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.
Paying with a phone has gone from a novelty to a daily habit. Whether buying coffee, booking a ride or shopping online, consumers increasingly expect payments to happen instantly with just a tap or scan. That shift is reshaping commerce worldwide. Cash is losing ground, physical wallets are becoming less essential and merchants are replacing traditional point-of-sale hardware with software-based payment acceptance. At the same time, real-time and account-to-account payment networks are making money move faster and at a lower cost.
Mobile wallets such as Apple Pay, Google Pay and PayPal, powered by NFC, QR codes and in-app checkout, are now common across online and in-store purchases. Rising smartphone adoption, expanding internet access, and continued fintech innovation are driving broader acceptance across both developed and emerging markets. Wearables and tablets are extending this convenience further, allowing consumers to pay securely without carrying a physical wallet.
Younger consumers are leading the transition. Gen Z and Millennials value fast, seamless experiences, making mobile payments a natural fit for shopping, travel and day-to-day money management. Behind the scenes, artificial intelligence is strengthening fraud detection and transaction monitoring, enabling payment providers to identify suspicious activity more quickly. Blockchain-based technologies are also gaining attention for tokenization and faster settlement, helping improve both efficiency and security.
The next wave of innovation is already emerging. Agentic commerce could allow AI to complete purchases on behalf of users, handling payments in the background with minimal human input. Super apps such as WeChat Pay, Alipay and PhonePe continue to reshape consumer behavior by combining messaging, shopping, banking and payments within a single platform. Conversational commerce is adding another layer by enabling users to discover, order and pay directly through chat interfaces. Meanwhile, embedded payments are becoming increasingly common, allowing transactions to happen seamlessly inside apps, marketplaces and software platforms without interrupting the user experience.
Fortune Business Insights estimates the global mobile payments market touched $4.97 trillion in 2025 and could expand to $46.62 trillion by 2034, representing a 28% CAGR. Asia Pacific accounted for 46.1% of the market in 2025. Meanwhile, tap-to-phone technology is turning smartphones into payment terminals, lowering acceptance costs for merchants
Competition is intensifying as companies such as Visa Inc. (V - Free Report) , Block, Inc. (XYZ - Free Report) , Klarna Group plc (KLAR - Free Report) and Green Dot Corporation (GDOT - Free Report) broaden their payment ecosystems through innovation and strategic partnerships. At the same time, regulatory initiatives including FedNow in the United States, Europe's PSD2 framework and India's UPI are strengthening trust, security and adoption. Our Mobile Payments Screen highlights the companies best positioned to benefit.
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4 Mobile Payments Stocks to BuyBlock has built one of the industry's most comprehensive mobile payments ecosystems, serving both consumers and merchants through Cash App, Square and Afterpay. Cash App enables peer-to-peer transfers, digital wallet payments, direct deposits, bill payments and Cash App Pay, while Square provides merchants with mobile point-of-sale (mPOS) solutions, tap-to-pay acceptance and omnichannel payment processing. Together, these platforms create an integrated ecosystem that connects consumers and businesses across online, in-store and mobile transactions.
The company continues to enhance its mobile payments offering through product innovation. During the first quarter of 2026, Block expanded Afterpay's Buy Now, Pay Later (BNPL) capabilities across Cash App Card purchases, Cash App Pay and peer-to-peer transactions, allowing consumers greater payment flexibility. Square also introduced new hardware and software enhancements for merchants, while AI-powered features such as Moneybot were added to improve customer engagement and simplify financial management. These initiatives strengthen the company's ecosystem and encourage higher transaction activity across its platforms.
Operational momentum remains strong. In the first quarter of 2026, Square’s Gross Payment Volume (GPV) increased 13% year over year to $61.2 billion, while Cash App monthly transacting actives reached 59 million. The company generated $2.91 billion in gross profit, up 27% from the prior-year quarter, reflecting healthy growth across both its consumer and merchant businesses.
As mobile-first payments gain traction worldwide, Block's unified platform of digital wallets, merchant acceptance, BNPL and mobile commerce positions it to capture long-term growth. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Green Dot delivers mobile payment capabilities through its digital banking platform and embedded finance infrastructure, enabling consumers and businesses to make, receive and manage payments through mobile channels. Its banking app allows users to transfer funds, deposit checks remotely, pay bills, monitor accounts and receive real-time alerts. Green Dot’s debit cards also integrate with major digital wallets, including Apple Pay, Google Pay and Samsung Wallet, enabling secure contactless payments in stores and online.
Beyond consumer banking, Green Dot plays an important role in embedded finance through its Banking-as-a-Service (BaaS) platform. Its APIs allow fintechs and enterprise partners to integrate mobile banking, account issuance, debit cards and payment capabilities directly into their own applications. The company also supports peer-to-peer transfers and provides access to one of the largest retail cash networks in the United States, allowing customers to seamlessly move between cash and digital payments.
Green Dot’s mobile payments ecosystem continues to generate healthy transaction activity. In first-quarter 2026, Gross Dollar Volume (GDV) increased 9% year over year to $40.6 billion, driven by strong momentum in its B2B Services business, where GDV grew 14%. The company also maintained approximately 3.5 million active accounts, highlighting resilient customer engagement.
As more fintechs and digital platforms outsource banking infrastructure, Green Dot stands to benefit from higher transaction activity without relying solely on direct customer acquisition. It also currently sports a Zacks Rank #1.
Visa plays a foundational role in the mobile payments ecosystem by providing the global payment network that powers digital transactions rather than operating a consumer-facing wallet. Every time a consumer pays through Apple Pay, Google Pay, Samsung Wallet or a Visa-enabled banking app, Visa authorizes, routes, clears and settles transactions through its network, while its Visa Token Service replaces card credentials with secure digital tokens to improve security and reduce fraud.
The company continues to strengthen its mobile payments capabilities through innovation. A recent addition is Tap to Pay on iPhone via the Visa Acceptance Platform, allowing merchants to accept contactless payments directly on an iPhone without requiring dedicated card readers. Visa also recently introduced Visa Pass Key in India, enabling consumers to authenticate online card payments using biometric verification or device credentials instead of one-time passwords, creating a faster and more secure checkout experience.
Visa’s scale continues to drive strong operating performance. In the second quarter of fiscal 2026, net revenues increased 17% year over year to $11.2 billion. Payments volume grew 8%, cross-border volume advanced 13% on a constant-dollar basis, and processed transactions rose 11%, reflecting healthy consumer spending and continued migration toward digital payments.
By combining global acceptance, tokenization, fraud prevention and merchant payment innovation, Visa remains one of the largest beneficiaries of the shift toward mobile-first and contactless commerce. It carries a Zacks Rank #2 (Buy) at present.
Klarna has evolved into a comprehensive mobile payments platform that extends well beyond its BNPL roots. Through the Klarna app, consumers can shop online and in stores, make one-time or installment payments, manage purchases, track deliveries and access flexible financing from a single mobile interface. The platform also supports payments through Apple Pay and Google Pay, enabling consumers to use Klarna seamlessly across digital and physical commerce.
Klarna continues to broaden its payments ecosystem with products designed to increase everyday spending. Its expanding portfolio now includes debit card offerings, pay-in-full options and AI-powered shopping features that personalize recommendations and simplify the checkout experience. By combining payments, shopping discovery and financial management into one app, Klarna is driving higher engagement while giving merchants additional tools to improve conversion rates and customer loyalty.
The company's operating momentum remains strong. In the first quarter of 2026, Gross Merchandise Volume (GMV) climbed 33% year over year to $33.7 billion, while revenues increased 44% to $1.01 billion. Active consumers reached 119 million, up 21%, and the merchant network expanded to more than 1.07 million, a 49% increase from a year earlier.
As Klarna expands from a BNPL provider into a broader mobile commerce platform, its growing consumer ecosystem and rapidly expanding merchant network are creating multiple avenues for sustained payment volume growth. It also carries a Zacks Rank #2 at present.
STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--Enterprises are increasingly using the Snowflake data platform to coordinate secure data access, collaboration and AI-enabled operations, ISG says.
Snowflake Inc. (SNOW - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned +9%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Internet - Software industry, which Snowflake falls in, has gained 2.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Snowflake is expected to post earnings of $0.45 per share, indicating a change of +28.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.96 points to a change of +56.8% from the prior year. Over the last 30 days, this estimate has changed +2.1%.
For the next fiscal year, the consensus earnings estimate of $2.6 indicates a change of +32.9% from what Snowflake is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Snowflake.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Snowflake, the consensus sales estimate of $1.47 billion for the current quarter points to a year-over-year change of +28.4%. The $6.07 billion and $7.55 billion estimates for the current and next fiscal years indicate changes of +29.6% and +24.4%, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +33.5%. EPS of $0.39 for the same period compares with $0.24 a year ago.
Compared to the Zacks Consensus Estimate of $1.32 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +21.88%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Snowflake’s title bet references an $80 billion data opportunity, but the number in the Q1 FY27 filing that actually validates the thesis is the size of the contracted backlog. That contracted figure is what long-term holders should anchor on.
The Number Snowflake (NYSE:SNOW | SNOW Price Prediction) closed Q1 FY27 with $9.21 billion in remaining performance obligations, up 38% year over year. The company reported the figure on May 27, 2026. RPO represents contracted business Snowflake has booked with customers but has not yet recognized as revenue. This figure grew faster than the 33.48% quarterly revenue increase, which is the tell.
What It Means RPO is the backlog. When this number accelerates past revenue growth, customers are signing longer, larger contracts. Product revenue for the quarter came in at $1.33 billion, up 34% year over year, which management described as the strongest sequential dollar growth in the company’s history. Net revenue retention held at 126%, meaning existing customers spent 26% more than a year ago.
Perhaps more important is the count of customers generating more than $1 million in trailing product revenue. This figure reached 779 this past quarter (up 29% YoY), with Snowflake adding 616 net new customers (up 38% YoY), and showcasing 13,600+ accounts are now using Snowflake AI capabilities.
Market Reaction Shares closed at $260.15 on July 2, 2026, up 18.6% year to date from a start of $219.36 on December 31, 2025. On a one-week view, SNOW rose 14.57%, moving from $227.06 on June 25, 2026 to $260.15 on July 2, 2026. On the one-year view, the stock is up 19.7% from $217.34 on July 2, 2025. Following the Q1 earnings report, shares moved from $177.4949 at filing to $255.55 one day after.
Bull Case The $9.21 billion backlog is the foundation. Management raised full-year FY27 product revenue guidance to $5.84 billion, implying 31% growth, up from prior guidance of $5.66 billion at 27%. Non-GAAP operating margin guidance rose to 13.5%, from 12.5%, and non-GAAP adjusted free cash flow margin is guided at 23.0%. Q2 FY27 product revenue is guided to $1,415 million to $1,420 million, or 30% growth.
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AI adoption is doing the work behind those raises. Cortex Code is now inside 7,100+ accounts, and Snowflake Intelligence accounts more than doubled quarter over quarter. Some of Snowflake’s strategic moves included a $6 billion multi-year AWS agreement, a deepened OpenAI partnership, general availability of SAP partnership capabilities, and the acquisition of Natoma, an enterprise Model Context Protocol platform for AI agents.
CEO Sridhar Ramaswamy called Q1 “a milestone quarter” and framed the company’s AI product suite as the company becoming “the control plane for the Agentic Enterprise.” Non-GAAP EPS came in at $0.39 versus a $0.3198 estimate, a 21.95% beat, the fourth consecutive quarter of beating consensus. Free cash flow reached $232.77 million, up 26.93% YoY, and Snowflake repurchased $300.03 million of its own stock in the quarter. TD Cowen reiterated a Buy rating with a $300 price target on June 2, 2026.
Bottom Line For retirement-focused holders, RPO growing faster than revenue is the metric that matters most. It signals longer contract durations and stronger customer conviction, and it gives management visibility to keep raising guidance.
The AI attach rate across 13,600+ accounts is converting into contracted dollars on the balance sheet. Shares have already caught a bid, up 18.6% year to date, but Snowflake’s backlog compounds independent of any single quarter’s headlines. The next catalyst is the Q2 FY27 report, and the number to keep an eye on is whether RPO growth stays ahead of product revenue growth. If it does, the raised full-year outlook is unlikely to be the last one this fiscal year.
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Costco (COST - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this warehouse club operator have returned -2.5%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Retail - Discount Stores industry, which Costco falls in, has lost 2.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Costco is expected to post earnings of $6.49 per share for the current quarter, representing a year-over-year change of +10.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $20.38 for the current fiscal year indicates a year-over-year change of +13.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $22.46 indicates a change of +10.2% from what Costco is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Costco is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Costco, the consensus sales estimate for the current quarter of $94.04 billion indicates a year-over-year change of +9.2%. For the current and next fiscal years, $301.5 billion and $325.22 billion estimates indicate +9.5% and +7.9% changes, respectively.
Last Reported Results and Surprise HistoryCostco reported revenues of $70.53 billion in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $4.93 for the same period compares with $4.28 a year ago.
Compared to the Zacks Consensus Estimate of $69.5 billion, the reported revenues represent a surprise of +1.47%. The EPS surprise was +0.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Costco is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Costco. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
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 Costco (COST - Free Report) .
Costco currently has an average brokerage recommendation (ABR) of 1.82, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.82 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 20 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 55.6% and 11.1% of all recommendations.
Brokerage Recommendation Trends for COST
Check price target & stock forecast for Costco here>>>
While the ABR calls for buying Costco, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in COST?Looking at the earnings estimate revisions for Costco, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $20.38.
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 Costco. 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 Costco.
$275.24 billion. That is what Costco (NASDAQ:COST | COST Price Prediction) rang up in revenue for fiscal year 2025, representing a +8.17% year-over-year haul that pushed the warehouse operator past a quarter-trillion dollars in annual sales. The company followed this impressive report with a Q3 FY2026 quarter that showed this growth machine is still accelerating in the right direction, posting $70.53 billion in revenue, up 11.58% year over year.
What It Means A quarter-trillion-dollar retailer that keeps compounding sales at a double-digit clip is a rare animal. Costco is making this happen, while continuing to open physical stores. Management ended Q3 with 931 warehouses across 14 countries and told investors it now targets “30-plus net new openings per year in the coming years”, with roughly 12 new warehouses still scheduled for the remainder of FY2026.
The company’s membership model is what makes Costco’s top line so durable. Membership fees hit $1.37 billion in the quarter, up 10.7% year over year, on a 89.7% worldwide renewal rate and 82.9 million paid members. Executive memberships now account for 75.0% of net sales. Additionally, comparable sales rose 9.8% (6.6% adjusted for gas and FX), with digitally enabled comps up 21.5% and e-commerce site and app traffic up 37%.
Profitability is scaling with the company’s top line. FY2025 net income reached $8.099 billion (+9.94%), operating cash flow rose to $13.335 billion (+17.6%), and free cash flow expanded 18.22% to $7.837 billion. Q3 FY2026 net income came in at $2.19 billion, up 15.19%, on $4.93 diluted EPS that edged the $4.923 consensus.
Bull Case I think Costco’s bull case rests on three data points that keep pointing the same direction.
First, membership economics. A 89.7% worldwide renewal rate paired with 92.2% in the U.S. and Canada means members overwhelmingly keep paying to shop. Executive memberships grew 9.6% year over year to 41.2 million, and CFO Gary Millerchip told the call the company is “seeing increases in membership upgrades from gold to executive”. That is recurring, high-margin income that flows straight through to the company’s bottom line.
Second, unit growth. Costco’s 30-plus net new openings per year cadence, backed by approximately $6.5 billion in FY26 capital expenditure, gives investors a physical, measurable growth lever. CEO Ron Vachris described a runway that stretches well beyond North America, with “very strong international expansion over the next five to ten years” across Canada, China, Korea, Japan, France, Spain, and the U.K.
Third, balance sheet and digital flywheel. Cash and equivalents jumped 36.93% year over year to $18.95 billion, and shareholders’ equity climbed 23.54% to $33.51 billion. Importantly, the company’s digital segment is compounding on top of the physical footprint. In fact, digitally-enabled comps were up 21.5%, same-day delivery averaging under 45 minutes in the U.S. with a 4.8 out of 5 satisfaction rating, and triple-digit growth in AI-search-driven traffic with the highest conversion rate of any channel.
Even the macro cross-currents work in Costco’s favor. Consumer sentiment sits at a 44.8 reading, well below the 60 recessionary threshold, yet May 2026 total PCE reached $22,059.8 billion, with food spending at $1,566.8 billion versus $1,518.3 billion a year earlier. Nervous households trade down to value, and Costco is the value.
Bottom Line A retailer that clears $275.235 billion in annual revenue while still growing comps 9.8%, adding 30-plus warehouses per year, and renewing members at 89.7% is compounding on multiple axes at once.
Long-term holders should watch three data points from here: the pace of the remaining 12 FY2026 warehouse openings toward the 940 target, the trajectory of executive membership penetration above 75.0% of net sales, and any decision on the special dividend that Millerchip described as “typically the most effective way to return excess cash”. The quarter-trillion-dollar strategy is still adding warehouses, members, and cash faster than it is spending them.
Shares of First Solar Inc (NASDAQ:FSLR) are 0.7% higher to trade at $234.73, after landing an upgrade at Deutsche Bank to "buy" from "neutral" and price-target hike to $272 from $245. The brokerage cited trade policy shifts and valuation as two catalysts for the move.
FSLR has pulled back since its June 3 record high of $320.95, down 10% year to date. The $220 region has stepped up as support since mid-May, while the 260-day moving average captured Monday's pullback to this area.
The firm is joining the bullish majority, with 27 of the 42 analysts in coverage sporting a "buy" or "strong buy" recommendation. The average 12-month price target comes in at $251.96, a 7.7% premium to current trading levels.
Bulls have been circling FSLR, per its 50-day call/put volume ratio of 2.19 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 80th percentile of its annual range, indicating a higher-than-usual preference for bullish bets of late.
However, over the past 10 days of trading the weekly 6/26 240-strike put and weekly 7/10 230-strike put saw the most attention. Both positions held plenty of buying activity, while the weekly 6/26 290-strike call also made some noise.
Meanwhile, short interest represents 8.4% of the stock's available float. It would take shorts over three days to buy back their bearish bets.
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? 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 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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in 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.
#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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
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: CF Industries (CF - Free Report) CF Industries Holdings, Inc., headquartered in Deerfield, IL, is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. The company’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN).
CF is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CF has a Growth Style Score of B, forecasting year-over-year earnings growth of 83.1% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.77 to $17.16 per share. CF boasts an average earnings surprise of +11.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CF should be on investors' short list.
Key Takeaways AbbVie won EU approval for Tepkinly R2 in adult patients with R/R FL after prior therapy.ABBV's phase III study showed a 79% lower risk of progression or death versus R2 alone, with higher responses.AbbVie and Genmab continue to advance epcoritamab across blood cancers through late-stage clinical studies. AbbVie (ABBV - Free Report) announced that the European Commission (EC) approved the expanded use of Tepkinly (epcoritamab) for the relapsed or refractory follicular lymphoma (R/R FL) indication. The EC approved the drug in combination with rituximab and lenalidomide (Tepkinly+R2) for adult patients with R/R FL after at least one line of systemic therapy.
The approval represents Tepkinly's third indication in the European Union (EU) and marks the first EU approval of a bispecific-based, chemotherapy-free therapy for second-line relapsed or refractory follicular lymphoma.
To remind investors, ABBV markets epcoritamab under the brand name Epkinly in the United States and Japan, and as Tepkinly in the EU.
Tepkinly is already approved as monotherapy for adults with relapsed or refractory diffuse large B-cell lymphoma and R/R FL after two or more lines of systemic therapy in the EU.
The FDA approved Epkinly in combination with rituximab and lenalidomide for a similar indication in the United States in November 2025.
Year to date, ABBV shares have rallied 11.5% compared with the industry’s 13.8% growth.
Image Source: Zacks Investment Research
ABBV's Tepkinly Combo EU Nod Backed by Phase III StudyThe EU approval is based on data from the pivotal phase III EPCORE FL-1 study, which demonstrated that Tepkinly+R2 significantly improved outcomes compared to the standard-of-care R2 alone in second-line patients with R/R FL. The combination reduced the risks of disease progression or death by 79% and achieved higher overall and complete response rates versus R2 alone. Its safety profile was consistent with the known profiles of the previous individual therapies, with no new safety signals identified.
The most common adverse events included neutropenia, rash, infections, fatigue, diarrhea, COVID-19 and cytokine release syndrome, while serious adverse events occurred in 44% of patients.
Follicular lymphoma is a slow-growing type of B-cell non-Hodgkin lymphoma and the second most common subtype of the disease. Although treatment can induce remission, FL remains incurable, with many patients experiencing relapses and requiring additional therapies over time. The disease is more prevalent in European populations than in non-European populations.
AbbVie has partnered with Genmab (GMAB - Free Report) to jointly develop epcoritamab under the companies' oncology collaboration agreement. While both companies share commercialization rights in the United States and Japan, AbbVie is responsible for commercialization in other global markets. AbbVie and Genmab continue to advance their global development and regulatory expansion while evaluating the therapy as a monotherapy and in combination regimens across multiple hematologic malignancies through several late-stage clinical studies.
ABBV’s Zacks Rank & Stocks to ConsiderAbbVie currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Immunocore (IMCR - Free Report) and Amarin Corporation (AMRN - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss per share of 88 cents to earnings of 6 cents per share. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR shares have lost 8% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 46.66%.
Over the past 60 days, loss per share estimates for Amarin have narrowed from $15.20 to 65 cents for 2026. Over the same period, estimates for loss per share have also narrowed from $13.00 to 51 cents for 2027. AMRN shares have risen 12.5% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 50.02%.
, /PRNewswire/ -- Duke Energy will post its second-quarter 2026 financial results at 7 a.m. ET on Tuesday, Aug. 4, on the company's website at duke-energy.com/investors.
An earnings conference call for analysts is scheduled at 10 a.m. ET that day to discuss the second-quarter 2026 results and other business and financial updates.
The conference call will be hosted by Harry Sideris, president and chief executive officer, and Brian Savoy, executive vice president and chief financial officer.
The call can be accessed via the investors' section (duke-energy.com/investors) of Duke Energy's website or by dialing 585.542.9983 in the U.S. or 833.461.5787 outside the U.S. The confirmation code is 485914666. Please call in 10 to 15 minutes prior to the scheduled start time.
A recording of the webcast will be available on the investors' section of the company's website on Aug. 5.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.
Duke Energy is executing an energy modernization strategy, keeping customer value at the forefront as it invests in electric grid upgrades and efficient generation resources to strengthen the system and serve growing energy needs.
More information is available at duke-energy.com. Follow Duke Energy on X, LinkedIn, Instagram, TikTok and Facebook for stories about the people and innovations powering its communities.
Media Contact: Gillian Moore
24-hour: 800.559.3853
Analyst Contact: Mike Switzer
Office: 704.382.6473
Coca-Cola (NYSE:KO | KO Price Prediction) is the defensive name every retirement account seems to want to own right now, rallying 20.26% year to date on consistent earnings beats and a flight to quality inside consumer staples. Yet the multiple has run ahead of the fundamentals, and there is a better regulated alternative hiding in plain sight.
Coca-Cola Is Steady Shares closed at $82.96, sitting right against a 52-week high of $84.54. That leaves Coca-Cola trading at roughly 26 times forward earnings with a dividend yield of only 2.53%, well beneath the 4.49% yield on a 10-year Treasury. For that premium multiple, holders are underwriting management guidance of 4% to 5% organic revenue growth and 8% to 9% comparable EPS growth in 2026, a story further complicated by a 4% headwind from divestitures, unresolved IRS tax litigation, and a $960 million BODYARMOR impairment in Q4 2025.
The 63-year dividend streak is impressive. So is the fact that the stock is priced like the next decade will look exactly like the last one. When a defensive name yields less than cash and trades at a growth multiple, the margin of safety is gone.
Why Duke Energy Is The Better Retirement Trade Duke Energy (NYSE:DUK) trades at 19 times earnings with a 3.3% dividend yield, up a comparatively modest 9.63% year to date. This is the setup a seasoned income investor wants: a regulated cash machine the crowd has not chased yet. Three specific reasons to redirect the defensive allocation here.
1. Contracted growth locked in through 2030. Duke’s $103 billion five-year capital plan is the largest regulated capital plan in the industry, driving 9.6% earnings base growth through 2030. Management guides to 5% to 7% EPS growth through 2030 and expects to earn in the top half of that range beginning in 2028. That growth flows through rate base expansion, not global case volumes or currency swings.
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2. The AI data center tailwind is already contracted. Duke has secured 7.6 GW of economic development projects under Electric Service Agreements. Its Sun-belt regulated footprint across the Carolinas, Florida, Indiana, Ohio, and Kentucky sits in the heart of the U.S. data center corridor. CEO Harry Sideris explicitly credits “contracted demand from AI and advanced manufacturing” as a structural driver of the 2026 outlook, and management is doing this while keeping rates below the national average and rate changes below inflation.
3. Four straight beats and a widening dividend. Duke has delivered four consecutive quarters of EPS beats. Q1 2026 adjusted EPS came in at $1.93 versus a $1.80 estimate, a 7.51% beat, on revenue of $9.18 billion that grew 11.3% year over year. The annualized dividend has climbed from $3.24 in 2015 to $4.24 in 2025, and the 2026 quarterly payout was raised to $1.065. Sell-side price targets sit at $138.56, above the current $125.97 quote, while Coca-Cola trades near its consensus target of $85.97.
Retirement investors have been trained to reach for Coca-Cola every time the market gets nervous. This cycle, the crowd has already made that trade, and the multiple shows it. For income-focused investors comparing the two, Duke Energy offers the more compelling risk/reward on current metrics.
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Palantir Technologies Inc. (PLTR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned -2.9%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Internet - Software industry, which Palantir Technologies falls in, has gained 2.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Palantir Technologies is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +118.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $1.48 points to a change of +97.3% from the prior year. Over the last 30 days, this estimate has changed -0.7%.
For the next fiscal year, the consensus earnings estimate of $2.06 indicates a change of +38.9% from what Palantir Technologies is expected to report a year ago. Over the past month, the estimate has changed -2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Palantir Technologies is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Palantir Technologies, the consensus sales estimate of $1.81 billion for the current quarter points to a year-over-year change of +80%. The $7.69 billion and $10.9 billion estimates for the current and next fiscal years indicate changes of +71.9% and +41.7%, respectively.
Last Reported Results and Surprise HistoryPalantir Technologies reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +84.7%. EPS of $0.33 for the same period compares with $0.13 a year ago.
Compared to the Zacks Consensus Estimate of $1.54 billion, the reported revenues represent a surprise of +6.04%. The EPS surprise was +13.79%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Palantir Technologies is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Palantir Technologies. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Palantir (NASDAQ:PLTR | PLTR Price Prediction) is one of the most-watched tech stocks in the market, and for good reason. The big data and software giant, known for its intelligence platforms used by government entities and a range of corporate big data software platforms has been on a bumpy ride over the past year, actually down 2% over the past 12 months at the time of writing.
That said, this is also a company that’s up more than 400% over the past year, suggesting that investors in the AI company continue to be very bullish on its long-term prospects.
That said, one of the most interesting facets of this recent rise in Palantir is the company’s CEO Alex Karp’s warning is less about AI’s long-term promise and more about how frontier-model companies are monetizing it today. In a CNBC “Squawk Box” interview on July 1, Karp said, “I’m not throwing shade at them, but something has gone completely wrong,” while criticizing the token-based pricing model used by OpenAI and Anthropic. He argued that enterprise customers are paying for tokens that “create no value,” and that many businesses feel the AI stack is being sold in a way that does not justify the bill.
Let’s dive into this announcement, and what it may portend for investors in the AI and big data giant.
What to Make Of These Comments I think Karp’s broader point was that the AI industry has become obsessed with consumption rather than outcomes. He described the typical enterprise mindset as one of resignation. That is, companies will burn through tokens, accept rising costs, and potentially hand over valuable IP without seeing a meaningful return.
I think the other thing that’s important to point out is that Karp is essentially saying this is a systemic problem. In other words, this isn’t a company-specific issue in any way.
In my view, this is an important distinction. Karp was not simply taking a swipe at Sam Altman or Dario Amodei. Rather, he was arguing that the current commercial structure of AI is misaligned with what buyers actually want. In his view (and mine for that matter), enterprises are not eager to rent intelligence by the token if the payoff is uncertain and the data exposure is high.
However, given the recent news around Meta’s potential offloading of its “excess capacity,” maybe there’s another narrative to pursue. I’m not going to get into that in great detail here, but there are question marks on both sides of this argument.
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Why It Matters For investors, I think this quote matters because it points to a real tension inside the AI boom. That is, usage growth does not automatically equal durable profit pools.
In other words, if enterprise customers keep pressuring OpenAI, Anthropic, and other model providers on price, the market may need to rethink how much long-term margin power these firms really have. Karp’s remarks also line up with a broader industry shift toward model routing, open models, and cheaper inference options, all of which could compress pricing over time.
There is also a second layer here. Karp’s criticism supports Palantir’s own strategic pitch. If the company can keep sensitive data inside the customer perimeter and run AI in a more controlled, enterprise-friendly environment, the company may be able to better position its products. For investors, the key message that’s becoming apparent to me is that Palantir wants to be viewed as the safer, more operationally-useful layer in AI, not just another model seller.
Is Palantir a Buy Or Not? In my view, Palantir’s recent decline speaks to the lack of ultra-bullish sentiment in the market more than anything. Right now, there’s a glut of capacity about to hit the market, if companies like Meta choose to offload what they view as too much computing power. For companies that thrive on ever-increasing prices for data and analytics such as Palantir, that’s not good news.
That’s not to say the AI revolution isn’t real – I think it’s very real. However, the reality is that token-based pricing models may come under pressure, with customers eventually hitting the pause button if prices rise beyond a certain level.
What that level is exactly is very difficult to parse out. But for companies that are in the infrastructure, workflow, security and deployment areas of the market, it may be a better environment in a few years compared to companies operating on the cutting edge of developing frontier models.
We’ll have to see what this ultimately means for Palantir stock moving forward. Personally, I think this stock still looks expensive even after coming back down to earth a bit, but that’s just me. These comments certainly don’t support a bullish near-term market-wide view of the AI buildout, at least in my view.
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Over the past few years, there have been few better artificial intelligence (AI) stocks to own than Palantir Technologies (PLTR +2.24%). Microsoft (MSFT +1.65%) was also a popular pick, although its upside was limited by its size.
Still, if you had all of your money in these two stocks at the start of 2023 through 2025, you're a happy investor. But if you bought shares of each of these stocks at the start of 2026, you're quite frustrated.
For 2026, these two are down 20% (Microsoft) and 31% (Palantir) year to date. Plus, they each just hit 52-week lows. The question is, is this a real sell-off that's warranted, or is it a phenomenal buying opportunity?
I believe it's a great buying opportunity for one of these stocks, while the other could have more room to tumble. Which one is the best buy? Let's find out.
Image source: Getty Images.
Microsoft and Palantir are both going all-in on AI Microsoft's legendary business spans many industries, but it's taking steps to ensure that all its products have an AI-first mindset. It did that with its business productivity software by rolling out Copilot, its generative AI assistant, powered by OpenAI's ChatGPT. This business has done incredibly well, with revenue rising 123% year over year to $37 billion in annual recurring revenue.
It also has one of the most popular cloud computing platforms, with Azure's revenue rising 40% in its most recent quarter. Microsoft also owns around 27% of OpenAI, so when that company eventually goes public (likely at a $1 trillion valuation or greater), Microsoft is set to for a huge payday.
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Palantir is even more focused on AI, as it has been since its founding. The company's platform was originally intended solely for government clients and utilized AI for data analytics. Eventually, this software made its way to the public side and became a huge hit there as well. Palantir is nearing a 50-50 split for government and commercial revenue, and each customer remains strong.
The biggest kick-start in recent quarters has been AIP, Palantir's generative AI platform that automates workflows for users. This has become an incredibly popular tool, and it's the main reason why the company's revenue rose 85% year over year during its most recent quarter.
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135.51
Both businesses are clearly doing well, so it's hard to find fault with them. However, one winner emerges when valuations are examined.
Palantir's stock is quite pricey Both Palantir and Microsoft are highly profitable businesses growing at a healthy pace, so valuing their stocks based on the forward price-to-earnings ratio is a smart idea. A good baseline for these valuations is the S&P 500, which trades for 21.5 times forward earnings.
At 20 times forward earnings, Microsoft trades at a discount despite growing at a market-beating pace and being a strong company overall.
PLTR PE Ratio (Forward) data by YCharts
However, there's an elephant in the room: Palantir's valuation. At 85 times forward earnings, Palantir must quadruple its earnings beyond 2026's projected growth to be at the same level as the S&P 500. That's a ton of growth that may take some time to pan out, and investors may not be willing to wait that long, especially if there are other, well-priced options available like Microsoft.
Palantir is an excellent company with great growth prospects, but it's just far too expensive to own right now. Meanwhile, Microsoft looks like a timely buy, as it rarely gets this cheap.
I believe Microsoft will thrive throughout the second half of 2026, while Palantir could continue to tumble. Even in 2027, I'm still far more bullish on Microsoft than Palantir, primarily because the sky-high expectations priced into Palantir's stock make it hard to see the upside.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR, 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.
SAN FRANCISCO--(BUSINESS WIRE)--Lyft, Inc. (Nasdaq: LYFT) is welcoming Senthil Padmanabhan as Chief Technology Officer, joining July 20, 2026, reporting to CEO David Risher. With decades of experience, Senthil is the rare technical leader who operates at every altitude: going deep on the most complex problems, driving company-wide change at a global scale, and bringing the team with him every step of the way. Most recently as VP of Engineering at eBay, where he first earned recognition as a Tec.
Key Takeaways Etsy is expanding AI listing assistance and shop tools to automate tasks and improve seller decisions.Active sellers rose 3.3% year over year to 5.6 million in the first quarter.Etsy shares jumped 39.1% in three months, outpacing the industry's 5.1% rise. Etsy, Inc. (ETSY - Free Report) is placing renewed emphasis on improving the seller experience, recognizing that marketplace growth depends in part on helping merchants spend less time on manual tasks and more time creating products that attract buyers. After several years of limited investment in seller-facing capabilities, management is shifting more focus toward tools that simplify listing creation and shop management. The objective is straightforward. Reduce friction for sellers so they can spend more time creating and connecting with buyers, and improving the quality of inventory on the platform.
Etsy is expanding AI-powered listing assistance and introducing shop management tools that help sellers make better decisions, access relevant resources and automate routine tasks. During the first quarter of 2026, the company also developed a seller-focused AI Shop Assistant designed to provide actionable insights while reducing operational complexity. Management noted that these tools are intended to remove time-consuming activities that add little value, allowing sellers to devote greater attention to product innovation and customer relationships.
The early impact is beginning to appear in marketplace metrics. Active sellers increased year over year for the first time since Etsy introduced its seller setup fee, while management highlighted improving seller retention and healthier seller quality as more merchants completed sales and remained active on the platform. Active sellers grew 3.3% year over year to 5.6 million during the first quarter.
Management believes better seller tools will reinforce this trend by making it easier to operate successful shops and consistently introduce fresh inventory. This matters because Etsy’s growth depends on the quality and freshness of what sellers bring to the platform. If new tools help sellers list products faster and manage shops with less friction, Etsy could improve its inventory depth without relying solely on buyer-side initiatives.
How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) is also investing heavily in seller productivity, but with a stronger emphasis on reducing selling friction to expand supply. During the first quarter of 2026, eBay highlighted that its latest AI-powered magical listing experience significantly simplified listing creation by automatically generating titles, categories, pricing guidance and item specifics. eBay said the rollout increased new listing creation, improved seller retention, and lifted sold items and GMV per lister. Beyond AI, eBay continues to streamline consumer selling experiences and remove friction across key markets, reinforcing its seller-to-buyer flywheel and supporting long-term marketplace growth.
Shopify Inc. (SHOP - Free Report) is approaching the same opportunity through merchant enablement rather than marketplace optimization. Shopify expanded AI capabilities with Sidekick, which helps merchants automate tasks, create custom apps, generate workflows and proactively recommends actions through Pulse. Shopify also emphasized that AI-powered commerce tools, its structured product catalog and growing discovery channels are designed to help merchants operate more efficiently while reaching more buyers. As Shopify continues investing in merchant-facing AI and automation, it aims to strengthen merchant success and support durable platform growth over time.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 39.1% over the past three months compared with the industry’s 5.1% rise.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 12.81, lower than the industry’s ratio of 21.40. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen a downward revision. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.41, while the estimate for the next fiscal year has declined from $6.40 to 6.29 over the past seven days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Micron Technology (MU 6.40%) has had a phenomenal 2026 so far, rising around 240%, though it was up around 300% until a few days ago before artificial intelligence (AI)-centric stocks started to sell off. Regardless, Micron has had a great run, and it isn't looking to slow down anytime soon.
Micron recently announced another jaw-dropping quarter with huge growth and incredible expectations for the following quarter, dropping huge news that tight market conditions could last until 2028. If that occurs, Micron's stock could be primed for a major run, potentially positioning it to become the next Nvidia (NVDA +0.48%).
But is that possible? Let's see what it would take.
Image source: Getty Images.
Nvidia will be tough to catch, but Micron is trying its hardest Micron fabricates both NAND and DRAM memory. NAND memory is used in long-term storage devices such as solid-state drives (SSDs). In contrast, DRAM is used for high-speed memory, as needed by Nvidia's GPUs to rapidly access information as it's processed.
There has been strong demand for both types of memory due to the massive data center build-out, but supply hasn't kept up with this unprecedented demand. As a result, prices for memory chips have skyrocketed, allowing Micron to profit from the shortage.
As mentioned, new capacity for many in this industry won't be online until 2027 or later, creating a low supply of inventory for at least the next year and a half. That could lead to even higher memory chip prices, as demand for these devices isn't slowing down.
Nvidia has a strong read on data center build-out plans, as many clients are placing orders for devices well in advance of when they need them so they can quickly get them online once the data center infrastructure is ready. While the AI hyperscalers plan to spend $650 billion on data center capital expenditures this year, next year that figure could be over $1 trillion. That will lead to even higher demand for memory chips, as well as for Nvidia GPUs.
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In Micron's latest quarter, DRAM accounted for around 76% of total sales, with NAND accounting for the rest. So, for Micron to surpass Nvidia, its NAND sales would need to rise much faster than DRAM, since DRAM will likely grow at a similar rate to GPU demand.
I don't see that happening, but that doesn't mean Micron won't be a great stock to own. Next quarter, it expects $50 billion in revenue, or about half of what Nvidia is expected to generate. Those are still impressive figures, and I won't be surprised to see Micron keep climbing the ladder toward Nvidia. However, it will likely never catch up, as Nvidia benefits from similar tailwinds to Micron.
But how close can it get?
Micron could be a much larger company by this time next year Because the memory chip market is cyclical, it is often difficult to assign it a regular valuation. This plays into the analysis, as Micron would fare far better if the market assigned it a normal premium. So, let's analyze Micron's stock in two ways. I'll assign it a 15x earnings premium and a 25x earnings premium to see what the range of outcomes could be.
Micron operates on a non-standard fiscal year calendar, and its FY 2026 ends in August. So, I'll utilize FY 2027 projections. Wall Street analysts project earnings per share (EPS) of $149.64 next year, with the highest estimate at $221.27. At the midpoint, Micron's stock would trade between $2,244 and $3,741 per share, depending on whether it trades at 15 to 25 times earnings.
That equates to a market capitalization of about $2.5 trillion to $4.2 trillion -- not far off from Nvidia's current $4.7 trillion. Now, if the earnings come in at the high end of the projection and the stock trades for 25 times earnings, Micron's stock could be valued at $6.2 trillion -- a greater figure than Nvidia.
However, this won't happen in a vacuum because Nvidia's stock will likely rise if Micron's does. I don't think Micron can catch Nvidia, but it still a great company to invest in.
Micron Technology (NASDAQ:MU | MU Price Prediction) has become the memory story of the AI cycle. Cloud Memory revenue hit $13.769 billion in fiscal Q3 2026 alone, and non-GAAP gross margin ballooned to 84.9%. CEO Sanjay Mehrotra called it plainly: “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.”
Shares are up 241.97% year to date, yet the stock just pulled back sharply. So can MU push through to $1,500 in 2027? Let’s do the math.
Why Micron Shares Just Got Hit Despite Blowout Numbers The pullback is real. MU fell 19.61% in the past week and 8.32% over the past month, even as YTD gains sit near 242%.
Two headlines drove the reversal. Michael Burry disclosed a short at $1,051.87, arguing the rally reflects “AI hype and FOMO rather than fundamentals”. Wall Street veteran Jordi Visser flagged the sell-off as a warning of a “mid-cycle slowdown” in the AI trade.
Add a beta of 2.142 and an ongoing class-action lawsuit alleging price fixing, and volatility becomes the price of admission. This is a stock that moves twice as hard as the tape in both directions.
Wall Street Sees Big Upside. Our Model Sees Fair Value. Analysts are unusually aligned. The consensus target is $1,486, with 9 Strong Buys, 31 Buys, 4 Holds, and just 1 Strong Sell. Bullish sentiment sits at 89%. Our own base case lands at $979.86, essentially flat, with a bull case of $1,335.98 and bear case of $713.77. Confidence is 90%.
My take: analysts are closer to right than our conservative base. When earnings acceleration is this violent (345.72% revenue growth), a P/E model built on trailing numbers understates the earnings trajectory.
The Path to $1,500 Per Share Reaching $1,500 from today’s price of $975.56 would require a gain of 53.8%. With forward EPS of $64.97, a price of $1,500 implies a forward P/E of 23x. Our base case of $979.86 already implies 22x, meaning the bold target requires roughly 1.5x of additional multiple expansion.
That target is achievable if the AI capex build holds. Q4 26 guidance already calls for $50 billion in revenue and non-GAAP EPS of $31. Cloud Memory quadrupled from $5.284 billion in Q1 to $13.769 billion in Q3. Mehrotra says “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability” of results.
HBM4 is in high-volume shipments, HBM4E is targeting calendar 2027 volume, and a $9 billion Japan expansion adds supply. Cramer captured the shift: “Micron’s Become a Secular Growth Story, Not a Cyclical Story.” The risk: memory has always been cyclical, and Burry is betting that history rhymes.
Where Micron Trades Today vs Its Earnings Power At $975.56, MU trades at roughly 15x forward EPS of $64.97. Alpha Vantage pegs the forward P/E even lower at 7x on updated estimates. Either way, that is cheap relative to peers in the AI supply chain.
Shares sit between a 52-week high of $1,255 and a low of $103.23. The 10-year return of 7,903.59% shows the payoff when memory cycles turn. This is a compounding story if pricing power holds.
Is $1,500 Realistic? My Verdict $1,500 by 2027 means a 53.8% gain and a 23.1x forward multiple. That is a stretch, but a reasonable one.
Three things need to go right: HBM4 pricing must hold through the ramp, Strategic Customer Agreements need to convert into visible FY27 revenue, and the AI capex cycle cannot roll over. A demand air pocket from hyperscalers would derail it fast. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Micron could reach $1,500 in 2027.
WASHINGTON, DC - JULY 2: The Micron Technology logo is displayed at a booth at The Great American State Fair on the National Mall on July 2, 2026 in Washington, DC. (Photo by Kevin Carter/Getty Images)
Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The company’s new long-term agreements aim to stabilize its volatile cycles, yet they may also place a limit on its historical profitability.
Following an increase of over 700% in the past year, it is reasonable to assert that Micron Technology (MU)’s shares are valued with high expectations. The company is seizing an unprecedented, AI-driven memory shortage, posting results that have exceeded both records and anticipations. Management has introduced a new strategy, a collection of long-term Strategic Customer Agreements (SCAs), intended to mitigate the pronounced cycles that have historically characterized this sector. However, embedded within this very solution is the potential for the stock’s most significant threat: the risk that Micron has exchanged future gains for the stability of the present.
Profitability Is Already At An Exceptional PeakTo begin with, consider the height. Micron’s net margin for the last twelve months is 41.5%, the highest it has reached in over five years and vastly different from its three-year average of 1.5%. Its operating margin presents a similar narrative at 48.4%, greatly surpassing its three-year average of 4.5%. For the forthcoming fourth quarter, the company has forecasted a gross margin of approximately 86.0%. These figures are considerable for a hardware enterprise, justifying a high valuation. The stock trades at a price-to-sales ratio of 22.4, well above its decade-high of 7.6. When performance metrics are so far removed from their historical averages, they have considerably more capacity to decline than to ascend. The market pricing reflects both present strong outcomes and the belief that this new profitability level is maintainable. Any regression towards historical averages would exert considerable pressure on the stock’s multiples.
The New Agreements May Establish A Margin CapThis is where the new customer contracts become crucial. These SCAs are intended to serve as a safeguard against the significant pricing volatility in the industry. However, they may also impose a limit. As management stated, “The largest agreements generally have a ceiling price for existing products at the current CQ2 market price.” These deals are not insignificant; the 16 agreements executed to date encompass approximately “20% of our DRAM volume and one-third of our NAND volume” across their multi-year duration. While this setup provides a valuable safety net for profits, it also indicates that a substantial segment of Micron’s business may not benefit if memory prices continue to escalate beyond the already elevated levels of today. The very mechanism designed to protect against declines could restrict the company’s capacity to achieve the significant earnings outperformance the market has come to anticipate. For a more detailed examination of how Micron is attempting to navigate this situation, you can investigate how the AI boom is assisting it in managing its oldest challenge. The peril is a revaluation of the stock, not due to the business failing, but because it can no longer surpass elevated expectations.
Following a substantial rally, the benchmark for success is exceedingly high. The company’s noteworthy strategic initiative to mitigate its business risks may have unintentionally limited the very upside for which investors are paying a premium. The crucial factor to monitor now is whether open-market memory prices persist in their climb; if they do, the performance of Micron’s non-contracted business will reveal the outcome.
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HomeIndustriesComputers/ElectronicsTech StocksTech Stocks‘Most investor feedback continues to point to a skittish AI tape,’ one analyst saysJuly 7, 2026, 10:29 a.m. ET
Micron Technology’s stock is falling hard on Tuesday as investors look past a massive profit boom at memory rival Samsung Electronics.
Shares of Micron MU are down 7.5%, while Sandisk’s stock SNDK is off 11% Tuesday morning. Storage makers Western Digital WDC and Seagate Technology STX are seeing their shares fall 10% and 7.6%, respectively, following big gains on Monday.
Key Takeaways Micron signed long-term memory and storage supply deals with Ford and General Motors.AI data centers, autos and tight DRAM and NAND supply are supporting Micron's growth outlook.MU is expanding capacity in Taiwan, Virginia and Idaho to meet rising long-term memory demand. Micron Technology (MU - Free Report) received another vote of confidence from the auto industry after signing a long-term agreement with Ford (F - Free Report) to supply memory and storage solutions for the automaker's next-generation vehicles. The deal comes just days after Micron announced a similar supply agreement with General Motors (GM - Free Report) , highlighting the chipmaker's growing role in powering increasingly software-defined vehicles.
The back-to-back agreements reflect a broader industry trend. Modern vehicles rely on advanced driver-assistance systems, connected features and sophisticated infotainment platforms. All these require greater amounts of memory and storage. At the same time, booming artificial intelligence (AI) investments have boosted demand for DRAM (Dynamic Random-Access Memory) used in data centers, pushing its prices higher.
For Micron, these automotive wins with Ford and General Motors complement an already strong AI-driven growth story. The company is expanding advanced DRAM production in Virginia to support long-term demand from automotive customers, while its leadership in high-bandwidth memory (HBM) for AI servers continues to benefit from surging AI infrastructure spending.
After the stock's remarkable rally over the past year, the key question for investors is whether these tailwinds still leave room for further upside.
Image Source: Zacks Investment Research
AI Boom and Tight Memory Supply Support Micron’s GrowthMicron continues to benefit from robust demand for memory chips across multiple end markets, including AI data centers, automotive, industrial and consumer applications. The company expects supply-demand conditions for both DRAM and NAND to remain tight beyond calendar 2027, creating a favorable pricing environment for memory manufacturers.
The strength of this backdrop was evident in Micron's third-quarter fiscal 2026 results, with both revenues and earnings comfortably surpassing analysts' expectations.
DRAM remained the primary growth engine, contributing 76% of total revenues. Sales from the segment jumped 67% sequentially, supported by higher selling prices and steady shipment growth.
Demand for Micron's HBM, a critical component in AI servers, continues to accelerate as cloud providers and chipmakers expand AI infrastructure. The company has already generated more than $1 billion in HBM4 revenues, while the volume ramp of its HBM4 12-high products is progressing twice as fast as the previous HBM3E generation. Reflecting this momentum, Micron now expects the HBM market to exceed $100 billion by calendar 2027, earlier than previously projected.
Capacity Expansion Strengthens MU’s Long-Term OutlookMicron is also investing to support future demand. Earlier this year, the company completed the acquisition of Powerchip Semiconductor Manufacturing Corporation's facility in Taiwan, expanding its manufacturing footprint. It now expects meaningful production from the Tongluo fab to begin by mid-2027, ahead of earlier expectations, while construction of a second cleanroom is underway to support future EUV-based manufacturing. Meanwhile, its Idaho DRAM facility remains on track.
Micron is also strengthening customer relationships through long-term supply agreements, having signed 16 multi-year take-or-pay contracts (as highlighted during the fiscal third-quarter 2026 earnings call) with binding volume commitments. Combined with its growing presence in AI, automotive and enterprise storage—including an expanding SSD business—these investments provide Micron with stronger revenue visibility and position it well to capitalize on rising memory demand over the coming years.
The Zacks Consensus Estimate for MU’s fiscal 2026 and 2027 sales implies year-over-year growth of 234% and 88%, respectively. The same for fiscal 2026 and 2027 EPS calls for an uptick of 790% and 107%, respectively.
See how the consensus mark for Micron’s EPS has been revised in the past 60 days.
Image Source: Zacks Investment Research
MU’s Valuation CheckDespite such a strong rally over the past year, Micron's valuation remains much more reasonable relative to the broader sector. The stock continues to be supported by improving profitability, rising earnings estimates and sustained demand for memory chips across AI, automotive and other end markets.
Image Source: Zacks Investment Research
Unlike many high-growth AI stocks that trade at stretched valuations, Micron is benefiting from both strong AI-driven demand and favorable memory pricing. As long as the company continues to execute on its HBM roadmap, expand capacity and capitalize on tight DRAM and NAND supply conditions, its current valuation still appears attractive for long-term investors.
MU Still a Screaming Buy at Current LevelsThe biggest mistake investors can make is assuming Micron's rally has already priced in its future. The company's business mix is becoming structurally stronger, supported by AI, long-term supply agreements and expanding end-market opportunities. It is a cash-rich company with a strong balance sheet. With earnings expected to grow rapidly and memory demand remaining favorable, Micron appears well-positioned for more upside and certainly deserves a place in long-term growth portfolios.
Micron sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. AMC Entertainment (AMC - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.
AMC Entertainment is a member of our Consumer Discretionary group, which includes 260 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. AMC Entertainment is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AMC's full-year earnings has moved 13.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AMC has returned 11.5% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 9% on average. This means that AMC Entertainment is outperforming the sector as a whole this year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Bassett Furniture (BSET - Free Report) . The stock is up 17.5% year-to-date.
Over the past three months, Bassett Furniture's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, AMC Entertainment belongs to the Leisure and Recreation Services industry, a group that includes 28 individual stocks and currently sits at #197 in the Zacks Industry Rank. This group has lost an average of 6.3% so far this year, so AMC is performing better in this area.
In contrast, Bassett Furniture falls under the Furniture industry. Currently, this industry has 7 stocks and is ranked #28. Since the beginning of the year, the industry has moved +6.1%.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to AMC Entertainment and Bassett Furniture as they could maintain their solid performance.
Key Takeaways AMC will launch Arena One in June 2026, bringing live concerts to more than 300 U.S. theaters.AMC's Q1 revenues rose 21.2% y/y to $1.05B as attendance increased 13.6%.AMC aims to diversify revenues, boost theater use and create incremental traffic with Arena One. AMC Entertainment Holdings, Inc. (AMC - Free Report) is expanding beyond traditional movie exhibition with the launch of Arena One at AMC, a new platform that will bring live concerts into its theaters nationwide. While the ongoing recovery in the box office remains the company's primary growth engine, Arena One reflects management's broader strategy of maximizing the earning potential of its theater network by introducing alternative content. The initiative raises an important question for investors: whether live concert programming can become a meaningful contributor to AMC's long-term growth.
Management announced that Arena One at AMC will launch in June 2026 across more than 300 theaters in the United States, allowing fans to experience live concerts on the big screen simultaneously across the country. According to the company, the initiative opens AMC's theaters "not only to moviegoers but also to fans of live concerts," representing another step in broadening the company's entertainment offerings.
The launch also comes at a favorable time for the exhibition industry. AMC reported that the North American box office increased 22% year over year during the first quarter of 2026, with management expressing confidence that the 2026 film slate will produce the strongest post-pandemic box office performance. The company also highlighted renewed commitments from major studios to maintain exclusive theatrical windows of at least 45 days, supporting a healthier exhibition environment. Rather than replacing movies, Arena One complements this improving backdrop by providing another reason for consumers to visit theaters.
AMC's improving financial performance further supports its ability to pursue new initiatives. During the first quarter of 2026, revenues increased 21.2% year over year to $1.05 billion, attendance rose 13.6%, and adjusted EBITDA improved by $96 million to $38.3 million, marking the company's strongest first-quarter adjusted EBITDA since before the pandemic. At the same time, management continued strengthening the balance sheet through debt refinancing, debt-to-equity conversions and equity issuance, improving financial flexibility as it invests in strategic growth opportunities.
Nevertheless, Arena One represents a logical extension of AMC's broader strategy to transform its theaters into multi-purpose entertainment destinations rather than venues dedicated solely to movies. By leveraging its nationwide premium-screen network to host live concerts, the company is seeking to diversify revenue streams, improve theater utilization and create incremental customer traffic. While movies will remain the foundation of the business, the successful execution of Arena One could provide an additional growth avenue that strengthens AMC's earnings potential over the long term.
Exhibitors Look Beyond Movies to Drive Higher Theatre UtilizationAMC's Arena One initiative reflects a broader industry focus on maximizing theater traffic and enhancing the overall guest experience. Other exhibitors, including The Marcus Corporation (MCS - Free Report) and Reading International, Inc. (RDI - Free Report) , are also investing in initiatives that encourage more frequent visits and improve spending per guest, even though their strategies remain centered on the traditional theatrical experience.
Marcus continues to focus on strengthening theater economics through digital enhancements and premium guest experiences. During the first quarter of 2026, MCS completed the rollout of tap-to-pay terminals across its theaters, expanded in-seat QR code food ordering at all dine-in locations and is developing a redesigned digital food-and-beverage ordering platform to increase basket sizes and improve customer convenience. Management also highlighted ongoing investments in premium large-format screens, strategic ticket pricing and merchandise sales to drive higher per-capita spending while benefiting from a stronger film slate.
Reading International is pursuing a complementary strategy by enhancing the in-theater experience and optimizing its cinema portfolio. Management emphasized premium cinema offerings, luxury seating upgrades and operational initiatives aimed at improving attendance and profitability while capitalizing on a stronger release schedule. RDI also expects an improving film slate to support higher theater utilization and operating performance over the next several quarters.
AMC’s Price Performance, Valuation & EstimatesShares of AMC have gained 29.8% in the past three months, outperforming the Zacks Leisure and Recreation Services industry, the broader Consumer Discretionary sector and the S&P 500 Index.
AMC Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AMC stock trades at a forward price-to-sales ratio of 0.28, below the industry’s average of 2.72.
AMC’s P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
AMC’s bottom-line estimates for 2026 and 2027 reflect a loss per share of 23 cents and 11 cents, respectively, which have narrowed over the past 30 days. However, the revised estimates for 2026 and 2027 indicate year-over-year growth of 76% and 51.1%, respectively.
EPS Trend of AMC Stock
Image Source: Zacks Investment Research
AMC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New single-stock ETFs give investors amplified leveraged daily participation tied to BlackBerry Limited (NYSE: BB) and Everpure, Inc. (NYSE: P)
NEW YORK, July 07, 2026 (GLOBE NEWSWIRE) -- GraniteShares, an independent ETF issuer known for its lineup of leveraged single-stock ETFs, today announced the launch of
GraniteShares 2x Long BlackBerry Daily ETF (Ticker: BBUL)
GraniteShares 2x Long P Daily ETF (Ticker: PUL)
BBUL seeks daily investment results, before fees and expenses, of 200% (2x) of the daily percentage change in the price of BlackBerry common stock (NYSE: BB).
PUL seeks daily investment results, before fees and expenses, of 200% (2x) of the daily percentage change in the price of Everpure common stock (NYSE: P).
The new funds give traders a way to seek amplified daily returns on two actively traded software names through a single ticker, without the need for a margin account, options approval, or borrowing costs. Each fund resets its leverage daily, providing a defined 2x objective at the start of every trading session. Shares can be bought and sold intraday through any standard brokerage account.
BBUL and PUL join GraniteShares' lineup of leveraged single-stock ETFs, one of the largest in the market, covering high-conviction names across technology, AI, crypto, and consumer sectors.
“Traders want simple, efficient tools to act on short-term conviction,” said Will Rhind, Founder and CEO of GraniteShares. “BBUL and PUL deliver 2x daily leveraged positioning in a single trade. No margin account, no options chains, just a ticker. That simplicity is why leveraged single-stock ETFs have become one of the fastest-growing categories in the market, and why we continue to expand our lineup.”
Fund Details
Each Fund seeks its stated investment objective for a single day only, before fees and expenses. Due to the daily reset of leverage and the effects of compounding, returns over periods longer than one day will likely differ in amount and possibly direction from 2x the return of the underlying stock over the same period. The Funds are intended for knowledgeable investors who understand these risks and are willing to monitor their positions frequently.
About GraniteShares
GraniteShares is a global investment firm dedicated to creating and managing ETFs. Founded in 2016 by William “Will” Rhind and headquartered in New York City, GraniteShares provides products across U.S., U.K., German, French, and Italian exchanges. The firm offers a range of leveraged, income-oriented, and thematic ETFs, including its YieldBOOSTTM platform and single-stock leveraged ETF lineup.
GraniteShares is a market leader in leveraged single-stock ETFs and has $13.205 billion in assets under management as of July 06, 2026.
For more information, visit graniteshares.com.
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RISK FACTORS AND IMPORTANT DISCLOSURE
This material must be preceded or accompanied by a Prospectus. Carefully consider the Fund’s investment objectives risk factors, charges and expenses before investing. Please read the prospectus before investing.
The Fund is not suitable for all investors. The investment program of the funds is speculative, entails substantial risks and include asset classes and investment techniques not employed by most ETFs and mutual funds. Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. For periods longer than a single day, the Fund will lose money if the Underlying Stock’s performance is flat, and it is possible that the Fund will lose money even if the Underlying Stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.
The Fund seeks daily leveraged investment results and are intended to be used as short-term trading vehicles. This Fund attempts to provide daily investment results that correspond to the respective long leveraged multiple of the performance of its underlying stock (a leverage Fund).
Investors should note that such Leverage Long Fund pursues daily leveraged investment objectives, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its underlying stock. The volatility of the underlying security may affect a Funds return as much as, or more than, the return of the underlying security.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the Underlying Stock over the same period. The Fund will lose money if the Underlying Stock’s performance is flat over time, and as a result of daily rebalancing, the Underlying Stock volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Underlying Stock's performance increases over a period longer than a single day.
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An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Leverage Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.
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Our expert, award-winning staff selects the products we cover and rigorously researches and tests our top picks. If you buy through our links, we may get a commission. How we test vacuums
iRobot's new five-in-one floor cleaner can disinfect your floors without using any chemicals or cleaning fluids.
Ajay has worked in tech journalism for over a decade as a reporter, analyst, product reviewer, and editor. He got his start in consumer tech, breaking Android news at Newsweek before going to PCMag, where he reviewed hundreds of smartphones, battery packs, and chargers as a Mobile Analyst. He also worked at Lifewire, a Dotdash Meredith brand, as a Tech Commerce Editor, putting together tested best-of lists and assigning product reviews across categories including smart home, uninterruptible power supplies, generators, and automotive tech. Most recently, he was Section Editor, Mobile at Digital Trends, spearheading his team's coverage of breaking news, features, reviews, roundups, deals, and more across a variety of mobile products, including phones, wearables, VR headsets, batteries, and chargers. If you want Ajay's advice about anything tech, especially solar panels, UPS, batteries, EVs, and charging technology, you can reach him at [email protected].
Expertise 13+ years of experience in consumer product reviews, buying guides, best lists, and tech news across a variety of tech categories. As a homeowner, Ajay is also familiar with the unique electrical issues that can crop up in a prewar apartment building.
3 min read
iRobot may be best known for its robot vacuums, but like competitors Dreame and Roborock, it's also getting into the wet-and-dry mopping category. The Roomba Electro Plus is the company's first non-robot vacuum product, but it's also another first: It uses electricity to clean and disinfect hard floors instead of a traditional cleaning solution.
"The device uses tap water, which contains naturally occurring free chlorine," said Adam Pope, iRobot chief engineer and vice president, in a video interview with me. "A small electrical current creates hypochlorous acid from this chlorine, a safe and effective disinfectant applied to the roller and floor to kill germs."
The Electro will self-clean and self-dry when you press a button after it's docked.
iRobotThe Roomba Electro Plus is essentially creating electrolyzed water on demand that can be used in place of regular floor cleaners. According to Pope, it can kill 99.99% of bacteria, viruses, fungi and other germs without any added chemicals, toxins or steam, making it safe for pets and kids and environmentally friendly. I asked Pope if it would still take a cleaning solution for those who preferred a particular scent, for example, and he told me that while a standard cleaning solution isn't compatible, an iRobot cleaning solution would be available.
In other respects, the Electro Plus is more of a traditional wet-and-dry cleaner, though it comes with all the bells and whistles we've come to expect from similar units we've tested, such as the Roborock F25 Ultra. It has the PowerSpion roller mop we've seen on iRobot's robot vacuums, with automatic dirt detection that adjusts roller speed and water flow for deeper cleaning. The rollers use anti-hair wrap technology, and the included docking station automatically heats, washes, dries and sanitizes the mop when you press a button after docking it.
The Electro is designed to replace most other floor cleaning options.
iRobotAccording to iRobot, it can be controlled with just one hand because, like the F25 Ultra, it has powered assistance wheels and is fairly lightweight. The design can lie flat up to 180 degrees to get under furniture, and its battery life should last for around 35 minutes in the eco-mode setting.
The Roomba Electro Plus will cost $400 at launch and will be available starting July 7.
An all-new robot vacuum lineup The entire lineup of the Roomba models includes the 415, 515, 575, 715 and 775.
iRobotAlso new from iRobot is a whole lineup of robot vacuums, replacing parts of the company's existing lineup. At the top is the Roomba Max 775 Combo Robot Plus AutoWash Dock. Priced at $1,000, it's the most advanced model in the lineup, with lidar, 3D mapping and advanced obstacle recognition and avoidance for pet zones, cords, shoes and more. It's also designed for power mopping, with the same PowerSpin roller mop as the Electro, 167-degree-Fahrenheit hot water cleaning, a self-emptying docking station and bagged waste collection with carbon odor control.
The 775 Combo also comes with a companion, the Roomba Max 715 Vacuum Robot Plus AutoEmpty Dock, for $700. It has the same suction and vacuum performance, as well as the docking station, but it won't include mopping capabilities.
The Roomba 575 Vacuum Robot Plus AutoEmpty Dock is a $700 vacuum-only model, but aside from mopping, it offers most of the same navigation and obstacle-avoidance features. It should last for three months without needing to empty with the included docking station.
The Roomba 575 includes a docking station but has the classic iRobot design.
iRobotThe Roomba 515 Combo Plus AutoWash will cost $700 and offers a more compact design that fits under furniture more easily, as well as a longer battery life of up to 295 minutes (almost 10 hours). iRobot says it can clean up to 2,000 square feet on a single charge. It also has an onboard water tank for its mopping pads, lidar mapping and a self-cleaning docking station for washing and drying the mops.
On the more mid-price end is the Roomba Plus 415 Combo Plus AutoWash Dock at $600. It has the same compact body as the 515 Combo, which is 46% more compact, and also comes with dual-spinning mopping pads, pad dry and lidar navigation.
These robots are availbile for preorder now through iRobot.
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AJAY KUMAR
Editor
Ajay has worked in tech journalism for over a decade as a reporter, analyst, product reviewer, and editor. He got his start in consumer tech, breaking Android news at Newsweek before going to PCMag, where he reviewed hundreds of smartphones, battery packs, and chargers as a Mobile Analyst. He also worked at Lifewire, a Dotdash Meredith brand, as a Tech Commerce Editor, putting together tested best-of lists and assigning product reviews across categories including smart home, uninterruptible power supplies, generators, and automotive tech. Most recently, he was Section Editor, Mobile at Digital Trends, spearheading his team's coverage of breaking news, features, reviews, roundups, deals, and more across a variety of mobile products, including phones, wearables, VR headsets, batteries, and chargers. If you want Ajay's advice about anything tech, especially solar panels, UPS, batteries, EVs, and charging technology, you can reach him at [email protected]. See full bio
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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in 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.
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 maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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: Zillow (Z - Free Report) Zillow Group, Inc. and its affiliates connect renters, buyers, sellers and real estate professionals to meet residential real estate needs. The company intends to transform the experience through its all-in-one digital platform, the Zillow housing super app. With around 173 million U.S. homes in its database, it helps sellers showcase properties on its platform to engage potential homebuyers. Zillow also supports homebuyers and renters by connecting them with digital tools and real estate professionals to ease shopping, financing and renting.
Z is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. Z has a Growth Style Score of A, forecasting year-over-year earnings growth of 37.2% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.25 per share. Z boasts an average earnings surprise of +1.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Z should be on investors' short list.
New York, New York--(Newsfile Corp. - July 7, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ: Z) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zillow securities between February 11, 2025 and May 7, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/Z.
Zillow Case Details
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:
Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business; as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.What's Next for Zillow Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/Z, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zillow you have until August 10, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zillow Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zillow Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301089
Source: Bronstein, Gewirtz & Grossman, LLC
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Key Takeaways MercadoLibre is expanding AI across commerce and fintech to boost efficiency, UX and revenues.MercadoLibre's LLM search improved relevance, conversions and sponsored listing click-throughs.MercadoLibre uses AI in Seller Assistant, logistics, Mercado Pago and internal development. MercadoLibre, Inc. (MELI - Free Report) is expanding the use of artificial intelligence (AI) across its commerce and fintech ecosystem, with management highlighting AI as an increasingly important tool for improving efficiency, enhancing user experiences and generating incremental revenues. The company is embedding AI across multiple parts of its business to improve customer experiences and increase productivity.
One of the most notable developments in the first quarter of 2026 was the rollout of an AI-powered search experience built on large language models. The new system moves beyond traditional keyword-based searches by better understanding customer intent. Management said the rollout in Brazil and Mexico improved product relevance, resulting in higher conversion rates and stronger click-through rates for sponsored listings, which generated incremental revenues.
During the first-quarter earnings call, management added that the technology is already live in Brazil, Mexico and Argentina, where it is enhancing product discovery, strengthening user engagement and improving ad returns through more relevant search results.
Beyond search, artificial intelligence is increasingly supporting operational efficiency across the business. MercadoLibre reported that daily active users of its Seller Assistant grew more than 40% month over month in March. Within its logistics network, an AI-powered assistant provides representatives with real-time process information and insights into operational challenges, helping improve productivity across fulfillment.
In Brazil, Mercado Pago's AI assistant has become more proactive by alerting users to negative balances in accounts connected through Open Finance and identifying funds held elsewhere that could earn higher yields with Mercado Pago. It can also move balances between accounts within seconds, enabling users to act immediately on those opportunities.
Internally, AI adoption is also improving software development efficiency, with productivity metrics growing seven to 10 times faster than headcount growth, while code rollbacks have declined materially year over year. MercadoLibre has also deployed Claude Cowork to approximately 31,000 employees, supporting broader AI adoption across the organization.
What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares jump 3.7% over the past three months compared with the industry’s 8.9% rise. While shares of Amazon have rallied 14.4%, those of Sea Limited have advanced 28.9% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio stands at 35.52, higher than the industry’s ratio of 21.40. The stock is also trading above its 12-month median level of 34.47.
MercadoLibre is trading at a premium to Amazon (with a forward 12-month P/E ratio of 25.72) and Sea Limited (21.29).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales and earnings per share implies year-over-year growth of 39.7% and 4%, respectively. For the next fiscal year, the consensus estimate indicates a 26.6% rise in sales and 47% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has fallen by $6.87 and $6.95 to $40.97 and $60.22, respectively, over the past 60 days.
Image Source: Zacks Investment Research
MELI currently carries a Zacks Rank #5 (Strong Sell). The rank reflects near-term earnings pressure despite the company’s strong top-line momentum. Although revenues increased 49% year over year in the first quarter, operating margin fell to 6.9% from 12.9% a year ago, and Net Interest Margin After Losses declined to 17.8% from 22.7% as the credit portfolio expanded. With accelerated investments continuing to weigh on profitability, earnings leverage may remain limited in the near term. The Zacks Consensus Estimate for second-quarter earnings calls for a 15.7% year-over-year decline.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Occidental Petroleum (OXY - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil and gas exploration and production company have returned -15.1% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Oil and Gas - Integrated - United States industry, to which Occidental belongs, has lost 10.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Occidental is expected to post earnings of $1.85 per share, indicating a change of +374.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -8.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.99 points to a change of +171% from the prior year. Over the last 30 days, this estimate has changed +3.5%.
For the next fiscal year, the consensus earnings estimate of $4.25 indicates a change of -29.1% from what Occidental is expected to report a year ago. Over the past month, the estimate has changed -0.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Occidental is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Occidental, the consensus sales estimate for the current quarter of $7.22 billion indicates a year-over-year change of +11.9%. For the current and next fiscal years, $25.57 billion and $24.21 billion estimates indicate +0.5% and -5.3% changes, respectively.
Last Reported Results and Surprise HistoryOccidental reported revenues of $5.11 billion in the last reported quarter, representing a year-over-year change of -25.3%. EPS of $1.06 for the same period compares with $0.87 a year ago.
Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of -7.03%. The EPS surprise was +63.08%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Occidental is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Occidental. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
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.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth 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 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 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.
#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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Regeneron (REGN - Free Report) Tarrytown, NY-based Regeneron is a biotechnology company focused on the discovery, development and commercialization of treatments targeting severe medical conditions. The company’s portfolio includes Eylea (for several eye diseases), Eylea HD (higher dose of Eylea), partnered drug Dupixent (asthma, atopic dermatitis and chronic rhinosinusitis with nasal polyposis, chronic obstructive pulmonary disease, eosinophilic esophagitis, prurigo nodularis, chronic spontaneous urticaria), Libtayo (lung cancer, advanced basal cell carcinoma, metastatic or locally advanced cutaneous squamous cell carcinoma, cervical cancer), Praluent (heterozygous familial hypercholesterolemia and homozygous familial hypercholesterolemia), Kevzara (moderately-to-severely active rheumatoid arthritis, polyarticular juvenile idiopathic arthritis), Evkeeza (homozygous familial hypercholesterolemia), Ordspono, (follicular lymphoma and diffuse large B-cell lymphoma), I Lynozyfic (relapsed/refractory multiple myeloma) Inmazeb (Ebola), Veopoz (CHAPLE disease), Arcalyst and Zaltrap.
REGN is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.11; 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 $0.13 to $46.05 per share. REGN boasts an average earnings surprise of +26.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, REGN should be on investors' short list.
Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) and Taiwan Semiconductor (NYSE:TSM) delivered blockbuster Q1 2026 reports exposing different paths to AI silicon profit. One scales custom TPU volume and pulls packaging leverage in-house. The other races to build advanced capacity for the entire industry. The results clarify who captures operating leverage and who absorbs the CapEx.
TPUs Carry Alphabet. HPC Carries TSMC. Alphabet’s quarter posted consolidated revenue of $109.9 billion, up 22% YoY, with Google Cloud at $20 billion, up 63% YoY. Sundar Pichai told investors the Cloud backlog nearly doubled sequentially to $462 billion, and the 8th generation inference silicon delivers “80% better performance per dollar than the prior generation.” CapEx exploded to $35.7 billion in Q1, funding servers and TPU deployments.
TSMC’s response was equally forceful. Q1 revenue reached NT$1.134 trillion, up 21.45% YoY, with HPC now 61% of revenue and gross margin at 66.2%. Chairman C.C. Wei acknowledged the choke point plainly: “Our advanced packaging capacity is also very tight…the situation has been quite constrained.” Full-year revenue is guided above 30% growth in USD terms.
One Owns the Stack. The Other Owns the Fabs. Pichai framed the strategic gap directly, saying Alphabet is “unique in the market because of our vertically optimized AI stack”, co-developing silicon, models, and applications together. TSMC funnels capital into 2026 CapEx toward the high end of USD 52-56 billion, and CFO commentary warns that “CapEx in the next few years, in the next 3 years, will be significantly higher than the past 3 years.”
Lens Alphabet TSMC Core AI Bet Custom TPU vertical stack Leading-edge foundry plus CoWoS Q1 Operating Margin 36.1% 58.1% Key Vulnerability Rising depreciation drag Overseas fab margin dilution TSMC’s guidance flags 2%-3% dilution from the 2-nanometer ramp and 2%-4% from overseas fabs. That is the cost of the stranglehold, and it is precisely the exposure Alphabet is engineering around.
The Next Catalyst Is Packaging Control Pichai said Alphabet will “begin to deliver TPUs to a select group of customers in their own data centers”, opening a new revenue lane and pulling packaging decisions in-house. Keep an eye on whether the $462 billion Cloud backlog converts on the promised timeline, with the majority realized as revenue in 2027. For TSMC, the open question is whether CoWoS bottlenecks push more hyperscalers to shift next-generation TPU packaging volume away from Taiwan.
Where the Setup Looks Cleaner Right Now Both stocks have ripped, but the setups diverge. TSM is up 49.42% YTD and trades at a forward multiple near 28. GOOGL is up 17.23% YTD with a forward multiple near 26 and an analyst target of $432.29. Alphabet emerges as the cleaner play to capture pure AI operational leverage without the heavy capital-intensive downside. For exposure to raw manufacturing scarcity, TSMC captures that dynamic. For exposure to vertical margin capture, Google’s TPU strategy is the more direct expression.
Key Takeaways Rising P/E ratios often signal investor confidence, earnings strength and further upside potential. The screen identifies stocks with accelerating earnings growth and sustained price momentum. W, DHR, ISRG, BEAT and CSW pair rising P/Es with strong earnings performance. Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of Wayfair (W - Free Report) , Danaher (DHR - Free Report) , Intuitive Surgical (ISRG - Free Report) , HeartBeam (BEAT - Free Report) and CSW Industrials (CSW - Free Report) .
Rising P/E: A Useful ToolThe concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future, owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning StrategyIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 72.
Here are five out of the 72 stocks:
Wayfair: This Zacks Rank #1 company is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average four-quarter earnings surprise of W is 56.66%.
Danaher: This Zacks Rank #2 company is a global conglomerate that designs, manufactures and markets diverse lines of professional, industrial, commercial and consumer products.
The average four-quarter earnings surprise of DHR is 6.73%.
Intuitive Surgical: This Zacks Rank #2 company designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system and related instruments and accessories.
The average four-quarter earnings surprise of ISRG is 16.82%.
HeartBeam: This Zacks Rank #2 company is a development-stage digital healthcare company with proprietary ECG telemedicine technology.
The average four-quarter earnings surprise of BEAT is 4.28%.
CSW Industrials: This Zacks Rank #1 company manufactures and sells industrial products; coatings, sealants, adhesives and specialty chemicals.
The average four-quarter earnings surprise of CSW is 3.81%.
Maximizing dividend income isn't all about chasing high yields. A company must have a healthy, growing business to generate the profits needed to pay dividends and raise them over time. A high dividend yield can even be a red flag, a trap that ultimately costs investors more than they bargained for.
Fortunately, there are some fantastic high-yield dividend stocks out there. That's especially true in healthcare. It's an evergreen industry, and an enormous one; in the United States, healthcare spending in 2025 reached $5.7 trillion.
These three healthcare stocks will pay you generously to hold them, and have the stability and growth to own them for the long haul. While AbbVie (ABBV +0.82%) tops this list, you don't want to miss the other two.
Image source: The Motley Fool.
The pharmaceutical industry is a major driver of the broader healthcare sector, and AbbVie is one of its top players. The company boasts an impressive portfolio spanning immunology, oncology, neuroscience, eye care, and aesthetics. AbbVie has increased its dividend for at least 50 consecutive years, dating back to its years as part of Abbott Laboratories. This impressive feat makes the stock a Dividend King.
AbbVie has proven capable of replenishing its drug portfolio as patents expire. It faced a significant threat when Humira lost patent exclusivity, but has continued to grow thanks to smart acquisitions and the success of newer drugs such as Skyrizi and Rinvoq. As a result, Wall Street analysts expect AbbVie to grow earnings by an average of 12% to 13% annually over the next three to five years.
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Investors get an initial yield of 2.5% at AbbVie's current share price. Plus, the dividend is only 48% of the company's estimated 2026 earnings, so there's plenty of financial cushion in case the business sees an unexpected downturn. AbbVie is a textbook example of what long-term dividend investors should look for.
2. Medtronic Medical devices are arguably just as crucial to healthcare as pharmaceuticals. Medtronic (MDT +1.69%) is one of the world's leading health technology companies, with over 41,000 active patent matters and 174 active clinical trials. It divides its business into three segments: cardiovascular, medical/surgical, and neuroscience. That said, the sheer breadth of its product portfolio has made Medtronic a very steady business for decades.
Medtronic has increased its dividend for 49 consecutive years, so it should soon join AbbVie as a Dividend King. There's plenty of room to raise the dividend, as the payout ratio is only 48% of 2026 earnings estimates. That doesn't even factor in the 5% to 6% annualized earnings growth analysts anticipate over the long term.
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There could be upside to Medtronic's growth if it successfully establishes itself in robotics-assisted surgery. It could challenge the industry leader, Intuitive Surgical, with its new Hugo system over the coming years. Overall, Medtronic is the type of dividend investment that allows you to sleep well at night. The added upside of its Hugo system is an intriguing wildcard.
3. Bristol Myers Squibb This list will circle back to the pharmaceutical industry with Bristol Myers Squibb (BMY +2.88%). BMS specializes in treatments across healthcare's most lucrative fields, including cardiovascular, hematology, immunology, neuroscience, and oncology. Shares currently yield 4.3%, offering investors tantalizing income for their portfolios from the jump.
But Bristol Myers Squibb is also riskier. Several of its key drugs will lose revenue to generic competition as their patents expire over the next few years. This situation, referred to as a patent cliff, creates a massive hole in sales that BMS will have to fill. Fortunately, the company's developmental pipeline is loaded. Management hopes to bring 10 new medicines to market by the end of the decade.
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Wall Street is currently worried about growth. Analysts currently see earnings shrinking at an annualized rate of 1% over the long term. That could change with a blockbuster drug or two. Bristol Myers Squibb will have plenty of swings at bat as its pipeline matures over the next three to four years. In the meantime, the dividend is only 40% of 2026 earnings estimates, so there's a big cushion there. Priced at just 9 times forward earnings, the stock could look like a bargain in hindsight.
You may know Honeywell as one of the world's largest industrial conglomerates, but following last week's spinoff transaction, that is no longer the case. Following the spinoff of Honeywell Aerospace (HONA 0.09%) as a separate, publicly traded company, Honeywell Inc. is now Honeywell Technologies (HON 3.47%), an industrial automation pure play.
Furthermore, the latest corporate divestiture is the culmination of other spinoff activities the company has undertaken over the past 12 months. As you may recall, last October, Honeywell spun off Solstice Advanced Materials (SOLS 9.08%), a specialty chemicals and materials company with exposure to fast-growing industries like data center cooling solutions and semiconductor materials.
Also, last month, prior to the aerospace spinoff, Honeywell took its quantum computing business, Quantinuum (QNT 4.98%), public, with Honeywell Technologies maintaining a large stake.
Among these four public entities, which one presents the greatest opportunity for investors right now? Let's take a look at each one and determine which, if any, is worthy of a buy right now.
Image source: Getty Images.
Tread carefully with Honeywell Technologies On one hand, owning Honeywell Technologies means owning the most stable of the former industrial conglomerate's disparate businesses. Long the core of Honeywell's overall business, the industrial automation segment presents the opportunity for steady profitability and growth. A look at its financials confirms this view.
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Based on pro forma financials released after last week's spinoff, Honeywell Technologies experienced 3.5% revenue growth and 7% earnings per share (EPS) growth, respectively, during 2025. Better yet, as Honeywell Technologies and Honeywell Aerospace continue with margin expansion efforts initiated prior to the spinoff, management has guided for the potential for Honeywell's core to experience double-digit earnings growth.
Still, with Honeywell Automation trading for 28 times forward earnings after the spinoff , it's easy to see why shares have pulled back. You may want to wait for further weakness before entering a long-term position at a more favorable valuation. That said, given the company's indirect exposure to the quantum computing venture Quantinuum, keep the value of this position in mind when determining whether Honeywell Technologies is undervalued or overvalued.
The same goes for Honeywell Aerospace Right out of the gate, Honeywell Aerospace has become a hot stock. Aerospace stocks have, in general, been running hot lately, so it's not all that surprising that investors have bid up this spinoff stock on the heels of the divestiture. The question now is whether this supplier of civilian and defense aerospace components and products represents a good value at current prices.
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Unfortunately, just like its former parent's, its shares appear pricey. They're trading for around 27 times forward earnings, so once again, the market has factored in growth resurgence potential. That said, Honeywell Aerospace technically remains cheap compared to its richly valued peers like GE Aerospace, which trades for nearly 50 times forward earnings, and Boeing, which trades for over 90 times forward earnings.
However, Boeing's seemingly rich valuation largely reflects a big anticipated rebound in earnings. With GE Aerospace, analysts expect the company to report nearly 15% earnings growth next year. For Honeywell Aerospace shares to experience further multiple expansion, say to a valuation well north of 30 times forward earnings, the company may have to really knock it out of the park to inspire a bullish response among investors.
Conversely, as expectations run high for a double-digit growth resurgence, any hiccup could lead to significant near-term losses. Hence, as with Honeywell Automation, tread carefully here.
Is Solstice the dark horse contender? Honeywell Automation and Honeywell Aerospace may be garnering greater attention following the spinoff news, but if you're wondering which Honeywell stock to buy, Solstice Advanced Materials could be the dark horse contender. This comes even as its shares have surged nearly 66% since the spinoff from the former Honeywell nine months ago.
Solstice's strong stock market performance isn't surprising. Not only does this stock offer exposure to industries adjacent to the artificial intelligence (AI) megatrend, like data center cooling solutions and semiconductor materials, but Solstice also manufactures uranium hexafluoride, an essential material used in nuclear power plants. This makes it a nuclear energy stock as much as its AI-related tailwinds make it an AI stock.
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That said, Solstice shares have stalled in recent months, pulling back slightly from the all-time highs following its latest earnings. The fact that Solstice did not raise guidance after last reporting earnings may have something to do with it. Still, in the quarters ahead, if AI- and nuclear-energy-related tailwinds lead to further strong growth, sentiment could swing back to bullish.
With shares trading for just 30 times forward earnings, against forecasted earnings growth exceeding 20%, renewed bullishness could drive a major rerating. Among the Honeywell spinoff stocks, Solstice appears the best positioned to outperform.
The best approach with moonshot Quantinuum As mentioned earlier, Quantinuum technically isn't a Honeywell spinoff. Instead of spinning it off and distributing the newly issued stock to shareholders, Honeywell took its quantum computing venture public, raising nearly $1.7 billion. Following the IPO, Honeywell Automation owns around 48.1% of the company's outstanding shares.
Quantinuum has rallied by over 24% since its public market debut. Given Quantinuum's $19.5 billion market cap, Honeywell Automation's stake is worth around $9.4 billion. Not too shabby, considering Honeywell Automation's current market value is around $73 billion. As with other quantum computing stocks, this one's valuation remains largely based on future potential. Quantinuum has yet to generate material revenue, with sell-side analysts estimating heavy losses in the foreseeable future.
Instead of owning Quantinuum directly, investors bullish on its prospects may want to own Honeywell Automation instead. Again, Honeywell Automation could decide to start paring down its position, providing billions in fresh capital for growth and/or stock buybacks. At the same time, even if Quantinuum suffers a major pullback, that may have just a muted impact on Honeywell Automation's stock performance, given how most of its value comes from its automation business.
Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today submitted the first portion of their responses to the Surface Transpor
Players in the Zacks Beverages – Alcohol industry are navigating a period of structural change as evolving consumer preferences and cost pressures reshape the competitive landscape. Moderation trends, particularly among younger and health-conscious consumers, are weighing on long-term demand for traditional beer, wine and spirits, creating concerns over sustainable volume growth. At the same time, tariffs and elevated costs for packaging, freight, labor and agricultural inputs are pressuring margins, especially for companies with global supply chains and limited pricing power.
However, the industry also offers meaningful growth opportunities through innovation. Expanding demand for ready-to-drink cocktails, and low and no-alcohol beverages is creating revenue streams, while companies that diversify their portfolios and adapt to changing consumption habits are better positioned to offset volume headwinds. For investors, success will likely depend on companies' ability to balance pricing power, cost discipline and product innovation while capitalizing on evolving consumer preferences. Leading players, including Anheuser-Busch InBev (BUD - Free Report) , Diageo Plc (DEO - Free Report) , Constellation Brands Inc. (STZ - Free Report) , Brown-Forman Corporation (BF.B - Free Report) and Molson Coors Beverage Company (TAP - Free Report) , look well-placed to capitalize on these trends.
About the Industry The Zacks Beverages – Alcohol industry mainly comprises producers, importers, exporters, marketers and sellers of alcoholic beverages like beer, craft beer, ciders, wine, rum, whiskey, liqueurs, vodka, tequila, champagnes, brandy, amaretto, ready-to-drink (RTD) cocktails and malt. Some industry players also produce and sell non-alcoholic beverages like carbonated soft drinks, sparkling waters, bottled water, energy drinks, powdered and natural juices, and RTD teas. The companies sell products through wholesalers and retailers like supermarkets, warehouse clubs, grocery stores, convenience stores, package stores, drug stores and other retail outlets. The industry participants also sell beer directly to consumers in cans and bottles at restaurants, pubs, bars and liquor stores. Some brewers operate brewpubs or tasting rooms at breweries, offering consumers the freshest beer.
What's Shaping the Future of Beverages - Alcohol Industry Moderation Trend Pressure Alcohol Consumption: Moderation is becoming a structural headwind for alcohol companies. Younger consumers, particularly Gen Z, are drinking less, and health-conscious buyers across age groups increasingly favor balanced lifestyles. Consumers are shifting occasions away from traditional alcohol, and low or no-alcohol alternatives are gaining share. For investors, this raises concern over long-term volume growth across beer, wine and spirits. Even if pricing supports revenues, weaker consumption can limit operating leverage and make growth more dependent on innovation. Companies with high exposure to legacy alcohol categories may face slower depletion trends, higher promotional needs and weaker earnings visibility if moderation continues to reshape drinking behavior.
Tariffs Could Squeeze Margins: Tariffs are emerging as a meaningful overhang for U.S. beverage alcohol companies with global sourcing and international supply chains. Higher duties on imported glass bottles, aluminum, packaging materials and select beverage imports can raise input costs, forcing producers to either absorb the increase or pass it on to consumers. While premium brands have greater pricing flexibility, mass-market labels remain more vulnerable to demand erosion from higher shelf prices. Investors should watch for margin pressure, procurement disruptions and slower earnings growth, particularly among companies with significant import exposure or limited domestic sourcing capabilities.
Beyond tariffs, alcohol producers continue to navigate elevated costs across packaging, freight, labor and agricultural inputs. Although inflation has moderated from peak levels, cost volatility remains a key earnings risk, especially if companies are unable to fully offset higher expenses through pricing. Promotional activity may also increase as consumers become more value-conscious, pressuring the gross margin.
Innovation Beyond Traditional Alcohol Creates Growth Runway: Despite softer industry volumes, beverage companies are unlocking growth opportunities through innovation. Demand for ready-to-drink cocktails continues to outpace most traditional alcohol categories as consumers seek convenience, flavor variety and affordability. At the same time, low and no-alcohol beverages are evolving into a meaningful profit pool rather than a niche offering, attracting consumers who want moderation without abandoning social drinking. Leading brewers and spirits companies are expanding product portfolios to address these changing occasions, allowing them to capture incremental demand instead of relying solely on traditional alcohol consumption. Successful innovation could offset category pressures and strengthen long-term market positioning.
Zacks Industry Rank Indicates Dull Prospects The Zacks Beverages – Alcohol industry is a 17-stock group within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #189, placing it at the bottom 23% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500 The Zacks Beverages – Alcohol industry has outperformed the broader sector and underperformed the S&P 500 in the past year.
The stocks in the industry have collectively returned 4.1% in the past year, whereas the Zacks Consumer Staples sector has risen 1.6%. Meanwhile, the Zacks S&P 500 composite has rallied 23.9%.
1-Year Price Performance
Beverages - Alcohol Industry's Valuation Based on the forward 12-month price-to-earnings (P/E) ratio, commonly used to value Consumer Staples stocks, the industry is currently trading at 15.27X compared with the S&P 500’s 21.07X and the sector’s 17.26X.
Over the last five years, the industry traded as high as 24.1X, as low as 13.77X and at the median of 18.39X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Alcohol Beverages Stocks to Keep a Close Eye on None of the stocks in the Zacks Beverages – Alcohol space currently sports a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). However, we have selected five stocks with a Zacks Rank #3 (Hold) to watch from the same industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let us have a look at the companies.
Anheuser-Busch InBev: Also known as AB InBev, this is a global brewing leader with a portfolio of iconic brands spanning diverse geographies. Its leading positions across key markets and expansive global footprint provide meaningful scale advantages, enabling efficient operations and the ability to grow multi-country brands worldwide. The company continues to benefit from resilient consumer demand for its core brands, supported by strong business momentum, driven by disciplined execution, sustained brand investment and an accelerated digital transformation agenda. Premiumization remains a central growth lever, as consumers increasingly trade up within the beer category.
Beyond core beer, AB InBev is steadily expanding its Beyond Beer portfolio, encompassing ready-to-drink offerings, such as canned wines and cocktails, along with hard seltzers, ciders and flavored malt beverages. This diversification strategy is enhancing relevance across occasions and consumer segments, while providing an incremental growth runway and supporting top-line momentum. The Zacks Consensus Estimate for AB InBev’s 2026 sales and earnings suggests growth of 8.4% and 15.8% from the year-ago period’s reported figures. The consensus mark for the company’s 2026 earnings has moved down by a penny in the past seven days. The Zacks Rank #3 stock has gained 15.8% in the past year.
Price & Consensus: BUD
Diageo: The stock of this London-based leading beverage company has declined 22.4% in the past year. DEO operates in approximately 180 countries, and is involved in producing, distilling, brewing, bottling, packaging and distributing spirits, wine and beer. The company continues to place innovation and consumer moderation at the center of its long-term growth strategy, addressing evolving consumption patterns and diversifying its portfolio. Innovation remains a key driver, with strong momentum across tequila, whisky, beer and RTD formats.
Equally important is Diageo’s push into moderation, wherein it has established clear leadership in non-alcoholic spirits. The company is refining its $2-billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth. A key focus is balancing cost savings with strategic reinvestment, particularly in marketing and brand activation. The Zacks Consensus Estimate for Diageo’s fiscal 2027 EPS has edged down 0.3% in the past 30 days. The consensus estimate for fiscal 2027 sales and earnings suggests declines of 1.4% and 1.8%, respectively, from the year-ago period’s reported figures. The company currently has a Zacks Rank #3.
Price & Consensus: DEO
Constellation Brands: The Victor, NY-based third-largest beer company and a leading, high-end wine company in the United States continues to benefit from a sharp focus on brand building and a steady cadence of innovation. The company’s premiumization strategy remains a key growth driver, led by the sustained strength of the Modelo and Corona brand families and continued traction across its Power Brands portfolio. Its beer business is benefiting from premium and above-premium trends, supported by growth in traditional beer and adjacent categories, such as flavored beer, seltzers, RTD spirits and flavored malt beverages.
STZ is actively investing to extend the momentum of its Power Brands, aligning innovation with evolving consumer preferences and delivering successful product launches. Meanwhile, the company’s digital momentum continues to build through platforms, such as Instacart, Drizly and retailer-owned channels, reflecting consumers’ growing preference for convenience-driven purchasing. The Zacks Consensus Estimate for STZ’s fiscal 2027 earnings per share has moved down 0.2% in the past seven days. The consensus estimate for fiscal 2027 earnings suggests a decline of 0.2% from the year-ago period’s reported figure. The Zacks Rank #3 stock has lost 23.4% in the past year.
Price & Consensus: STZ
Brown-Forman: Based in Louisville, KY, this is a global spirits company that manufactures, distills, bottles, imports, exports, markets and sells a broad portfolio of premium alcoholic beverages. The company’s growth strategy is anchored in premiumization, with a clear focus on high-quality, premium and super-premium spirits that support brand equity and margin resilience. The portfolio has been streamlined around core power brands such as Jack Daniel’s and Woodford Reserve, complemented by successful additions like the Jack Daniel’s and Coca-Cola RTD, and the integration of super-premium labels Gin Mare and Diplomático.
Emerging markets continue to provide a strong growth offset, driven by rising middle-class demand and momentum across the Jack Daniel’s family. Disciplined pricing, innovation, distribution evolution and tighter cost-control underpin long-term value creation despite near-term pressures. The Zacks Consensus Estimate for BF.B’s fiscal 2027 sales and earnings suggests growth of 0.4% and 11.8%, respectively, from the year-ago period’s reported figures. The consensus mark for the Zacks Rank #3 company’s fiscal 2026 earnings has moved up 1.8% in the past 30 days. BF.B has declined 9.5% in the past year.
Price & Consensus: BF.B
Molson Coors: The stock of this Chicago, IL-based leading beverage company has declined 21.3% in the past year. TAP is on track with its revitalization plan, focused on achieving sustainable top-line growth by streamlining its organization and reinvesting resources into its brands and capabilities. Investments, partnerships and product launches, which are part of its revitalization plan, have been aiding the company.
Molson Coors has been committed to increasing its market share through innovation and premiumization. Intending to accelerate portfolio premiumization, TAP has been aggressively growing its above-premium portfolio in the past few years. The Zacks Consensus Estimate for Molson Coors’ 2026 EPS has been unchanged in the past 30 days. The consensus estimate for the Zacks Rank #3 company’s 2026 sales and earnings suggests declines of 0.1% and 11.4%, respectively, from the year-ago period’s reported figures.
Lockheed Martin (NYSE: LMT | LMT Price Prediction) and Boeing (NYSE: BA) both posted Q1 2026 results that read like two different industries. Lockheed runs a pure defense execution engine with messy program charges but reaffirmed guidance. Boeing claws back from manufacturing, certification, and legal scars while its commercial unit loses money on every plane it ships.
Program Charges Bruise Lockheed. Boeing’s Commercial Wing Still Bleeds. Lockheed booked $125 million in unfavorable F-16 adjustments, with pressure from C-130, CH-53K, and Seahawk. EPS of $6.44 missed expectations of $6.6957, and segment margin compressed from 11.6% to 10.1%. Missiles and Fire Control grew 8% on PAC-3, and Space rose 7% behind Orion and Next Generation Interceptor.
Boeing’s Commercial Airplanes revenue jumped 13% on 143 deliveries, yet posted a $563 million operating loss at a negative 6.1% margin. Free cash flow ran negative $1.454 billion. Defense, Space & Security grew 21% with operating earnings up 50% on PAC-3 Seeker and the MQ-28 Ghost Bat deal with Rheinmetall.
One Cashes Replenishment Demand. The Other Pays Down Debt. CEO Jim Taiclet framed the quarter around scale, saying Lockheed signed framework agreements for “advanced Patriot Missile, THAAD, and PrSM” intended to lift output by 3 to 4 times current rates. That aligns with the FY27 Pentagon request, which seeks $13,960 million for PAC-3 MSE and $11,435 million for THAAD. Kelly Ortberg’s tone at Boeing focused on stabilization, saying the team is working to “get back to the iconic global aerospace company that leads our industry.” The company cut consolidated debt to $47.2 billion from $54.1 billion, a win for a balance sheet carrying pension and convertible-preferred overhang.
Lens Lockheed Martin Boeing Core Bet Munitions replenishment, F-35 sustainment Commercial ramp, defense recovery Backlog $186B+ $695B 2026 FCF Outlook $6.5B to $6.8B Still negative Forward P/E 17 833 Certifications, Cash Conversion, and Spirit Integration Are the Real Catalysts Keep an eye on whether Lockheed stops the program-charge drip on F-16 and CH-53K, as the ~25% operating profit growth baked into guidance leaves little room for repeat surprises. For Boeing, 737-7, 737-10, and 777-9 certifications and Spirit AeroSystems integration decide whether Commercial Airplanes stops burning cash.
Why Lockheed Screens Better on Capital Preservation Today Lockheed’s setup is cleaner. A 0.106 beta, 2.67% dividend yield, and reaffirmed cash guidance against a record munitions budget define compounding through a defense supercycle. LMT is up 5.03% YTD while BA is down 1.12%, and the market prices that gap correctly. Boeing’s setup suits a turnaround thesis that accepts 833x forward earnings and headline risk, especially with Polymarket pricing a 20.5% chance of federal involvement by year-end. The Lockheed thesis weakens if munitions framework deliveries slip; the Boeing thesis strengthens if 777-9 certification clears and commercial margins turn positive.
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Fastenal (FAST - 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 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 maker of industrial and construction fasteners is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +13.8%.
Revenues are expected to be $2.33 billion, up 12.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 Fastenal?For Fastenal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.32%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Fastenal 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 Fastenal would post earnings of $0.3 per share when it actually produced earnings of $0.30, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Fastenal 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.
A strong stock as of late has been General Dynamics (GD - Free Report) . Shares have been marching higher, with the stock up 10.6% over the past month. The stock hit a new 52-week high of $377.27 in the previous session. General Dynamics has gained 12% since the start of the year compared to the 7.3% gain for the Zacks Aerospace sector and the 3.4% return for the Zacks Aerospace - Defense industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, General Dynamics reported EPS of $4.1 versus consensus estimate of $3.68.
For the current fiscal year, General Dynamics is expected to post earnings of $16.59 per share on $55 in revenues. This represents a 7.31% change in EPS on a 4.65% change in revenues. For the next fiscal year, the company is expected to earn $18.29 per share on $57.56 in revenues. This represents a year-over-year change of 10.26% and 4.66%, respectively.
Valuation MetricsGeneral Dynamics may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
General Dynamics has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 22.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.4X. On a trailing cash flow basis, the stock currently trades at 19.8X versus its peer group's average of 15.2X. Additionally, the stock has a PEG ratio of 2.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, General Dynamics currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if General Dynamics fits the bill. Thus, it seems as though General Dynamics shares could have potential in the weeks and months to come.
APPLETON, Wis.--(BUSINESS WIRE)--Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller® brand arc welding equipment, today announced a free product upgrade for the Millermatic® 211 PRO and Multimatic® 215 PRO. The upgrade adds new capabilities, including Dyna-Pulse™ technology never before available from Miller in this amp class, to machines already in welders' shops. The upgrade is delivered through a quick USB-enabled software download at no additional cost. The upgrade reflect.
Miller Electric Mfg. LLC, a leading worldwide manufacturer of Miller brand arc welding equipment, today announced a free product upgrade for the MillermaticÂ
Key Takeaways UNFI's 2026 earnings are expected to soar 254.9% as broker ratings rose 9.1% over four weeks.ROK's 2026 earnings are projected to jump 23.3%, with broker ratings revised up 3.9% in four weeks.W's 2026 earnings are expected to rise 11.9% after broker ratings increased 3.2% over four weeks. U.S. equities delivered a strong first-half 2026 performance, although gains remained uneven across sectors. Investor sentiment was pressured by Middle East tensions, oil price volatility, tariff uncertainty, persistent inflation concerns and questions over stretched AI-led valuations. Even so, resilient economic data, renewed enthusiasm around AI, solid corporate earnings and easing geopolitical worries helped support risk appetite and kept the broader market advance intact.
Hence, it is not easy for retail investors to select stocks for generating robust returns over time. One way to cut short this task is to follow brokers’ recommendations. Stocks like United Natural Foods, Inc. (UNFI - Free Report) , Rockwell Automation, Inc. (ROK - Free Report) and Wayfair Inc. (W - Free Report) are worth betting on.
Broker recommendations generally stem from an extensive research framework that includes direct interaction with company management, careful review of public filings, earnings-call analysis, channel checks and broader industry assessment. This helps analysts evaluate a company’s fundamentals in relation to macroeconomic trends, sector conditions, competitive strength and peer performance, instead of viewing the business on a standalone basis.
A broker upgrade usually indicates a notable improvement in an analyst’s view of a company’s prospects. Such a change may be supported by multiple factors that may not yet be fully reflected in consensus estimates or current market valuations. So, an upgrade can point to a possible turning point in earnings expectations and investor sentiment.
Still, broker upgrades should not be treated as independent investment signals. They are most useful when assessed together with other fundamental and valuation considerations. Thus, broker recommendations should serve as one element of a broader, balanced investment decision-making approach.
Selecting the Winning StrategyWe have a screening strategy that may help you identify potential winners.
Broker Rating Upgrades (Four Weeks) of 1% or More: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the past four weeks.
Current Price Greater Than $5: The stocks must trade above $5.
Average 20-Day Volume Greater Than 100,000: A large trading volume guarantees that the stock is easily tradable.
Zacks Rank Equal to #1 (Strong Buy) or 2 (Buy): Despite good or bad market conditions, stocks with a Zacks Rank #1 or 2 have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
3 Stocks With Upgraded Broker RatingsProvidence, RI-based United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. UNFI offers nearly 250,000 products, consisting of national, regional and private label brands.
UNFI’s fiscal 2026 earnings are expected to soar 254.9% year over year. United Natural Foods, which currently sports a Zacks Rank #1, has witnessed a 9.1% upward revision in broker ratings over the past four weeks.
Rockwell Automation, based in Milwaukee, WI, provides industrial automation and information solutions worldwide. ROK has a wide network spanning more than 100 countries.
Rockwell Automation’s fiscal 2026 earnings are projected to jump 23.3% on a year-over-year basis. ROK, carrying a Zacks Rank #2 at present, has witnessed a 3.9% upward revision in broker ratings over the past four weeks.
Headquartered in Boston, MA, Wayfair is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. W currently offers more than 40 million products from more than 20,000 suppliers.
Wayfair’s 2026 earnings are expected to rise 11.9% year over year. W, which currently sports a Zacks Rank #1, has witnessed a 3.2% upward revision in broker ratings over the past four weeks.
Key Takeaways Tyson Foods' Prepared Foods sales rose 4.8% to $2.51B in Q2, with adjusted operating income up 7%.Tyson Foods gained share across bacon, lunchmeat, dinner sausage and snacking categories.AI-driven insights and Jimmy Dean higher-protein products are helping attract younger consumers. Tyson Foods, Inc.’s (TSN - Free Report) Prepared Foods business continued to stand out in the second quarter of fiscal 2026 as steady execution, brand strength and consumer-focused innovation continued to support its long-term growth.
The segment delivered sales of $2.51 billion, up 4.8% year over year, while volume increased 0.4%. Adjusted segment operating income rose 7% to $352 million, and the adjusted operating margin expanded to 14% from 13.7% a year ago. Notably, the improvement came despite roughly $50 million of higher commodity costs in the quarter.
The performance reflected strong consumer demand, disciplined execution and continued market share gains. In the quarter, Tyson Foods gained share in volume, dollars and units. Volume share increased 70 basis points and dollar share rose 50 basis points. Distribution gains, product innovation, improved promotional efficiency and targeted marketing and promotion investments supported the results. The company also recorded share gains across bacon, lunchmeat, dinner sausage and snacking categories.
Innovation remained another important driver. Tyson Foods is using AI-driven consumer insights to identify emerging preferences and accelerate product development. The company recently launched its Jimmy Dean higher-protein breakfast platform, including protein sandwiches, bowls and high-protein waffles. These products are delivering stronger consumer takeaway, attracting younger consumers and already capturing meaningful retail share.
Operational discipline has also helped offset inflationary pressures. While commodity inputs for Prepared Foods increased during the quarter and packaging costs moved higher, disciplined pricing, value engineering and supplier programs helped mitigate these cost increases.
Tyson Foods reaffirmed its fiscal 2026 adjusted operating income outlook of $1.25 billion to $1.35 billion for the Prepared Foods segment. The combination of resilient demand, value-added offerings and operational discipline continues to position the business as an important driver of the company’s long-term growth.
Tyson Foods’ Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 3.1% in the past month compared with the broader Consumer Staples sector and the S&P 500 index’s growth of 4.8% and 0.7%, respectively. TSN has outperformed the industry’s decline of 1.3% during the same period.
TSN Stock's Past Month Performance
Image Source: Zacks Investment Research
Is Tyson Foods a Value Play Stock?Tyson Foods currently trades at a forward 12-month P/E ratio of 13, which is up from the industry average of 12.36. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
TSN P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Hormel Foods Corporation (HRL - Free Report) develops, processes and distributes various meat, nuts and other food products to foodservice, convenience store and commercial customers in the United States and internationally. It carries a Zacks Rank of 2 at present. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
The Zacks Consensus Estimate for Hormel Foods’ current fiscal-year sales and earnings indicates growth of 1.5% and 9.5%, respectively, from the prior-year reported levels.
Key Takeaways Accenture's shares fell 29.3% in three months, worse than the IT services industry's 7.9% decline. Accenture cut its fiscal 2026 revenue growth outlook after revenues lagged estimates in Q3. AI disruption concerns, soft bookings and Middle East conflict costs are weighing on Accenture. Accenture’s (ACN - Free Report) shares are having a tough time of late and are down in double digits (% wise) over the past three months. This significant decline in the ACN stock (29.3% to be exact) has resulted in it performing worse than the Zacks Computers – IT Services industry’s 7.9% decline. ACN’s shares are also lagging those of fellow Computers IT Services players like Vertiv Holdings (VRT - Free Report) and Serve Robotics (SERV - Free Report) .
While Serve Robotics’ shares have declined roughly 23%, those of Vertiv Holdings have performed well, gaining in double digits (13.3%) over the past three months.
3-Month Price ComparisonImage Source: Zacks Investment Research
Revenue Growth Outlook Hurts ACN StockThe chief contributor to the stock’s recent disappointing performance on the bourse is the revenue growth outlook provided by management when it released the third-quarter fiscal 2026 (ended May 31, 2026) results last month.
The consulting and technology services company lowered the upper end of its fiscal 2026 revenue growth outlook, overshadowing the fact that the third-quarter earnings per share topped the Zacks Consensus Estimate.
The company now expects fiscal 2026 revenue growth of 3% to 4% in local currency, down from its previous forecast of 3% to 5%. The disappointing outlook, coupled with the fact that revenues lagged expectations in the fiscal third quarter, naturally disappointed investors.
AI Disruption Concerns: A Major Headwind for ACNArtificial Intelligence or AI-related disruptions were reflected in the company’s fiscal third-quarter results, causing a 2% in U.S. dollars (3% in local currency) year-over-year drop in new bookings. The below-par quarterly sales and soft bookings further give rise to concerns that AI is disrupting demand across consulting and managed services.
Fears that AI may render the services offered by firms like Accenture have been huge concerns. The double-digit decline highlighted above is mainly due to the skepticism about the impact of artificial intelligence on its business.
Although Accenture has invested heavily in artificial intelligence, many businesses are still unsure about how much value AI can deliver. Instead of rushing into large AI projects, companies are taking more time to evaluate the potential benefits, improve their data systems and manage costs in an uncertain economic environment.
As a result, many clients are starting with small AI pilot programs rather than committing to larger transformation projects. Moreover, many companies are spending mainly on essential AI and cybersecurity projects while cutting back on other technology investments. This is reducing demand for Accenture's broader consulting and IT services, weighing on its revenue growth and putting pressure on the stock.
This cautious approach is slowing the pace of new business for Accenture. This makes it harder for the company to quickly turn a strong interest in AI into higher revenues.
Geopolitical Uncertainty Represents Another ChallengeEven with the interim agreement between the United States and Iran, economic turbulence remains firmly in place. Hopes of a final deal continue to be shrouded in uncertainty.
At Accenture, revenues were impacted to the tune of roughly $100 million in the fiscal third quarter due to the Middle East conflict. Similar headwind is expected in the fiscal fourth quarter as well. Macroeconomic pressures have resulted in many key outsourcing contracts being delayed, thereby highlighting the growth concerns at Accenture.
How Is the Zacks Consensus Estimate for Earnings Faring?Due to the headwinds mentioned above, the Zacks Consensus Estimate for fourth-quarter fiscal 2026, first-quarter fiscal 2027, full-year fiscal 2026 and 2027 has moved south over the past 60 days.
Image Source: Zacks Investment Research
ACN: Valuation Looks AppealingAccenture is currently trading at a significant discount, with a forward 12-month Price/Sales (P/S) of 1.2X compared with its industry’s 11.53X. It also appears to be highly undervalued compared with fellow industry players Serve Robotics and Vertiv Holdings. Accenture has a Value Score of A.
ACN Stock Looks CheapImage Source: Zacks Investment Research
How to Approach ACN Stock?Accenture’s top-line weakness and dim outlook, macroeconomic woes and AI-related concerns make the investment case risky. Concerns that generative AI may reduce the need for traditional IT consulting and outsourcing, leading to fewer projects for Accenture, in turn slowing its growth, have put pressure on the stock price
In view of the above, it appears prudent for investors to avoid Accenture for now rather than buy or hold the stock solely owing to the promising valuation picture. The company carries a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
