8 million broadband connections. Connectivity is practically as essential to modern life in America as gas and electric utility service. People depend on their smartphones and devices to communicate, socialize, and work.
As a result, Verizon generates steady revenue streams, making it a fantastic dividend stock. Management has increased the dividend for 20 consecutive years and counting. Importantly, Verizon can afford the payout. Management expects the business to earn at least $21.5 billion in free cash flow this year, which is cash profits left after capital reinvestment. That covers approximately $10 billion of Verizon's total dividend expenditures over the past year.
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Historically, Verizon hasn't grown very fast, but that's starting to change. Connectivity is increasingly important in a world where artificial intelligence (AI) is driving enormous data traffic, and future technologies can require connection to control sources -- autonomous vehicles, for example.
Analysts currently expect Verizon to grow earnings by an average of 8% annually over the next three to five years. That growth and yield make Verizon a table-pounding buy at less than 9 times 2026 earnings estimates.
2. Buy Realty Income for its 5.1% yield and monthly payouts Realty Income (O 0.63%) is one of the world's largest real estate investment trusts (REITs). These are companies that acquire and lease real estate, sharing their income with investors as nonqualified dividends. Realty Income has a global portfolio of 15,571 properties, focusing on retail tenants in recession-resistant industries. Realty Income uses net leases, in which the tenant is responsible for property maintenance, insurance, and taxes. This business model produces very stable rental streams.
Now, here's a sparkling dividend track record. Realty Income has raised its dividend 135 times since going public in 1994, over 31 consecutive years. It also pays a monthly dividend, giving investors steady income year-round.
Last but not least, Realty Income's 2026 guided funds from operations (FFO) per share of $4.41-$4.44 easily covers the $3.25 it has paid out over the past year. Funds from operations are a non-GAAP metric REITs use to quantify their earnings. The FFO coverage leaves a cushion for unexpected downturns, as investors saw during the COVID-19 pandemic.
Today's Change
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Realty Income was never a growth stock; the company's annualized lifetime dividend growth rate is only 4.2%. Management has expanded into new markets in recent years to seek growth opportunities. That has sprinkled some industrial properties, data centers, and casinos into the portfolio.
But make no mistake, Realty Income is a tortoise, not a hare. Fortunately, it doesn't need to be, given that shares trade at only 14 times Realty Income's 2026 FFO guidance. A 5.1% dividend yield is simply icing on the cake.
Realty Income Corp. (O - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this real estate investment trust have returned +4.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks REIT and Equity Trust - Retail industry, to which Realty Income Corp. belongs, has gained 1.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Realty Income Corp. is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +3.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $4.45 points to a change of +4% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $4.6 indicates a change of +3.3% from what Realty Income Corp. is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Realty Income Corp..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Realty Income Corp., the consensus sales estimate for the current quarter of $1.54 billion indicates a year-over-year change of +9%. For the current and next fiscal years, $6.27 billion and $6.78 billion estimates indicate +9% and +8.2% changes, respectively.
Last Reported Results and Surprise HistoryRealty Income Corp. reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $0.33 for the same period compares with $1.06 a year ago.
Compared to the Zacks Consensus Estimate of $1.5 billion, the reported revenues represent a surprise of +3.36%. The EPS surprise was +2.73%.
Over the last four quarters, Realty Income Corp. surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Realty Income Corp. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Realty Income Corp.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is CF Industries (CF - Free Report) . CF is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
We also note that CF holds a PEG ratio of 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CF's industry currently sports an average PEG of 0.71. CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67, all within the past year.
Another valuation metric that we should highlight is CF's P/B ratio of 1.84. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.23. Over the past 12 months, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors will want to recognize that CF has a P/CF ratio of 6.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CF's P/CF compares to its industry's average P/CF of 8.89. Over the past 52 weeks, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
These are only a few of the key metrics included in CF Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CF looks like an impressive value stock at the moment.
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has CF Industries (CF - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
CF Industries is one of 275 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CF's full-year earnings has moved 59.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CF has gained about 48.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 6.8% on average. This shows that CF Industries is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Methanex (MEOH - Free Report) . The stock has returned 15.7% year-to-date.
The consensus estimate for Methanex's current year EPS has increased 123.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CF Industries is a member of the Fertilizers industry, which includes 6 individual companies and currently sits at #73 in the Zacks Industry Rank. This group has gained an average of 9.8% so far this year, so CF is performing better in this area.
Methanex, however, belongs to the Chemical - Diversified industry. Currently, this 31-stock industry is ranked #112. The industry has moved +17.9% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CF Industries and Methanex as they could maintain their solid performance.
Duke Energy (DUK - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this electric utility have returned +3.6%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Utility - Electric Power industry, which Duke Energy falls in, has gained 3.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Duke Energy is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $6.71 points to a change of +6.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.14 indicates a change of +6.5% from what Duke Energy is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Duke Energy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Duke Energy, the consensus sales estimate of $7.7 billion for the current quarter points to a year-over-year change of +2.6%. The $33.66 billion and $35.49 billion estimates for the current and next fiscal years indicate changes of +4.4% and +5.4%, respectively.
Last Reported Results and Surprise HistoryDuke Energy reported revenues of $9.18 billion in the last reported quarter, representing a year-over-year change of +11.3%. EPS of $1.93 for the same period compares with $1.76 a year ago.
Compared to the Zacks Consensus Estimate of $8.42 billion, the reported revenues represent a surprise of +8.97%. The EPS surprise was +7.82%.
Over the last four quarters, Duke Energy surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Duke Energy is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Duke Energy. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Palantir Technologies stock slid Wednesday after a Financial Times report raised concerns about the company's political standing, while shares also ran into technical resistance following a sharp rebound.
Pinterest (PINS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this digital pinboard and shopping tool company have returned +2.3%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Internet - Software industry, which Pinterest falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Pinterest is expected to post earnings of $0.36 per share, indicating a change of +9.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.92 points to a change of +20% from the prior year. Over the last 30 days, this estimate has changed -4.2%.
For the next fiscal year, the consensus earnings estimate of $2.23 indicates a change of +16.2% from what Pinterest is expected to report a year ago. Over the past month, the estimate has changed -1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Pinterest is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Pinterest, the consensus sales estimate of $1.15 billion for the current quarter points to a year-over-year change of +15.4%. The $4.85 billion and $5.47 billion estimates for the current and next fiscal years indicate changes of +15% and +12.8%, respectively.
Last Reported Results and Surprise HistoryPinterest reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of +17.8%. EPS of $0.27 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $963.8 million, the reported revenues represent a surprise of +4.53%. The EPS surprise was +22.73%.
Over the last four quarters, Pinterest surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pinterest is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Pinterest. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Micron (MU - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Micron currently has an average brokerage recommendation (ABR) of 1.31, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 42 brokerage firms. An ABR of 1.31 approximates between Strong Buy and Buy.
Of the 42 recommendations that derive the current ABR, 33 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 78.6% and 11.9% of all recommendations.
Brokerage Recommendation Trends for MU
Check price target & stock forecast for Micron here>>>
The ABR suggests buying Micron, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MU a Good Investment?Looking at the earnings estimate revisions for Micron, the Zacks Consensus Estimate for the current year has increased 23.8% over the past month to $73.86.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Micron. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Micron may serve as a useful guide for investors.
SummaryMicron Technology, Inc. delivered an extraordinary Q3, prompting a rating upgrade to buy as AI-driven demand fuels record revenue and margin growth.MU Q3 revenues soared 346% y/y to $41.46B, with gross margins at 84.6% and operating margins at 80.4%, surpassing even leading fabless peers.Management guided Q4 revenues to $50B and gross margins to 86%, with $100B in minimum contracted revenue de-risking future capex.Despite recent market jitters and a 30% pullback from highs, MU’s structural AI demand and take-or-pay contracts support a bullish long-term thesis. JHVEPhoto/iStock Editorial via Getty Images
I wanted to go over Micron Technology, Inc.'s (MU) Q3 earnings, which reignited my confidence in the company and, given the recent drop in its share price, allowed me to change my rating back
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tech retakes command of markets for Wednesday's trading session, which @CharlesSchwab's Nathan Peterson points to as the most important corner of Wall Street. He talks about the rampant volatility gripping single stocks like Micron (MU) and ETFs like the PHLX Semiconductor Index (SOX) to explain why he sees "bias to the upside.
, /PRNewswire/ -- The Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Zillow Group, Inc. ("Zillow" or the "Company") (NASDAQ: Z, ZG).
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ZILLOW GROUP, INC. (Z, ZG), CONTACT THE LAW OFFICES OF HOWARD G. SMITH BEFORE AUGUST 10, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Is The Lawsuit About?
The complaint filed alleges that, between February 11, 2025 and May 7, 2026, Defendants failed to disclose to investors that: (1) Zillow's agreement with Redfin was not a "partnership," but rather an acquisition of Redfin's business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact:
Howard G. Smith, Esq.,
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Call us at: (215) 638-4847
Email us at: [email protected],
Visit our website at: www.howardsmithlaw.com.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
NEW YORK, July 08, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ: Z) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zillow securities between February 11, 2025 and May 7, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/Z.
Zillow Case Details
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:
(1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business;
(2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws;
(3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and
(4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What's Next for Zillow Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/Z. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zillow you have until August 10, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zillow Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zillow Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
LOS ANGELES, July 08, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to [email protected].
Via Transportation, Inc. (NYSE: VIA)
Class Period: September 9, 2025 – June 9, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s ARR per customer was declining and that existing regulatory issues would hinder its “land and expand” strategy in Germany; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Via Transportation shareholder who suffered a loss, click here to participate.
Zillow Group, Inc. (NASDAQ: Z, ZG)
Class Period: February 11, 2025 – May 7, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Zillow’s agreement with Redfin was not a “partnership,” but rather an acquisition of Redfin’s business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Zillow shareholder who suffered a loss, click here to participate.
ADMA Biologics, Inc. (NASDAQ: ADMA)
Class Period: August 9, 2024 – March 25, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) ADMA engaged in an undisclosed related party transaction; (2) ADMA used channel stuffing to create an appearance of revenue; (3) ADMA lacked adequate internal controls; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are an ADMA Biologics shareholder who suffered a loss, click here to participate.
Erasca, Inc. (NASDAQ: ERAS)
Class Period: January 14, 2025 – April 26, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) ERAS-0015’s preclinical data was based on improper comparisons to RevMed and placed Erasca at risk of violating patent and trade secret protections; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are an Erasca shareholder who suffered a loss, click here to participate.
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To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007 [email protected]
www.frankcruzlaw.com
Key Takeaways TSMC outperformed the sector and key peers over the past year amid strong AI-driven demand.TSM expects more than 30% full-year 2026 revenue growth and higher capital spending to expand capacity.TSMC's 2nm, A16 and expanding 3nm capacity support growth across smartphone and HPC AI applications. The global semiconductor foundry market is attracting growing investor interest, driven by advancements in artificial intelligence (AI), machine learning, 5G and the Internet of Things (IoT). Foundries continue to heavily invest in research and development to offer advanced process nodes, helping meet demand for these high-tech applications. According to Fortune Business Insights, the market is projected to witness a CAGR of 3.4% through 2026-2034, expanding from $175.1 billion in 2025. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, dominates this space with more than 70% market share.
Over the past year, the stock has surged 90.4%, outperforming the Zacks Computer and Technology sector’s 37.2% gain and the S&P 500 composite’s 24.9% return. TSMC also outpaced peers GlobalFoundries (GFS - Free Report) and ON Semiconductor (ON - Free Report) , or onsemi, both of which gained 58.9% over the same period.
TSM Stock’s 12-month Performance
Image Source: Zacks Investment Research
Based on its last closing price, TSM stock is trading above its 50-day and 200-day simple moving averages (SMAs), signaling sustained bullish momentum.
TSM Technical Indicator
Image Source: Zacks Investment Research
Tailwinds Supporting TSMCTSMC reported May 2026 consolidated net revenues of NT$416.98 billion (New Taiwan Dollars), up 1.5% from April 2026 and 30.1% from May 2025. For the first five months of 2026, consolidated revenues totaled NT$1.96 trillion, marking a 30% increase compared with the same period last year.
Robust AI-related demand underpins the company’s growth outlook. Management stated that the shift from generative AI and the query mode to agentic AI and command and action mode is driving higher token consumption and increasing the need for computation, supporting demand for leading-edge silicon. TSMC continues to see a strong signal and positive outlook from its customers as well as cloud service providers, maintaining a high level of conviction in the multiyear AI megatrend.
Performance-wise, first-quarter 2026 revenues increased 6.4% sequentially to $35.9 billion, slightly ahead of the company’s guidance. Gross margin expanded by 390 basis points (bps) sequentially to 66.2%, driven by cost improvement efforts, a higher overall capacity utilization rate and a more favorable foreign exchange rate. Operating margin improved 410 bps sequentially to 58.1% due to operating leverage.
TSMC’s 2-nanometer (N2) and A16 technologies continue to lead the industry in addressing the demand for energy-efficient computing, with almost all the innovators working with TSMC. N2 is ramping up successfully in multiple phases at both the company’s Hsinchu and Kaohsiung sites, led by strong demand from both smartphone and High-Performance Computing (“HPC”) AI applications.
At the same time, the company is stepping up its capital expenditure to expand its global 3-nanometer capacity. The expansion spans Taiwan, Arizona and Japan, alongside 5-nanometer tool conversions and capacity optimization across N7, N5 and N3 nodes. TSMC’s A14 technology development is also on track, for which it is seeing a high level of customer interest and engagement from both smartphone and HPC applications.
TSMC’s Near-Term Financial OutlookTSMC remains confident that full-year 2026 revenues will grow by more than 30% in U.S. dollar terms, reflecting the strength of its differentiated technology and broad customer base.
For the second quarter, the company expects revenues between $39 billion and $40.2 billion, representing 10% sequential growth and 32% year-over-year growth at the midpoint. Based on an exchange rate assumption of $1 to 31.7 New Taiwan Dollars, the second-quarter gross margin is projected at 65.5%-67.5% and operating margin at 56.5%-58.5%. Management noted that the initial ramp-up of its 2-nanometer technology will dilute gross margin by 2%-3% for the year.
TSMC also expects capital expenditures to trend toward the high end of its previously announced $52-$56 billion range as it expands capacity to support customer demand. Despite the elevated spending, management reiterated its focus on delivering profitable growth for shareholders.
TSM Stock’s Estimate TrendAt present, the Zacks Consensus Estimate expects TSMC’s earnings per share (EPS) to grow 44.1% to $15.35 in 2026, followed by another 27% increase to $19.50 in 2027. Analyst estimates for both years have moved higher over the past three months. The company’s revenues are expected to grow 32.3% in 2026 and another 26.6% in 2027.
Image Source: Zacks Investment Research
How Valuation Metrics Look for TSMCBased on the forward 12-month Price/Earnings (P/E), TSM trades at 25.84X, slightly above its median of 24.33X and the 24.98X sector average. In contrast, GFS trades at a P/E of 38.63X, while ON sits with 24.35X.
TSM’s One-Year P/E
Image Source: Zacks Investment Research
ConclusionTSMC benefits from strong demand for its leading-edge process technologies. The performance of its key profitability metrics is supported by cost improvement efforts and a high-capacity utilization rate. The higher level of capital spending reflects management’s confidence in delivering profitable growth to shareholders and also capturing long-term growth opportunities. At the same time, TSMC remains well-positioned to continue capitalizing on the strong industry tailwinds.
The stock has significantly outperformed the sector and other peers over the past 12 months. From a valuation standpoint, TSM is trading close to both its historical median and sector average. Backed by positive earnings estimate revisions, the stock appears to be an attractive investment opportunity.
TSM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Eli Lilly reached a record high as a higher analyst price target reinforced long-term growth expectations. LLY's Mounjaro and Zepbound posted strong prescription growth, while oral Foundayo expands beyond injectables.LLY may benefit from broader Medicare access as the GLP-1 Bridge program improves affordability. Eli Lilly (LLY - Free Report) shares climbed to another all-time high of $1,235.56, pushing the drugmaker's market capitalization to roughly $1.13 trillion. The rally gained further support after a J.P. Morgan analyst reportedly raised the target price for LLY from $1,300 to $1,400, implying roughly 13% upside from current levels despite the stock already trading at record highs. The revision reflects growing confidence that Lilly's leadership in obesity and diabetes treatments can continue driving earnings growth over the long term.
The bullish outlook is underpinned by Eli Lilly’s continued dominance in the rapidly expanding GLP-1 market. Lilly's blockbuster therapies Mounjaro and Zepbound [for type II diabetes (T2D) and obesity, respectively] continue to post strong prescription growth. Its newly approved oral obesity therapy, Foundayo (orforglipron), extends Lilly's obesity franchise beyond injectable treatments following its U.S. launch. The drug adds another long-term growth lever for the company, with additional global regulatory filings expected to further expand its commercial opportunity.
The investment thesis also reflects confidence that the obesity market remains significantly underpenetrated. Lilly is well-positioned to benefit as awareness rises, treatment adoption accelerates and reimbursement improves across major markets. The company has steadily expanded its presence internationally while continuing to gain U.S. market share, supporting the view that its growth runway remains far from exhausted.
A major near-term catalyst is the Medicare GLP-1 Bridge program, which became effective on July 1. The program allows eligible Medicare Part D beneficiaries to obtain Lilly's Zepbound and Foundayo for $50 per month through the end of 2027, substantially improving affordability for millions of eligible patients who previously had limited access to obesity medicines. While the program also covers competing GLP-1 therapies, it expands the overall addressable market by lowering one of the biggest barriers to treatment.
The reimbursement expansion, however, does not hand Lilly an exclusive advantage. Rival company Novo Nordisk's (NVO - Free Report) Wegovy injection and oral formulation for obesity are also available under the same Medicare program at the identical monthly copay. Instead of reimbursement determining market winners, competition is increasingly shifting toward product differentiation. Lilly arguably enters this phase from a position of strength. Zepbound has demonstrated superior weight-loss efficacy versus Wegovy in head-to-head studies. At the same time, Foundayo offers a simpler once-daily oral dosing regimen without food or drink restrictions, potentially improving patient convenience and adherence.
After an exceptional rally, valuation naturally becomes a big consideration for investors. Yet, premium valuations often persist when earnings continue to outpace expectations. With multiple blockbuster GLP-1 products, an expanding obesity market, improving reimbursement and a growing international opportunity, Lilly's long-term fundamentals remain compelling. While near-term volatility is always possible after such a strong run, the latest price-target increase suggests many on Wall Street still see meaningful upside, indicating the stock may be expensive — but not necessarily overpriced — for investors with a long-term horizon.
Lilly's GLP-1 Franchise Faces Rising Competitive PressureEli Lilly and Novo Nordisk remain the two dominant players in the fast-growing obesity market. Competition is also intensifying in the oral obesity segment, where Lilly's Foundayo challenges Novo Nordisk's Wegovy pill. While the Wegovy pill has surpassed three million U.S. prescriptions within six months of launch, demonstrating strong early adoption, Foundayo's simpler dosing regimen could help it narrow the gap.
Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Stock Price, Valuation and EstimatesShares of Eli Lilly have gained 15% year to date compared with the industry’s 11.8% growth. During the same time frame, the company has also outperformed the sector and the S&P 500, as seen in the chart below.
LLY Stock Price MovementImage Source: Zacks Investment Research
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 30.70 forward earnings, higher than 18.77 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock ValuationImage Source: Zacks Investment Research
Estimates for Eli Lilly’s 2026 earnings have deteriorated from $35.67 to $35.60 per share in the past 60 days, and estimates for 2027 earnings have improved from $44.48 to $44.58 per share over the same time frame.
LLY Estimate MovementImage Source: Zacks Investment Research
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments (TXN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this chipmaker have returned +1.6%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Semiconductor - General industry, which Texas Instruments falls in, has lost 2.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Texas Instruments is expected to post earnings of $1.90 per share for the current quarter, representing a year-over-year change of +34.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $7.66 points to a change of +40.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $8.77 indicates a change of +14.4% from what Texas Instruments is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Texas Instruments is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Texas Instruments, the consensus sales estimate for the current quarter of $5.22 billion indicates a year-over-year change of +17.4%. For the current and next fiscal years, $20.76 billion and $22.81 billion estimates indicate +17.4% and +9.9% changes, respectively.
Last Reported Results and Surprise HistoryTexas Instruments reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +18.6%. EPS of $1.68 for the same period compares with $1.28 a year ago.
Compared to the Zacks Consensus Estimate of $4.52 billion, the reported revenues represent a surprise of +6.79%. The EPS surprise was +22.63%.
Over the last four quarters, Texas Instruments surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Texas Instruments is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Texas Instruments. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways Five semiconductor stocks appear well-positioned to benefit from the ongoing AI infrastructure boom.AI demand is boosting chips for networking, connectivity, power delivery and advanced packaging.Global semiconductor sales hit a record $120.6 billion in May 2026, up 104.1% year over year. Semiconductor stocks have been the primary beneficiaries of the AI boom. As the spending on AI infrastructure development and deployment from leading AI companies, hyperscalers, AI fabs and sovereigns is expected to increase manifold, the prospects for semiconductor companies remain hugely positive.
The semiconductor companies offering compute, scale-out networking, storage, scale-up interconnect, custom AI application-specific integrated circuit chips, optical communication and power delivery chips are benefiting from the huge spending opportunity.
A deeper dive into the physical layer of the AI domain reveals that companies providing high bandwidth memory and advanced packaging are likely to gain tremendously as they remain among the most supply-constrained segments amid the massive demand. Companies building retimers, Compute Express Link, Serializer/Deserializer, optical Digital Signal Processors and Transimpedance Amplifiers are also playing a crucial role.
Similarly, networking and optical connectivity chips represent some of the most structurally expanding opportunities, while power delivery semiconductors and signal-conditioning chips remain relatively overlooked. The global semiconductor sales reached a record $120.6 billion in May 2026, which rose 9.2% sequentially and 104.1% year over year, marking the 15th consecutive month. This is an ideal time to hunt for the most potent and silent winner of the semiconductor arena for July.
Investors looking to benefit from semiconductor companies gaining from the AI boom in July 2026 should consider these stocks: Microchip Technology (MCHP - Free Report) , Semtech (SMTC - Free Report) , Texas Instruments (TXN - Free Report) , Amtech Systems (ASYS - Free Report) and Vishay Intertechnology (VSH - Free Report) . These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksMicrochip Technology is expanding its presence in AI data center connectivity through PCIe Gen6 switches and retimers, which help move data efficiently among processors, accelerators and other components. The company secured six Gen6 switch design wins ahead of its planned production ramp in the fiscal fourth quarter.
In the fourth quarter of fiscal 2026, MCHP’s net sales surged 35.1% year over year, while non-GAAP earnings per share (EPS) increased 25.2%. The Zacks Consensus Estimate for fiscal 2027 revenues and EPS suggests a year-over-year increase of approximately 32% and 88%, respectively. The consensus mark for fiscal 2027 earnings has been revised upward over the past 30 days.
Currently, Microchip Technology sports a Zacks Rank #1 and has a Growth Score of B.
Semtech is benefiting from AI-driven data center networking demand, with FiberEdge supporting 800G deployments and CopperEdge expanding its opportunity as 1.6T ramps begin. Data center sales rose 39% year over year in the first quarter of fiscal 2027, while LoRa and high-end consumer products provide additional growth drivers.
The Zacks Consensus Estimate for fiscal 2027 revenues and EPS suggests a year-over-year increase of approximately 29% and 55%, respectively. The consensus mark for fiscal 2027 earnings has remained unchanged for the past 30 days. Currently, Semtech sports a Zacks Rank #1 and has a Growth Score of B.
Texas Instruments is benefiting from accelerating AI data center demand for analog and power management chips used in servers, networking equipment and power delivery systems. As AI workloads increase rack power density and energy-efficiency requirements, Texas Instruments’ broad power semiconductor portfolio, internal manufacturing scale and 300-millimeter wafer capacity position it to benefit from expanding AI infrastructure investment.
The Zacks Consensus Estimate for TXN’s 2026 revenues and EPS suggests a year-over-year increase of approximately 17% and 41%, respectively. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Texas Instruments carries a Zacks Rank #2 and has a Growth Score of B.
Vishay Intertechnology is benefiting from rising AI infrastructure demand for power management components used in servers and data centers. Its portfolio includes high-voltage MOSFETs, capacitors, power inductors and current-sense resistors for AI power supplies and monitoring systems. Growing deployments of 800G and 1.6T networking platforms are also tailwinds for VSH.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2026 revenues suggests a year-over-year increase of approximately 16.7%. The estimate for VSH is pegged at an earnings of 75 cents per share in 2026, indicating an improvement from a loss of 5 cents in 2025. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Vishay Intertechnology sports a Zacks Rank #1 and has a Growth Score of B.
Vishay Intertechnology, Inc. Price and Consensus
Vishay Intertechnology, Inc. price-consensus-chart | Vishay Intertechnology, Inc. Quote
Amtech Systems is benefiting from rising AI infrastructure demand for advanced packaging and AI server board assembly equipment. AI-related sales exceeded 30% of thermal processing solutions revenues in the second quarter. Strong bookings, panel-level packaging demand and next-generation equipment investments position Amtech to benefit as AI chips become larger and packaging requirements intensify.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 revenues and EPS suggests a year-over-year increase of approximately 5% and 540%, respectively. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Amtech Systems sports a Zacks Rank #1 and has a Growth Score of A.
RTX (RTX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this an aerospace and defense company have returned +10.6% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Aerospace - Defense industry, to which RTX belongs, has gained 4.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
RTX is expected to post earnings of $1.66 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $6.91 points to a change of +9.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.53 indicates a change of +9% from what RTX is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, RTX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For RTX, the consensus sales estimate for the current quarter of $22.89 billion indicates a year-over-year change of +6.1%. For the current and next fiscal years, $93.91 billion and $100.45 billion estimates indicate +6% and +7% changes, respectively.
Last Reported Results and Surprise HistoryRTX reported revenues of $22.08 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $1.78 for the same period compares with $1.47 a year ago.
Compared to the Zacks Consensus Estimate of $21.55 billion, the reported revenues represent a surprise of +2.43%. The EPS surprise was +17.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
RTX is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about RTX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Wall Street expects a year-over-year increase in earnings on higher revenues when Morgan Stanley (MS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 15. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis investment bank is expected to post quarterly earnings of $2.80 per share in its upcoming report, which represents a year-over-year change of +31.5%.
Revenues are expected to be $19.02 billion, up 13.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.68% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Morgan Stanley?For Morgan Stanley, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.38%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Morgan Stanley will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Morgan Stanley would post earnings of $3.06 per share when it actually produced earnings of $3.43, delivering a surprise of +12.09%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Morgan Stanley appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Financial - Investment Bank industry, Citigroup (C - Free Report) , is soon expected to post earnings of $2.65 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +35.2%. This quarter's revenue is expected to be $23.68 billion, up 9.3% from the year-ago quarter.
The consensus EPS estimate for Citigroup has been revised 1.7% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.31%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Citigroup will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
ServiceNow (NOW - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of software that automates companies' technology operations have returned +3.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Computers - IT Services industry, to which ServiceNow belongs, has lost 5.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
ServiceNow is expected to post earnings of $0.86 per share for the current quarter, representing a year-over-year change of +4.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $4.13 points to a change of +17.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $5 indicates a change of +21% from what ServiceNow is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, ServiceNow is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of ServiceNow, the consensus sales estimate of $3.92 billion for the current quarter points to a year-over-year change of +22%. The $16.18 billion and $19.11 billion estimates for the current and next fiscal years indicate changes of +21.9% and +18.1%, respectively.
Last Reported Results and Surprise HistoryServiceNow reported revenues of $3.77 billion in the last reported quarter, representing a year-over-year change of +22.1%. EPS of $0.97 for the same period compares with $0.81 a year ago.
Compared to the Zacks Consensus Estimate of $3.75 billion, the reported revenues represent a surprise of +0.57%. The EPS surprise was +2.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
ServiceNow is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about ServiceNow. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Salesforce (NYSE:CRM | CRM Price Prediction) and ServiceNow (NYSE:NOW) both just delivered results that reset the enterprise AI conversation. Salesforce posted $11.13 billion in Q1 FY27 revenue on May 27, 2026, leaning on Agentforce and a massive buyback.
ServiceNow closed FY25 on January 28, 2026 with $3.568 billion in Q4 revenue and a wave of security-focused acquisitions. Two AI platforms, two very different playbooks.
Agentforce Carries Salesforce. Workflow M&A Carries ServiceNow. Salesforce is monetizing agents faster than most skeptics expected. Agentforce ARR hit $1.2 billion, up 205% year over year, and combined AI plus data ARR reached nearly $3.40 billion. Customers processed 3.8 billion Agentic Work Units, with more than 50% of Agentforce and Data 360 bookings coming from existing accounts. That is a healthy signal that Customer 360 remains sticky.
ServiceNow is playing a wider game. Now Assist net new ACV more than doubled year over year, and the platform closed 244 transactions above $1 million in net new ACV.
CEO Bill McDermott framed the mission bluntly: “We are building the AI control tower for business reinvention so enterprises can operate securely in an agentic AI world.” The Moveworks close, plus pending deals for Armis and Veza, push ServiceNow deeper into security and identity.
Business Driver Salesforce ServiceNow Growth Engine Agentforce + Data 360 Now Assist + workflow M&A Revenue Growth 13.3% YoY 20.66% YoY Capital Strategy $25B debt-funded ASR $5B buyback + acquisitions One Buys Back Stock. The Other Buys Companies. Salesforce is defending its core with a very expensive fence. The $25 billion accelerated share repurchase cut diluted shares from 970 million to 871 million, but noncurrent debt jumped to $39.3 billion from $10.4 billion.
Benioff called it “an outstanding quarter”, yet investors have not been convinced: CRM is down 36.97% year to date. ServiceNow is spending on capability instead of shares, and it has bled harder, off 47.35% over the past year.
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Valuation tells the tension. CRM trades at a forward P/E of 12x with a PEG of 0.779. NOW trades at a forward P/E of 25x and an EV/EBITDA of 33x. You pay up for the growth rate.
The Next Test Is Whose Agents Get Adopted Fastest I will be watching cRPO. Salesforce guided FY27 revenue of $45.90 billion to $46.20 billion, with cRPO at $33.6 billion, up 14%.
ServiceNow guided FY26 subscription revenue of $15.53 to $15.57 billion with cRPO growth of 22.5%. If McDermott’s “AI-driven CRM” language turns into real wins against Customer 360, the growth gap widens. Reddit already smells the fight: a viral investing thread framed Salesforce’s Informatica buy as proof the disruption is real.
Why I Lean Toward ServiceNow, But Only Just If you want cheap cash flow and a shareholder yield story, Salesforce fits. A PEG under 0.8 and $6.556 billion in Q1 free cash flow are hard to ignore, and the $0.42 quarterly dividend adds a floor. My hesitation is the debt: leveraging up to buy your own stock while a competitor targets your customers is a defensive move dressed as confidence.
I lean toward ServiceNow for the next 18 months because growth is accelerating while margins expand. Non-GAAP operating margin reached 31%, FCF margin hit 57% in Q4, and the Armis and Veza deals give the platform something Salesforce lacks: a credible security layer for agentic workflows.
The valuation is steep, which is worth noting given the growth premium. If Agentforce bookings decelerate next quarter, I revisit the whole thesis.
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SummaryIntuit is rated a "buy," with shares seen as fundamentally undervalued despite recent volatility and AI disruption fears.INTU delivered strong Q3 results, raised FY 2026 guidance, and announced a 17% workforce reduction alongside increased shareholder returns.AI-driven platform strategy, robust margins, and expansion into mid-enterprise markets underpin the growth thesis, with risks seen as over-discounted.Technical signals show bullish divergence, with potential for INTU to reach $340 this summer and intrinsic value estimated near $400. Sundry Photography/iStock Editorial via Getty Images
We are now nearly five months removed from the so-called “SaaSpocalypse” peak. In late February 2026, Citrini Research published a dystopian vision of a world dominated by AI. That note sent software stocks into a tailspin, given their perceived susceptibility to disruption.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of INTU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Apple Inc (NASDAQ:AAPL, XETRA:APC) announced a new multiyear agreement with Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) valued at more than $30 billion to design and manufacture custom silicon components and wireless connectivity technologies in the United States, marking the company's largest commitment under its American Manufacturing Program.
The agreement is expected to result in the production of more than 15 billion chips in the US and includes a $1.5 billion expansion and modernization of Broadcom's manufacturing facility in Fort Collins, Colorado. Apple said the investment will support hundreds of US jobs.
Under the agreement, Broadcom will manufacture advanced radio frequency components, including FBAR filters, as well as wireless connectivity technologies used in Apple products.
Apple said the deal advances its efforts to build a domestic silicon supply chain and forms part of its broader pledge to invest $600 billion in the US economy over four years through manufacturing, job creation and technology development.
"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Apple CEO Tim Cook said in a statement.
"The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect."
Broadcom President and CEO Hock Tan said the company was pleased to expand its manufacturing footprint in Fort Collins as part of its long-standing relationship with Apple.
Broadcom has supplied Apple with connectivity components for years. Apple said the expanded partnership will focus on producing custom silicon and wireless components used to enable cellular, Wi-Fi and Bluetooth connectivity across its devices.
The company did not disclose when the additional manufacturing capacity is expected to become operational.
Shares of Apple opened flat at about $310, while Broadcom shares added more than 2% at $379.
Along with Nvidia, Broadcom (AVGO +4.57%) has probably been one of the absolute best AI stocks over the past several years.
The leading manufacturer of semiconductor chips for communications networks just had blowout results in its fiscal second quarter. Overall revenue surged 48% year over year to a record $22.8 billion. Net income rose 88% to $9.3 billion, and adjusted earnings climbed 54% to $2.44 per share, beating estimates.
The main driver of revenue has been AI. In the quarter ended May 3, semiconductor revenue from AI rose 143% year over year to $10.8 billion, exceeding its forecast. CEO Hock Tan said the AI revenue gains were fueled by increasing demand for custom AI accelerators and AI networking.
Image source: Getty Images.
Furthermore, Tan expects semiconductor revenue from AI to rise more than 48% sequentially and 200% year over year to $16 billion in the fiscal third quarter.
So why did the stock tank 13% on the day after earnings, and why is Broadcom's share price down roughly 22% since then to its current $376 per share?
Explosive growth not enough? It can be a head-scratcher -- but it's also an opportunity. There were likely a couple of reasons, but they shouldn't be too much of a concern.
First, on the Q2 earnings call, Tan called for AI semiconductor revenue growth of 180% year over year to $56 billion. However, that would mean sequential growth for the fourth quarter would be slightly lower, around 30%, than what is anticipated for Q3.
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Tan also maintained the $100 billion AI revenue guidance for fiscal 2027, which would be about 78% year-over-year growth. Some analysts thought it would be raised based on its strong performance and its $73 billion in AI backlog announced at the start of 2026, to be contracted over the ensuing 18 months.
There was also a projected dip for the gross margin from 77.1% in Q2 to a projected 74% in Q3, due mainly to the rapid increase in sales of lower-margin AI chips.
Should you buy Broadcom on the dip? These projections are more than likely just management being overly cautious due to uncertainities in the global economy. But I would fully expect Broadcom to exceed these targets.
The primary reason for the sell-off is profit-taking. At that point, Broadcom stock had reached an all-time closing high of roughly $480 per share -- up 38% year-to-date and 86% over the past 12 months. The price-to-earnings (P/E) ratio had jumped to over 80 times earnings, with a forward P/E ratio near 40.
There was also broader uncertainty about high AI spending and flattening growth among AI stocks, combined with sky-high valuations after a strong April and May.
The 22% sell-off has brought Broadcom stock to a much more reasonable valuation level. Its P/E ratio is still high at 60, but its forward P/E is just 19 -- a bargain for a stock with this type of backlog and earnings power. Even better, it is undervalued relative to its long-term earnings potential, with a five-year price/earnings-to-growth (PEG) ratio of just 0.4.
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Apple has signed a $30 billion+ multiyear deal with Broadcom to design and produce more than 15 billion U.S.-made custom wireless connectivity chips for Apple products.
As part of the deal, Apple will put $1.5 billion in capital expenditure investment to help expand Broadcom’s manufacturing facility in Fort Collins, Colorado. The tie-up builds on Apple’s existing relationship with Broadcom, which is the iPhone-maker’s primary hardware supplier for wireless components.
The deal is part of Apple’s commitment to invest $600 billion in the U.S. economy over the next four years — a pledge made in response to mounting pressure from the Trump administration.
Last year, Trump threatened to institute new tariffs on Apple products unless the company moved core iPhone manufacturing to the U.S. Trump later reversed the policy. iPhone assembly has remained overseas.
Apple promises the commitment with Broadcom will lead to “hundreds of American jobs,” a relatively small number compared to the $30 billion price tag.
Jenny Horne talks about Apple's (AAPL) new partnership with Broadcom (AVGO). She says the $30 billion deal to extend the partnership is Apple's largest agreement so far under its American manufacturing program.
AVGO stock is moving. See the chart and price action here. The decline comes after a powerful rally driven by AI demand and data center spending. Despite the recent volatility, UBS argues the broader setup in semiconductors remains fundamentally strong rather than speculative.
UBS Says It’s Not A Bubble "With earnings largely keeping pace with share prices, we remain constructive on the semis complex. Consensus estimates currently imply earnings growth of 92% for the index this year and a further 40% in 2027," UBS said.
Micron remains closely tied to memory pricing cycles, with high-bandwidth memory demand benefiting from AI server buildouts. Pricing discipline and constrained supply have helped stabilize margins, and the stock’s recent pullback reflects broader sector rotation more than company-specific weakness.
Broadcom, a SOXX heavyweight, continues to benefit from custom AI chip demand and infrastructure software exposure. Its diversified revenue base has made it a key proxy for AI monetization, and the stock’s retracement follows a sharp run-up rather than a deterioration in fundamentals.
The TakeawayUBS contrasts the current environment with the late-1990s dot-com era, when valuations expanded far ahead of earnings.
Current multiples, while elevated relative to historical averages, remain grounded in tangible growth expectations tied to AI, cloud, and advanced computing.
The firm’s outlook suggests the recent correction may represent consolidation within a longer-term uptrend rather than a signal of excess.
Lower entry points for leading names such as Micron and Broadcom may draw renewed interest from investors seeking exposure to semiconductor growth themes.
While macro risks and rate expectations can still drive short-term swings, UBS maintains that the sector’s earnings trajectory provides a stronger foundation than in past speculative cycles.
Photo: RobinRmD / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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On The AI Investor Podcast, one point kept resurfacing when the panel discussed index concentration risk:
“Nvidia is 8.5% of the NASDAQ, but it’s expected to contribute 37% of next year’s profits for the entire index. Nvidia, Micron, Broadcom combined, they’re just a little under half of all the profit contributions to the NASDAQ index itself.”
That structural fact is why Broadcom (NASDAQ:AVGO | AVGO Price Prediction) has quietly become the semiconductor stock investors should keep an eye on to read the broader market. When roughly half of NASDAQ-100 profit growth flows through three tickers, the swing player, the one whose AI revenue is compounding fastest off a diversified base, becomes a leading indicator. Reframe the question. Rather than asking whether to own AVGO, ask what AVGO’s price is telling you about the market.
The One Number to Watch The number is Broadcom’s quarterly AI semiconductor revenue and its year-over-year growth rate. The trajectory:
Q4 FY2025: $6.20B, +74% YoY Q1 FY2026: $8.40B, +106% YoY Q2 FY2026: $10.80B, +143% YoY Q3 FY2026 guide: $16.00B, over 200% YoY That trajectory is accelerating. On the Q2 call, CEO Hock Tan told investors: “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” Total Q2 revenue reached $22.19 billion, up 47.9%, with free cash flow of $10.26B at 46% of revenue.
Why It Reads the Market Broadcom sits at the choke point of AI infrastructure: custom accelerators for hyperscalers plus the networking silicon that stitches clusters together. That dual exposure is confirmed by peers. NVIDIA (NASDAQ:NVDA) posted Data Center revenue of $75.25B, up 92% YoY in its most recent quarter, and Micron Technology (NASDAQ:MU) delivered $41.46 billion in revenue, up 345.7% YoY, with gross margin expanding to 84.6%. Three companies, one signal: AI capex is still expanding.
For income-oriented investors weighing concentrated tech exposure, our team has been mapping the ripple effects across the best dividend stocks, since a Nasdaq turn touches far more than the megacap chip names.
What a Turn Would Look Like AVGO closed at $370.78 on July 7 and traded up roughly 4.75% intraday on July 8 following a $30 billion multiyear Apple agreement. YTD, AVGO is +7.52% versus Invesco QQQ Trust (NASDAQ:QQQ) at +15.48%. The forward setup: if Q3 AI semi revenue prints at or above $16.0 billion, the AI capex thesis holds and the NASDAQ’s profit engine keeps humming. A meaningful miss, or forward guidance that decelerates hard, would be the earliest quantitative tell that the AI infrastructure cycle is peaking. Keep an eye on that single line item when Broadcom next reports.
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Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 8th:
Cimpress (CMPR - Free Report) : This company, which is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days.
Cimpress' shares gained 23.4% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.
Northern Trust (NTRS - Free Report) : This company, which provides services from sovereign wealth funds to the wealthiest families, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.5% over the last 60 days.
Northern Trust's shares gained 20.1% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.
Cummins (CMI - Free Report) : This company, which is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.
Cummins' shares gained 11% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
CVS Health (CVS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugstore chain and pharmacy benefits manager have returned +7.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Medical Services industry, to which CVS Health belongs, has gained 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, CVS Health is expected to post earnings of $1.86 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.44 points to a change of +10.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $8.37 indicates a change of +12.5% from what CVS Health is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for CVS Health.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of CVS Health, the consensus sales estimate of $100.18 billion for the current quarter points to a year-over-year change of +1.3%. The $409 billion and $425.13 billion estimates for the current and next fiscal years indicate changes of +1.7% and +3.9%, respectively.
Last Reported Results and Surprise HistoryCVS Health reported revenues of $100.43 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $2.57 for the same period compares with $2.25 a year ago.
Compared to the Zacks Consensus Estimate of $94.38 billion, the reported revenues represent a surprise of +6.41%. The EPS surprise was +16.29%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
The S&P 500 keeps climbing, up nearly 9% year to date, and yet a handful of large-cap dividend payers are trading like the bull market forgot they exist. That is exactly where opportunity hides in July. If you have $1,000 to put to work, three NYSE-listed names stand out on valuation, cash flow, and payout durability. Each carries a forward earnings multiple well below the broader market, each throws off real income, and each has a specific catalyst that could re-rate the stock over the next 12 to 18 months.
The premise is simple. When investors crowd into AI and momentum, cash-generative businesses get orphaned. That is the setup here.
Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is the cleanest “absurdly cheap” name on this list. Shares trade around $24 with a forward P/E of 8, roughly a third of the S&P 500’s multiple. The trailing dividend yield sits at 7.1%, backed by a 43-cent quarterly payout that has been paid consistently through 2026, with the next ex-dividend date on July 24, and payment on Sept. 1.
The bull case is that COVID revenue has already normalized and the growth engine is now new products. Q1 2026 revenue came in at $14.45 billion, up 5.4% year over year, with launched and acquired products growing 22% operationally. Padcev rose 39% and Nurtec ODT/Vydura jumped 41%. The Vyndamax patent settlement extending US exclusivity to June 2031 pushes out a major revenue cliff, and management reaffirmed FY2026 adjusted EPS guidance of $2.80 to $3.00. CEO Albert Bourla said Pfizer is “off to a strong start in 2026…positioned to lead” in oncology and obesity.
Risk: Legacy COVID franchises are still in free fall, with Comirnaty down 59% and Paxlovid down 63%, and management flagged a $1.5 billion loss-of-exclusivity headwind in 2026. Analysts still see upside, with a consensus target of $29.15.
CVS Health (NYSE: CVS) CVS Health (NYSE:CVS) is a different kind of cheap: a turnaround that is already working, but that’s still priced like it isn’t. Shares changed hands at $104.81, up nearly 57% over the past year, yet the forward P/E is still only 14, well under the S&P 500. Against management’s raised FY2026 adjusted EPS guide of $7.30 to $7.50, that math looks fair even after the run.
Q1 2026 was the proof point. Revenue reached $100.43 billion, up 6.2% year over year, and adjusted EPS of $2.57 beat the $2.21 consensus by 16.47%. The Health Care Benefits segment, the one that scared investors two years ago, delivered adjusted operating income of $3.04B, up 52.6%, with the medical benefit ratio improving to 84.6% from 87.3%. Full-year revenue guidance was raised to at least $405B with operating cash flow of $9.5 billion or more. CEO David Joyner pointed to “strong execution across our enterprise”, serving nearly 185 million people.
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Yield here is thinner at 2.54%, so this is more about earnings recovery than income. Risks include elevated medical cost trends, pharmacy reimbursement pressure, and the Omnicare Chapter 11 filing in September 2025. Still, 24 of 28 analysts rate CVS a Buy or a Strong Buy.
AT&T (NYSE: T) AT&T (NYSE:T) is the pure income idea. At $21.24, the stock is down nearly 14% year to date, and that pullback has pushed the yield to 5.23% on the 27-cent quarterly payout that has held steady for at least eight consecutive quarters. The forward P/E of 9 is again a fraction of the market. The next ex-dividend date is July 10.
The story is convergence. Q1 2026 revenue was $31.51 billion, up 2.9%, with 584,000 internet net adds, the best first quarter ever, and 294,000 postpaid phone net adds at churn of 0.89%. Advanced home internet revenue climbed 27.3% to $2.80 billion. Management guided FY2026 adjusted EPS of $2.25 to $2.35, free cash flow of $18 billion or more, and committed to more than $45 billion in shareholder returns through 2028, including roughly $8 billion of buybacks in 2026. CEO John Stankey called it the “best first quarter ever for Advanced Connectivity internet customer net additions”.
Risk: The balance sheet. Total debt is $138.4 billion, and net leverage will rise toward 3.2x post-EchoStar. Reddit sentiment reflected the anxiety, with wallstreetbets activity turning bearish in late June (scores of 33–38) before neutralizing in early July. Analysts still see upside to $30.24.
The Setup for July Three names, three flavors of cheap. Pfizer offers the highest yield and the biggest valuation gap. CVS offers the strongest earnings momentum against a still-modest multiple. AT&T offers durable free cash flow and a covered payout in a market that keeps paying up for growth. Split $1,000 across all three and you get income, optionality, and a starting valuation that requires very little to go right.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CVS Health (CVS - Free Report) Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a health solutions company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment. In 2018, CVS Health acquired insurance giant Aetna for $70-billion.
CVS is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. CVS has a Momentum Style Score of B, and shares are up 7.5% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $7.44 per share. CVS boasts an average earnings surprise of +16.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CVS should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Autodesk (ADSK - Free Report) San Francisco, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
ADSK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ADSK has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.6% for the current fiscal year.
For fiscal 2027, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.21 to $12.58 per share. ADSK boasts an average earnings surprise of +7.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ADSK should be on investors' short list.
RBLX's 32% rally in a month reflects stronger engagement, AI tools and global growth, but safety-related friction and premium valuation call for caution.
NEW YORK, July 08, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Roblox Corporation (NYSE: RBLX) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Roblox securities between October 30, 2025 and April 30, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/RBLX.
Roblox Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
(1) Defendants overstated Roblox’s organic growth potential and the Company’s ability to sustain “tremendous organic growth” following the rollout of its age verification features;
(2) Defendants downplayed and failed to adequately disclose the severity and certainty of headwinds associated with the age verification rollout, including a slowdown in user enrollment, reduced on-platform communication, and associated negative impacts on app store ratings;
(3) as a result of these undisclosed trends, Roblox’s growth rates were expected to decline more sharply than represented; and
(4) as a result of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading at all relevant times.
What's Next for Roblox Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/RBLX. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Roblox you have until August 7, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Roblox Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Roblox Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
ADP's research arm will begin publishing a Canada pay insights report beginning Sept. 3, providing what it said will be an independent labor market indicator of wage trends based on anonymized payroll data representing about 1 million workers in the country.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Strategy (MSTR - Free Report) .
Strategy currently has an average brokerage recommendation (ABR) of 1.28, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms. An ABR of 1.28 approximates between Strong Buy and Buy.
Of the 18 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% and 5.6% of all recommendations.
Brokerage Recommendation Trends for MSTR
Check price target & stock forecast for Strategy here>>>
The ABR suggests buying Strategy, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MSTR Worth Investing In?In terms of earnings estimate revisions for Strategy, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $116.7.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Strategy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Strategy.
When it comes to mortgage REITs, Annaly Capital Management's (NLY) common stock usually gets the most attention. That makes sense. It's the largest mortgage REIT in the market. However, the common shares aren't always the best way to invest in a mortgage REIT. In fact, they are one of the worst for very conservative investors.
Mortgage REIT common stocks can produce excellent returns when purchased at attractive valuations. Those valuations should be based primarily on book value.
For investors who aren’t into trading and want a safer dividend or are just looking for income, preferred shares often provide a much better balance between risk and reward.
Today, NLY-F (NLY.PR.F) remains one of the more attractively priced preferred shares from NLY.
The REIT Forum
NLY-F is a fixed-to-floating preferred share. Some preferred shares pay the same coupon indefinitely. NLY-F floats based on short-term interest rates plus a fixed spread.
The REIT Forum
NLY-F’s spread of 4.993% is the highest of any Annaly preferred share. That feature has been great for investors over the last several years. As short-term rates moved higher, the dividend rate on NLY-F increased. While investors should expect some changes in future payments as interest rates change, the current dividend remains attractive relative to many other options in the market. The floating-rate structure also helps mitigate inflation risk and rising rates, which can erode the value of preferred shares that only pay a fixed rate.
Why Preferred Shares? One major advantage of preferred shares is that they sit above the common stock dividend in the capital structure. Before any dividend can be paid to common shareholders, preferred dividends must be paid in full.
While this doesn’t eliminate risk, it does provide a layer of protection that common shareholders simply do not have.
Strong Coverage When evaluating preferred shares, one of the metrics we keep an eye on is the common-equity-to-preferred-equity ratio. The concept is straightforward. The larger the common equity relative to the preferred shares, the more protection preferred shareholders have if conditions deteriorate, generally speaking.
Annaly preferred shares continue to maintain one of the strongest coverage ratios in the mortgage REIT sector. The company has a substantial amount of common equity supporting its preferred shares. When using this ratio, we use the call value of the preferred share, which is $25. We would not use the current market value of the preferred share.
Coverage ratios are never a guarantee against risk, but they remain one of the more useful metrics for comparing preferred share risk across the sector.
The Main Risk The biggest risk for NLY-F is not credit risk. It is called risk.
Because NLY-F carries a relatively high dividend rate, management could eventually decide that they want to call shares and replace them with a lower cost of capital. Investors should watch the annualized yield-to-call metric, as it indicates how much they stand to lose if the company calls the shares. When a preferred share trades above its call value, the possibility of redemption becomes a bigger risk for the investor.
The primary reason we view NLY-F as a hold instead of a buy is that NLY could decide to call the shares with only 30 days' notice. Investors may decide that they are willing to take on that risk and purchase shares anyway. Investors who are already holding shares may continue to hold them. We just want investors to be aware of the biggest risk when it comes to NLY-F.
Other NLY Preferred Shares Annaly has several other preferred shares outstanding. In our view, NLY-F and NLY-I (NLY.PR.I) are currently the most attractive. Both the F and I series are so similar that this article could easily work for both with a few minor adjustments. However, this article is about NLY-F. We compare all of Annaly's preferred shares before deciding if we want to make a purchase rather than focusing on a single preferred share in isolation.
Final Thoughts We continue to view Annaly as one of the strongest names in the mortgage REIT sector. That doesn’t mean we believe it is currently a good investment at recent prices. For investors looking for dependable income and lower volatility than the common shares, preferred shares remain a very compelling potential buy. If NLY-F were to drop slightly in price, we would consider buying shares.
NLY-F offers a combination of a high dividend, strong coverage, and is backed by the biggest mortgage REIT in the sector. Call risk deserves attention, but NLY-F remains one of the best opportunities in the sector for income-focused investors when pricing is favorable.
As always, valuation drives our decisions. We don’t buy securities simply because we like the company. We believe it is important to wait for prices that adequately compensate us for the risks we are taking on. We will act when the market gives us the opportunity.
Chubb (CB - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this insurer have returned +10.5% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Insurance - Property and Casualty industry, to which Chubb belongs, has gained 5.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Chubb is expected to post earnings of $6.58 per share, indicating a change of +7.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $26.77 points to a change of +8% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $28.79 indicates a change of +7.5% from what Chubb is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Chubb.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Chubb, the consensus sales estimate for the current quarter of $15.89 billion indicates a year-over-year change of +7.3%. For the current and next fiscal years, $64.36 billion and $67.38 billion estimates indicate +7.3% and +4.7% changes, respectively.
Last Reported Results and Surprise HistoryChubb reported revenues of $15.3 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $6.82 for the same period compares with $3.68 a year ago.
Compared to the Zacks Consensus Estimate of $14.85 billion, the reported revenues represent a surprise of +2.97%. The EPS surprise was +5.25%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Chubb is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Chubb. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Plug Power stock extended its sharp sell-off this week, falling to its lowest level since April 2. The shares have plunged 45% from their highest level this year and have slipped below the 200-day moving average, while short interest remains elevated despite the company's ongoing turnaround efforts.
Plug Power, a top player in the hydrogen energy industry, has been in a rollercoaster this year. It initially jumped to a multi-month high of $4.32 in May as investors cheered its turnaround efforts, and then erased most of those gains, and the situation is worsening.
The ongoing sell-off has coincided with the rising short interest. Benzinga data shows that its short interest jumped to 27.4%, a sign that many investors still expect it to continue falling in the near future.
The company has made some major changes this year, with the management suggesting that it has a path towards profitability in the future. It has also made some customer wins in the past few months. For example, it secured a new 50 MW electrolyzer order from Australia, which is being developed by Orica, a top player in the mining and infrastructure solutions.
Before that, the company completed the commissioning of 5 MW electrolyzer system at Måde Power-to-X (PtX) facility in Esbjerg, Denmark.
Plug Power’s financial statements have also demonstrated that its business was making progress. The results showed that its revenue jumped by 22% in the first quarter to $163 million, helped by its material handling and electrolyzer businesses. It attributed this growth to its relationship with Amazon and Walmart, which use its solutions in their warehouses.
At the same time, the company said that its gross margins improved to minus 13% from minus 55% in the same period last year, a 71% increase. It attributed the margin growth to its measures to improve service execution, sales growth, and fuel sourcing efficiencies.
Plug Power also noted that it had already deployed 320 MW of electrolyzer globally and that it had an $8 billion pipeline across sectors like industrial and energy. Also, its hydrogen fuel sales rose by 22%, helped by customer growth, higher prices, and reduced warrant charges. Its hydrogen fuel margin rose by 54%.
Wall Street analysts are optimistic about Plug Power, with the average estimate for this year’s annual revenue being $813 million, up by 14.5% YoY. Also, they expect the revenue to jump to $964 million next year.
Therefore, the stock is falling as investors focus on its balance sheet. It ended the quarter with $802 million in cash, with $223 million being unrestricted. The rest is in the form of restricted cash that will be released $50 million per quarter for the next few years. With its cash burn still continuing, chances are that it may raise cash again this year.
PLUG stock chart | Source: TradingView
The daily chart shows that the PLUG stock price has been in a strong downward trend in the past few weeks as the recent momentum stalled. It has dropped below the 50-day and 200-day Exponential Moving Averages (EMA).
The stock moved below the key support level of $2.66, its highest point in January this year. At the same time, the Relative Strength Index (RSI) has dropped and is approaching the oversold level of 30.
Therefore the most likely scenario is that it continues falling as investors wait for more clarity about its business when it releases its earnings, possibly on August 10.
