Track market-moving stories before they get noisy

There's no denying that Alphabet's (GOOG +1.40%)(GOOGL +1.46%) cloud computing results were the centerpiece of the company's recently posted second-quarter report. This business unit's revenue improved by a whopping 82% year over year, more than tripling its operating income as a result.

As encouraging as that is, however, perhaps it's not the most exciting leap Google's parent company made during the three months ending in June. Far more important was the fact that -- for the first time ever -- the company's so-called Tensor Processing Units (TPUs) were also directly monetized, officially putting Alphabet in the chipmaking business.

Alphabet is in the right place at the right time Nvidia remains the leading designer of artificial intelligence processors. But several technology giants with the capabilities of designing their own, often in partnership with players like Broadcom -- are doing so. Alphabet's one of them. Its Tensor Processing Units were initially used strictly in-house, with capacity leased to clients via Google Cloud. But now, some are being shipped to data centers operated by third parties.

Image source: Getty Images.

We don't know how much revenue these chips actually produced last quarter, although it likely wasn't a great deal. All we know is that these sales were reflected within the company's Q2 cloud computing revenue of $24.8 billion, which, as was noted, grew 82% year over year.

Nevertheless, look for an increasingly bigger impact from TPUs going forward.

See, the AI industry has only scratched the surface of establishing the infrastructure it thinks it will eventually need. Technology industry research outfit Technavio expects the worldwide artificial intelligence chip business's annual revenue to grow at an average annual pace of more than 24% between now and 2030, when it will be $155 billion bigger than it is now. That growth outlook jibes with Global Market Insights' projection, which is calling for $1.1 trillion worth of annual artificial intelligence chip sales by 2035.

Already a well-proven cloud technology name, Alphabet is positioned to capture at least its fair share of this growth.

Bolstering the bullish case It's not a reason in and of itself to own Alphabet stock. The lion's share of the company's sales and operating income still comes from its market-leading search engine, and for the time being, most of its cloud computing revenue reflects rented access to its service and apps rather than revenue stemming from sales of Tensor Processing Units. And with Google Cloud's backlog of future business growing by $50 billion to $514 billion as of the end of Q2 (and Q2's total revenue of $119.8 billion, for perspective), that's not apt to change in the immediate future. That's even more so the case given that the company's current supply of TPU chips is being rationed between external customers and internal use.

The potential revenue that TPUs could -- and likely will -- bring to the table in the near and distant future, however, is yet another good reason to take a swing at Alphabet stock.

Today's Change

(

1.46

%) $

4.96

Current Price

$

345.63

Of course, the top reason to buy right now remains that shares of the powerhouse technology company are still down 15% from their mid-May peak, for reasons that most analysts don't agree with. The majority of Wall Street pros covering the ticker still rate it as a strong buy, with a consensus price target of $426.40. That's 24% above the stock's present price.

NVIDIA Corp. (NASDAQ:NVDA) reports fiscal second-quarter results next Wednesday after the market close, and the print arrives as the chipmaker’s remarkable AI-driven rally faces a stagnant stretch.

NVDA stock is trending. See the chart and price action here.  Nvidia shares have surged from roughly $11 in late 2022, split-adjusted, to about $216 today, a gain near 1,700% since ChatGPT’s November 2022 launch kicked off the AI boom, according to Bespoke Investment Group. 

The move ranks among the most powerful multi-year runs by any large-cap stock in recent market history, and the long-term chart remains firmly in an uptrend despite a sluggish past year.

Bespoke highlights just how dramatic the shift in fundamentals has been. Quarterly revenue has exploded since late 2022, blowing past Wall Street’s consensus estimates by wide margins nearly every period. Few companies have seen fundamentals catch up to a stock’s rally quite like this one.

Read Next

The Triple-Play KingNvidia has become what Bespoke calls a “triple-play king,” a company that consistently beats both earnings and revenue estimates while also raising guidance. 

Trending

Get a 1% Match on Your First Deposit of $1,000+

Over the past 20 quarterly reports spanning five years, the chipmaker has delivered 14 triple plays, including three straight heading into Wednesday’s release.

The catch: Nvidia’s triple plays no longer guarantee a stock pop. Shares finished lower on each of the last three beat-and-raise reports, suggesting investors have priced in near-flawless execution and now demand something more.

Sky-High ExpectationsExpectations have grown too large for good news alone to move the needle. A beat-and-raise quarter, once cause for celebration, now reads as the baseline. 

Nvidia investors increasingly want confirmation that AI demand extends well beyond the current cycle, plus clarity on margins as competition intensifies from custom silicon and rival chipmakers.

Wednesday’s report will test whether Nvidia can finally snap the pattern. A fourth consecutive triple play met with another sell-off would reinforce the idea that the stock has entered a “prove it” phase, one where even flawless numbers cannot overcome heightened investor demands.

NVDA Stock Price Activity: Nvidia stock was down 0.47% at $215.89 at the time of publication on Friday, according to data from Benzinga Pro.

Read Next

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Netflix (NASDAQ:NFLX | NFLX Price Prediction) has been one of 2026’s most punished megacaps, and the setup is starting to look asymmetric. With shares at $80.44 and free cash flow guidance of roughly $12.5 billion for the year, our proprietary model calls for sharp mean reversion.

Our 24/7 Wall St. price target for Netflix is $177.34, implying 121% upside over the next 12 months. Our recommendation is buy with high model confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $80.44 24/7 Wall St. Price Target $177.34 Upside +121.0% Recommendation BUY Confidence Level 90% How a Streaming Leader Ended Up in the Bargain Bin Netflix lost roughly a third of its value over the past year, down 33.93% from $121.42 a year ago and 14.44% lower year to date. Shares have stabilized, gaining 18.67% in the past month off a 52-week low of $65.08.

Q2 2026 delivered revenue of $12.56 billion up 13.37% and EPS of $0.80 beating the $0.7883 consensus. Management guided full-year revenue to $51 to $51.4 billion with a 31.5% operating margin target. The stock was punished more for engagement-data disclosure changes than any operational miss.

Why Bulls See a Breakout Ahead Netflix’s addressable market is enormous relative to current penetration. CFO Spence Neumann said Netflix reaches an audience “approaching a billion people” while capturing just 7% of a $670 billion addressable revenue market and 5% of global TV view share.

Advertising revenue is on pace to roughly double to $3 billion in 2026, with advertiser count up 70% year over year. Buybacks are aggressive, with $4.7 billion repurchased in Q2 (a company record) and $27.1 billion remaining under authorization. Our bull case models to $191.03.

What Could Go Wrong The bear case is a valuation reset. Q2 free cash flow declined 32.73% to $1.53 billion, and Q1 EPS missed by 8.55%. Bulls counter that FCF decline reflects higher cash taxes tied to the $2.80 billion Warner Bros. termination fee and front-loaded content amortization, with underlying economics intact.

Competition from Alphabet, Amazon, Disney, and TikTok remains structural, and $1 billion of debt matures later this year. Reddit’s composite sentiment is bearish at 38, and insider activity is net selling. Our bear case still lands at $141.71, well above spot.

How Netflix Compares to Disney and Spotify Walt Disney (NYSE:DIS) is the direct streaming rival. Disney trades at a P/E of 15 with operating margin of 14.6%, versus Netflix’s 33.4%. Disney is cheaper on earnings, but Netflix earns roughly double the margin and delivers 42.76% ROE against Disney’s 11.78%. That gap justifies a premium multiple.

Spotify (NYSE:SPOT) is the closest pure-play subscription comp. Spotify trades at P/E near 50 with operating margin of 12.8%, roughly double Netflix’s multiple on materially thinner profitability. If Spotify deserves that multiple on subscription growth, Netflix at 24 times forward earnings looks conservatively priced. The peer set makes our $177.34 target look reasonable.

Company P/E Operating Margin Netflix 24 33.4% Disney 15 14.6% Spotify 50 12.8% Buy the Reset Reiterating the 24/7 Wall St. price target of $177.34, a buy rating, and 90% model confidence. A business generating $12.5 billion of free cash flow with expanding margins should not trade at 25 times forward earnings for long.

The bull thesis holds if ad revenue continues tracking to double this year. The setup weakens if content amortization growth reaccelerates into 2027.

Year 24/7 Wall St. Price Target 2026 $105.84 2027 $175.30 2028 $318.93 2029 $467.36 2030 $600.43 These projections assume Netflix executes on advertising, live programming, and gaming while sustaining pricing power. Meaningful downside could result from subscriber saturation in developed markets or a competitive shock from a well-funded rival.

Contact [email protected] for any questions or corrections.

Key Takeaways United Airlines added 40 CAE training devices since 2022, bringing the Denver center's total to 86.The center can conduct over 32,000 training events annually and train up to 860 pilots per day.United Airlines expects phase-two groundbreaking in 2027, with the expanded facility operational around 2030. In a bid to strengthen its network, United Airlines Holdings, Inc. (UAL - Free Report) is expanding its footprint beyond providing airline services to passengers to training pilots. To this end, United Airlines announced the completion of the first phase of expansion of the pilot training facility, adding 40 new CAE training devices (a combination of full-motion and fixed simulators) since 2022.

UAL’s chief executive officer (CEO), Scott Kirby, was accompanied by CAE's president and chief executive officer, Matthew Bromberg, along with other UAL and CAE leaders, to acknowledge the completion of phase one.

Kirby stated, "United pilots are the best aviators in the world, and the pace at which our team has completed this project is an example of making investments that support our high standard of excellence."

Phase two of the expansion project is set to start next year and is anticipated to be operational by 2030.

UAL’s Flight Training Center DetailsUAL’s Flight Training Center is located in the Central Park neighborhood of Denver. The facility is spread across 22 acres (almost 700,000 square feet of training space) and is the only training facility for the airline's nearly 18,000 active pilots and all newly hired pilots.

UAL's flight training center now has eight total buildings and a total of 86 CAE training devices: 52 state-of-the-art full-motion flight simulators and 34 fixed training devices. The center can conduct more than 32,000 training events annually and train up to 860 pilots per day. The facility operates 24 hours a day for 362 days a year.

UAL has started formal site building plans and expects groundbreaking on the next phase of the Flight Training Center expansion to begin on the new land in 2027, with the facility expected to be operational around 2030. The airline plans to supervise the additional Flight Training Center in conjunction with its current facility. 

The Center was originally constructed between 1966 and 1968 as part of the Stapleton Airport complex and has been used as UAL’s main pilot training facility since then. Since 2016, UAL has invested $370 million in the Flight Training Center overall.

UAL’s Expansion in DenverUnited Airlines has spent nearly $1 billion in investments since 2021 to boost the customer experience in the region, as Denver is one of its fastest-growing hubs. In 2025, nearly $40 million was spent on hotel room nights in Denver for pilots visiting the training facility, with an expectation to spend nearly $50 million on hotel room nights in 2026.

UAL hired more than 1,400 people in Denver last year and plans to hire more than 1,300 people in 2026.

To ConcludeUnited Airlines continues to be the popular career destination choice for pilots, given its largest widebody fleet in North America and the global network and hubs across the United States. UAL has hired more than 9,500 pilots since announcing its United Next growth strategy in 2021. In 2026, UAL has hired 700 pilots so far, with plans to hire hundreds more this year.

Given this encouraging backdrop, the expansion seems to be a strategic business step on UAL’s part, reflecting its strength in training pilots.

UAL's Zacks Rank and Stocks to ConsiderPresently, UAL carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) as well. 

Expeditors currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

Key Takeaways CL's volumes are improving, margins are holding up and management raised its Base Business earnings outlook.Emerging-market organic sales rose 4.8%, while North America fell 3% as U.S. demand and competition weighed.CL trades at 22.5X forward earnings, above key benchmarks, while favorable estimate revisions add support. Colgate-Palmolive Company (CL - Free Report) enters the second half of 2026 with better operating momentum. Volumes are improving, margins have held up better than expected and management lifted its Base Business earnings outlook.

The restraint is valuation. CL still trades above its sub-industry, sector and the broader market, while weakness in North America leaves less room for execution misses.

Colgate's Growth Mix Is Getting HealthierSecond-quarter organic sales rose 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third straight quarter, giving Colgate a more balanced growth mix than one driven mainly by price.

Emerging markets added breadth, with organic sales up 4.8%. Latin America rose 5.3% and Asia Pacific increased 5.2%, while management expects the second half to be somewhat more volume-driven as innovation and brand penetration efforts scale.

CL's Margin Outlook Improves Despite Higher CostsGross profit margin expanded 140 basis points year over year to 61.5% in the second quarter. Revenue growth management, productivity, pricing and mix helped absorb higher investment, including a 15% increase in advertising.

Management now expects full-year gross profit margin to be roughly flat year over year, versus a prior expectation for a decline. That upgrade matters because raw-material and tariff costs are still expected to be higher in the second half than in the second quarter.

Colgate's North America Weakness Caps the UpsideNorth America remains the clearest operating drag. Second-quarter organic sales fell 3% and organic volume declined 3.9% as softer U.S. categories, retailer inventory reductions, heavier competition and some market-share loss pressured results.

Competitive intensity is meaningful. The Procter & Gamble Company (PG - Free Report) competes in oral care through brands including Crest and Oral-B, while The Clorox Company (CLX - Free Report) has a broad home-care portfolio. Colgate plans selective pricing and promotional actions, but persistent category softness could slow the volume recovery.

CL's Valuation Leaves Less Room for ErrorCL trades at 22.47X forward 12-month earnings, above the Zacks sub-industry's 18.38X, the sector's 17.2X and the S&P 500's 20.6X. That premium raises the hurdle for further upside if U.S. demand or cost pressures worsen.

Image Source: Zacks Investment Research

The stock is not at an extreme relative to its own history. Its current multiple sits below the five-year median of 23.5X, with the five-year range spanning 19.4X to 28.8X. The valuation therefore looks elevated versus external benchmarks but less stretched versus Colgate's historical norm.

Colgate's Earnings Revisions Add SupportThe Zacks Consensus Estimate for earnings in the current fiscal year has moved higher, with the estimate up 1.3% over four weeks and 1.1% over 12 weeks. Second-quarter Base Business earnings of 99 cents per share also beat the consensus mark of 95 cents by 4.2%.

Projected EPS growth for the current fiscal year is 4.3%. That keeps the valuation-growth trade-off in focus because estimate revisions are favorable, but the expected earnings growth rate remains modest relative to the stock's forward multiple.

CL's Mixed Style Scores Reinforce PatienceThe operating picture has improved, but the valuation premium and North American pressure argue for patience rather than treating recent progress as an unqualified buying signal. CL currently carries a Zacks Rank #3 (Hold), consistent with a balanced near-term stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CL has a VGM Score of B, a Growth Score of B and a Momentum Score of B, but a Value Score of D. The B grades are favorable within their respective styles, while the Value Score is a counterweight. Because the Zacks Style Scores complement the Zacks Rank, the mix shows favorable growth and momentum characteristics alongside weaker value characteristics.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Synopsys (NASDAQ:SNPS | SNPS Price Prediction) is the highest-conviction EDA setup in front of the August 26, 2026 after-market fiscal Q3 report, and the data behind that call leaves little room for deliberation. Two consecutive beat-and-raise quarters, expanding margins, and a rapidly deleveraging balance sheet frame the risk/reward as one-sided.

Beat-And-Raise Pattern Already In Motion Synopsys posted non-GAAP EPS of $3.35 against a $3.1617 consensus in Q2, a 5.96% beat, on the heels of a 5.98% Q1 beat. Revenue climbed 41.98% year-over-year to $2.28 billion. Management then raised the FY2026 non-GAAP EPS range to $14.72 to $14.80 and revenue to $9,625 to $9,705 million. Q3 guidance already calls for revenue of $2,410 to $2,460 million and EPS of $3.63 to $3.69. The trajectory is a company beating its own raised bar.

AI-Driven EDA Demand Is Compounding Design Automation adjusted operating margin expanded to 43.3%, and backlog reached $11 billion. CEO Sassine Ghazi framed demand directly: “AI is scaling semiconductor demand, architectural diversity and complexity of chips and the systems they power”. Hyperscaler custom silicon and Ansys integration synergies drove more than 30 full-flow technical wins in Q2 alone.

Cash Generation Funds The Deleveraging Synopsys targets approximately $2,000 million in FY2026 free cash flow and repaid $3.46 billion in debt during H1 FY2026, alongside $262.5 million in buybacks. The September 30, 2026 Investor Day extends the story past this report.

Head-To-Head Against Cadence Cadence Design Systems (NASDAQ:CDNS) is the obvious comparable, and it loses on the metrics that matter. Cadence grew Q2 revenue 24.23% year-over-year against Synopsys’s 41.98%. Cadence’s FY2026 non-GAAP EPS guide of $8.05 to $8.15 and revenue guide of $6.26 billion to $6.34 billion sit well below Synopsys’s $14.76 EPS midpoint and $9,665 million revenue midpoint. Cadence carries a larger $86.74 billion market cap versus SNPS at roughly $76.83 billion. Investors are paying more for slower growth on a smaller revenue base.

Dismissing The Debt Concern The standard pushback centers on the $10.0 billion long-term debt load from the Ansys deal and $403.6 million of quarterly intangibles amortization pressuring GAAP earnings. That objection collapses under H1’s $3.46 billion in paydown and roughly $2B in annual free cash flow, and amortization is a non-cash accounting item. Analyst positioning agrees, at 18 buy, 5 hold, and 1 sell, with an average target of $561.03 against a recent print of $401.24.

SNPS sits at the top of the pre-earnings watchlist heading into next Wednesday’s release.

Contact [email protected] for any questions or corrections.

Key Takeaways Clorox expects GOJO to add 9.5 points to fiscal 2027 sales growth and boost its health platform.Organic sales growth may be limited as inflation tops $200 million and negative mix pressures margins.Clorox must deliver stronger core demand and margin recovery as ERP benefits fade. The Clorox Company (CLX - Free Report) enters fiscal 2027 with a larger health-and-hygiene platform after the GOJO acquisition, but investors are weighing that growth against weaker margins and muted underlying demand. Clorox expects GOJO to add about 9.5 percentage points to fiscal 2027 net sales growth and be accretive to adjusted earnings per share.

The earnings outlook offers improvement, yet much of the reported growth comes from acquisition and enterprise resource planning (ERP) comparison effects. Persistent inflation, softer categories and negative mix keep the near-term investment case balanced rather than straightforward.

GOJO Gives Clorox a New Growth EngineClorox's fourth-quarter fiscal 2026 net sales fell 2% to $1.95 billion but beat the Zacks Consensus Estimate of $1.91 billion by 1.8%. GOJO contributed about 10 percentage points to sales growth. Health and Wellness sales increased 16% to $860 million, with the acquisition contributing about 28 points to the segment's growth.

GOJO also changes Clorox's longer-term mix. The combined global health-and-hygiene portfolio now accounts for more than half of net sales. For fiscal 2027, management expects total net sales to increase 13-14%, including the roughly 9.5-point GOJO contribution, while adjusted earnings are projected at $5.70-$6.00 per share, up 3-8%.

Margin Pressure Limits the UpsideProfitability is the main counterweight. Fiscal 2026 gross margin declined 290 basis points to 42.3%, while fourth-quarter gross margin dropped 520 basis points to 41.3%. The quarter included about 150 basis points of pressure each from the ERP shipment comparison and GOJO inventory step-up, alongside higher commodity, manufacturing and logistics costs.

Clorox expects fiscal 2027 gross margin of about 42%, with cost savings more than offset by higher-than-normal inflation and negative mix. Inflation is expected to exceed $200 million, more than twice the company's historical $75-$100 million range. Organic sales are forecast to rise 3.5-4.5%, but more than 3.5 points reflect the ERP comparison. Excluding that benefit, organic sales are expected to be flat to up slightly.

Peer Results Show a Mixed Staples BackdropThe Procter & Gamble Company (PG - Free Report) reported flat organic sales in its fiscal fourth quarter and 1% organic sales growth for fiscal 2026. That performance underscores the subdued demand environment across large branded household and personal-care categories, even for companies with broad portfolios and substantial scale.

Church & Dwight Co., Inc. (CHD - Free Report) offered a more favorable margin comparison. Its second-quarter 2026 organic sales increased 5.8%, while adjusted gross margin expanded 40 basis points to 45.4%. The contrast shows that consumer-staples companies are navigating similar inflation and value pressures with different operating outcomes.

Is CLX Stock Worth Buying Now?The GOJO acquisition gives Clorox a credible growth driver, and completed ERP investments could support productivity later in fiscal 2027. Still, the core business must show firmer organic demand and better margin progression before the growth profile looks more durable. CLX trades at 17.9X forward 12-month earnings, modestly below its sub-industry's 18.2X multiple.

Image Source: Zacks Investment Research

Near-term Zacks signals remain cautious. The Zacks Consensus Estimate for fiscal 2027 earnings is $5.82 per share and has declined 3.8% in the past four weeks. CLX currently carries a Zacks Rank #4 (Sell), along with a Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D. Under the Zacks framework, the Rank points to unfavorable earnings-revision trends, while the weaker Growth, Momentum and VGM scores provide limited support for an aggressive buying case.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Michael Burry issued a fresh warning Friday that the AI data center boom mirrors the structural excesses that preceded 2008, arguing that circular financing, off-balance-sheet vehicles and captive insurers are quietly building leverage across the ecosystem. The investor behind the Big Short trade reportedly declared in a Substack post that “The shenanigans are apparent today for those that care to look.”

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) stock is down 0.9% to $214.87 in Friday midday trading, its sixth straight losing session. Notably, Micron Technology (NASDAQ:MU) shares are falling 1% to $961.96, extending a pullback from record levels reached on HBM4 memory shipments.

Meanwhile, Oracle (NYSE:ORCL) stock is rising 3% to $146.81, one of several names Burry called out. Also, Palantir Technologies (NASDAQ:PLTR) shares are climbing 4% to $180.20 in a session shrugging off the Substack, while Nebius Group (NASDAQ:NBIS) stock is up 0.1% to $220.28. That’s just one day of share-price gains, but investors might wonder how Burry is justifying his cautionary tone.

Circular Financing at the Heart of the Warning Burry’s central charge is that a growing share of NVIDIA’s future revenue is “majority financed in a circular arrangement” rather than pulled through by organic end-user demand. He points to special-purpose vehicles, off-balance-sheet financing and captive insurers as mechanisms that can absorb risky debt while making leverage harder to see from the outside.

The pattern shows up at Oracle. In its Q4 FY26 report, Oracle disclosed remaining performance obligations of $638 billion, with $75 billion tied to bring-your-own-hardware or prepaid customer arrangements. Oracle also plans to raise $40 billion in debt and equity in fiscal 2027 to fund a $70 billion capex program, per its 8-K filing.

Nebius Group tells a similar story from the buyer side. The company’s disclosed capital stack  (including NVIDIA pre-funded warrants, convertible debt and uncommenced lease obligations) reflects the sort of intertwined arrangements Burry says obscure true leverage.

Data That Sparked the Warning Burry anchored his argument to data from Torsten Slok, Apollo’s chief economist, showing that data-center construction accelerating even after the Federal Reserve began raising rates in 2022 while rate-sensitive segments contracted. Moreover, private non-residential construction excluding data centers fell 7.9% year over year in June.

In the same post, Burry asserted, “GDP growth is really counting on that data center buildout.” Slok reads that resilience as evidence investors expect AI returns to justify the cost of capital, while Burry treats it as a risk indicator worth flagging.

Semiconductors as a group capture the boom he is questioning. The iShares Semiconductor ETF (NASDAQ:SOXX) was up 74% year to date (YTD) through Thursday’s close, and Micron stock was up 242% over the same stretch on HBM4 memory shipments.

Names Burry Has Positioned Against Burry has positioned against several AI infrastructure names, including Micron Technology, Oracle, Nebius Group and Palantir Technologies. PLTR stock trades at a trailing P/E ratio of 148.68x and a price-to-sales ratio of 67.91x, valuations that leave little room for a growth stumble.

Furthermore, Friday’s session argues both ways. Oracle stock and Palantir Technologies stock are rising against his thesis, and NVIDIA stock and Micron shares are falling in line with it. NVIDIA’s slide predates the Substack post, extending a five-session losing streak through Thursday.

The chipmaker’s own disclosures illustrate the scale in play. NVIDIA reported Q1 FY27 revenue of $82 billion, and total supply commitments and prepaids reached $145 billion. CEO Jensen Huang stated on the call that “Demand has gone parabolic.”

What Investors Can Take Away The question Burry is raising centers on whether the investment boom has built a financial system that now depends on AI demand continuing at its current pace. Nebius, NVIDIA, Oracle’s capex program and Micron Technology’s take-or-pay memory contracts all sit inside that dependency loop. Riding a mania is fine as long as you plan the exit, and we covered both halves in a free bubble survivor’s handbook.

Traders can size AI infrastructure exposure with an eye on financing structure disclosures rather than headline growth alone. Shareholders may want to watch how remaining performance obligations at Oracle and Nebius convert into cash flow over the coming quarters.

Contact [email protected] for any questions or corrections.

Data centers can't simply shut down when the grid fails. That's why these facilities require enormous backup generators capable of providing electricity almost immediately.

That's exactly what Cummins (CMI -0.51%) provides. The company best known for diesel engines also happens to be a major supplier of backup power for data centers, and that's becoming increasingly valuable as AI spending soars.

S&P Global estimates that Alphabet (GOOG +1.22%)(GOOGL +1.37%), Amazon (AMZN -0.39%), Meta Platforms (META +0.70%), Microsoft (MSFT +0.34%), and Oracle (ORCL +3.38%) will collectively spend approximately $750 billion on capital expenditures in 2026, equal to about 38% of their combined revenue. Much of that spending is being driven by AI and the data centers required to support it. Cummins is already cashing in.

Not a one-quarter phenomenon During the second quarter, Cummins' Power Systems sales jumped 19% year over year, driven by strong global demand for data center power equipment. Segment EBITDA margin also reached 24.5%, up from 22.8% a year earlier.

This isn't just a one-quarter phenomenon, either. Cummins says its growth in the data center market is being driven partly by sales of diesel and natural gas generator sets used for backup power, as AI racks are becoming more power-hungry.

Cummins says traditional data center racks averaged around 12 kilowatts, while next-generation AI racks could reach 600 kilowatts or more. The more electricity these facilities consume, the more backup generating capacity they need when the grid goes down.

Image source: Getty Images.

Cummins is moving beyond backup power Cummins is also starting to sell generators that don't simply wait around for an outage. In June, the company announced an agreement with Circe Energy to provide high-powered natural gas generators for a large high-performance-computing data center in West Texas. Those generators will be part of a behind-the-meter microgrid providing primary power, with deliveries scheduled from 2026 through 2030.

That's a huge opportunity. Grid connections can take years, and AI developers don't necessarily want to wait. Cummins can now potentially sell generators both as emergency backup and as a bridge, or even alternative, to traditional grid power.

Today's Change

(

-0.51

%) $

-3.04

Current Price

$

588.00

An industrial stock riding the AI boom Make no mistake: Cummins isn't an AI pure play. Trucks, engines, components, and industrial equipment remain major parts of its business. But AI is also serving as a catalyst for a new form of revenue generation for the company.

The truth is, you don't have to bet on which AI model wins or which semiconductor eventually replaces today's graphics processing units. The world's largest technology companies are spending hundreds of billions of dollars building computing infrastructure, and every one of those facilities requires reliable backup power. Cummins already sells the equipment that provides it. It's pretty much a no-brainer.

If hyperscalers really spend around $750 billion this year, Cummins only needs a small piece of that infrastructure build-out for data centers to become a much bigger part of its business.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Cummins, Meta Platforms, Microsoft, and Oracle. The Motley Fool has a disclosure policy.

Key Takeaways Western Union targets $50M in 2026 savings and $200M by the end of 2027.Digital growth is pressuring revenue and margins as transactions shift away from cash payouts.AI, lower payout costs and operational changes aim to support profitability and second-half results. The Western Union Company (WU - Free Report) is facing profitability pressure as its business shifts toward digital payments. In the second quarter of 2026, branded digital transactions grew 25%, but adjusted revenues increased only 6%. At the same time, adjusted operating margin fell to 15% from 19% a year ago. The shift from cash payouts to digital and account payouts is weighing on revenues and profit per transaction. 

To address the profitability pressure, the Beyond Efficiency program targets $50 million in run-rate savings by year-end 2026 and $200 million by the end of 2027. The plan includes reducing discretionary operations and technology capacity by 20% and closing existing European digital wallets, which is expected to generate $6 million to $8 million in run-rate savings. 

The company is using AI to automate work and align operations with local markets. For example, APAC agent onboarding is being moved from Lithuania and Costa Rica to Manila, which is expected to reduce unit labor costs while improving cost, quality and speed. Another focus is lowering the cost of moving money. In Colombia, it recently reduced a digital payout cost from more than $2 per transaction to less than $0.50 per transaction, which should boost contribution profit. 

Execution of these steps is key to an earnings turnaround. New agent wins, a better revenue mix and the accelerated Beyond Efficiency program are expected to support stronger results. With full-year 2026 adjusted EPS guidance revised down to $1.25-$1.35, disciplined execution will be critical for WU to stabilize profitability and strengthen its long-term earnings trajectory.

How Are Competitors Faring?Some of WU’s competitors in the payments space include Euronet Worldwide, Inc. (EEFT - Free Report) and Remitly Global, Inc. (RELY - Free Report) .

Euronet operates across electronic payments, money transfers and financial services. Its diversified operations include Ria Money Transfer, a global ATM network and electronic point-of-sale processing. EEFT continues to invest in expanding its physical and digital payment infrastructure to support global transaction growth.

Remitly Global focuses on digital financial services, with cross-border remittances as its core business. Operating an asset-light, mobile-first model, RELY continues to expand its digital platform and customer reach while focusing on transaction growth and operating efficiency in the international money-movement market.

Western Union’s Price Performance, Valuation & EstimatesShares of WU have fallen 16% over the past year compared with the industry’s decline of 14.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, Western Union trades at a forward price-to-earnings ratio of 5.02X, significantly down from the industry average of 18.84X. WU carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Western Union’s 2026 earnings is pegged at $1.29 per share, implying a 26.3% decline from the year-ago period.

Image Source: Zacks Investment Research

WU currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

powered by

Onsite power supply chain — Buy (SPWR/ENPH basket)

Buy a small basket of solar/energy-infrastructure names that benefit from the same data-center buildout tailwind but trade at more reasonable multiples than BE. The second-order effect of hyperscaler/AI power demand is more grid-scale and on-site generation/efficiency spend (solar + storage + power electronics) to reduce delivered power costs and speed deployments. If BE’s valuation compresses, capital often rotates into cheaper “picks-and-shovels” that still ride the capex wave. Use a basket approach (e.g., SolarEdge Technologies (SEDG) and Enphase (ENPH)) to reduce single-name risk while targeting the broader theme.

Key Risk: Data-center power demand shifts toward cheaper grid upgrades or long-term utility contracts, reducing incremental spend on distributed generation and power electronics.

Bloom Energy (BE) — Sell/Short

Sell or short BE. The news is bullish on growth (AI data-center power, higher gross margins, big Brookfield deal), but the stock is already pricing perfection: forward non-GAAP P/E ~74 vs S&P ~20. With BE below the 50/100-day EMAs and a multi-week freefall, any “good news” is likely to be met with valuation-driven selling. Thesis: growth won’t be enough fast enough to defend a premium multiple while momentum is negative. Key catalyst to watch is whether the next earnings report sustains margin expansion without guidance surprises.

Key Risk: BE keeps beating expectations and expands margins faster than the market expects, forcing valuation re-rating upward despite the downtrend.

Bloom Energy stock has slumped sharply in recent weeks, falling from its year-to-date high of $350 to around $200. The stock has declined for seven consecutive sessions, reaching its lowest level since August 3. Its technical indicators suggest that further downside may be ahead, while persistent valuation concerns continue to weigh on investor sentiment.

Bloom Energy has become one of the fastest-growing companies in the United States, helped by the ongoing data center boom. It has partnered with some of the biggest companies in the industry like Oracle and Nebius. Recently, it inked a $25 billion deal with Brookfield, one of the biggest private equity companies in the world.

The most recent earnings report showed that its revenue soared by 165% in the second quarter to $1.06 billion as it continued delivering onsite power to data centers. This growth will likely continue in the foreseeable future after the company continues to monetize its projects.

Its gross margins jumped from 26.7% in the second quarter of last year to the current 33.4%, with its profitability accelerating. KR Sridhar, the CEO, said:

“Today, all the major US hyperscalers and over a dozen US neoclouds, AI labs, and colocation data center operators have validated and approved our power solutions for their AI factories. Bloom is now a standard for AI onsite power.”

This growth will likely continue as the data center buildup gains steam. For example, Nvidia has reached a financing deal with OpenAI for a Ohio data center project valued at over $105 billion. 

It has also reached a $500 billion deal with several financial companies like BlackRock, BlackStone, Goldman Sachs, and Brookfield to fund data centers. Bloom Energy will be one of the top beneficiaries of these investments. 

Yahoo Finance data shows that analysts are upbeat about its growth prospects, especially after the company launched Power Connect, which can reduce its onsite power installation time by over 40%.

The average estimate is that its revenue will by 103% this year to $4.13 billion this year. After that, it will make over $6.77 billion next year. Its earnings-per-share is expected to move from 76 cents to $2.71 this year. It is expected to nearly double next year to $4.89.

The main challenge, however, is that it has become a highly overvalued company, with its forward price-to-earnings on a non-GAAP basis being 74, much higher than the S&P 500 Index average of over 20. As such, it needs to demonstrate strong revenue and profitability growth to justify this valuation.

BE stock chart | Source: TradingView

The daily chart shows that BE stock has been in a strong freefall in the past few months. It has moved from the year-to-date high of $351 to the current $200. It is also in the process of erasing most of the gains it made after releasing its financial results earlier this month.

The stock has dropped below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears remain in control. Therefore, the path of the least resistance for the stock is downwards, with the next key target to watch being at $180. In the long term, however, the stock will bounce back

Key Takeaways Alaska Air Group will launch seasonal Seattle-Athens and Seattle-Paris nonstop service in May 2027. The Athens route will be Seattle's first nonstop to Athens & the West Coast's only link to Greece's Cap Boeing 787-9s will serve both routes as ALK grows Seattle to seven intercontinental destinations. Alaska Air Group (ALK - Free Report) is expanding its international footprint from Seattle with new nonstop seasonal service to Athens and Paris, reinforcing its position as Seattle’s largest international carrier. The Athens service will begin on May 12, 2027, operating three times weekly through October, while Paris service will start on May 25, 2027, with five weekly flights over the same period. The new routes are expected to provide travelers in the Pacific Northwest with more convenient access to key European destinations.

The Athens route is particularly notable, as Alaska will become the first airline to offer nonstop service between Seattle and Athens and the only carrier to provide a nonstop connection between the West Coast and Greece’s capital. Meanwhile, the Paris route will provide direct access to one of the most in-demand transatlantic markets from the region. The airline also expects the expanded network to support same-day connections between Honolulu and Paris through Seattle, improving international connectivity for travelers from Hawaii.

Both routes will be operated with Boeing 787-9 Dreamliners, featuring Alaska’s new long-haul international experience, including lie-flat Business Class Suites, premium amenities and Starlink Wi-Fi. With Athens and Paris, Alaska’s Seattle intercontinental network will grow to seven destinations, alongside Iceland, London, Rome, Seoul and Tokyo. The airline plans to add at least five more intercontinental destinations by 2030, supported by additional Dreamliners.

The expansion underscores Alaska’s broader strategy of transforming Seattle into a major global gateway and increasing its long-haul international presence. Its oneworld alliance and other global partnerships will further enable passengers to connect to hundreds of destinations across Europe, the Middle East and Asia. This international growth could strengthen Alaska’s competitive position in the Pacific Northwest while giving the carrier greater exposure to growing demand for long-haul leisure and business travel.

ALK’s Share Price PerformanceALK’s shares have declined 32.4% in the past three months compared with the Transportation - Airline industry’s 0.3% fall.

Image Source: Zacks Investment Research

ALK’s Zacks RankALK currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) as well. 

Expeditors currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

Key Takeaways Alliant Energy's customer growth supports higher utility sales and a stronger regulated revenue base. LNT expects load to grow 60% by 2031, driven by large customer demand progressing with 2026 expectations. LNT plans nearly $13.4B in capital investments through 2029 to support demand and customer growth. Alliant Energy’s (LNT - Free Report) earnings prospects are supported by ongoing additions to electric and natural gas customer volumes. Its geographic footprint and regulatory tools support new wind and gas resources tied to load growth. A broader customer base also strengthens demand growth, helping offset fluctuations in usage and supporting long-term revenue expansion.

The company’s diversified customer base provides greater revenue stability by reducing its reliance on any single customer segment. In the second quarter of 2026, Alliant Energy reported 1,011,128 electric customers, up 0.69% from 1,004,242 a year earlier, while natural gas customers increased 0.47% to 432,892 from 430,859. This continued customer expansion can support higher utility sales and strengthen the company’s regulated revenue base over time. The company expects 60% load growth by 2031, with large customer demand projected to begin materializing in 2026, supporting a multi-year expansion in electricity consumption.

The growth opportunity is also supported by Alliant Energy’s strategic investment program. The company plans nearly $13.4 billion in capital investments through 2029. These investments are aimed at supporting economic development, customer growth and rising energy demand.

Alliant Energy expects 2026 ongoing earnings per share (EPS) of $3.36-$3.46 and long-term EPS growth of 5-7% through 2029, supported by increasing capital investments and rising utility demand. Therefore, stronger customer growth can support Alliant Energy’s investment plans by increasing electricity and gas demand and helping expand its rate base.

Growing Customer Base Drives Utility GrowthA steadily expanding customer base creates fresh demand for utility services, supporting revenues and earnings. Along with LNT, other utilities also witness continued customer expansion, as discussed below:

NextEra Energy’s (NEE - Free Report) Florida Power & Light unit added more than 90,000 average customers year over year in the second quarter of 2026, while weather-normalized retail sales rose 0.6%, driven primarily by population growth and supporting continued capital investment and earnings growth.

Xcel Energy (XEL - Free Report) reported 0.7% year-over-year growth in both its electric and natural gas customer bases in second-quarter 2026.

The Zacks Rundown on LNTLNT’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 6.52% and 7.21%, respectively.

Image Source: Zacks Investment Research

LNT’s Stock Trading at a Premium LNT is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 19.36X versus the industry average of 15.42X.

Image Source: Zacks Investment Research

LNT’s Stock Price PerformanceIn the past six months, the company’s shares have plunged 3.4% compared with the industry’s 7.9% decline.

Image Source: Zacks Investment Research

LNT’s Zacks Rank

A month has gone by since the last earnings report for Kinder Morgan (KMI - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kinder Morgan due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Kinder Morgan, Inc. before we dive into how investors and analysts have reacted as of late.

Kinder Morgan Q2 Earnings Beat EstimatesKinder Morgan reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter.

Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.

Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

KMI's Natural Gas Business Leads GrowthNatural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) expenses increased to $1.46 billion from $1.35 billion a year earlier. Higher contributions from the Texas Intrastate system and gathering assets supported the improvement.

Transportation volumes averaged 47,886 billion British thermal unit per day (BBtu/d) compared with 44,818 BBtu/d in the prior-year quarter. Growth reflected higher LNG deliveries on the Tennessee Gas Pipeline, stronger Texas Intrastate demand, higher export volumes to Mexico and increased power-generation demand in Arizona.

Gathering volumes advanced to 4,637 BBtu/d from 3,692 BBtu/d. KinderHawk volumes rose 54%, supported by increased Haynesville activity. Management noted that the system is effectively full and is adding 1 billion cubic feet per day of treating capacity.

Kinder Morgan's Other Segments AdvanceProducts Pipelines adjusted segment EBDA increased to $339 million from $289 million. Higher commodity prices and stronger butane blending volumes and rates more than offset weaker transportation activity.

Due to a temporary disruption of the West Coast supply and higher commodity prices, total refined product volumes declined 5% to 1.62 million barrels per day (MMBbl/d) from the year-ago figure of 1.71 MMBbl/d. Crude and condensate volumes fell 16% to 421,000 barrels per day (Bbl/d), largely because the Double H system was converted from crude oil to natural gas liquids service.

Terminals adjusted segment EBDA rose to $309 million from $300 million. Higher liquids terminal rates, ancillary fees and favorable commodity pricing supported results. Liquids utilization was 93%, while the Jones Act tanker fleet remained fully contracted for 2026.

CO2 adjusted segment EBDA increased to $207 million from $145 million. Total net oil production increased 10% to 28,040 Bbl/d, driven by a 15% rise in SACROC production. The realized weighted average oil price increased to $73.78 per barrel from $67.60, while the realized weighted average NGL price was $33.38 per barrel, higher than the $32.08 per barrel recorded a year earlier.

KMI's Cost Profile Supports Profit GrowthTotal operating costs, expenses and other expenditures increased 8.3% year over year to $3.13 billion. Costs of sales rose to $1.41 billion from $1.21 billion, while operations and maintenance expenses increased to $806 million from $773 million.

Operating income increased 16.8% to $1.35 billion. The operating margin expanded to 30.1% from 28.5%, reflecting revenue growth that outpaced increases in operating expenses.

Adjusted EBITDA reached a second-quarter record of $2.20 billion, up 12% year over year. Net income attributable to KMI increased 21% to $867 million, while reported earnings rose to 39 cents per share from 32 cents.

Kinder Morgan Expands Project PipelineThe project backlog stood at $9.6 billion at the end of the quarter, down from $10.1 billion sequentially after approximately $660 million of expansion projects entered service. Natural gas projects represented about 92% of the backlog.

The board also granted contingent approval to nearly $400 million of projects that will enter the backlog after contract execution. Management expects to sanction significant additional projects from an opportunity set exceeding $10 billion during the second half of 2026.

Kinder Morgan's Cash Flow & Balance SheetCash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million.

As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

KMI Raises 2026 OutlookKinder Morgan expects full-year adjusted earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to exceed its original $8.6 billion budget by more than 5%. The company also expects adjusted earnings to surpass its initial $1.36-per-share budget by more than 12%.

The revised guidance reflects strong first-half performance across all business segments.

KMI’s Dividend GrowthThe quarterly dividend was raised 2% to 29.75 cents per share, equivalent to $1.19 per share annually. The dividend is payable Aug. 17, 2026, to shareholders of record as of Aug. 3.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kinder Morgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Vertiv lifted adjusted operating margin to 22.6% as sales rose 24% in the second quarter of 2026. Vertiv expects third-quarter adjusted margins of 24%-25%, backed by growth, leverage and productivity. Amphenol's margin reached 29.8%, while Super Micro Computer's rose to 14.3% in fiscal 2026. Vertiv (VRT - Free Report) is benefiting from significant margin gains, positioning itself as a formidable competitor in the data center infrastructure sector from companies like Amphenol (APH - Free Report) and Super Micro Computer (SMCI - Free Report) . In the second quarter of 2026, the company reported an adjusted operating margin of 22.6%, a substantial increase of 410 basis points year over year and well above its previous guidance. This margin expansion was driven by disciplined operational execution, productivity improvements and favorable price-cost dynamics, partially offset by tariff impacts.

VRT’s robust margin performance is underpinned by strong sales growth across key regions. Net sales in the second quarter of 2026 were up 24% compared to the prior year, with the Americas and APAC regions each growing by 29%. The EMEA region returned to positive sales growth, further supporting the company’s global momentum.

When comparing Vertiv to peers like Amphenol and Super Micro Computer, Vertiv’s margin gains and operational momentum stand out. While Amphenol and Super Micro Computer are also benefiting from secular trends in data center and AI infrastructure, Vertiv’s focus on end-to-end solutions for power and thermal management, as well as its ability to scale complex projects globally, provides it with a unique competitive edge. Vertiv’s collaboration with NVIDIA and VisionBay AI in Taiwan showcases its leadership in deploying both AC and 800-volt DC architectures, which increases Vertiv’s content opportunity per megawatt and differentiates it from competitors.

Vertiv remains confident in the persistence of strong operating margins. For the third quarter of 2026, adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%, supported by organic growth, operating leverage and productivity. Regional manufacturing, supply chain actions and disciplined capacity investment remain key to sustaining the margin trajectory as projects scale. Management raised 2026 adjusted operating margin guidance to 23.3%-24.3% and expects pricing to exceed inflation, including current tariffs and countermeasures.

How Competitors Fare Against VRTVertiv’s AI infrastructure solutions are facing increasing competition from Amphenol and Super Micro Computer. Both Amphenol and Super Micro Computer are expanding their offerings to support high-density, AI-driven data center deployments.

Amphenol is benefiting from a significant expansion in its operating margins. In the second quarter of 2026, adjusted operating income was $2.61 billion, up 80.2% year over year. Adjusted operating margin improved 420 basis points (bps) year over year to 29.8%, driven by robust operating leverage on significantly higher sales volumes. A major factor behind this margin expansion is Amphenol’s broad-based growth across diverse end markets. In the second quarter of 2026, IT datacom represented about 43% of sales and grew 63% organically year over year.

Super Micro Computer is evolving from just a server and hardware vendor into a full IT solutions provider. Products like DCBBS (Data Center Building Block Solutions) bundle hardware, software, cooling, networking and support into complete systems. This strategy increases revenue per deal and improves margins. In the fourth quarter of fiscal 2026, non-GAAP operating margin increased to 14.3% from 7.2% in the previous quarter.

Vertiv’s Share Price Performance, Valuation, and EstimatesVRT’s shares have surged 63.3% year to date compared with the broader Zacks Computer & Technology sector’s 15.8% rise. The Zacks Computers - IT Services industry declined 14.1% over the same period.

VRT Stock Performance
Image Source: Zacks Investment Research

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 21.41X compared with the Computer and Technology sector’s 8.48X. VRT has a Value Score of D.

VRT Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $6.64 per share, which has increased 3.58% over the past 30 days. This indicates a 58.10% increase from the year-ago quarter.

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for Teledyne Technologies (TDY - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Teledyne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Teledyne's Q2 Earnings & Revenues Beat Estimates, '26 EPS View Raised

Teledyne Technologies Inc. reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.

The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.

Operational Highlights of TDYTotal sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.

TDY’s Segmental PerformanceInstrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.

The adjusted operating income declined 0.1% year over year to $104.8 million.

Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.

The adjusted operating income rose 31.2% year over year to $217.6 million.

Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.

The adjusted operating income increased 8.6% year over year to $79.7 million.

Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.

This segment's operating income rose 24.8% to $15.1 million.

Financial Condition of TDYTeledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.

Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.

Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.

TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.

Teledyne Raises 2026 Earnings ViewFor the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.

For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Teledyne has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teledyne has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerTeledyne belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, AAR (AIR - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026.

AAR reported revenues of $928 million in the last reported quarter, representing a year-over-year change of +23%. EPS of $1.53 for the same period compares with $1.16 a year ago.

AAR is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.

AAR has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

A month has gone by since the last earnings report for QuantumScape Corporation (QS - Free Report) . Shares have added about 11.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is QuantumScape due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for QuantumScape Corporation before we dive into how investors and analysts have reacted as of late.

QuantumScape Q2 Loss Narrower-Than-ExpectedQuantumScape reported second-quarter 2026 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. The company delivered an earnings surprise of 11.1%. The company had incurred a loss of 20 cents per share a year earlier.

QuantumScape did not report GAAP revenues. The quarter featured lower operating expenses, improving Eagle Line productivity and $10.8 million in customer billings. The company also expanded its automotive relationships and established business verticals targeting electric vehicles, AI data centers, aerospace and defense.

Operating Expenses DeclineGAAP net loss narrowed 14.4% year over year to $98.24 million from $114.70 million. Total operating expenses fell 14.1% to $106.13 million, supporting the improvement in the bottom line.

Research and development expenses declined 18.4% to $82.53 million. General and administrative expenses increased 5.3% to $23.59 million. Interest income was $8.36 million, down from $8.94 million in the prior-year quarter.

QS Builds Automotive PartnershipsThe company announced a multi-year partnership with Honda to advance its solid-state lithium-metal battery technology for automotive and other applications. The agreement followed an extensive evaluation of QuantumScape’s technology and adds another top-10 global automaker to its customer portfolio.

QS also updated its collaboration and licensing arrangement with Volkswagen Group’s PowerCo. The revised milestones focus on automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. The company is working with four top-10 automakers and shipped cells to another automotive customer during the quarter.

Eagle Line Ramps Sample ProductionQuantumScape continued to ramp the Eagle Line, its automated pilot production line in San Jose. Core tools achieved uptime above 90%, while key productivity measures reached management’s targets. The company is increasing cell volumes and shipping samples to customers.

QS aims to double cell output further in the second half of 2026. Higher production is expected to accelerate customer shipments, shorten development cycles and provide a foundation for transferring manufacturing processes to future high-volume facilities. QS continues to work with Murata Manufacturing and Corning on scaling ceramic separator production through the Cobra process.

QuantumScape Targets New High-Value MarketsThe company created three business verticals. QSEV will focus on electric vehicles, QSDC will pursue AI data centers, and QSAS will address advanced applications such as aerospace and defense.

QSDC is working with original design manufacturers and data center architects on solutions based on the QSE-5 platform. QSAS shipped QSE-5 cells to a major U.S. defense contractor and is engaging other aerospace and defense customers. Management believes the technology’s energy density, power capability and safety profile can support these markets.

QS Advances Safety and Larger-Format CellsIncreased Eagle Line output enabled broader safety testing of QSE-5 cells. Testing included nail penetration, external short circuits and thermal stability at temperatures up to 300 degrees Celsius. Management said the larger test set replicated findings from earlier prototypes.

The company also demonstrated that its Cobra process can produce larger ceramic separators. Larger-format cells can improve packaging efficiency and raise cell-level energy density, while giving QS greater flexibility to meet varying customer requirements.

Capital Spending Forecast ReducedAdjusted EBITDA loss was $64.19 million compared with a loss of $63.01 million a year earlier. QuantumScape maintained its full-year 2026 adjusted EBITDA loss guidance of $250-$275 million.

Capital expenditures totaled $4.62 million, down 46.2% from $8.59 million in the prior-year quarter. QS lowered its 2026 capex guidance to $27-$37 million from $40-$60 million, reflecting capital discipline and savings on specific projects.

Strong Liquidity PositionNet cash used in operating activities improved to $56.75 million from $61.84 million a year ago. Customer billings totaled $21.8 million during the first half of 2026, surpassing the $19.5 million recorded for all of 2025.

QuantumScape ended June with $859 million in liquidity, comprising $132.87 million in cash and cash equivalents and $726.13 million in marketable securities. The balance sheet provides funding as the company scales the Eagle Line, develops larger-format cells and pursues commercialization across its three business verticals. 

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM ScoresAt this time, QuantumScape has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, QuantumScape has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerQuantumScape is part of the Zacks Automotive - Original Equipment industry. Over the past month, Autoliv, Inc. (ALV - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended June 2026 more than a month ago.

Autoliv reported revenues of $2.8 billion in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $2.43 for the same period compares with $2.21 a year ago.

Autoliv is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -4.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autoliv. Also, the stock has a VGM Score of A.

Key Takeaways EPD earns fee-based revenues, with 90% of long-term contracts including inflation escalation provisions.EPD has $6.5B of projects under construction, including Permian gas plants and pipeline expansions.Projects entering service through 2026-2028 should boost EPD's earnings, cash flows and profitability. Enterprise Products Partners (EPD - Free Report) , a leading North American midstream energy player, operates an integrated network of assets for the transportation and storage of crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The partnership earns stable fee-based revenues, which enable it to generate predictable cash flows across business cycles. Moreover, 90% of its long-term contracts include an escalation provision that protects its cash flows and distributions amid inflationary business environments.

EPD’s contracted business model makes its earnings less vulnerable to fluctuations in commodity prices. The partnership has also announced major projects worth $6.5 billion under construction, including new gas-processing plants in the Permian Basin, the Bahia pipeline expansion, Fractionator 15 and the Enterprise Hydrocarbons Terminal LPG expansion. These capital projects are expected to benefit from  favorable energy market fundamentals, including increased hydrocarbon production from the Permian Basin higher natural gas demand from rising LNG exports, the expansion of data center infrastructure and increasing industrial demand.

Since many of these projects are expected to enter service during 2026-2028, they should contribute to Enterprise’s earnings, supporting profitability and cash flow growth. EPD's liquidity position and healthy free cash flow generation should enable it to capitalize on growth opportunities while prioritizing returns to unitholders and debt reduction.

Other Midstream Players to Benefit From Rising Energy DemandKinder Morgan Inc. (KMI - Free Report) is a leading midstream energy company that owns and operates one of the largest energy infrastructure networks in North America, comprising approximately 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet of natural gas storage capacity.

The Williams Companies, Inc. (WMB - Free Report) is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 32,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States.

Rising energy demand in domestic and international markets is expected to support sustained demand for Kinder Morgan and Williams Companies’ midstream services.

EPD’s Price Performance, Valuation & EstimatesEnterprise Products units have jumped 28.3% over the past year compared with the 30.6% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.98X. This is below the broader industry average of 11.27X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EPD’s 2026 earnings has been revised upward over the past seven days.

Image Source: Zacks Investment Research

EPD, KMI and WMB each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Pinnacle West Capital targets 5-7% long-term EPS growth while maintaining disciplined cost management.PNW's first-half 2026 O&M costs fell 4.5% as it plans nearly $7.95B in investment through 2028. PNW plans to convert Cholla to provide about 380 MW of dispatchable generation by 2029. Pinnacle West Capital (PNW - Free Report) is strengthening efficiency through disciplined cost management and tighter control of operating expenses. These efforts support financial stability while creating more flexibility to fund infrastructure investments.

PNW’s operations and maintenance (O&M) expenses fell 1.1% year over year to $283.4 million in the second quarter, while first-half 2026 O&M costs declined 4.5% from the prior-year period. The company expects 2026 adjusted core O&M of $970-$980 million, while adjusted O&M, excluding renewable energy and demand-side-management costs, is projected at $1.02-$1.04 billion.

Pinnacle West Capital also remains committed to reducing O&M expenses on a per-megawatt-hour basis over time. PNW’s cost control is increasingly important as it plans to invest $2.6 billion in 2026 and nearly $7.95 billion through 2028 to support infrastructure and 7-9% rate-base growth.

By lowering costs, PNW can improve earnings and capture greater benefits from its expanding customer base and rising electricity demand. The company expects 2026 earnings per share (EPS) of $4.55-$4.75 and 5-7% long-term EPS growth.

The company is also pursuing cost-effective projects. Its planned conversion of the Cholla plant will repurpose existing infrastructure to provide about 380 megawatts of dispatchable generation by 2029, helping meet rising demand without building an entirely new facility.

Overall, PNW’s stable O&M costs amid rising demand and infrastructure investment are positive, while continued efficiency and regulatory recovery could support margins and long-term growth.

Stronger Cost Control Supports Utility GrowthUtilities that control operating costs can improve margins, preserve financial flexibility, fund infrastructure investments and maintain affordable customer rates. Effective cost management also strengthens operations and supports sustainable earnings growth. Alongside PNW, several other utilities also demonstrate strong cost management as highlighted below:

American Electric Power (AEP - Free Report) expects up to $16 billion in cost offsets from load growth, helping spread fixed costs while supporting customer affordability and long-term earnings growth.

PG&E Corporation (PCG - Free Report) expects to meet its 2026 target of reducing non-fuel O&M costs by 2-4%, supporting both customer affordability and greater operating efficiency.

The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.53% and an increase of 17.90%, respectively, year over year.

Image Source: Zacks Investment Research

PNW’s Stock Trading at a Premium PNW is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 18.92X versus the industry average of 15.42X.

Image Source: Zacks Investment Research

PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital’s shares have plunged 2% compared with the industry’s 7.9% fall.

Image Source: Zacks Investment Research

PNW’s Zacks Rank

It has been about a month since the last earnings report for Packaging Corp. (PKG - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Packaging Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Packaging Corporation of America before we dive into how investors and analysts have reacted as of late.

Packaging Corp Q2 Earnings Beat Estimates on Record ShipmentsPackaging Corp reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.

Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.

Packaging Corp’s Gross Profit Rises Y/Y in Q2Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.

Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.

Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.

PKG’s Q2 Segmental PerformancesPackaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.

Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.

Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter.

Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Sales volume increased 6.3% from the second quarter of 2025. 

The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix.

Packaging Corp's Cash Position DeclinesPKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.

For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.

PKG Q3 OutlookThe company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresAt this time, Packaging Corp. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Packaging Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

It has been about a month since the last earnings report for Oceaneering International (OII - Free Report) . Shares have added about 9.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Oceaneering International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Oceaneering Q2 Earnings & Revenues Rise Y/Y, Adjusted EBITDA UpOceaneering International reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement.

Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions.

In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year.

Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments.

Q2 Segmental InformationSubsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.

Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million.

The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago.

The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%.

Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.

Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million.

The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million.

The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88.

Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling.

Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter.

The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution.

Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.

Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million.

Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East.

Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.

Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025.

The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing.

Capital Expenditure & Balance SheetThe capital expenditure in the second quarter, including acquisitions, totaled $30.8 million.

As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%.

The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million.

Q3 and 2026 Outlook by OceaneeringThe company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income.

IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range. 

Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services.

Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations.

The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 9.43% due to these changes.

VGM ScoresAt this time, Oceaneering International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Oceaneering International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerOceaneering International belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Weatherford (WFRD - Free Report) , has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Weatherford reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $0.55 for the same period compares with $1.87 a year ago.

For the current quarter, Weatherford is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.6% over the last 30 days.

Weatherford has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

A month has gone by since the last earnings report for TE Connectivity (TEL - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is TE Connectivity due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

TE Connectivity Q3 Earnings Beat Estimates, Revenues Increase Y/YTE Connectivity reported third-quarter fiscal 2026 adjusted earnings of $2.94 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $2.85 by 3.2%.

Net sales increased 14% year over year to $5.16 billion and surpassed the Zacks Consensus estimate by 3.14%. Growth across both the Industrial and Transportation segments supported performance. Orders reached a record $5.7 billion, rising 27% year over year.

TEL’s Q3 Top-Line DetailsTransportation Solutions generated revenues of $2.58 billion, accounting for half of total sales. Segment revenues increased 7% on a reported basis and 5% organically from the year-ago quarter.

Industrial Solutions also recorded revenues of $2.58 billion, representing the remaining half of sales. The figure climbed 22% year over year on a reported basis and 21% organically, reflecting broad-based demand across most of its businesses.

TE Connectivity’s Segment PerformanceWithin Transportation Solutions, Automotive sales rose 5% to $1.91 billion, including 3% organic growth, supported by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 20% to $434 million and increased 18% organically on strong content growth across all regions.

Sensor’s revenues declined 1% to $233 million and fell 3% organically. The segment's adjusted operating income increased to $541 million from $486 million, while adjusted operating margin expanded 90 basis points to 21%.

TEL’s Industrial Businesses Maintain MomentumDigital Data Networks revenues surged 34% to $813 million on both a reported and organic basis, aided by continued momentum in artificial intelligence applications. Management indicated that orders support another strong sequential sales increase for the business in the fourth quarter.

Energy sales increased 34% to $516 million, including 33% organic growth, driven by grid-hardening activity and data-center construction. Automation and Connected Living revenues rose 16% to $664 million, while Aerospace, Defense and Marine sales advanced 12% to $419 million. Medical revenues decreased 7% to $168 million. The segment's adjusted operating income increased to $588 million from $467 million, while adjusted operating margin expanded 70 basis points to 22.8%.

TE Connectivity's Q3 Operating DetailsIn third-quarter fiscal 2026, GAAP gross margin expanded 26 basis points (bps) year over year to 35.6%.

Selling, general and administrative expenses increased to $532 million from $491 million. Research, development and engineering expenses rose to $230 million from $211 million.

GAAP operating income increased to $981 million from $857 million. Operating margin edged up 10 bps to 19%. Adjusted operating income rose to $1.13 billion from $953 million, while adjusted operating margin expanded 90 bps to 21.9%.

TEL’s Cash Flow and Balance SheetAs of June 26, 2026, cash and cash equivalents totaled $1.24 billion. Total debt was $5.63 billion.

TE Connectivity generated $1.19 billion in cash from operating activities during the quarter, nearly unchanged from the prior-year period. Free cash flow declined to $883 million from $962 million.

TEL repurchased $529 million of shares and paid $226 million in dividends during the quarter.

TE Connectivity's Positive Q4 GuidanceFor the fourth quarter of fiscal 2026, TE Connectivity expects sales of approximately $5.25 billion, indicating 11% growth on both a reported and organic basis. Adjusted earnings are projected to be approximately $3.05 per share, representing an 18% year-over-year increase.

TEL also agreed to acquire Astrodyne TDI for approximately $1.4 billion. The business is expected to contribute annual sales of more than $250 million and expand the company's power-management portfolio within Industrial Solutions.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

VGM ScoresCurrently, TE Connectivity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TE Connectivity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

A month has gone by since the last earnings report for Knight-Swift Transportation Holdings (KNX - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Knight-Swift due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Knight-Swift Q2 Earnings Beat EstimatesKnight-Swift reported second-quarter 2026 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 28.6% and increased 80.0% year over year. Stronger pricing and network efficiency across asset-based operations supported the improvement.

Total revenues of $2.10 billion surpassed the consensus mark of $2.01 billion by 4.3% and rose 12.6% year over year. Truckload revenue per loaded mile, excluding fuel surcharge and intersegment transactions, increased 5.5%.

KNX’s Consolidated Profitability Improves

Revenue excluding truckload and LTL fuel surcharge increased 5.5% year over year to $1.76 billion. Operating income rose 44.4% to $104.85 million, while adjusted operating income advanced 45.5% to $150.95 million.

The consolidated operating ratio improved 110 basis points to 95.0%. The adjusted operating ratio improved 240 basis points to 91.4%, reflecting better pricing and network efficiency across the asset-based businesses. Adjusted net income climbed 79.7% to $102.75 million.

Knight-Swift’s Truckload Engine Accelerates

Truckload revenues, excluding fuel surcharge and intersegment transactions, increased 2.8% year over year to $1.10 billion. The gain came despite a 2.6% decline in loaded miles, as tighter driver availability pressured the seated tractor count.

Adjusted operating income surged 69.4% to $98.92 million. The adjusted operating ratio improved 360 basis points to 91.0%, helped by pricing gains and a 140-basis-point reduction in empty miles. U.S. Xpress’ over-the-road division achieved its first profitable quarter since the acquisition.

KNX’s LTL Mix Supports Margin Recovery

Less-than-truckload revenues, excluding fuel surcharge, declined 1.4% to $333.01 million as shipments per day fell 3.7%. However, daily tonnage increased 4.0%, weight per shipment rose 7.9% and length of haul expanded 5.3%.

Revenue per shipment, excluding fuel surcharge, grew 3.4%, while revenue per hundredweight fell 4.2% because of heavier shipments. Adjusted operating income increased 13.3% to $26.45 million, and the adjusted operating ratio improved 100 basis points to 92.1%.

Knight-Swift’s Logistics and Intermodal Diverge

Logistics revenues rose 8.9% to $139.70 million, driven by a 29.6% increase in revenue per load, partly offset by a 16.4% drop in load count. Gross margin contracted 350 basis points to 15.4% as purchased transportation costs increased faster than customer pricing. Adjusted operating income declined 25.7%.

Intermodal revenues jumped 34.9% to $113.39 million. Load count increased 19.6% and revenue per load rose 12.8%, helping the segment post operating income of $0.65 million versus a $3.43 million loss a year earlier. Its operating ratio improved 470 basis points to 99.4%.

KNX’s Other Businesses Face Special Charges

All Other Segments’ revenues increased 41.8% year over year to $105.56 million, supported by growth in warehousing and trailer leasing. These businesses generated an additional $7 million of income contribution compared with the prior-year quarter.

The segment recorded an operating loss of $10.43 million compared with income of $6.75 million a year earlier. Results included $5.8 million of accounts receivable securitization costs and an $18.2 million severance charge primarily tied to the former executive chairman’s retirement.

Knight-Swift’s Liquidity and Capital Spending

Knight-Swift ended June with $186.11 million in cash and cash equivalents. Year-to-date operating cash flow was $450.36 million, while free cash flow totaled $190.44 million after $259.92 million of net capital expenditures.

The company issued $1.50 billion of 1% convertible notes and used proceeds to repay floating-rate borrowings. Management expects the refinancing to generate roughly $44 million of annual pretax savings. Full-year net cash capital expenditures remain projected at $600-$650 million.

KNX’s Q3 Outlook Points Higher

KNX expects third-quarter 2026 adjusted earnings of 71-77 cents per share. Truckload revenue, excluding fuel surcharge, is projected to rise by a mid-single-digit percentage, with the adjusted operating ratio improving 650-750 basis points year over year.

LTL revenue, excluding fuel surcharge, is expected to grow by a low-single-digit percentage, with the adjusted operating ratio in the low 90s. Logistics performance is expected to remain fairly stable sequentially, while intermodal revenue is projected to increase by a low-single-digit percentage from the second quarter.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 8.2% due to these changes.

VGM ScoresAt this time, Knight-Swift has a great Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Knight-Swift has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Quest Diagnostics is seeing strong growth in physician, hospital and consumer channels.DGX's Advanced Diagnostics delivered double-digit growth in several clinical areas in the second quarter.Quest Diagnostics targets 3% annual cost savings as debt and reimbursement pressures weigh on results. Quest Diagnostics (DGX - Free Report) is well-poised to grow in the coming quarters owing to its solid growth momentum in the physician, hospital and consumer channels. Broader adoption of the company’s Advanced Diagnostics offerings, across five key clinical areas, also supports the growth outlook. Further, Quest Diagnostics continues to use automation and AI to improve the quality and productivity of its operations.Still, elevated debt and ongoing uncertainty around reimbursement and costs could weigh on results.

In the past year, this Zacks Rank #3 (Hold) stock has rallied 33.9% compared with the industry’s 19.4% growth and the S&P 500 Composite’s 21.5% rise. 

The renowned provider of diagnostic information services has a market capitalization of $26.68 billion. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.77%.

Factors Favoring DGXGrowth Momentum in the Base Business: Quest Diagnostics continues to address the needs of physicians, hospitals and consumers through broader access, clinical innovation and offering more integrated solutions. In the second quarter of 2026, physician channel revenues increased in the high single-digit range, supported by new customer wins, higher business with existing customers and growth in regions where the company expanded health plan access and completed acquisitions. The Fresenius Medical Care collaboration is also broadening Quest Diagnostics’ capabilities in kidney care.

Hospital channel revenues grew at a double-digit rate, primarily from Co-Lab Solutions with Corewell Health. Reference-testing revenues increased from both the first quarter and the prior-year period. The consumer-testing platform, QuestHealth.com, continued to generate revenue growth, supported by demand for wellness panels and newer services such as thyroid testing. The platform is also attracting consumer, wearable and wellness partners through flexible technology integration.

Image Source: Zacks Investment Research

Strong Potential of Advanced Diagnostics: Quest Diagnostics is expanding advanced diagnostics across cardiometabolic and endocrine, autoimmune, brain health, oncology and women’s and reproductive health. Several of these areas delivered double-digit revenue growth in the second quarter of 2026. Demand remained elevated for ApoB, Lp(a) and liver fibrosis tests, while the company continued to grow its analyzer solution for autoimmune disorders.

In brain health, the AD-Detect portfolio again produced double-digit growth. In oncology, New York State approved Haystack minimal residual disease, allowing commercial expansion across all 50 states. Quest Diagnostics also integrated selected cancer tests with Flatiron Health’s OncoEMR Molecular Profiling Integration platform. A pilot program with American Oncology Network is expected to support a broader rollout to Flatiron’s 4,700 clinicians and other providers later in 2026.

Strategic Imperative to Drive Operational Excellence: Quest Diagnostics’ Invigorate program now targets 3% annual cost savings and productivity improvements. The company is using automation and AI across laboratory and administrative processes to offset labor, benefit and reimbursement pressures while improving service quality. During the second quarter, Quest Diagnostics expanded AI-enabled cervical cancer screening and front-end specimen-processing automation to additional laboratories.

The company also launched IntelliDraw to guide specimen collection at physician offices and plans to introduce an AI-based supply tool at patient service centers. Project Nova remains a multi-year effort to transform order-to-cash processes, with higher spending expected in the second half of 2026 and the first implementation wave planned for fall 2027.

What Ails DGX?Elevated Debt Level: As of June 30, 2026, the company’s long-term debt was $5.63 billion and cash and cash equivalents totaled $626 million. The current portion of long-term debt declined to $10 million after the company repaid $500 million of notes due in June and issued $500 million of 5.00% notes due in 2036. Interest expense totaled $126 million in the first half. Elevated debt could constrain financial flexibility as the company continues investing in acquisitions, automation and Project Nova.

Unstable Reimbursement and Cost Backdrop: Quest Diagnostics remains exposed to changes in government reimbursement, health policy and payer bargaining power. Management continues to assume a 30-basis-point (bps) revenue impact in 2026 from the expiration of enhanced Affordable Care Act exchange subsidies. Exchange requisitions were down about 8%, although higher tests per requisition and payer mix kept related revenues roughly flat through the second quarter. Second-quarter cost of services increased 10.9% year over year, while adjusted operating margin declined 40 bps to 16.5%.

DGX Stock Estimate TrendThe Zacks Consensus Estimate for Quest Diagnostics’ 2026 earnings per share (EPS) is projected to increase 13.2% to $11.15.

The consensus mark for 2026 revenues is pegged at $12.01 billion, suggesting 8.9% growth from the year-ago reported number.

Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and Teleflex (TFX - Free Report) .

Globus Medical has an earnings yield of 5.8% compared to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 37.1% against the industry’s 4.2% decline over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 34.8% against the industry’s 4.2% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have rallied 4.3% against the industry’s 4.3% decline over the past year.

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Hims & Hers (HIMS) To Contact Him Directly To Discuss Their Options

If you purchased or acquired stock in Hims & Hers and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.

Click here to participate in the action.

NEW YORK, Aug. 21, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Hims & Hers Health, Inc. (“Hims & Hers” or the “Company”) (NYSE:HIMS) on behalf of Hims & Hers stockholders. Our investigation concerns whether Hims & Hers has violated the federal securities laws and/or engaged in other unlawful business practices.
Investigation Details:

On July 29, 2026, the Federal Trade Commission (“FTC”), the People of the State of California through Los Angeles County Counsel and the Utah Division of Consumer Protection sued Hims & Hers in the Northern District of California. According to the FTC, the action alleges that Hims & Hers fails to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is “right for them.” The FTC also alleges that the company has made it difficult for consumers to cancel subscriptions and misled consumers about keeping their health information private. The FTC alleges that Hims shared consumers’ health information with Meta, Snap and other third parties.
Following this news, the price of Hims & Hers stock fell $4.32 per share, or 14.73%, to close at $25.00 per share on July 29, 2026.
Next Steps:

If you purchased or otherwise acquired Hims & Hers shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form.  There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com.  Attorney advertising.  Prior results do not guarantee similar outcomes.

Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com