Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has quietly built a $37 billion AI business, yet the stock has done the opposite of what you would expect. Shares of Microsoft closed at $390.49, down 18.9% YTD, while Azure grew 40% and commercial backlog nearly doubled to $627 billion.
Satya Nadella runs one of the most profitable software franchises ever assembled. So why is the stock below where it started the year? And can it climb to $500 by July 2027?
The Real Reason Microsoft Is Down 18.9% This Year MSFT peaked near $520 in August 2025 and has not recovered. Shares are down 11.52% over the past month, 18.9% YTD, and 19.85% over one year. The drawdown exceeds what a beta of 1.13 would suggest.
Two forces weigh on the stock. Capital expenditure jumped 84% to $30.88 billion last quarter, with payback years away. Rising OpenAI investment losses hit $3.1 billion in Q1 FY26 versus $523 million a year earlier. Broader Magnificent 7 selling has erased trillions in mega-cap value, dragging multiples lower even as earnings accelerate.
Wall Street Sees 44% Upside. Our Model Says 28% Consensus analyst target sits at $561.11, implying roughly 44% upside. Of 56 analysts, 13 rate Strong Buy, 40 Buy, 3 Hold, and zero Sell. That is 95% bullish, zero bearish. Our model lands at $500.63 in twelve months, an upside of 28.21% with 90% confidence.
The optimistic case runs to $600.50 and the bear case sits at $444.73. Analysts anchor to peak-2025 multiples that may not snap back this year. Our lower call reflects the mega-cap dampener in the 247Factor and the reality that a $2.9 trillion company re-rates slowly. If earnings growth of 23.4% YoY holds, Wall Street eventually wins.
The Path to $500 Per Share Reaching $500 from today’s price of $390.49 requires a gain of 28%. With forward EPS of $18.89, a price of $500 implies a forward P/E of 27x. Our base case of $500.63 already implies 24x, meaning the bold target requires 2.4x of additional multiple expansion.
Microsoft has topped EPS estimates four consecutive quarters. Earnings grew 23.4% YoY, and the AI business runs at a $37 billion annualized rate, up 123% YoY. Commercial RPO of $627 billion, up 99% YoY backstops the next several years of revenue. Nadella stated directly on the last call: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
If Azure holds near +40% and forward EPS drifts toward $20, the multiple resets. Main risk: capex intensity compressing margins if AI monetization lags.
Where Microsoft Trades Today vs Its Earnings Power At $390.49 and forward EPS of $18.89, MSFT trades at 21x forward earnings. That is a discount to the trailing P/E of 23 and below where mega-cap software normally clears. Operating margin sits at 45.62% and ROE at 33.28%.
Shares are 11% off the 52-week low of $349.20 and 29% below the $551.05 high. The ten-year return of 763.3% shows what compounding at scale delivers. Shares trade at a discount to historical multiples for one of the highest-quality software franchises in the market.
Is $500 Realistic? Here’s My Take Reaching $500 requires a gain of 28% from $390.49. Realistic, and arguably the base case.
Three things need to go right. Azure must hold near +40% growth. Forward EPS estimates need to drift toward $20. Mega-cap multiples need to firm as the AI capex cycle proves out. What derails it: a slowdown in enterprise AI adoption combined with capex-driven margin compression. We’ve outlined the blueprint for how Microsoft could reach $500 in 2027.
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 Advanced Micro Devices (AMD - Free Report) .
Advanced Micro currently has an average brokerage recommendation (ABR) of 1.43, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.43 approximates between Strong Buy and Buy.
Of the 46 recommendations that derive the current ABR, 35 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 76.1% and 4.4% of all recommendations.
Brokerage Recommendation Trends for AMD
Check price target & stock forecast for Advanced Micro here>>>
The ABR suggests buying Advanced Micro, 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.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in AMD?Looking at the earnings estimate revisions for Advanced Micro, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.18.
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 Advanced Micro. 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 Advanced Micro.
Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction | AMD Price Prediction) is finally getting the AI story it has been chasing for a decade. Q1 2026 revenue landed at $10.25B, up 37.85% YoY, with Data Center now the dominant engine at $5.78B (+57%).
CEO Lisa Su told investors, “Data Center now the primary driver of our revenue and earnings growth”, pointing to accelerating MI450 and Helios pipeline visibility. Shares have responded violently, up 157.77% YTD to $552.05. Can AMD hit $1,000 per share by 2031?
Why the Easy Money in AMD May Already Be Made AMD is up 300.3% over the past year and 18.37% in the last month alone. The stock now trades at a trailing P/E of 173, priced for near-perfect execution. With a beta of 2.469, any wobble in AI capex expectations gets amplified into brutal drawdowns.
Insider activity has turned notably one-directional, with 92 recent insider transactions, net selling. Add ongoing U.S. export controls on MI308 to China ($440M in FY2025 charges), and you can see why institutional money is trimming. The setup is strong. The valuation window is narrow.
Wall Street Is Behind the Stock Consensus analyst target sits at $508.31, below where AMD trades today. Ratings skew heavily bullish: 5 Strong Buys, 37 Buys, 9 Holds, and zero Sells, with 82% bullish consensus.
Our 5-year base case model lands at $708.19, a bull case of $812.33, and a bear case of $431.73. Confidence on the base call is high (0.9). With quarterly earnings growth of 91.2% YoY, the sell-side model is chasing reality. That is where the $1,000 case gets interesting.
The Path to $1,000 Per Share Reaching $1,000 from today’s price of $552.05 would require a gain of 81.1%. With forward EPS of $6.87, a $1,000 share price implies a forward P/E of 146x. Our base case of $708.19 already implies 121x, meaning the bold target requires roughly 25x of additional multiple expansion, or more realistically, EPS compounding well beyond current forward estimates.
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AMD’s 247Factor adjustment came in at 1.127, powered by +0.049 from analyst consensus and +0.03 from earnings growth. The catalysts are named and dated: a 6-gigawatt OpenAI GPU deployment, a matching 6GW Meta commitment on MI450, a 50,000 GPU Oracle AI supercluster, and Q2 2026 guidance of roughly $11.2B revenue at 56% gross margin.
Su has said customer forecasts for MI450 and Helios are “exceeding our initial expectations”. If AMD grows earnings at even half the current 91% YoY pace over five years, forward EPS resets dramatically and the required multiple looks far less absurd. The primary risk is a broad AI capex reset that stalls hyperscaler orders.
Where AMD Trades Today vs Its Earnings Power At $552.05, AMD’s forward P/E sits at roughly 80x on $6.87 forward EPS, or 74x on the trailing forward line. That is rich versus semis broadly but not crazy given the growth acceleration.
Shares sit 13% off the 52-week high of $584.73, well above the low of $135.91. AMD has returned 10,724.51% over ten years. Today’s multiple only clears if Data Center scales the way Su’s commentary suggests.
Is $1,000 Realistic? My Verdict Reaching $1,000 by 2031 is a stretch, but a credible one. The math needs three things.
First, AMD must convert the OpenAI, Meta, and Oracle wins into recurring multi-billion-dollar Data Center revenue. Second, gross margin must hold near 56% as MI450 volumes ramp. Third, forward EPS must roughly triple to compress the required multiple into a defensible range. A hyperscaler capex reset would derail all of it. We’ve outlined the blueprint for how AMD could reach $1,000 in 2031.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
Insiders are selling three key names involved in very different parts of the artificial intelligence (AI) value chain. This includes one of the world’s largest AI model developers, the newest AI chip developer to go public, and the market’s largest neocloud. However, insider sales can often send messy and unclear signals. So, are these latest moves simply noise, or do they tell investors something significant?
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Alibaba Sees Spike in Sales, But Only 1 MattersAlibaba Group Today
$97.75 -0.16 (-0.16%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$91.99▼
$192.67Dividend Yield1.05%
P/E Ratio16.05
Price Target$187.38
Alibaba Group NYSE: BABA is most well-known for its massive Chinese e-commerce platform. However, outside the United States, Alibaba is also one of the world’s largest investors in AI. The company has developed its Qwen family of models. Although not necessarily considered a “frontier model," Qwen has shown strong capabilities from an intelligence perspective.
Notably, Alibaba has recently seen a spike in insider sales. Sales came in at nearly $71 million in Q2, all in late June. Notably, none of these sales came under a predetermined 10b5-1 plan, indicating that they were discretionary in nature. However, for many of these sales, that turns out not to be the case. Other than company president Michael Evans' $68.3 million sale, insiders sold shares to pay taxes on restricted stock units. As a result, they were neither discretionary nor worrisome. However, Evans' sales are by far the largest and were discretionary. Notably, on June 29, 2026, Evans sold nearly all his held shares in two transactions, dropping his stake from 720,000 to just 28,000 shares.
Overall, this extremely large sale is moderately concerning. However, only one individual made a sale like this. Going forward, investors may want to monitor whether other insiders drop their holdings to a similar degree, which would indicate significant trepidation among insiders.
Insider Sales Eclipse $20 Million After Cerberus IPOCerebras Systems Today
CBRS
Cerebras Systems
$180.37 -11.64 (-6.06%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$160.81▼
$386.34Price Target$299.30
Cerebras Systems NASDAQ: CBRS went public in May 2026, coming to the market with a very unique product in the AI semiconductor space. The industry recognizes the company for its “wafer-level” chips. Many semiconductors are typically cut from a single wafer during chip manufacturing. In the case of Cerebras, each chip is the size of a full wafer. The company argues that this increases efficiency and has signed deals with OpenAI and Amazon.com NASDAQ: AMZN to supply chips.
However, shares have tanked since going public, down well over than 30%. Notably, Cerebras uses a staggered IPO lock-up expiration, allowing insiders to sell shares before the typical 90 to 180-day waiting period. In turn, insiders have sold approximately $21 million worth of shares over recent weeks. None of these sales came under 10b5-1 plans. Overall, these insiders are clearly looking for liquidity even as shares have fallen significantly, a somewhat concerning sign at first glance.
It is also important to note that nearly 28 million shares held by directors, officers and nonemployee investors became eligible for sale after Cerebras’ latest earnings report. Actual reported insider sales so far, however, represent only a small fraction of that amount, indicating insiders may be showing restraint despite having a much larger potential selling window.
CoreWeave’s Sales Reach All-Time High Levels in Q2CoreWeave Today
$83.57 -2.89 (-3.35%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$63.80▼
$160.42Price Target$135.00
CoreWeave NASDAQ: CRWV is AI’s most well-known neocloud. CoreWeave has experienced a high level of insider selling since going public in March 2025. Overall, MarketBeat has tracked nearly $8.5 billion in insider sales in the last 12 months. Notably, CoreWeave saw its insider sales drop significantly to $396 million in Q1 2026. This compares with sales above $2 billion in each of the prior two quarters, indicating that CoreWeave’s sales may be trending down. However, Q2 2026 ended up being CoreWeave’s largest quarter of insider sales yet, with the figure coming in at $3.27 billion.
The vast majority of CoreWeave’s insider sales come through 10b5-1 plans. While this is often a mitigating factor when it comes to insider sales, the company’s raw sales are so large that it doesn’t change the picture much. Insiders have shown a pattern of selling this stock in large quantities. That is a real warning sign for investors. Additionally, as shares rose by 28% in Q2 2026, insider sales soared, putting pressure on the rally as insiders sold into it. Overall, the insider sales at CoreWeave are not only bearish indicators but also create a structural overhang on appreciation.
CoreWeave Sales Raise Red Flags; Monitor Alibaba and CerebrasTaken together, CoreWeave’s insider sales are the only ones that should elicit real concern among investors at this point. The scale and persistence of the selling create a structural overhang that is difficult to ignore, even if many transactions were executed under 10b5-1 plans.
Alibaba and Cerebras still deserve monitoring, but their recent insider activity looks more isolated or restrained by comparison. For investors, the real signal is not that AI insiders are selling. It is whether those sales are routine liquidity events, post-IPO monetization or evidence that insiders see limited upside after a powerful run.
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Key Takeaways Citigroup became an LPMCL clearing member, adding Loco London settlement for four precious metals.C can now offer broader fee-based metals clearing services and strengthen institutional client offerings.Citigroup's expanded clearing role boosts its competitive position in the London bullion market. Citigroup (C - Free Report) is strengthening its presence in the global precious metals market after becoming a clearing member of London Precious Metals Clearing Limited (LPMCL). The designation enables the bank to provide Loco London settlement services for gold, silver, platinum and palladium, expanding its role in one of the world’s largest over-the-counter bullion markets.
The membership enhances Citigroup’s ability to deliver end-to-end precious metals solutions by integrating clearing and settlement with its existing commodities franchise.
Direct participation in the clearing process is expected to improve execution efficiency for institutional clients while reinforcing the bank’s market infrastructure capabilities and deepening client relationships.
While the move is not expected to have a meaningful impact on near-term earnings, it supports Citigroup’s broader strategy of expanding capital-light, fee-generating businesses.
As demand for efficient clearing, settlement and liquidity services continues to grow, the enhanced offering strengthens the bank’s competitive position and could increase its relevance among bullion dealers, financial institutions and other institutional market participants.
Citigroup’s Price Performance & Zacks RankOver the past six months, C shares have gained 19.3%, outperforming the industry’s 4.4% rise.
Image Source: Zacks Investment Research
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
C’s Competitive LandscapeCitigroup’s closest peers in this space are JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , both of which have well-established institutional commodities franchises.
JPM is a long-standing participant in the London bullion market, offering precious metals trading, clearing, custody and vaulting services, whereas Goldman Sachs is a leading dealer in precious metals, providing trading, financing and risk-management solutions to institutional clients worldwide.
Citigroup’s entry into LPMCL strengthens its ability to compete more effectively with these Wall Street rivals by expanding its precious metals clearing capabilities and enhancing its suite of fee-based market services.
The tech sector has been one of the hottest for growth investors, as it has a long history of outperforming the S&P 500. For instance, the State Street Technology Select Sector SPDR ETF has delivered roughly 140% in gains over the past five years, while the S&P 500 hasn't even doubled over the same stretch. Investors can get more nuanced in the tech industry with funds like the iShares Semiconductor ETF, which has almost quadrupled over the past five years.
But the performance of the broader tech industry compared to indexes explains why many investors prefer hunting for good picks in this sector. You can start your search with these promising tech stocks if you have $1,000 ready to invest.
Image source: Getty Images.
1. Nvidia Nvidia (NVDA +1.21%) is the largest AI chipmaker, and the competition isn't close. The company generates more revenue in a quarter than most of its competitors earn in an entire year. Even after years of strong growth, Nvidia still has the pedal to the metal.
The AI leader reported 85% year-over-year revenue growth in its fiscal 2027 first quarter, and its Q2 FY27 guidance implies more than 10% sequential growth.
It isn't just AI models like ChatGPT that need all those chips. Nvidia CEO Jensen Huang told shareholders that agentic AI is just getting started and is "scaling rapidly across companies and industries." Grand View Research projects a meaningful 46.2% CAGR for the enterprise agentic AI market through 2030.
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Physical robots can usher in the next wave of growth for Nvidia, and the company is already prepared for that opportunity. Halos for Robotics, Nvidia's full-stack, open robotics safety system, was recently touted as the first of its kind in a June press release. Nvidia intends to be the catalyst behind every AI innovation, which can position the stock for meaningful long-term growth.
2. Microsoft Microsoft (MSFT +1.94%) is another AI winner, but a 21% decline over the past year doesn't match up with its fundamental gains. The drop has resulted in a 23 P/E ratio as profits and sales continue to surge.
The tech giant recently delivered 18% year-over-year revenue growth in its fiscal 2026 third quarter. Operating income rose 20% year over year, with Microsoft Cloud doing the heavy lifting. Microsoft CEO Satya Nadella also touted the company's AI business surpassing $37 billion in annual recurring revenue, more than doubling year over year.
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Total cloud revenue reached $54.5 billion, up 29% year over year. That's almost two-thirds of the company's total revenue. As the cloud platform continues to gain market share, Microsoft's overall revenue growth rates should continue to accelerate.
The AI tailwind should extend for multiple years, and Microsoft has positioned itself well. Just because some investors are selling their shares doesn't make Microsoft a bad investment. The mismatch between Microsoft's declining stock price and strengthening fundamentals presents a buying opportunity.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
YieldMax NVDA Option Income Strategy ETF (NYSEARCA:NVDY) monetizes NVIDIA‘s (NASDAQ:NVDA | NVDA Price Prediction) volatility through a synthetic covered-call strategy, converting option premiums into weekly cash distributions. The fund once ranked among the highest-yielding listed ETFs, but the critical question is whether those distributions represent durable income or a slow-motion return of your own capital. The answer, based on the May 2026 fact sheet and recent distribution data, is more nuanced than the headline yield suggests.
How NVDY Manufactures Its Yield NVDY holds a small slice of NVIDIA stock (11.5% of net assets) and uses options to synthetically replicate exposure, then sells short-dated calls at strikes near NVIDIA’s spot price to harvest premium. The rest of the portfolio, over 80% in Treasury Bills and a First American Government Obligations money market position, sits as collateral and earns short-term interest.
The income you receive blends option premium (which scales with implied volatility) and T-Bill yield. When NVIDIA trades around 40 vol, premiums are rich and distributions swell. When volatility compresses or NVIDIA rallies past the short strike, the math turns against holders. NVDY caps upside at the sold strike, meaning if NVIDIA rises 15% in a month, the fund captures 3% to 5% while the call is assigned or rolled at a loss.
The Distribution Trend Tells the Real Story NVDY’s payout history is the single most important safety signal. In March 2024, the fund paid $2.62 per share in a single month. By mid-2024, monthly distributions were still running above $1.00. By the July 2, 2026 ex-date, and the weekly payment was $0.0984, with recent weeks clustering between $0.08 and $0.15. Even annualized across 52 weekly payments, the current run-rate falls well short of the 2024 pace.
That decline reflects two forces. NVIDIA’s realized volatility has moderated as the stock matured into a mega-cap, compressing the premiums NVDY can harvest. Meanwhile, the fund had to fund several distributions during periods when NVIDIA rallied through the short strike, which erodes NAV to make the payment whole. NAV erosion is the covered-call ETF‘s silent tax: the yield looks fine on paper, but the price per share drifts lower over time.
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Total Return, Not Just Yield NVIDIA itself returned roughly 24% over the past year and more than 854% over five years. NVDY, by design, cannot match that because every meaningful upside move is capped. Investors who bought NVDY at inception seeking “Nvidia income” have collected large distributions but watched share price decline while NVIDIA rallied. The tradeoff is real cash today for surrendered compounding tomorrow.
The 1.09% expense ratio compounds that drag. On $1.37 billion in net assets, that is meaningful friction versus simply holding Nvidia and selling covered calls in a personal account.
The Verdict The distribution mechanics work. The Treasury collateral is safe, and premium income will keep flowing as long as NVIDIA trades with reasonable volatility. What is at risk is the size of the check. Distributions have already fallen sharply from 2024 highs, and there is no structural reason to expect a return to those levels absent a fresh volatility regime.
For investors who understand they are trading upside for cash flow and are comfortable with a slowly eroding NAV, NVDY works as an income sleeve. For anyone treating it as a proxy for owning NVIDIA, the past year has been an expensive lesson. A lower-yielding alternative such as a broad dividend growth ETF, or simply holding NVIDIA and selling covered calls selectively, will usually produce better total returns.
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I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and after the June pullback I hit it again. I bought near $225 in May, I bought near $212 in June, and I added last week close to $194.83. The story that got me into this position keeps getting louder.
Here is what pulls me back every time. NVIDIA sells the picks and shovels for what CEO Jensen Huang calls “the buildout of AI factories, the largest infrastructure expansion in human history.” The checks his customers are writing agree with him, and the numbers behind those checks are why I own more shares this week than I did last month.
The Valuation Has Quietly Compressed Forward earnings sit near 20x, and the trailing multiple prints at 30. For a business that just delivered 85.2% year-over-year revenue growth to $81.61 billion at a 75.0% non-GAAP gross margin, that reads like a mature-industrial multiple on a platform running every frontier AI model. Shares are down 12.46% over the past month and sit 28% below the 52-week high of $236.26, even as Q1 non-GAAP EPS came in at $1.87 against a $1.7738 consensus.
The Cash Machine Behind The Buyback Q1 free cash flow was $48.554 billion, roughly 59.5% of revenue turning directly into cash. Full-year FY2026 free cash flow hit $96.575 billion, up 58.7%. Management returned $41.1 billion to shareholders in FY2026 and another $20.0 billion in Q1, then approved an additional $80.0 billion buyback authorization on top of $38.5 billion still remaining. The dividend jumped from $0.01 to $0.25, a 25x raise declared May 18, 2026. Owners are getting paid while Blackwell 300, Vera Rubin, and BlueField-4 get funded out of the same wallet.
The Demand Book Is Booked The $119.0 billion in supply-related commitments that spooks the bears reads differently when you know the customer list. Meta committed to millions of Blackwell and Rubin GPUs. OpenAI signed for at least 10 GW of NVIDIA systems. Anthropic is scaling on 1 GW of initial capacity. CoreWeave is building 5+ GW of AI factories by 2030. Sovereign deals with the UK, South Korea, and Germany layer on top. Q2 FY27 guidance calls for $91.0 billion in revenue at a 75.0% gross margin, and that number excludes any China Data Center compute.
The Real Risk China exposure is real. H20 Data Center compute revenue from China is zero in the guide, versus $4.6 billion in the year-ago quarter. A cash tax step-up hits in Q2. And $119.0 billion in supply commitments cuts both ways if hyperscaler capex ever cools. I sat with all of it. My answer is that Data Center networking revenue grew 199% year over year, hyperscalers are roughly half of Data Center revenue with sovereign, enterprise, and industrial buyers filling the other half, and multi-year cloud service commitments have grown to $30.0 billion. The book keeps deepening.
Why The Buy Button Stays Warm Analyst consensus sits at a $301.62 price target with 58 buys against one sell. I focus on the free cash flow, the platform, and the runway of a company that just went from a penny dividend to a quarter and told me another $80.0 billion of buybacks is coming. When the market sells the picks-and-shovels vendor of the biggest capex cycle of my lifetime at roughly 20x forward earnings, I keep buying.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
SummaryNvidia Corporation is evolving beyond GPUs, building a diversified AI ecosystem spanning chips, platforms, and software/services.NVDA’s expanding product suite increases TAM, raises switching costs, and strengthens moats, mitigating some competitive risks from hyperscalers.Despite secular AI tailwinds, cyclicality remains a risk, especially if hyperscaler CapEx slows or verticalization accelerates.At 21x forward earnings, NVDA’s valuation appears attractive versus peers, with potential for significant revenue growth and shareholder returns. Robert Way/iStock Editorial via Getty Images
I believe many people in the industry value Nvidia Corporation (NVDA) as if the company were still a GPU company. And as much as this is mostly a truth (yet), this is changing gradually, with the
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, NVDA 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.
Nvidia stock NVDA fell on Tuesday after a report that Chinese artificial intelligence startup DeepSeek is developing its own inference chip added to investor concerns that major AI customers are increasingly looking to reduce their dependence on Nvidia's hardware.
Shares of the chipmaker dropped 1.9% to $191.82 in early trading. If the decline holds, the stock would close at its lowest level since April.
The latest pressure on Nvidia followed a Reuters report that DeepSeek is developing its own artificial intelligence chip, citing people familiar with the matter.
According to the report, the processor is designed for inference—the stage of AI computing in which trained models generate responses to users—rather than for training new models.
Reuters reported that the effort remains in its early stages, with DeepSeek holding discussions with chip-design companies, foundries, and memory suppliers. The initiative reportedly began about a year ago.
If successful, the move would reduce DeepSeek's reliance on external suppliers, including Nvidia and China's Huawei Technologies.
The report said DeepSeek has used both Nvidia and Huawei chips to train and deploy its AI models.
DeepSeek previously said the foundation model behind its R1 reasoning model was trained using Nvidia's H800 processors, chips designed specifically for the Chinese market before US export restrictions barred their sale.
The company has since relied increasingly on Huawei hardware.
In April, DeepSeek released its V4 model adapted for Huawei's Ascend chips, while Huawei said its processors were used in part of the training of DeepSeek's V4-Flash model.
DeepSeek's reported push into chip development comes as Chinese AI companies face continued restrictions on access to Nvidia's most advanced processors under US export controls.
The limitations have encouraged domestic technology companies to pursue alternative hardware solutions, while Beijing has continued encouraging the development of a domestic AI semiconductor ecosystem.
Huawei has emerged as one of the largest beneficiaries of those restrictions.
Huawei is now estimated to supply around half of China's estimated $50 billion domestic AI chip market.
However, that position is increasingly being challenged as companies, including Alibaba and Baidu, develop their own AI processors.
Even if DeepSeek eventually deploys proprietary inference chips, the immediate business impact on Nvidia may be limited.
China has become a progressively smaller contributor to Nvidia's revenue following successive rounds of US export restrictions.
Although the development is unlikely to materially affect Nvidia's near-term financial results, investors may see it as another sign of mounting competitive pressure.
Large AI developers have increasingly sought greater control over their computing infrastructure by designing custom silicon tailored to their own workloads.
Major Nvidia customers, including Microsoft and Meta Platforms, have already been investing in internally developed AI chips as they seek to lower infrastructure costs associated with expanding data-center capacity.
The trend has also spread to leading AI model developers. Last month, OpenAI unveiled Jalapeño, its first custom inference chip developed with Broadcom, while Anthropic has reportedly been evaluating the development of its own processors.
Chinese artificial intelligence startup DeepSeek is developing its own semiconductor for AI computing, according to a Reuters report, as the company looks to reduce its dependence on external chip suppliers, including Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Huawei.
The chip is being designed primarily for inference workloads, which involve running already-trained AI models to generate responses and complete tasks.
Reuters reported that DeepSeek’s focus on inference reflects growing demand for hardware optimized for deploying AI applications rather than training large language models.
Specialized inference chips can offer lower costs and improved power efficiency compared with traditional graphics processing units (GPUs), making them an increasingly important area of development as AI adoption expands.
According to Reuters, DeepSeek has been working on the chip project for about a year and has held discussions with chip design firms, semiconductor manufacturers and memory suppliers. The company has also begun hiring engineers to support the effort, the report added.
The move comes as Chinese technology companies seek to develop domestic alternatives amid restrictions on access to advanced foreign semiconductors.
After initially falling on the report, shares of Nvidia were little changed at about $195 in the early afternoon on Tuesday.
The Nasdaq fell 2.28%, while the S&P 500 declined 0.68%. Industrials also lagged, dropping about 2.5%, adding to the pressure on airline stocks.
Analyst sentiment remained constructive, with Susquehanna analyst Christopher Stathoulopoulos raising his price forecast on American Airlines from $16 to $25 while maintaining a Positive rating.
The analyst believes these valuation levels appropriately reflect AAL’s progress in expanding premium offerings and addressing domestic network concerns, while factoring in near-term macroeconomic, geopolitical, and balance sheet risks.
American Airlines Technical AnalysisThe stock continues to trade above its 20-day, 50-day, 100-day and 200-day simple moving averages, suggesting the intermediate-term uptrend remains intact.
Momentum indicators also remain constructive. The MACD remains above its signal line, indicating buying momentum continues despite Tuesday’s pullback.
Investors will watch whether shares can hold support near the $15 level if selling pressure continues. The stock reached a 52-week high of $18.79 in July after forming a bullish “golden cross” in June, when the 50-day moving average moved above the 200-day moving average.
Earnings And Analyst OutlookAmerican Airlines is expected to report second-quarter results on July 23. Wall Street expects earnings of 4 cents a share, down from 95 cents a year earlier, on revenue of $16.68 billion, up from $14.40 billion.
The stock carries a consensus Hold rating with an average analyst price forecast of $19.47. On Tuesday, Susquehanna raised its price forecast to $25 while maintaining a Positive rating. Earlier this month, BMO Capital raised its forecast to $19.50 with a Market Perform rating, and TD Cowen increased its forecast to $24 while reiterating its Buy rating.
American Airlines ETF ExposureAmerican Airlines is a significant holding in several aviation-focused exchange-traded funds, including the Themes Airlines ETF (AIRL) and the U.S. Global Jets ETF (JETS). As a result, fund inflows and outflows can influence trading activity in the stock.
AAL Stock Price Activity: American Airlines Group shares were down 2.03% at $17.39 at the time of publication on Tuesday, according to Benzinga Pro data.
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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.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To 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.
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.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: AT&T (T - Free Report) Based in Dallas, TX, AT&T Inc. is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. Through its subsidiaries and affiliates, the company offers a wide range of communication and business solutions that include wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale and cloud-based services.
T is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.93; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $2.30 per share. T boasts an average earnings surprise of +5.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, T should be on investors' short list.
ST. PAUL, Minn., July 7, 2026 /PRNewswire/ -- 3M (NYSE: MMM) today announced the following investor event:
Second-quarter 2026 earnings conference call on Tuesday, July 21, 2026, at 8 a.m. CT. This event will be webcast live and a replay will be available on 3M's Investor Relations website at http://investors.3M.com.
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.
Shares of SpaceX (NASDAQ:SPCX) are down 6% to $151 and change in midday trading Tuesday, an unusual response given the flood of bullish analyst initiations that hit the tape today and the company’s addition to the NASDAQ 100. The pullback appears to be dragging the broader space complex with it.
AST SpaceMobile (NASDAQ:ASTS) stock is off 6% to $76, while Virgin Galactic (NYSE:SPCE) shares are down 5% to $2.55. Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) stock is down 10%, tracking sympathetic weakness across launch, satellite, and orbital services names.
The tape looks contradictory on SpaceX. The bullish catalysts are real, yet the stock is falling as investors weigh an approaching insider lockup schedule against a broader risk-off move hitting tech, chips, memory, and EV names today.
Bullish Initiations Collide With Lockup Overhang SpaceX went public on June 29, and formal coverage launched today with more than a dozen firms initiating, overwhelmingly at Buy, Outperform, or Overweight ratings. Price targets clustered in the $190 to $300 range. Bullish highlights included Morgan Stanley at Overweight and a $300 target and Raymond James at Strong Buy with an $800 target.
Raymond James cited a total addressable market approaching $30 trillion. The lone skeptic was MoffettNathanson, which came out Neutral with a $131 target, arguing there is “no credible financial model” to support a roughly $2 trillion valuation. That wide target dispersion signals genuine disagreement about how to value SpaceX today.
SpaceX also joined the NASDAQ 100 today under revised index rules, forcing passive funds to buy. JPMorgan estimated around $4.3 billion of index-driven demand. SpaceX stock is shrugging off that technical tailwind in real time.
The weight on SpaceX shares appears to be the coming share supply. Insider lockups begin expiring on a staggered schedule in late July, with 20% of locked shares freeing up after Q2 results, followed by smaller tranches of 7% each through August, September, and October. The 180-day batch clears in December.
Another 10% of the locked pool unlocks if SpaceX stock trades 30% above its $135 IPO price, a $175.50 trigger. SpaceX CEO Elon Musk’s 6.4 billion shares stay locked until June 2027.
This is the first real test of insider appetite at a roughly $2 trillion valuation. The weakness extends well beyond SpaceX.
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Space Peers Fall in Sympathy AST SpaceMobile shares are under pressure today. The company’s Q1 2026 report showed revenue of $14.73 million missing the $36.58 million consensus, and the company remains deeply pre-profit despite nearly 60 mobile network operator partners covering more than 3 billion subscribers.
Virgin Galactic sits in a similar bucket. Virgin Galactic posted Q1 EPS of -$0.81, beating the -$0.94 estimate, and CEO Michael Colglazier said flight testing remains on track for Q3 2026 with a first commercial spaceflight targeted in Q4 2026. Virgin Galactic stock has been volatile all year and trades under $3 for good reason.
Rocket Lab is the closest thing to a fundamental story in this basket. The company’s Q1 2026 revenue rose 64% year over year (YoY) to $200.4 million, backlog swelled to $2.2 billion, and CEO Peter Beck highlighted the Space Based Interceptor selection under the Golden Dome program with Raytheon. Rocket Lab stock is still lower today, dragged by the same risk-off wave.
For diversified exposure, the Procure Space ETF (NASDAQ:UFO) is the purest revenue-weighted way to play the sector. Top holdings include several pure-play space names across satellite communications and launch. Investors can note that the ETF and its underlying names carry outsized volatility, which is on full display today.
What to Watch The next real test for SpaceX stock arrives in late July, when the company’s Q2 2026 results land and the first tranche of insider shares unlocks. Any signal of heavy insider selling into that window can weigh on SpaceX shares well before the December cliff.
The bulls have three legs: the wave of Buy ratings, the NASDAQ 100 passive bid, and SpaceX’s launch, Starlink, and AI-infrastructure optionality. The bears counter with the lockup calendar, MoffettNathanson’s contested valuation math, and the speculative, pre-profit nature of the smaller space names. A single session doesn’t change the long-term thesis in either direction.
Investors sizing up their space-stock exposure should consider keeping their position sizes modest given the volatility on display. The July earnings-and-lockup window is the near-term catalyst that could reset how the market prices SpaceX stock and the broader space complex.
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Netflix stock is trading near recent lows. What’s next for NFLX stock? What Is Driving Netflix’s Stock Momentum?A Floyd Mayweather–Manny Pacquiao rematch penciled in for Sept. 19 has also been linked to the platform, though that stream remains in limbo due to a lawsuit seeking to block the event.
Netflix is also benefiting from a sentiment tailwind after it was flagged as a "final trade" pick on CNBC’s Halftime Report Monday, keeping the name in front of momentum traders and dip-buying desks. The call echoed Bank of America’s Buy stance and price target, which bulls point to as potential upside if the broader tape stabilizes.
The same segment also placed Netflix in a "quality megacap" basket alongside Alphabet. Morgan Stanley raised its Alphabet price target to $415 from $375 on June 30, offering a useful peer benchmark for Netflix because big-cap advertising and subscription names often get bought together during risk-off rotations.
Critical Technical Levels for NFLX to WatchIn the near term, Netflix is basically sitting on its short-term trend gauges: the stock is around the 20-day averages (20-day SMA at $76.99 and 20-day EMA at $77.08), which often turns the chart into a "decision point" where small moves can snowball. The bigger-picture trend is still heavy, with shares 7.9% below the 50-day SMA ($83.77) and 19.5% below the 200-day SMA ($95.88).
MACD is the cleaner momentum tell right now: it’s above its signal line and the histogram is positive, which points to downside pressure easing versus the prior downswing. Put simply, when MACD is above the signal line, momentum is improving even if price hasn’t fully reclaimed the longer-term trend.
The longer-term structure still argues for caution: the 20-day SMA is below the 50-day SMA (bearish), and the 50-day SMA is below the 200-day SMA—confirming the "death cross" that set in during December 2025. Zooming out, the stock is down 41.05% over the past 12 months, with a recent swing high in April and a swing low in June that also tagged the 52-week low zone.
Key Resistance: $91.50 — a rebound "stall zone" that lines up near the broader reclaim area traders often associate with getting back above the 50-day trend. Key Support: $71.00 — a nearby floor tied closely to the $70.86 52-week low from June. How Netflix Operates in the Streaming MarketNetflix’s business is still pretty simple: it runs one global streaming service, with more than 300 million subscribers worldwide and exposure to most of the global population outside of China. Historically, it’s been built around on-demand series, movies, and documentaries rather than a steady calendar of live programming.
That’s why the live-sports push matters for the current tape—sports can create appointment viewing and repeat engagement in a way that a library model doesn’t always deliver. Netflix also added ad-supported plans in 2022, giving it a second revenue lever (advertising) alongside subscription fees.
Netflix Earnings Preview for July 2026The countdown is on: NetFlix Inc is set to report earnings on July 16, 2026 (confirmed).
EPS Estimate: 79 cents (Up from 72 cents YoY) Revenue Estimate: $12.58 Billion (Up from $11.08 Billion YoY) Valuation: P/E of 24.5x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $113.36. Recent analyst moves include:
B of A Securities: Buy (Maintains Target to $125.00) (May 18) Guggenheim: Buy (Maintains Target to $120.00) (May 15) Piper Sandler: Overweight (Raises Target to $115.00) (April 17) Netflix Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for NetFlix, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Netflix’s Benzinga Edge signal reveals a growth-and-quality-heavy profile with very weak momentum, which fits a stock trying to bottom after a longer slide. For longer-term bulls, the setup improves if price can start reclaiming mid-term moving averages, while risk stays elevated if it revisits the low-$70s support zone.
NFLX Stock Price Activity Tuesday MorningNFLX Stock Price Activity: Netflix shares were up 1.76% at $77.36 Tuesday morning, according to Benzinga Pro data.
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Netflix has attempted to debut a number of new shows in 2026, but one has risen above the rest. That would be I Will Find You, the new Harlan Coben novel adaptation, which has just hit a viewership milestone for Netflix.
I Will Find You is officially the biggest Netflix original series debut of 2026, now more than halfway through the year, with 24 million views in its first four days. It was planted at #1 on the service for a spell and remains in the top 2 or 3 daily.
I Will Find You’s achievement here is notable because Netflix has struggled to find breakout, new IP mega-hits as of late, its biggest series being ones that started years ago and are still ongoing. Though despite this figure, I Will Find You is still not close to any all-time records, and it is a miniseries that will not grab viewers for a second season. Rather, Netflix will just move on to the next Harlan Coben adaptation instead.
What was I Will Find You competing against this year? That includes shows like Run Away (more Harlan Coben), Man on Fire, Something Very Bad is Going to Happen, Nemesis, Strip Law, The Boroughs, Detective Hole, Unchosen, Lord of the Flies, Finding Her Edge, Vladimir and more.
His and Hers
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One notable series in the lineup is His and Hers, another one-off murder mystery based on a book by Alice Feeney. Interestingly, I Will Find You had a stronger start, but His and Hers had tremendous legs, staying at #1 on Netflix and high in its top 10 list for ages. It did so well that it actually made the list of Netflix’s 10 most-watched English-language series ever with 98 million views. It’s the first new show on that list since the Emmy-sweeping Adolescence, though it’s unlikely to nab any awards. And again, no second season.
As for I Will Find You, its current top 10 trajectory does not indicate it will compete with His and Hers over the long term. Both series have middling reviews from both critics and audiences, but that has not translated into a lack of viewership. Here’s what I Will Find You is about:
“A father imprisoned for his son's murder receives evidence suggesting his child may be alive, compelling him to escape and uncover the truth.”It stars Avatar’s Sam Worthington and Severance’s Britt Lower, hopping over from Apple TV. This is Us’s Milo Ventimiglia is also on board. It is probably worth checking out to see why it’s so widely viewed, but if you’re expecting something mind-blowing, you may end up disappointed.
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Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
It's not the holiday shopping season, but it's easy to see why Netflix (NFLX +0.71%) could feel like Christmas in July right now. Shares of the streaming video pioneer have fallen out of favor, a contrast to the overall rising market.
This could be an opportunity as we head into earnings season. With its highly anticipated second-quarter results now less than 10 days away, Netflix's historically cheap valuation, and several bidding wars for smaller media platforms over the past two years, it could be a good time to binge-invest in the leading premium player.
Image source: Getty Images.
1. Love Is Blind: Earnings season is here There is no single quarterly event that can move a stock as consistently as its earnings release, and investors have been circling the afternoon of July 16 on their calendars for weeks. Netflix will be one of the first consumer-facing businesses to report fresh financials this earnings season, and expectations are modest.
The $12.574 billion that Netflix was modeling for Q2 revenue back in April is a 13.5% increase, its weakest top-line move in more than a year. The $3.327 billion that Netflix sees on the bottom line represents an even more disappointing 6.5% uptick. Slowing revenue growth and contracting operating and net income margins aren't a good look for a company.
The silver lining here is that the stock already took a hit for that uninspiring outlook three months ago. Netflix shares tumbled 10% the day after the company posted weak guidance in mid-April. In a marketplace where tech stocks have been rallying over the past three months, Netflix has traded nearly 30% lower since announcing its poorly received first-quarter results.
Pessimism is already the default setting heading into this critical financial update. When Netflix kept its full-year guidance unchanged after exceeding its earlier first-quarter outlook, it implied a downward revision for the remaining nine months of the year. Things can get worse, but in this depressed case, even holding the line later this month would be worth a victory lap.
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2. Stranger Things: The stock is cheaper than you think Netflix stock hasn't just been a dud over the past three months. The shares are down 41% over the past year. The performance looks even worse when you consider the market has risen 20% in that time.
Stocks don't lose ground in an ascending market by accident. Netflix has made some mistakes. However, put yourself in today's shoes -- instead of kicking yourself for owning the shares over the past painful year -- and the fresh take looks more attractive than it has been in a long time.
Netflix has continued to grow, even as its stock has gone in the other direction. Netflix is now trading at 21 times this year's earnings, and less than 20 times next year's analyst profit target. These might not seem like low multiples, but they are historically cheap. Netflix is trading near its lowest forward and year-ahead P/E ratios in years.
3. Squid Game: Content is worth more than ever now Tuesday marks the two-year anniversary of the acquisition announcement that would result in the formation of Paramount Skydance. Skydance paying up for the iconic media company wasn't a one-time event. The market has seen two more premium-priced deals for platforms with large streaming audiences since that deal closed last summer.
Netflix isn't likely to be the fourth company to be bought at a premium. It's too big to be bought. However, Netflix has already been a winner of the feeding frenzy. It walked away with a $2.8 billion buyout termination fee earlier this year after an acquisition deal it had struck was wrestled away by none other than Paramount Skydance.
What matters here is that valuations have been reset. Content is king again. If you command a large streaming audience -- and no one has a larger premium audience than Netflix with its roughly 325 million paying households -- you own the gateway to connected TV opportunities and media exposure. Netflix is worth more now than ever, even if the stock chart suggests something else entirely. That's not a problem. That's an opportunity.
With Netflix (NASDAQ:NFLX | NFLX Price Prediction) reporting Q2 2026 earnings on July 16, the stock is at a crossroads. Shares trade at $77.65, down 39.57% over the past year, yet the streaming leader raised full-year free cash flow guidance to roughly $12.5 billion.
Our 24/7 Wall St. price target for Netflix is $285.62, implying 267.82% upside over the next 12 months. Our model rates the setup buy with a confidence level of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $77.65 24/7 Wall St. Price Target $285.62 Upside 267.82% Recommendation BUY Confidence Level 90% A Brutal Year, A Different Setup Netflix shares fell nearly in half from the $129.50 52-week high, bottoming at $70.86 before recovering. Year-to-date, NFLX is down 17.18%, though it rose 9.52% last week on news of an AI advertising partnership with Omnicom Media Group.
Q1 2026 revenue landed at $12.25 billion, up 16.2% year over year, with EPS of $1.23 against a $1.32 estimate. Net income surged 82.77%, inflated by a $2.8 billion Warner Bros. termination fee. Free cash flow jumped 91.44% to $5.09 billion. Management reaffirmed FY revenue guidance of $50.7 billion to $51.7 billion and Q2 revenue guidance of $12.574 billion.
The Case for $299 and Higher Bulls point to a widening moat in monetization. Ad revenue is tracking toward roughly $3 billion in 2026, double the prior year, and ad-supported tiers now drive more than 60% of sign-ups in ad markets. Advertiser count jumped 70% YoY to 4,000-plus clients.
Operating margin guidance stepped up to 31.5%, with Q2 targeting 32.6%. Live events (Tyson Fury vs. Anthony Joshua, MLB, NFL), gaming, and international expansion at under 45% global broadband penetration extend the runway.
Our bull case scenario points to $299.13, and the Wall Street consensus target of $113.94 implies healthy near-term upside from 37 Buy and Strong Buy ratings against 13 Holds and zero Sells.
What Could Go Wrong NFLX missed on the bottom line in two of the last four quarters, including a 15.71% miss in Q3 2025 and a 6.82% miss in Q1 2026. Historically, Netflix misses trigger a 9.89% single-day drop. Reddit sentiment cratered from 82 to 28 in the past week on concerns that top shows are losing 30% to 70% of their audience between seasons.
Insider activity has been net selling across 110 recent transactions. Polymarket traders assign only a 6.6% probability of NFLX reaching $100 probability in July.
The Q1 EPS miss reflects heavy content amortization that management says peaks in Q2 before decelerating. The Brazilian tax charge of roughly $619 million that hit Q3 2025 was non-recurring. Bear case downside from our model points to $219.07, still well above the current price.
What to Watch Into Earnings The 24/7 Wall St. price target sits at $285.62 with 90% confidence and a buy rating. Forward earnings power tips the scale. With forward EPS of $17.21 against a trailing P/E of 25, the risk-reward skews sharply positive after the 39.57% drawdown.
The setup strengthens if the July 16 report reaffirms the $12.5 billion free cash flow guide and shows ad revenue on pace to double. The thesis weakens if operating margin slips below 31.5% or if subscriber growth in APAC and LATAM decelerates from Q1’s 20% and 19% pace.
Year 24/7 Wall St. Price Target 2026 $134.04 2027 $285.62 2028 N/A 2029 N/A 2030 N/A These projections assume Netflix executes on ad-tier scaling, live events, and international penetration, with our 5-year base case pointing to $3,369.45 by July 2031. Downside could result from content amortization pressure, FX volatility, or competitive escalation from Alphabet, Amazon, Disney, or TikTok.
Key Takeaways MA is expanding beyond cards with multi-rail payments across accounts, real-time networks and blockchain.MA's Q1 2026 net revenues grew 16%, with cross-border volume up 13% and services revenues up 22%.Mastercard is expanding Agent Pay and Mastercard Move to support AI, cross-border and real-time payments. Mastercard Incorporated (MA - Free Report) is steadily evolving from a card network into a multi-rail payments company, enabling transactions across cards, bank accounts, real-time payment networks and blockchain-based rails. The strategy allows consumers, businesses and financial institutions to move money through the most suitable payment method while remaining within MA's ecosystem. As payment preferences continue to evolve, this broader infrastructure is helping the company extend its role beyond traditional card payments.
Mastercard has accelerated this transformation with several recent initiatives. The company launched Agent Pay to support secure payments initiated by AI agents and added Verifiable Intent to authenticate AI-driven transactions. It continues expanding Mastercard Move, a unified platform that connects cross-border, domestic and real-time capabilities, making its network more interoperable and adaptable to diverse money-movement needs.
The strategy is also translating into solid financial performance. In the first quarter of 2026, MA’s net revenues rose 16% year over year, while cross-border volume increased 13% on a local-currency basis. Value-added services and solutions net revenues climbed 22%, highlighting the growing contribution of services and newer payment capabilities alongside the company's core card business.
Rather than relying solely on card transactions, Mastercard is building infrastructure that supports real-time payments, account-to-account transfers, AI-enabled commerce and regulated stablecoin settlement. As businesses seek faster, more flexible and interoperable ways to move money globally, this multi-rail approach positions the company to deepen its role in cross-border and domestic payment flows and to expand its addressable market.
How Are Competitors Faring?Some of MA’s competitors in the payments space include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .
Visa is pursuing a similar multi-rail strategy by expanding Visa Direct, account-to-account payments and stablecoin settlement capabilities. In the second quarter of fiscal 2026, V’s total cross-border volume increased 12% year over year, while value-added services revenues grew 27%, reflecting strong demand for diversified payment solutions.
American Express is strengthening its payments ecosystem by expanding tokenization, digital wallet integrations and commercial payment capabilities. AXP is also leveraging AI to enhance customer experiences and payment security. In the first quarter of 2026, network volumes grew 11% year over year to $486.3 billion, supported by resilient consumer and business spending.
Mastercard’s Price Performance, Valuation & EstimatesOver the past year, MA’s shares have declined 5.3% compared with the industry’s fall of 17.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.15, above the industry average of 18.50. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.3% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Visa remains a premier dividend growth stock, but recent price appreciation has closed the bargain window for new investors. V delivered strong Q2 results with 20% EPS growth and robust revenue, supported by payment volume and cross-border activity. Record $8 billion buybacks and a 28.5% payout ratio underscore Visa's financial strength and capacity for continued dividend growth.
Walmart WMT shares are on the rise following the announcement of thousands of summer Rollbacks across various categories, including grocery, household essentials, outdoor products, toys, and apparel. Additionally, over 250 price reductions have been introduced at Sam’s Club. This positive market response indicates that investors view these initiatives as a strategic move to enhance WMT’s value proposition, attract customers, and increase market share, rather than a sign of widespread inventory issues.
Price Investment: WMT is continuing its value strategy, which included approximately 7,200 Rollbacks in Q1, marking a year-over-year increase of over 20% across grocery and discretionary categories. Competitive Advantage: Walmart's purchasing scale, supply chain efficiency, and diverse product offerings allow it to lower prices more effectively than many competitors, helping to maintain customer traffic and loyalty. Margin Backdrop: In Q1, Walmart U.S. gross margin increased by 29 basis points, even as the company absorbed around $175 million in unexpected fuel costs instead of passing them onto consumers. While fuel inflation remains a concern, recent results indicate WMT's ability to invest in value without sacrificing overall margin improvement. Profit Cushion: Higher-margin sectors are bolstering WMT's model, with global advertising up 37%, U.S. advertising up 36%, membership fee revenue rising over 17%, and U.S. marketplace sales climbing nearly 50%. These Commerce Solutions businesses lessen WMT’s dependence on traditional merchandise margins. Core Demand: In Q1, Walmart U.S. comparable sales rose 4.1%, enterprise eCommerce sales increased by 26%, delivery sales grew by 45%, and general merchandise saw mid-single-digit growth with the strongest market share gains in five years. These trends suggest that the Rollbacks aim to further enhance already-strong demand rather than address a significant sales shortfall. Guidance and Inventory Watch: The Q2 adjusted EPS guidance of $0.72-0.74 fell short of the $0.75 FactSet Consensus, but WMT upheld its FY27 outlook of $2.75-2.85. Investors will be looking for assurance that inventory levels align with sales and that promotional activities do not escalate to the point of impacting earnings. Today's market response indicates that investors are recognizing WMT's strategic use of pricing to enhance its competitive position, rather than perceiving the Rollbacks as a warning sign. With its scale, procurement capabilities, and growing advertising, membership, and marketplace segments, WMT has more flexibility than many retailers to fund promotions while maintaining profitability. This initiative could further enhance customer traffic, retention, and market share across both grocery and discretionary sectors, especially as consumers remain focused on value. The upcoming earnings report will need to demonstrate that this strong value proposition translates into healthy comparable sales without compromising gross margin, inventory management, or the full-year profit forecast.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
For months, investors have debated whether agentic AI will replace retailers. JPMorgan thinks that’s the wrong question.
Instead, analyst Christopher Horvers argues the first wave of agentic AI could create a very different set of winners and losers.
Retailers and brands that control checkout, fulfillment and customer relationships may strengthen their competitive positions, while grocery retailers face the greatest disruption as AI automates routine shopping.
Why Walmart, Apple And Nike Stand OutMuch of Wall Street’s concern has centered on AI assistants like ChatGPT eventually standing between retailers and consumers.
JPMorgan believes that risk has eased. The bank noted that retailers regained control of transactions after OpenAI moved away from its Instant Checkout model. Instead, AI platforms are increasingly acting as “a more potent version of ‘googling,'” helping consumers discover products while purchases continue through retailer-controlled checkout.
That shift favors companies already positioned to own more of the shopping journey.
JPMorgan identifies Walmart Inc. (NASDAQ:WMT) as “leading the pack” with its Sparky AI assistant and integrations with third-party LLMs for product discovery, basket building and checkout.
Why Grocery Faces The Biggest RiskNot every retail category stands to benefit.
JPMorgan places grocery at the “top of the risk bucket” because repetitive, low-consideration purchases are well-suited for automated replenishment.
At the same time, AI improves “price discovery,” making it easier for consumers to compare products and potentially increasing pricing pressure on grocery retailers.
Categories where browsing is part of the experience—such as beauty, home furnishings and pet products—remain relatively insulated, the bank says.
The Bigger PicturePerhaps JPMorgan’s most contrarian takeaway is that agentic AI isn’t replacing retailers—it is reshaping how consumers find them.
Retailers that “invest to win” with major LLMs while building their own AI agents stand to strengthen customer acquisition, improve shopping experiences and preserve ownership of valuable customer data.
For investors, that shifts the debate away from which AI model wins. Instead, the companies best positioned for the agentic AI era may simply be the ones that continue to own the customer after the AI conversation ends.
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JPMorgan Chase stock is trading at elevated levels. What’s the outlook for JPM shares? What To Watch Ahead of JPM Earnings on July 14JPMorgan is set to report second-quarter earnings before the opening bell on Tuesday, July 14, and analysts are calling for EPS of $5.61 on revenue of $49.56 billion, versus $4.96 and $44.91 billion in the prior-year period.
The company also said Monday it supports a regulatory framework for cryptocurrencies, while warning that the rules could carry risks—especially for stablecoins and yield-producing products.
What Is Driving JPMorgan’s Dividend and Buyback Boost?CEO Jamie Dimon framed the move as enabled by excess capital and liquidity, positioning JPMorgan to keep returning cash while maintaining balance-sheet strength and staying a “pillar of strength,” a message that helped fuel the prior breakout.
JPM Stock: Critical Resistance and Support LevelsJPM is pressing toward the top of its 52-week range ($279.10 to $343.45), with price now just below nearby resistance at $343.50—an area that lines up with the recent 52-week high zone where breakouts can stall on the first try.
Trend structure still looks constructive: the stock is trading 4.2% above its 20-day SMA ($327.16) and 10.4% above its 200-day SMA ($308.78), and the 20-day SMA remains above the 50-day SMA—typical of an uptrend that’s still being defended on pullbacks.
For momentum, MACD is above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing; in plain terms, that usually means buyers are gaining control even if the stock pauses near resistance.
Key Resistance: $343.50 — a nearby pivot/52-week high area where rallies can stall before a clean breakout Key Support: $293.50 — a prior buyer-defense zone that sits well below current price, acting as a deeper "line in the sand" if the trend breaks JPM Earnings Preview: July 2026 EstimatesThe countdown is on: JPMorgan Chase & Co. is set to report earnings on July 14, 2026 (confirmed).
EPS Estimate: $5.59 (Up from $4.96 YoY) Revenue Estimate: $49.39 Billion (Up from $45.68 Billion YoY) Valuation: P/E of 16.2x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $350.00 across 17 analysts. Recent analyst moves include:
UBS: Buy (Raises Target to $384.00) (July 7) Evercore ISI Group: Outperform (Raises Target to $360.00) (July 6) Wells Fargo: Overweight (Raises Target to $360.00) (July 6) JPMorgan Chase Edge Rankings: Strengths and WeaknessesBelow is the Benzinga Edge scorecard for JPMorgan Chase, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: JPMorgan Chase’s Benzinga Edge signal reveals a growth-leaning profile with middling momentum and a weaker quality read. For traders, that often means the chart can keep working higher, but earnings execution and guidance tone may matter more than usual near resistance.
JPM Stock Price Activity on TuesdayJPM Stock Price Activity: JPMorgan Chase shares were up 0.78% at $340.34 at the time of publication on Tuesday, according to Benzinga Pro data.
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JPMorgan Chase & Co. (JPM - 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 14, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $5.49 per share in its upcoming report, which represents a year-over-year change of +10.7%.
Revenues are expected to be $48.71 billion, up 8.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.84% 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. 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 JPMorgan Chase & Co.?For JPMorgan Chase & Co., 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 +2.71%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that JPMorgan Chase & Co. 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 JPMorgan Chase & Co. would post earnings of $5.49 per share when it actually produced earnings of $5.94, delivering a surprise of +8.20%.
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.
JPMorgan Chase & Co. 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, Bank of America (BAC - Free Report) , is soon expected to post earnings of $1.11 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +24.7%. This quarter's revenue is expected to be $30.26 billion, up 14.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Bank of America has been revised 0.6% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.43%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Bank of America 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.
11:10am: AI stock pullback looks like consolidation Selling pressure across semiconductor and AI-related stocks following Samsung's latest results appears to be a bout of profit-taking rather than the start of a deeper downturn, according to Zaheer Anwari, co-founder and CEO of The Revacy Fund.
While Samsung's earnings underscored strong AI-driven memory demand, investors sold the stock as much of the optimism had already been priced in, weighing on US semiconductor futures.
"The rally in AI stocks has been intact for months, and for now this still looks more like consolidation within that structure than the start of a reversal," Anwari said. He added that the firm continues to favor AI infrastructure and chipmakers, arguing that strong memory demand and long-term AI capital spending support the sector's structural growth outlook.
10am: Nasdaq falls as chips sell off Wall Street was mixed in early trading, with the Nasdaq losing 1.0% as investors rotated out of AI and semiconductor stocks. The S&P 500 fell 0.4%, while the Dow Jones was little changed at 53,067.
The chip sector was under heavy pressure, with Applied Materials down almost 10%, Lam Research, KLA, Western Digital and Intel all losing around 8%, while AMD and Micron both slid over 7%. Nvidia and Broadcom both slipped around 2%.
The sector was rattled by Samsung's post-earnings sell-off.
Defensive stocks supported the Dow, with Johnson & Johnson (NYSE:JNJ) and Verizon adding over 3%, followed by Coca-Cola, Procter & Gamble and McDonald's advancing over 2.5%.
8am: Mixed open expected US markets are set for a mixed open on Tuesday, with technology stocks expected to come under pressure after Samsung delivered record quarterly profits that still failed to satisfy investors, raising fresh questions about AI valuations.
Nasdaq futures were down 1.1% ahead of the opening bell, while S&P 500 futures slipped 0.2%. Dow futures bucked the trend, rising 0.3% or around 150 points.
This followed a strong session for Wall Street, with the Dow Jones climbing 0.3% to a record close of 53,055. The S&P gained 0.7% to 7,537, while the Nasdaq jumped 1.1% to finish at 26,121.
The mood shifted overnight after Samsung forecast operating profits comfortably ahead of consensus expectations, but the shares fell almost 7%.
The sell-off dragged South Korea's Kospi down almost 5%, knocked other Asian markets and is expected to weigh on US semiconductor names.
Another focus for investors will be SpaceX, which joined the Nasdaq-100 overnight after becoming eligible under revised index rules.
The inclusion is expected to trigger billions of dollars of passive buying from index-tracking funds, with JPMorgan estimating around $4.3 billion of demand for the stock.
Away from equities, oil rose around half a dollar to trade above $69 a barrel as geopolitical tensions around the Strait of Hormuz offset expectations of higher OPEC+ supply.
Gold slipped to around $4,130 an ounce, while today's economic calendar is light, a day ahead of the release of the Federal Reserve's June meeting minutes.
Tuesday's releases include the trade balance, the RCM/TIPP economic optimism index and the New York Fed's latest consumer inflation expectations survey. The ADP employment report, which has recently moved to weekly publication, will also be monitored for fresh signs of labour market strength ahead of weekly jobless claims data.
Analysts on Wall Street project that Delta Air Lines (DAL - Free Report) will announce quarterly earnings of $1.46 per share in its forthcoming report, representing a decline of 30.5% year over year. Revenues are projected to reach $17.73 billion, increasing 6.5% from the same quarter last year.
The current level reflects an upward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Delta metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Operating Revenues- Passenger' reaching $15.67 billion. The estimate points to a change of +13% from the year-ago quarter.
According to the collective judgment of analysts, 'Operating Revenues- Cargo' should come in at $224.17 million. The estimate points to a change of +5.7% from the year-ago quarter.
The consensus estimate for 'Operating Revenues- Other' stands at $3.21 billion. The estimate indicates a year-over-year change of +24.9%.
The consensus among analysts is that 'Passenger load factor' will reach 86.1%. Compared to the current estimate, the company reported 86.0% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Revenue passenger miles' of 67.17 billion. The estimate compares to the year-ago value of 66.42 billion.
Analysts expect 'CASM - Ex' to come in at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
Based on the collective assessment of analysts, 'Available seat miles' should arrive at 77.99 billion. Compared to the current estimate, the company reported 77.65 billion in the same quarter of the previous year.
The average prediction of analysts places 'TRASM, adjusted' at N/A. The estimate is in contrast to the year-ago figure of N/A.
Analysts forecast 'Passenger revenue per available seat mile' to reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total revenue per available seat mile' will likely reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
Analysts predict that the 'Passenger mile yield' will reach N/A. The estimate compares to the year-ago value of N/A.
It is projected by analysts that the 'Fuel gallons consumed' will reach 1045 millions of gallons. Compared to the present estimate, the company reported 1112 millions of gallons in the same quarter last year.
View all Key Company Metrics for Delta here>>>
Over the past month, Delta shares have recorded returns of +17.2% versus the Zacks S&P 500 composite's +2.1% change. Based on its Zacks Rank #3 (Hold), DAL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) 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.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you 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.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
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.
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.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Exxon Mobil (XOM - Free Report) Over the past decade, ExxonMobil has undergone a significant transformation, reshaping its business to adapt to evolving energy demands, financial discipline and environmental considerations. Traditionally reliant on oil and gas, the company has streamlined operations and focused capital on high-return, low-cost projects. ExxonMobil has achieved nearly $15.6 billion in structural cost savings since 2019, strategically enhancing its earnings power and improving cost efficiency.
XOM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.46; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.45 to $11.90 per share. XOM boasts an average earnings surprise of +6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XOM should be on investors' short list.
Key Takeaways ExxonMobil has gained 19.5% in the past year, nearly matching the industry's 19.4% rise.XOM is on track to grow Permian output to 1.8 million oil-equivalent barrels this year.Softer crude prices and a 9.06x EV/EBITDA multiple make ExxonMobil look overvalued. Exxon MobilCorporation (XOM - Free Report) has surged 19.5% over the past year, almost in line with the 19.4% improvement of the composite stocks in the industry. BP plc (BP - Free Report) and Chevron (CVX - Free Report) , two other integrated players in the same space, have gained 19.6% and 9.7%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Since XOM is a large integrated energy giant, investors interested in the stock might have been assessing how the ongoing oil pricing environment is impacting its business fundamentals. Let’s delve deeper into ExxonMobil’s business outlook before concluding on whether to invest in the stock.
Can XOM's Upstream Business Thrive With Oil Below $70?ExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.
With West Texas Intermediate (“WTI”) crude oil trading below the $70-per-barrel mark, significantly above the shut-in prices, it makes sense for XOM to continue production in the wells. On the first-quarter earnings call, XOM mentioned that it is on track with its plan of growing its production in the most prolific basin to 1.8 million oil-equivalent barrels this year.
ExxonMobil’s Robust Balance & Dividend CommitmentInvestors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is 15.4%, which is significantly lower than 29.6% of the industry’s composite stocks.
Image Source: Zacks Investment Research
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
Should Investors Bet on the Stock Now?Before concluding, we should also consider that WTI crude oil is now significantly down from the more than $100-per-barrel mark reached in May this year. With upstream operations responsible for XOM’s significant earnings generation, softer commodity prices are likely to have hurt the company’s bottom line, as they are affecting both BP and CVX.
Also, XOM is currently trading at a premium. The stock is trading at a trailing 12-month EV/EBITDA multiple of 9.06x, which is higher than the broader industry average of 5.49x. BP and CVX, two other integrated majors, are valued at 2.83x and 8.82x, respectively.
Image Source: Zacks Investment Research
Thus, investors shouldn’t rush to bet on the overvalued ExxonMobil stock right away. Those who have already invested may hold the stock. Currently, XOM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Published July 7, 2026 10:00am EDT | Updated July 7, 2026 10:02am EDT
Ford's 2 separate recalls affect Mustang, Mustang GTD and Mustang Mach-E vehicles Ford is recalling more than 110,000 vehicles in the U.S. across two separate safety campaigns after federal regulators identified defects involving windshield wipers and a rear drivetrain component that could increase crash risks.
According to the National Highway Traffic Safety Administration (NHTSA), the automaker is recalling 110,626 vehicles in two separate actions affecting certain Mustang, Mustang GTD and Mustang Mach-E models.
The larger recall affects 67,842 Mustang and Mustang GTD vehicles. NHTSA said that under certain cold-weather conditions, the windshield wipers may operate only at the high-speed setting, while the windshield washer system may not function properly. The agency said the reduced visibility could increase the risk of a crash.
FORD RECALLS 741,195 SUVS AND PICKUPS AFTER TRANSMISSION DEFECT RAISES ROLLAWAY RISK: NHTSA
A few brand-new Ford Mach-E Mustangs for sale at a dealership in Santa Clarita, California. (Getty Images)
In a separate recall, Ford is recalling 42,784 Mustang Mach-E vehicles because the rear differential pinion shaft may fracture.
Ford Motor Co. signage is displayed outside a dealership as the General Motors Co. headquarters building stands in the distance in Detroit, Michigan. (Jeff Kowalsky/Bloomberg via Getty Images )
THE $5 PLASTIC CLIP BEHIND MILLIONS OF FORD EXPLORER RECALLS: REPORT
According to NHTSA, the defect could result in a loss of drive power or unintended vehicle movement if the SUV is parked without the parking brake applied, increasing the risk of a crash.
Dealers will repair or replace the affected components free of charge.
FORD IN DEEP WATER AFTER SWEEPING RECALLS HIT EVERY MODEL SINCE 2020 – WITH ONE EXCEPTION
Ticker Security Last Change Change % F FORD MOTOR CO. 13.83 +0.47 +3.52% Ford shares were flat in early trading and are up more than 5% year to date.
Wall Street expects a year-over-year increase in earnings on higher revenues when Goldman Sachs (GS - 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 14. 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 $14.01 per share in its upcoming report, which represents a year-over-year change of +28.4%.
Revenues are expected to be $16.31 billion, up 11.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.62% 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 Goldman?For Goldman, 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 +2.07%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Goldman will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Goldman would post earnings of $16.34 per share when it actually produced earnings of $17.55, delivering a surprise of +7.41%.
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.
Goldman 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.
BT21 X McDonald's Happy Meal Collaborations Arriving July 14
McDonald's
One of the most anticipated collaborations is coming to a McDonald’s Happy Meal near you. BTS’s LINE FRIENDS characters BT21 and McDonald’s have joined forces again (the last time was in 2023 in Asia) to bring the characters – KOYA (RM), RJ (Jin), SHOOKY (SUGA), MANG (j-hope), CHIMMY (Jimin), TATA (V), and SHOOKY (Jung Kook) – to you.
Starting July 14, BT21 Happy Meals will be available at participating McDonald’s restaurants for a limited time. BT21 will be IN SPACE. If you are unaware of the lore, Planet BT is where Prince TATA lives, but he wants to spread love across the world, which he does with his robot companion, VAN, as they travel to Earth and pick up new friends: KOYA, RJ, SHOOKY, MANG, CHIMMY, and COOKY. Together, they become the most influential pop-culture sensation the galaxy has ever known – just like their creators.
Last week, McDonald’s Instagram teased a video of the BT21 collaboration, fresh off last year’s Happy Meal collaboration with BTS’s other character IP, TinyTan. Like the TinyTan toys, they will be sold exclusively with Happy Meals.
BT21
LINE FRIENDS
What do we know?There will be 10 unique toys – at random – in each Happy Meal. The BT21 characters will be on a ring clip like a bag chain – a very popular accessory at the moment. It looks like they may be in individual spaceships. Since VAN is the only character who does not require a spaceship, VAN will be flying freely.
MORE FOR YOU
But there are eight characters in BT21? Who or what are the other two?Though it has not yet been revealed to the media at the time of posting, there will be individuals from KOYA, RJ, SHOOKY, CHIMMY, TATA, COOKY, and VAN. The other two options may be unit-based bag chains.
Is there anything else?Like the TinyTan Happy Meals, there will be an experience on HappyMeal.com where fans can scan the QR code on their Happy Meal box to unlock some cool activities, including creating different music tracks and bringing the BT21 characters to life.
Will there be a special event?McDonald’s x TinyTan threw an event in Los Angeles last time to celebrate the Happy Meals collaboration, but nothing has been confirmed yet, including the date or location.
When does it end?There’s no end date, but if they run out, that may be it, since it’s for a limited time.
BT21 X McDonald’s Happy Meal Collaboration begins on July 14 at a participating McDonald’s near you.
Key Takeaways PayPal is expanding BNPL to strengthen branded checkout and support checkout growth.PYPL's first-quarter BNPL volume rose 23% year over year, reflecting strong consumer adoption.PayPal sees BNPL as underpenetrated across its user base, leaving significant room for future growth. PayPal Inc. (PYPL - Free Report) is strengthening its buy now, pay later (BNPL) offering to enhance branded checkout, attract new customers and help merchants generate higher basket sizes. As consumers increasingly seek flexible payment options, BNPL is becoming an important driver of PayPal's checkout growth strategy.
PayPal identified checkout as a major growth opportunity, noting that digital wallets continue to gain traction as consumers prioritize convenience, security, rewards, loyalty benefits and flexible payment options like BNPL. The company also described BNPL as an important driver of customer acquisition and said the offering remains underpenetrated across its user base, leaving significant room for growth.
Beyond driving customer acquisition, BNPL benefits merchants by encouraging larger basket sizes and improving checkout conversion, supporting higher payment volumes across PayPal's platform. The momentum is reflected in operating performance. During the first quarter, BNPL volume increased 23% year over year, highlighting strong consumer adoption.
PayPal is also investing in expanding BNPL usage. Management said transaction margin growth was partially offset by strategic investments aimed at improving customer habituation and selection rates across branded checkout and BNPL. Likewise, transaction take rate declined partly due to product mix and continued investments in branded checkout and BNPL.
However, BNPL also brings credit and funding considerations. As part of PayPal's broader credit receivables business, its growth depends on effective credit risk management and the successful sale of receivables to third parties. Balancing these risks with continued adoption will be key to sustaining BNPL's long-term contribution to checkout growth.
How Are PYPL’s Competitors Fairing?Affirm Holdings (AFRM - Free Report) offers transparent installment loans, checkout financing and merchant integrations across retail, travel, electronics and e-commerce. Affirm’s latest quarter showed $11.6 billion gross merchandise value (GMV), up 35% YoY, $1.04 billion in revenues, up 33%, and 26.8 million active customers, strengthening AFRM’s BNPL position.
Klarna Group (KLAR - Free Report) offers BNPL at a global scale. In first-quarter 2026, Klarna reported $33.7 billion GMV, up 33% YoY, $1 billion in revenues, up 44%, and $68 million in adjusted operating profit. KLAR’s merchant network, app tools and U.S. growth make KLAR relevant to PayPal.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 1.6% over the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, PYPL stock is trading at 8.14X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.5X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mastercard (NYSE:MA | MA Price Prediction) and PayPal (NASDAQ:PYPL) just closed Q1 2026 reports that look like mirror opposites. Mastercard delivered accelerating services growth and margin expansion from a position of dominance. PayPal beat low expectations under brand-new CEO Enrique Lores, but guided to a flat-to-down 2026. Both stocks trade below where they started the year, and investors are asking which discount is real.
Services Carry Mastercard. A New CEO Carries PayPal. Mastercard reported EPS of $4.60 against a $4.41 consensus, its fourth consecutive beat, on revenue up 15.8% to $8.398 billion. The engine is diversification: value-added services and solutions grew 22%, well ahead of the 12% payment network line. CEO Michael Miebach framed it plainly, saying the company is “advancing agentic commerce with Mastercard Agent Pay and expanding our stablecoin solutions through the planned acquisition of BVNK.”
PayPal beat too, posting $1.34 EPS versus a $1.27 estimate on $8.353 billion in revenue. But the quality was thinner. GAAP operating margin contracted 182 basis points to 17.8%, and net income fell 13.52% year over year. Lores called the moment an opportunity to “sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure.” Translation: cleanup.
A Duopoly Network vs. a Commoditized Checkout The strategic gap is wider than the tickers suggest.
Lens Mastercard PayPal Q1 revenue growth 15.8% 7.2% Operating margin 60.8% 17.8% 2026 EPS trajectory Growth continuing Flat to slightly lower vs. $5.31 Core bet Agentic commerce, stablecoins, cross-border Branded checkout turnaround Mastercard sits on a global rail with 13% cross-border volume growth and a rising services layer. PayPal is defending share against Apple Pay, Shop Pay, and every embedded wallet, while active accounts fell 0.2 million sequentially. The Q4 2025 admission that branded checkout “has not been where it needs to be” still hangs over the story.
What Actually Decides 2026 For Mastercard, keep an eye on whether services growth stays north of 20% and whether the BVNK stablecoin deal answers the disintermediation worry directly. For PayPal, the tell is transaction margin dollars and whether Lores can stabilize branded checkout without another guide-down. Q2 EPS is already guided to decline roughly 9% against last year’s $1.40.
Why I Would Own Mastercard Here For me, this comparison has a clear answer. Mastercard is down 5.21% year to date despite compounding EPS and expanding margins, which reads as a rare discount on a duopoly asset. PayPal, off 21.62% YTD and down 84.2% over five years, trades at a forward PE near 9 for a reason: it must spend aggressively just to defend commoditized checkout share. If you want deep-value optionality on a Lores-led turnaround, PayPal fits. I would rather own the toll road. Mastercard’s $11.7 billion buyback authorization and expanding digital services moat give me a cleaner path to double-digit upside without needing a strategy reboot to work.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Mastercard didn't make the cut. Grab the names FREE today.
Diane King Hall talks about Erste Group's upgrade on Meta Platforms (META) as the firm sees promise in the Mag 7 giant's CapEx plans. Bank of America is reinstating Shopify (SHOP) with a buy rating and a $150 price target.
It's hard not to love high dividend yields. Who doesn't want more dividends for their money? Pfizer (PFE +1.31%) and its current yield of 7% will certainly grab your attention.
But remember that the company sets the dividend amount, and the market sets the stock's yield. A yield as high as Pfizer's can be a warning that Wall Street sees problems and trades the stock at a price that reflects those risks.
The problem for investors is that it's difficult to see any obvious red flags in Pfizer's dividend -- right now. Here's why it's far riskier than it might look.
Image source: The Motley Fool
Pfizer's dividend looks and sounds safe, on the surface Wall Street analysts estimate that the pharmaceutical giant will earn approximately $2.99 per share this year. That's good news. Pfizer pays out $1.72 in dividends, so, at least based on earnings, the payout ratio is healthy at 57%. Additionally, the management team has been quite vocal about the dividend. Pfizer noted that preserving and supporting its dividend is a priority as recently as its first-quarter 2026 earnings call in May.
That will resonate with investors. The company benefited from selling COVID-19 vaccines and treatments in the early years of the pandemic, but has struggled since then as that windfall dried up. Pfizer's dividend, especially at a 7% yield, genuinely moves the needle for investors who might be sitting on some unrealized capital losses. The stock is still 60% below its 2022 high.
Unfortunately, there are risks now and on the horizon Pfizer is facing the dreaded patent cliff over the next few years, when patents on some key products expire; these include Eliquis, its top seller in 2025, with roughly $8 billion in sales. Its COVID-related products Comirnaty and Paxlovid, combined, generated $6.7 billion in sales last year but continue to decline sharply. Industry analysts estimate that Pfizer could lose $17 billion in revenue from its existing portfolio by 2030.
The company is working to plug that hole with new drugs from its pipeline, but Pfizer's financial profile could dramatically shift soon. On top of that, the company didn't earn enough cash flow to cover its dividends in 2025, falling approximately $700 million short. Dividends are a cash expense, so that's a red flag, regardless of what earnings based on generally accepted accounting principles (GAAP) say.
Today's Change
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What should investors do? Pfizer seems committed to the dividend for now. The company has $13 billion in cash on hand, so dipping into that last year to cover its payouts isn't the end of the world. However, it's difficult to place much confidence in the dividend from one quarter to the next, because the cash payout ratio is tight and uncertainty about the next few years looms over Pfizer's business.
If you're buying Pfizer stock for its dividend, you'll want to weigh these risks, because the dividend isn't as ironclad as it looks.
Key Takeaways Athleta's sales fell 12% to $270M, with comps down 11% as legacy inventory clearance weighed on Q1 results.Gap says 2026 is a transition year for Athleta, focused on product, positioning and merchandising.New Journey travel collection and Elation leg silhouettes showed strong engagement and sell-through. Gap Inc.’s (GAP - Free Report) turnaround has gained traction across much of its portfolio, but Athleta remains the notable exception. While Gap, Old Navy and Banana Republic continue to post positive comparable sales growth, Athleta is still in the early stages of a multiyear rebuilding effort. Management has been clear that 2026 is a transition year for the brand, with the priority on rebuilding product, brand positioning and merchandising rather than pursuing near-term sales growth. The key question for investors is whether these foundational changes can translate into sustainable momentum over the coming quarters.
The first-quarter results highlighted the work still ahead. Athleta's net sales declined 12% year over year to $270 million, while comparable sales fell 11%, missing the company's expectations. Management attributed the weakness primarily to efforts to clear legacy inventory, a process that has taken longer than anticipated and weighed on top-line performance. Despite the sales pressure, Gap noted that introducing a cleaner assortment remains essential before the brand can return to more consistent growth.
Encouragingly, early signs suggest the strategy may be gaining traction beneath the surface. Gap reported positive customer response to Athleta's new Journey travel collection in select locations, with strong engagement and sell-through rates. New leg silhouettes across core franchises such as the Elation line have also performed well, giving management greater confidence in its future product direction. The company plans to continue clearing older inventory through the second quarter before introducing a broader assortment that better reflects Athleta's long-term positioning in the fall season.
While Athleta is likely to remain a drag on Gap's overall performance in the near term, management expects gradual improvement in the second half as new products gain a larger share of the assortment. Leadership continues to view Athleta as an important long-term growth engine and is investing in product, talent and creative capabilities to strengthen the brand's competitive position. The pace at which these initiatives translate into stronger comparable sales will likely determine whether Athleta can become a meaningful contributor to Gap's next phase of growth.
GAP’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have lost 31.9% in the past six months compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, GAP trades at a forward price-to-earnings ratio of 7.90X compared with the industry’s average of 14.44X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GAP’s current fiscal-year sales and earnings implies year-over-year growth of 1.2% and 9.9%, respectively. For the next fiscal year, the consensus estimate indicates a 1.9% rise in sales and 10.8% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.
Image Source: Zacks Investment Research
Key PicksRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.36% and 34.3%, respectively, from the year-ago figures.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures.
Key Takeaways CCL is facing near-term yield pressure in Europe, particularly across Mediterranean deployments.Carnival cut its FY26 yield growth outlook by about one point, creating a 14-cent EPS headwind.CCL's FY27 booked position is at historical highs for both pricing and occupancy. Carnival Corporation (CCL - Free Report) is navigating near-term yield pressure from Europe, but its forward booking profile suggests that the setback may be temporary rather than structural. The pressure has been most visible in European deployments, particularly the Mediterranean, where prolonged Middle East-related volatility, elevated airfares and reduced international flight capacity for North American guests weighed on demand momentum.
The impact is reflected in the company’s revised fiscal 2026 yield outlook. Carnival lowered its full-year yield growth expectation by roughly one percentage point from its prior guidance, reducing earnings per share (EPS) by 14 cents due to operational headwinds. The revision includes both ticket and onboard revenues, with part of the pressure tied to slightly lower occupancy expectations in Europe.
Even so, the broader demand picture remains constructive. Carnival had already built a stronger booked position and pricing profile in Europe before demand softened, giving it flexibility to protect price integrity. While this trade-off may weigh on near-term occupancy, it supports revenue quality and prioritizes long-term pricing strength over short-term volume recovery.
CCL’s booked position also remains healthy. For fiscal 2026, 93% of the business is already on the books, with less inventory left to sell than last year and record pricing across the remaining quarters. For fiscal 2027, Carnival’s book position is at historical highs for both price and occupancy, reinforcing confidence in the underlying cruise demand environment. European deployments for fiscal 2027 were up in the mid-teens percentage range at higher prices.
Overall, Carnival’s fundamentals support the view that Europe-led pressure is more transitory than structural. The company’s disciplined revenue management, cost-control initiatives, measured capacity growth, expanded destination portfolio and improving leverage profile provide support to the earnings setup. Barring renewed geopolitical or air-travel disruptions, CCL appears well positioned to absorb the near-term European setback and sustain its longer-term yield recovery.
CCL’s Price Performance, Valuation & EstimatesShares of Carnival have dropped 1.3% in the past three months against the industry’s 1.8% growth. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. (RCL - Free Report) have gained 3.6%, while Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) has lost 4.4%.
CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research
CCL stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.27, well below the industry average of 16.89. Then again, other industry players, such as Royal Caribbean and Norwegian Cruise, have P/E ratios of 15.47 and 10.37, respectively.
CCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Carnival’s fiscal 2026 earnings per share has declined from $2.25 to $2.20 over the past 30 days.
EPS Trend of CCL Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating a 2.2% year-over-year fall in fiscal 2026. Conversely, industry players like Royal Caribbean are likely to witness growth of 10.4% year over year in 2026 earnings. NCLH is likely to project a fall of 19.4% year over year in 2026 earnings.
CCL stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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?
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 Salesforce (CRM - Free Report) .
Salesforce currently has an average brokerage recommendation (ABR) of 1.65, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 52 brokerage firms. An ABR of 1.65 approximates between Strong Buy and Buy.
Of the 52 recommendations that derive the current ABR, 35 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 67.3% and 5.8% of all recommendations.
Brokerage Recommendation Trends for CRM
Check price target & stock forecast for Salesforce here>>>
The ABR suggests buying Salesforce, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
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.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CRM Worth Investing In?Looking at the earnings estimate revisions for Salesforce, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $14.12.
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 Salesforce. 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 Salesforce.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The 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 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, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% 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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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: Salesforce (CRM - Free Report) Salesforce is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. Its offerings are delivered on the Agentforce 360 Platform, which connects customer data with integrated AI across systems, apps and devices.
CRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CRM has a Growth Style Score of B, forecasting year-over-year earnings growth of 12.8% for the current fiscal year.
For fiscal 2027, 17 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.97 to $14.12 per share. CRM boasts an average earnings surprise of +17.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CRM should be on investors' short list.
Key Takeaways CRM's 5.8% drop trails industry gains as AI, interest rates, inflation and geopolitics weigh on software.Salesforce's Agentforce ARR surged 205% to $1.2B, while AI and Data ARR more than tripled to $3.4B.Salesforce expects 10-11% Q2 revenue growth and about 11% for FY27, while valuation looks cheaper. Salesforce Inc. (CRM - Free Report) shares have declined 5.8% over the past three months, underperforming the Zacks Internet – Software industry’s 5.7% gain. While the weak performance may concern investors, Salesforce is far from being the only software stock under pressure.
Several enterprise software names, including SAP SE (SAP - Free Report) , Adobe Inc. (ADBE - Free Report) and Workiva Inc. (WK - Free Report) , have also struggled during the same period. SAP, Adobe and Workiva have fallen 5.1%, 8.7% and 9.9%, respectively. The broad-based weakness suggests that investors are reassessing the software sector rather than losing confidence in Salesforce alone.
Salesforce 3-Month Price Return Performance
Image Source: Zacks Investment Research
The biggest overhang is the rapid rise of artificial intelligence, particularly agentic AI. These AI systems can automate complex business tasks with minimal human intervention, prompting investors to question whether the traditional software-as-a-service (SaaS) pricing model, which largely depends on per-user subscriptions, could face pressure over time. If enterprises eventually require fewer software users, subscription growth could slow across the industry.
At the same time, software companies continue to deal with a difficult macroeconomic backdrop. Higher interest rates, persistent inflation and geopolitical uncertainty have made businesses more cautious about technology spending. Many enterprises are taking longer to approve large software purchases, resulting in extended sales cycles across the industry.
Salesforce is naturally exposed to these trends because most of its revenues come from enterprise customers. Slower IT spending could delay new customer wins and reduce expansion opportunities. However, the recent pullback appears to reflect broader market concerns rather than any meaningful deterioration in Salesforce's business.
Salesforce Is Becoming More Than a CRM CompanySalesforce remains the global leader in customer relationship management software, according to Gartner. However, the company is no longer relying solely on its customer relationship management software for growth. It is transforming into a broader enterprise AI platform by combining customer data, collaboration tools and AI-powered automation.
This strategy has been built through both large and small acquisitions. Slack strengthened Salesforce's collaboration platform, and Informatica expanded its data management capabilities, while newer acquisitions such as Doti AI and Spindle AI are enhancing its AI offerings.
The company's biggest growth engine today is Agentforce. In the first quarter of fiscal 2027, Agentforce’s annual recurring revenues (ARR) surged 205% year over year to $1.2 billion, highlighting strong customer demand for Salesforce's AI agents.
The momentum extends beyond Agentforce. Combined AI and Data ARR, including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion in the first quarter, more than tripling from the year-ago period. Nearly half of Agentforce and Data 360 bookings came from existing customers, showing that Salesforce is successfully expanding relationships within its large installed customer base.
That matters because selling more products to existing customers is typically more profitable than acquiring new ones. It also demonstrates that enterprises are willing to spend more on Salesforce's AI platform despite the uncertain economic environment.
CRM’s Revenue Growth Shows Signs of ImprovementOne of the biggest investor concerns has been Salesforce's slowing growth. As the company became larger, revenue growth naturally moderated from the high-growth rates seen several years ago, leading many investors to believe Salesforce had entered a mature phase.
Recent results paint a more encouraging picture. First-quarter fiscal 2027 revenues increased 13.3% year over year, marking a noticeable acceleration from recent quarters. While Salesforce is still way behind its earlier hypergrowth phase, double-digit growth remains impressive for a company of its scale.
Management's guidance also reflects confidence in demand. Salesforce expects revenues to grow 10-11% in the fiscal second quarter and approximately 11% for the full fiscal year. Those projections are largely in line with Zacks Consensus Estimates and suggest that growth remains healthy despite a cautious enterprise spending environment.
Image Source: Zacks Investment Research
Salesforce’s Valuation Leaves Room for UpsideThe recent share price weakness has also made Salesforce's valuation more attractive. CRM currently trades at a forward 12-month price-to-earnings (P/E) ratio of 11.26, well below the industry average of 26.32.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with peers, Salesforce also appears reasonably valued. SAP and Workiva trade at forward P/E multiples of 17.74 and 16.24, respectively, while Adobe trades at 8.36 times forward earnings. Although Adobe is cheaper, Salesforce's valuation looks attractive considering its improving growth profile and expanding AI business.
Final Thoughts: CRM Stock Seems Worth HoldingSalesforce still faces legitimate challenges. The software industry is adjusting to the rise of AI, enterprise customers remain cautious about spending, and macroeconomic uncertainty could continue to weigh on near-term demand.
However, the recent decline appears to reflect investor sentiment more than weakening fundamentals. Salesforce is rapidly building one of the industry's strongest enterprise AI platforms and is showing early signs of reaccelerating revenue growth. At the same time, its expanding AI ecosystem is creating new monetization opportunities while strengthening customer relationships.
With the stock trading at a meaningful discount to the broader software industry, much of the near-term uncertainty already appears to be reflected in the valuation. While volatility may persist, the company's long-term growth story remains intact. For existing investors, holding the stock continues to look like the more sensible strategy than selling into the recent weakness.
Salesforce carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Salesforce sees Informatica strengthening its enterprise AI and data management position.Salesforce's AI and data ARR, including Agentforce, Data 360 and Informatica Cloud, jumped 200% to $3.4B.CRM raised the low end of fiscal 2027 revenue guidance after strong first-quarter momentum. Salesforce, Inc. (CRM - Free Report) is betting that the integration of Informatica will strengthen its position in enterprise AI and data management. The enterprise software maker acquired Informatica last year for $8 billion. As companies increasingly rely on trusted data to power AI applications, Informatica's capabilities could become a key growth catalyst for Salesforce in fiscal 2027 and beyond.
Informatica enhances Salesforce's Data 360 platform by adding advanced data integration, governance, quality and metadata management capabilities. These tools help businesses organize information from multiple sources, making AI agents more accurate and reliable. By combining Informatica with Agentforce and Data 360, Salesforce aims to offer customers a complete platform for building AI-powered business workflows.
The strategy is already showing encouraging signs. During the first quarter of fiscal 2027, Salesforce reported that combined AI and data annual recurring revenues (ARR), including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion. This reflects a whopping 200% year-over-year surge. Management also noted that Informatica's business contributed to first-quarter revenue outperformance and that revenue synergies have started to emerge following the acquisition.
Salesforce delivered strong financial results in the first quarter. Revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations (cRPO) rose about 14% to $33.6 billion. Encouraged by this momentum, the company raised the lower end of its fiscal 2027 revenue guidance to $45.9-$46.2 billion from $45.8-$46.2 billion projected earlier.
The integration also expands Salesforce's cross-selling opportunities by allowing existing CRM customers to adopt enterprise-grade data management solutions. As more businesses move AI projects into large-scale production, the combined platform could drive higher customer spending, improve retention and create a stronger foundation for long-term revenue growth. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.09 billion, indicating a year-over-year increase of approximately 11%.
CRM Faces Intense AI Competition From Microsoft and OracleSalesforce is no longer competing only in the traditional customer relationship market. As enterprises accelerate spending on AI-powered software, Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) are emerging as two of its biggest rivals. Both companies are using their large enterprise customer bases, cloud platforms and expanding AI portfolios to win a greater share of enterprise AI budgets.
Microsoft remains one of Salesforce's strongest competitors, thanks to its broad ecosystem spanning Azure, Microsoft 365 and Dynamics 365. The company is rapidly embedding AI copilots across its productivity and business applications, enabling customers to automate sales, customer service and business workflows. This integrated approach gives Microsoft a meaningful advantage, as enterprises can adopt AI within the software they already use.
The momentum is evident in its financial performance. In the third quarter of fiscal 2026, Azure and other cloud services revenues grew 40% year over year, while Microsoft's AI business surpassed a $37 billion annual revenue run rate, soaring 123% from the prior year. With its vast installed base and deep AI investments, Microsoft poses a significant competitive threat to Salesforce's Agentforce platform.
Oracle is also becoming a more formidable player in enterprise AI. The company is expanding AI capabilities across Oracle Cloud Infrastructure (“OCI”), Fusion ERP, customer experience and database offerings, enabling businesses to automate a wide range of enterprise processes. Strong demand for AI infrastructure is already translating into faster cloud growth.
In the fourth quarter of fiscal 2026, Oracle's total cloud revenues rose 47% year over year to $9.9 billion, while OCI revenues surged 93% to $5.8 billion. Combined with Oracle's long-standing relationships with large enterprises, this cloud momentum strengthens its ability to compete with Salesforce as organizations increasingly invest in AI-driven business applications.
Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 37.3% year to date, while the Zacks Internet – Software industry has fallen 11.1%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.26, significantly below the industry’s average of 26.32.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Industrial bellwether Dover (NYSE:DOV | DOV Price Prediction) has spent the year shrugging off recession chatter while quietly riding an AI data center tailwind. Its Pumps & Process Solutions arm makes thermal connectors used in liquid cooling, and Climate & Sustainability Technologies just posted +15.2% organic growth. With shares up 16.29% YTD, the real question for retirees is whether the dividend behind that 69-year streak is still bulletproof.
Dividend Snapshot Metric Value Annual Dividend (run-rate) $2.08 Dividend Yield 0.93% Consecutive Years of Increases 69+ years Most Recent Increase $0.515 to $0.52 (Q1 2026) Dividend King Status Yes Payout Ratios Leave Massive Room Dover paid roughly $290 million in dividends in 2025 against $1.12 billion in free cash flow (FCF up 92.43% YoY). GAAP EPS came in at $9.61 versus $2.07 in dividends per share.
Metric Value Assessment Earnings Payout Ratio ~21.5% Healthy FCF Payout Ratio ~26% Healthy Operating Cash Flow Coverage ~4.6x Strong A Fortress Balance Sheet Dover ended 2025 with $1.68 billion in cash against $7.41 billion in equity. EBITDA of $1.87 billion easily services the long-term debt load (~$3 billion), keeping net leverage well under 1x.
Metric Value Assessment Total Liabilities / Equity 0.81 Conservative Net Debt / EBITDA under 1x Low Cash on Hand $1.68B Solid Buffer 69 Years of Increases and Counting Year Annual Dividend 2025 $2.075 2024 $2.05 2023 $2.035 2022 $2.015 2021 $1.995 Growth is slow (roughly 1% annually), but the streak survived the 2008 crisis and COVID untouched. Income hunters get reliability over yield.
Management Calls the Balance Sheet a Weapon CEO Richard Tobin said on the Q1 2026 call: “Our balance sheet remains strong and continues to provide flexibility to deploy capital toward long-term value creation… we remain disciplined in our approach to capital deployment.” With bookings of $2.46 billion and book-to-bill above 1.0 in all five segments, the cash engine feeding the dividend keeps accelerating.
The Verdict: This Dividend Is Rock Solid Dividend Safety Rating: Very Safe. A 21.5% earnings payout ratio, 26% FCF payout, sub-1x net leverage, and a 69-year increase streak leave virtually no scenario where Dover cuts. Dover fits income-oriented portfolios willing to accept a sub-1% starting yield in exchange for AI-infrastructure-driven dividend compounding. The setup is less compelling for investors who need current income today, because the 0.93% yield demands patience. For retirees prioritizing capital preservation and reliable raises, Dover is exactly the sanctuary it appears to be.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dover didn't make the cut. Grab the names FREE today.
The CNBC Business News Update with Jessica Ettinger features market numbers & news with CNBC expert analysis and sound from top business names. Updated throughout the business day.
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.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, 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.
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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
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.
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.
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: Oracle (ORCL - Free Report) Austin, TX-based Oracle Corporation is one of the largest enterprise-grade database, middleware, and application software providers.
ORCL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ORCL has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.2% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $8.03 per share. ORCL also boasts an average earnings surprise of +12.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ORCL should be on investors' short list.
The market expects Wells Fargo (WFC - Free Report) 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 is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 14. 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 biggest U.S. mortgage lender is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of +12.3%.
Revenues are expected to be $21.76 billion, up 4.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.78% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Wells Fargo?For Wells Fargo, 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 +0.19%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Wells Fargo 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 Wells Fargo would post earnings of $1.58 per share when it actually produced earnings of $1.56, delivering a surprise of -1.27%.
Over the last four quarters, the company has beaten consensus EPS estimates three 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.
Wells Fargo 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 Takeaways The Dow Is Up After Closing Above 53K 1st Time MondayTrade Balance Sank to -$77.6B, but Better than ExpectedLater This Week, Q2 Earnings Hit from PEP, DAL Tuesday, July 7th, 2026
The rotation trade continues to benefit the Dow this morning, as gains in Tech on AI investment and buildout seep into other sectors in the economy. The blue-chip index is racing ahead another +170 points in pre-market trading so far today, adding to its all-time closing high Monday above 53K for the first time ever.
Look no further than Caterpillar (CAT - Free Report) , which supplies power sources and construction equipment for data center buildouts. It’s up modestly this morning but nearly +70% from the start of the year. Prior to today’s opening bell, soon-to-report big banks JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , +1.4% and +3.4%, respectively — both of which are Dow components. IBM (IBM - Free Report) , another Dow stock, is +3.45% currently, following a wave of positive news on its quantum supercomputing initiatives.
This is not to say other major indexes are performing poorly. The tech-heavy Nasdaq, while down -1.65% over the past five trading days, is up +100% over the past five years — including downward shifts from the war in Iran this year and tariff initiatives last year. This is nearly double the +54% the Dow has grown over the past five years — and even that averages +10% growth year over year.
Trade Balance Gets Steeper, but Less Than Expected
The U.S. Trade Balance for May fell into a deeper deficit month over month — -$77.6 billion from an improved revision to -$54.6 billion in April — but did not fall as much as the -$78.0 billion expected. We had spent the first third of 2026 in the -$50Bs range (not great, but a big improvement from the record low -$132 billion in March of 2025, directly ahead of the “Liberation Day” tariffs, which lasted one week). The October 2025 -$37.37 billion was the slimmest deficit since prior the Covid pandemic.
Today is also the day we have hearings on Section 301 tariffs, which concern forced labor and oversupply. We don’t have a clear sense on all the rules from this vista, but we do know 24 states are challenging these tariffs. The hearings are scheduled to continue through Friday. Then, in a couple weeks, Section 122 tariff surcharges are due to expire, after the Court of International Trade declared them unlawful back in May.
What to Expect from the Trading Week
Published in earnings fang finance
Key Takeaways Fiserv shares rose Tuesday following a report that big banks are considering buying a payment processing network from the company.Big banks are weighing a deal that would help them get around a law limiting the fees they can charge on debit card transactions, The Wall Street Journal reported. Get personalized, AI-powered answers built on 27+ years of trusted expertise.
Big banks have reportedly been looking to acquire a payments processing network from Fiserv, and the financial technology firm’s stock is getting a boost Tuesday on the news.
Shares of Fiserv (FISV) were up 4% in recent trading after The Wall Street Journal reported late Monday that banks including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC) and PNC Financial Services (PNC) have weighed making an offer for a network owned by Fiserv.1
Acquiring their own payment processing network could allow the banks to bypass limits on the fees they charge merchants to process debit card transactions, which banks have said would pay for things like expanded rewards programs for debit cards. The report noted that some of the banks have already dropped the idea of pursuing a deal, likely due to concerns over pushback from regulators or merchants that could come as a result of such a deal.
Why This Matters to Investors A deal to sell part of its business or be acquired by a big bank could help lift Fiserv’s stock out of a rough stretch, as shares are down about 20% since the start of the year and some 70% in the last 12 months.
The banks are reportedly looking to get around the Durbin Amendment, part of the 2010 Dodd-Frank Act, which caps debit card transaction fees but also has an exception for banks that own their own payment network.
The deal would mirror Capital One’s (COF) acquisition of Discover Financial, and could help banks avoid billions in so-called “swipe fees” annually, while critics could say such a deal could lead to higher fees that would be passed on to consumers.
JPMorgan Chase declined to comment on the report, and Fiserv and the other big banks did not immediately respond to requests for comment.
