Track market-moving stories before they get noisy

Microsoft Corp.'s Xbox plans to eliminate 3,200 jobs, or around 20% of its staff over the next year, as part of a massive reorganization to spur growth in the struggling gaming division. Jason Schreier reports on "Bloomberg Open Interest.

Microsoft Corp (NASDAQ:MSFT) shares fell after the software giant said it would cut around 4,800 jobs, or 2.1% of its global workforce, as it restructures to focus on its biggest growth priorities.

The stock was down 1.7% at $383.84 in late morning trading.

In a memo to staff, chief people officer Amy Coleman said the business "is changing because the world around it is changing," adding that Microsoft needed to "adjust resources and roles and shift how we operate."

The cuts will fall mainly in Microsoft's commercial and Xbox divisions, with engineering teams also set to evolve their structures and priorities.

Anticipating that concerns will be raised that the redundancies were directly linked to artificial intelligence, she claimed that "the roles eliminated today are not being replaced by AI," but in the next sentence she acknowledged that "AI is changing how work gets done.

"Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves."

More than 4,000 employees have been redeployed into new roles over the past year, the company noted, with alternatives continuing to be explored to job cuts, including voluntary retirement programmes.

Coleman warned employees that the restructuring was not over, saying: "We are still early on this journey, and there will be more changes ahead."

DA Davidson has reiterated its ‘Buy' rating on Microsoft (NASDAQ: MSFT) and maintained its $550 price target.

Microsoft said Monday it was eliminating about 4,800 jobs—roughly 2% of its global workforce—in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division.

Advanced Micro Devices (AMD +8.79%) stock jumped 8.3% through 10 a.m. ET Monday, but the catalyst that sparked the move looks rather tenuous.

As StreetInsider.com reports today, Goldman Sachs analyst James Schneider raised his price target on AMD stock to $640 this morning, and that's really all the detail anyone has on the raise -- that it happened.

Image source: AMD.

Goldman still loves semiconductor stocks AMD stock sold off hard at the end of last week, falling nearly 11% from Tuesday's all-time high to Thursday's close. Goldman hasn't lost faith in the semiconductor stock, however, instead taking advantage of last week's sell-off to quietly raise its price target on AMD. (Goldman had previously recommended buying AMD despite valuing it at only $450 -- a price much less than it's been trading at for weeks.)

Now, with AMD trading below $570 but Goldman saying it's worth $640, the "buy" rating makes more sense. And yet, in the absence of more detail about why Goldman thinks AMD stock is worth so much, investors need to consider carefully before following the advice of one analyst just baldly declaring the stock a "buy."

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563.34

What's next for AMD investors? I mean, consider the valuation. AMD stock trades for more than 170 times its trailing earnings today. Isn't that too much to pay?

Not necessarily. Next year's earnings are forecast to grow mightily, dropping AMD's forward P/E ratio down to just 74. What's more, S&P Global Market Intelligence data confirm that AMD is already making more money than its income statement currently reflects. Trailing free cash flow at the stock is $8.6 billion -- 72% more than reported net income.

With long-term earnings projected to grow 55% a year, AMD might be cheap enough to buy.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.

The Chinese company's models have won over developers worldwide, but they are open source — so they can be used and modified freely.

The "Magnificent Seven" cohort is made up of seven of the largest tech stocks in the world. The seven members are (ranked from largest to smallest by market cap):

Nvidia (NVDA +1.13%) Alphabet (GOOG +1.48%) (GOOGL +1.15%) Apple (AAPL +1.08%) Microsoft (MSFT 1.64%) Amazon (AMZN +0.94%) Tesla (TSLA +5.75%) Meta Platforms (META +1.59%) Up until the Space Exploration Technologies, better known as SpaceX, initial public offering (IPO), these seven made up 10 of the largest companies in the world. However, Meta has been pushed out of the top 10 thanks to SpaceX.

These seven companies still hold dominance in the market and control a large amount of the indexes due to market cap weighting. Let's take a look and determine which ones are the best buys and make the most sense to load up on.

Image source: Getty Images.

7. Apple At the bottom of my list is Apple. The reason is quite simple: It's growing its revenue and earnings per share (EPS) somewhat slowly compared to most members, ranking fifth and sixth, respectively, for each company's most recent year over year quarterly results. It's also expensively valued at 35 times forward earnings, Apple isn't cheap and is a major premium over many of its peers.

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3.35

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311.98

Furthermore, Apple's artificial intelligence (AI) strategy so far seems to be lagging behind the competition, which could become a major problem in the future. As a result, I think it's OK to steer clear of the stock.

6. Tesla Tesla is a bit of a wildcard in the Magnificent Seven. All of the other six companies are highly profitable, whereas Tesla doesn't come close.

NVDA Net Income (TTM) data by YCharts.

Tesla has many upcoming opportunities to turn business prospects into profits, but until then, I'm comfortable sitting on the sidelines.

5. Alphabet While Alphabet is only one spot ahead of Tesla, I think there's a huge chasm between the two stocks, and this is where stocks I'd feel comfortable buying today begin. Alphabet has had an incredible year, doubling over the last 12 months. This rise occurred for two reasons: First, Alphabet finally earned the market respect it deserved for its AI plan and execution. Second, Alphabet has been rapidly growing for its size, which contributed to its rise.

However, I think the stock is fully valued now at 25 times forward earnings, and there are better opportunities in the Magnificent Seven.

4. Amazon Amazon may be a bit more expensive at 28 times forward earnings versus Alphabet, but there is more growth coming. Most of Amazon's profits come from its cloud computing service, Amazon Web Services (AWS). This year, it's spending $200 billion on data center capital expenditures (capex) to increase its capacity to meet soaring consumer demand. CEO Andy Jassy told investors that it already has customers lined up to use this new capacity, which will lead to monster growth in the near future.

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244.94

This creates an environment where Amazon's profits could soar over the next few years, making it an exciting stock to invest in now.

3. Meta Platforms Meta Platforms is in the top three, and this is where I'd consider the stock a strong buy. The reason is fairly simple: Meta is a solid business, yet it's incredibly cheap. It's the cheapest stock in the Magnificent Seven by far, trading for just 17.5 times forward earnings. That's cheaper than the S&P 500 (^GSPC +0.68%), which trades for 18 times forward earnings.

Despite its low price, Meta is among the fastest-growing, with revenue rising an impressive 33% year over year in the first quarter. I think there's a big price mismatch here, which makes Meta a great stock to buy now.

2. Microsoft Microsoft has had a historical sell-off over the past few months, and it's a likely candidate for a rebound. It's down over 30% from its all-time high, yet its business is doing quite well, with revenue rising 18% and diluted earnings per share increasing 23% year over year.

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-6.41

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384.08

Despite these strong results, Microsoft trades for just 19 times fiscal year (FY) 2027 earnings (FY 2027 begins on July 1). That's a compelling price to pay for a company widely recognized as one of the AI infrastructure leaders, making it a smart buy today.

1. Nvidia Last, but certainly not least, is Nvidia. Nvidia has been the powerhouse among the Magnificent Seven over the past few years, but it hasn't been so in 2026. The market is worried about AI spending not lasting, but Nvidia told investors that it expects AI hyperscaler spending to rise from $650 billion in 2026 to $1 trillion in 2027. Nvidia is in close contact with these companies to ensure that it has the capacity to meet demand, so it's likely that investors can trust this projection.

Despite obvious growth coming again in 2027, Nvidia trades for 21.7 times forward earnings -- the same price as the S&P 500. That's a steal of a price for Nvidia's stock, and I think it's the most compelling buy of the group as a result.

Corrections present opportunities for investors with extra cash on the sidelines, especially in high-potential industries like technology. These three growth stocks below have all been beaten up in recent weeks but are due for a rebound. Let's dive in and see why.

Image source: Getty Images.

1. Meta Platforms Meta Platforms (META +1.77%) is down by more than 10% from its all-time highs and continues to lag the S&P 500 year to date. It's shocking to see Facebook's parent company underperforming the famed index, but that should change soon.

Fundamentals remain solid, as the company delivered 33% year-over-year revenue growth in Q1, along with a 30% year-over-year boost in net operating income. Meta Platforms has reliably delivered profitable, high growth rates from online advertising, which makes its current 22 P/E ratio look like a steal.

Furthermore, Meta Platforms is diversifying beyond ad revenue, which could boost the stock's valuation. Mark Zuckerberg announced the company is working on an AI cloud business to sell additional compute to AI enterprises and start-ups.

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10.33

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593.23

Neocloud providers have demonstrated that the industry can be lucrative, and it would give Meta Platforms an additional income source. It may take multiple years for this part of the business to generate meaningful revenue, since Meta Platforms is currently constrained by compute capacity.

Recent big deals with neocloud provider Nebius and the fact that Alphabet has limited Meta Platforms' use of its Gemini AI models show short-term limitations. However, Meta Platforms is rapidly building AI data centers that could unlock a new revenue stream within a few years. That, and the company's push into AI glasses, can introduce new, vibrant revenue streams that lead to a rerating.

2. Nvidia Nvidia (NVDA +1.13%) has been at the center of the AI boom as its GPU chips continue to fly off the shelves. Revenue surged 85% year over year in the company's fiscal 2027 first quarter, and its recently announced $80 billion stock buyback program gave investors another reason to be excited.

CEO Jensen Huang even said that the AI build-out "is accelerating at extraordinary speed," suggesting that Nvidia can continue to deliver outsize revenue growth in future quarters. Q2 FY27 guidance projects $91 billion in revenue at the midpoint, which represents 11.5% sequential growth.

Still, the stock is down by almost 20% from its 2026 highs. A 30 P/E ratio makes the stock look quite attractive, and a new announcement sweetened the proposition. Nvidia recently introduced a revenue-sharing model in which AI start-ups can receive free compute in exchange for giving Nvidia exposure to a percentage of their total revenue.

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197.04

This type of dealmaking has worked well for Nvidia. It has profitable stakes in many AI stocks, including Intel and Nebius. It can also introduce additional high-growth opportunities for Nvidia, translating into accelerated revenue and net income growth rates.

This opportunity may not be fully reflected in today's stock price, but Nvidia still looked compelling before it announced this new revenue stream.

3. Iren The best investors zig when everyone else zags. Iren (IREN +15.46%) bulls have had to navigate a myriad of short-term obstacles on the way to high annual recurring revenue in the long run.

The optics don't look good in the short run. Iren is flat year to date after shedding more than 30% of its value in a single month. Meanwhile, rival Nebius has more than doubled year to date.

Dilution fears remain, and Iren's co-CEOs recently received $687 million in stock grants. It's good that they can't sell their shares for multiple years, as it gives the CEOs more incentive to grow the company. However, the stock awards divided investors since it comes at a time when dilution and borrowing remain high.

Nebius has also been quicker to announce big deals, including its five-year, $27 billion agreement with Meta Platforms. Iren has been a bit slower on that front, only announcing a five-year, $3.4 billion deal with Nvidia for 60 megawatts of capacity.

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6.00

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44.82

A Nebius-sized deal would quickly change public perception of Iren, and such a deal can be announced out of the blue in a single press release. Iren has enough compute to support that type of deal. It has doubled its gigawatt pipeline year to date and is approaching 6 gigawatts. Expansion into Europe and Australia creates compelling opportunities to quickly scale AI infrastructure.

The moment Iren can convert its gigawatt pipeline into annual recurring revenue, the opportunity will become unmistakable. The company recently raised its annualized revenue run rate from $3.7 billion to $4.4 billion, indicating that growth is underway.

The long-term picture looks extremely promising, but it has a bunch of loud short-term bumps along the way. That setup can be promising for investors who can buy and hold the tech stock for multiple years.

Warren Buffett's retirement as CEO marked the end of an era at Berkshire Hathaway. While Berkshire remains committed to long-term ownership of high-quality compounders, some recent portfolio moves under new leadership suggest that there is a greater comfort with sophisticated, high-growth opportunities that sit at the center of artificial intelligence (AI).

The evidence appears clearly in Berkshire's recent handling of two "Magnificent Seven" stocks. During the third quarter of 2025, Berkshire initiated a stake in Alphabet. During the first quarter of this year, which was Greg Abel's first full quarter as CEO of Berkshire, the company more than tripled its Alphabet position to nearly 54 million shares. At the same time, filings show that Berkshire completely exited its long-standing -- albeit modest -- investment in Amazon.

These moves suggest that Abel is willing to differentiate among mega-cap technology leaders. Such selectivity could open the door to other companies that combine technological leadership with durable competitive advantage. One name that I think increasingly fits Berkshire's investment profile is Nvidia (NVDA +1.13%). Read on to learn why.

Image source: Nvidia.

Nvidia is diversifying its business model It's no secret that Nvidia holds a commanding position in the graphics processing unit (GPU) market over its primary rival, Advanced Micro Devices. Nvidia's CUDA platform has become the de facto standard for AI developers, creating a powerful moat in hardware and software that competitors are struggling to replicate at scale.

Rather than resting on this dominance alone, Nvidia is systematically expanding its ecosystem across the entire AI stack. The company is deepening its involvement in high-performance networking through a combination of internal development and strategic partnerships. For example, in October, Nvidia invested $1 billion into Nokia in a partnership focused on AI-native radio access networks (RAN) and edge infrastructure.

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2.21

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197.04

Nvidia is also quietly supporting data center build-outs through targeted investments in neocloud providers like CoreWeave and optical component leaders such as Coherent and Lumentum. Additionally, Nvidia's NVLink Fusion platform is helping enable new partners like Marvell to develop custom AI chips that can integrate tightly with Nvidia's architecture.

Building a diversified business model reduces Nvidia's reliance on any single data center product while pushing the company closer to the center of the entire AI infrastructure build-out.

Nvidia has strong profitability, robust stock returns, and an attractive valuation Throughout the AI revolution, Nvidia has translated its market leadership into exceptional financial success. Nvidia's revenue and earnings have risen exponentially thanks to AI-driven demand, which has contributed to share price appreciation of more than 1,000% over the last few years.

What's encouraging is that Nvidia has supplemented its strategic investments by expanding its dividend program as well. This demonstrates management's confidence to continue generating robust free cash flow and a willingness to share excess profits with investors.

From a valuation standpoint, Nvidia's forward price-to-earnings (P/E) multiple has become increasingly reasonable relative to its growth prospects. While Nvidia's forward P/E is notably higher than the long-run average S&P 500 forward earnings multiple of roughly 17, Abel has a bigger appetite for premium valuations, as long as they aren't overstretched.

NVDA PE Ratio (Forward) data by YCharts.

Given the trends in the chart above, Nvidia stock is clearly no longer as expensive as it was during earlier phases of the AI cycle. Currently, Nvidia looks more like a value stock -- precisely the kind of business that Berkshire historically seeks out when it identifies a new business capable of compounding capital over the long run.

Nvidia looks like a strong match for Berkshire's investment discipline Berkshire's classic investment criteria -- wide economic moats, strong C-Suite, understandable businesses, and the potential for long-term compounding -- align closely with Nvidia's mold.

The company's brand strength in AI chips and expanding infrastructure ecosystem function as formidable barriers to entry and present high switching costs for its customers. Nvidia's steady diversification into networking and custom-chip architectures also helps give it a more resilient, durable profile compared to pure semiconductor plays.

Under Abel's leadership, Nvidia could emerge as a logical technology investment because it offers exposure to secular AI tailwinds without requiring Berkshire to abandon its preference for steady growth from blue chip businesses. In a portfolio already touching many of the companies shaping the next industrial era, Nvidia represents a compelling candidate for a long-term holding.

Adam Spatacco has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Berkshire Hathaway, Coherent, Lumentum, Marvell Technology, and Nvidia. The Motley Fool has a disclosure policy.

It can be a bummer buying into great stocks after a big market rally, as you might focus on having missed out on a lot of gains. Many people might therefore try to buy before the next market rally.

But it's difficult, if not impossible, to know exactly what the market will do next. As of July 1, halfway through the year, the S&P 500 was already up 10% -- which is the average annual return for the index over many decades. And the S&P 500 has actually posted double-digit gains in six out of the past seven years! So there has been an overall market rally going on for quite a while.

Still, there are some great stocks that you might buy into. Here are a few to consider.

Image source: Getty Images.

Netflix (NFLX 1.80%) is a stock I don't often suggest, because it has frequently seemed overvalued. That's surely due to its impressing many investors with its robust returns over many years. Its shares may be down around 47% over the past year (as of June 30), but over the past 15 years, it has averaged annual gains of close to 22%. And that lower stock price presents a nice opportunity for long-term believers in Netflix.

So why are the shares down so much? Well, one reason might be that many investors are seeing the company as a kind of loser, as it has pursued several acquisitions -- of Roku and Warner Bros. -- and not won them. I actually see those events as positive things, because they show that Netflix's management has the discipline to walk away instead of bidding higher and higher without regard for value. They are not willing to waste shareholder value.

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76.25

The company is continuing to perform well and grow. Its first-quarter earnings report featured revenue up 16% year over year and operating income up 18%. That's pretty good for such a massive company. The company is expanding its scope, too, having added games and live event programming and video podcasts, among other things, to its offerings.

Netflix shares seem more than reasonably valued, with a recent forward-looking price-to-earnings (P/E) ratio of 22.4 -- well below the five-year average of 31.3.

2. Microsoft Microsoft (MSFT 1.67%) is another solid growth stock that has seen its shares fall sharply over the past year -- by about 24% as of June 30. As with Netflix, that only makes its stock a more promising buy.

Why Microsoft? Well, it's home to the dominant Office 365 suite of applications (including Word and Excel), the Azure cloud computing platform, the Xbox gaming platform, the Windows operating system, and even LinkedIn, among many other things. Like many other big companies, it has deployed artificial intelligence (AI) across various products -- a move it hopes will boost its business.

Today's Change

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383.98

It, too, is growing at a robust rate for such a huge enterprise. (Its market value was recently $2.85 trillion.) In its third-quarter report, the tech giant posted revenue up 18% year over year, and net income up 23%. CEO Satya Nadella noted, "We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era," adding, "Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year over year."

Microsoft is also a dividend-paying stock, with a recent dividend yield of about 1%. That may not seem like much, but it's been growing at an average annual rate of 10% over the past five years. The shares seem attractively valued, with a recent forward P/E ratio of 16.7, well below the five-year average of 28.9.

3. Nvidia Then there's market darling Nvidia (NVDA +1.13%), the semiconductor giant with a recent market value of $4.8 trillion. Unlike the other two companies, it has not seen its shares fall over the past year -- instead, they're up about 27% (as of June 30). And over the past 15 years, it has averaged annual gains of 51%.

It has been growing like crazy. Still, despite that, its shares don't seem overvalued. The stock's recent forward P/E ratio of 22.8 is well below the five-year average of 35.4.

Today's Change

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1.13

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2.21

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197.04

It's easy to be bullish about the company. In its last quarter, revenue popped by 85% year over year, as it continues raking in billions from companies that need its chips to run AI processes. Its new, next-generation Vera Rubin platform is likely to juice its performance more, and it's getting more involved in networking technologies to support AI.

Take a closer look at any of these stocks that interest you, as each of them could deliver a lot of growth in the years to come.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Visa (V - Free Report) .

Visa currently has an average brokerage recommendation (ABR) of 1.31, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 39 brokerage firms. An ABR of 1.31 approximates between Strong Buy and Buy.

Of the 39 recommendations that derive the current ABR, 31 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 79.5% and 10.3% of all recommendations.

Brokerage Recommendation Trends for V

Check price target & stock forecast for Visa here>>>

While the ABR calls for buying Visa, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in V?In terms of earnings estimate revisions for Visa, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $13.1.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Visa. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Visa may serve as a useful guide for investors.

Key Takeaways Sam's Club e-commerce sales rose 23% in Q1 fiscal 2027, lifting digital's role in performance.Club-fulfilled delivery sales grew more than 90%, while digital sales hit a record share of sales. Walmart's membership and other income rose 11%, backed by higher fees, renewals and Plus members. Walmart Inc. (WMT - Free Report) is strengthening Sam’s Club as a digitally enabled membership business, with convenience, fulfillment speed and omnichannel engagement becoming more important parts of the club model. The latest quarter shows that e-commerce is playing a larger role in Sam’s Club’s performance while supporting broader member engagement.

Sam’s Club’s e-commerce sales increased 23% in the first quarter of fiscal 2027, driven by continued strength in club-fulfilled pickup and delivery. Digital sales contributed roughly 400 basis points to comparable sales growth, up from about 350 basis points in the year-ago quarter. Comparable sales, excluding fuel, rose 3.9%, supported by higher transactions and unit volumes, with transactions up 6.2%.

Fulfillment remains central to the momentum. Club-fulfilled delivery sales grew more than 90% in the quarter, and e-commerce reached an all-time high share of Sam’s Club’s sales mix. Walmart also launched Dynamic Express Delivery, allowing members to receive club items in less than an hour.

Membership trends add support. Membership and other income grew 11%, reflecting a 5.6% increase in membership fee revenues, driven by steady growth in member counts, renewal rates and Plus members.

Overall, Sam’s Club’s e-commerce momentum appears supported by stronger fulfillment capabilities, rising digital penetration and a healthier membership base. Walmart is making online shopping a more integrated part of the Sam’s Club member experience, giving the business a clearer foundation to sustain digital growth over time.

What Do the Latest Metrics Say About Walmart?Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares rally 12.6% over the past year compared with the industry’s 10.5% growth. Shares of Costco have dipped 4.1%, while Target has gained 28.2% in the aforementioned period.
 

Image Source: Zacks Investment Research

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 36.64, higher than the industry’s 33.4. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.18) while trading at a discount to Costco (43). 

Image Source: Zacks Investment Research

FTSE 100 down 27 points at 10,651 Pub shares rise after England World Cup win Deal news for easyJet, ITV and defence sector UK construction downturn continues  5:15pm: Slow start to the week The FTSE 100 finished the day down 27 points at 10,651, as across the Atlantic, the tech trade appeared to be reviving.

“It has been a lugubrious start to the week for stock markets, particularly in the US and the UK, but things have begun to liven up, particularly for last week’s also-rans the Nasdaq and the Nikkei 225,” IG chief market analyst Chris Beauchamp said.

“Jitters about tech and normal rotation action within sectors took the wind out the rally for both indices, but they are leading the way once again in afternoon trading, an indication that the rally might be poised for another leg higher.”

4.01pm: Blue-chips still in red London blue-chips are off their lows, with half an hour of trading still to go. 

Primark owner AB Foods, down 3.4%, is the biggest faller, followed by catering group Compass, Mexican silver miner Fresnillo, Warhammer owner Games Workshop and drugmaker AstraZeneca.    

Financials are top of the leaderboard, with IG Group, St James's Place, LSEG all gaining around 2%, with banks and insurers also in demand, namely Prudential, Barclays, Aviva, Standard Chartered, HSBC and Lloyds advancing 1.5-0.5%.

IAG added more than 1% amid renewed optimism towards airline stocks.

UBS has a note out today saying European airline shares could have further to rise as lower fuel costs and resilient travel demand improve the sector's earnings outlook.

3.33pm: Microsoft job cuts Microsoft shares are down 1.7% after it told staff that around 4,800 jobs, or 2.1% of its global workforce, are being axed as it restructures to focus on its biggest growth priorities.

This is unusual, as stock markets usually like to hear about job cuts.

In a memo to staff, chief people officer Amy Coleman said the business "is changing because the world around it is changing," adding that Microsoft needed to "adjust resources and roles and shift how we operate".

2.47pm: Mixed in New York US stocks have opened mixed, with the Nasdaq powering 0.9% higher, while the S&P is up 0.4%, but the Dow Jones has slipped 0.1% after closing at a record high before the Independence Day holiday.

Chip stocks are driving the Nasdaq higher in early trade, with storage groups Western Digital and Seagate jumping more than 5%, while Broadcom, ARM Holdings and AMD have posted solid gains.

Semiconductors are up too, with Intel, ASML, Micron, Texas Instruments and Applied Materials all advancing.

Defensive names are weighing on the Dow, with Nike off more than 3% and healthcare stocks Johnson & Johnson (NYSE:JNJ), Merck and Amgen lower.

The FTSE 100 has taken a little bend lower after the US open, down 40 points now.  

1.41pm: UK biotech bought by Novartis British biotech company Myricx Bio in a deal worth up to $1.5 billion, bolstering its push into next-generation cancer treatments.

The Swiss drugmaker will pay $1.1 billion upfront, with a further $400 million tied to milestones, to acquire the privately held company, which is developing a new class of antibody-drug conjugates, or ADCs.

The technology is designed to deliver cancer-killing drugs directly to tumour cells and could help overcome resistance to existing treatments.

Myrics is a 2019 spinout from Imperial College London’s Department of Chemistry, co-founded with the Francis Crick Institute, with seed funding of £4.5 million from Brandon Capital and Sofinnova Partners, with a later funding round of £90 million in 2024.

Fiona Marshall, president of biomedical research at Novartis, said there remained "a clear need for new payload mechanisms to overcome resistance and expand their impact for patients".

Other UK companies focused on ADCs include Fusion Antibodies, Avacta and UK-based but Nasdaq-listed Bicycle Therapeutics. 

1.20pm: ITV deal is fair, say analysts Deutsche Bank said the market should welcome the long-awaited sale of ITV's media and entertainment business to Sky, with greater clarity on valuation and a planned £950 million shareholder return.

Analyst Nizla Naizer says the £1.4-1.6 billion deal value broadly matches her own assessment of the business and equates to 5.6-6.4 times expected 2025 earnings, in line with sector peers.

The total will comprise £1.2 billion of initial cash on completion, contribution of Sky’s Love Productions business for an agreed enterprise value of £200 million, and contingent cash consideration of up to £200 million payable in the second half of 2028 based on the performance of total ad revenue in 2027 and other trading balance adjustments.

ITV also announced a long-term strategic partnership between ITV Studios and the business it is selling to Sky, including a content supply agreement with a minimum spend commitment of £2.1 billion over 2028-2032, with the addition of Love Productions expected to boost ITV Studio's creative capabilities and enhance its portfolio breadth.

Dan Coatsworth, head of markets at AJ Bell, says ITV breaking itself into two has been talked about for years, "but no-one thought it was possible".

He says it "looks like a win-win situation for both ITV and Sky and is the biggest shake-up of the UK’s media landscape in decades".

The many moving parts of the deal is why it has taken so long to reach an agreement on the terms and conditions, he says, adding that ITV’s shareholders "should benefit from the separation in several ways", not least the £950 million returned by an expected mixture of share buybacks and dividends.

"ITV’s shares might trade on a higher multiple of earnings as historically the linear TV operations acted as a drag on its valuation," he says, adding that a slimmed-down business "would be an attractive takeover target for someone like Netflix looking to acquire production facilities and a rich library of content" or ITV could be an acquirer itself, making bolt-on deals.

12.12pm: FTSE under fire, US futures mixed The FTSE is on the back foot now, conceding ground after a positive start this morning. 

Falls of 1%-plus for heavyweights including AstraZeneca, Rolls-Royce, Compass, Coca-Cola Europacific, SSE, IHG are weighing, while banks, oilers and miners are also in the red. 

Biggest fallers are Mexico's Fresnillo, down 2.5%, and health & safety products specialist Halma, tabletop games chain Games Workshop and fluid engineer IMI. 

US futures are still a bit uneven looking, with the Nasdaq predicted to rise around 1%, while Dow Jones futures are slightly in the red. S&P 500 futures are up 0.4%.  

As last Friday was a public holiday, with stock and bond markets closed, investors are still going to be reacting to the US jobs market data on Thursday.

Non-farm payrolls grew 57,000 last month, much less than expected, with downward revisions for the two months prior.

"Combined with the ongoing decline in the oil price, Brent crude is back below $72 per barrel, this has dramatically reduced the chance of a Fed rate hike in the near term, although cuts also appear to be off the table," says market analyst Kathleen Brooks at XTB.

"After the soft labour market data, the FOMC minutes this week will be worth watching as the battle between FOMC members who are worried about sticky inflation, including the new governor Kevin Warsh, and those who are worried about the jobs market, continues to play out."

Treasury yields "could retreat", she adds, after rising last week. "So far, European yields are flat, which suggests the bond market may look to the US for direction later today."

11.46am: Close Bros tumbles Shares in Close Brothers have fallen almost 9% this morning on the back of being downgraded by RBC Capital Markets, which says the shares could drift lower after developments in the long-running motor finance saga

The downgrade follows a decision by the Upper Tribunal court last Thursday to hear judicial review challenges to the Financial Conduct Authority's motor finance redress scheme.

Analyst Benjamin Toms expresses surprise the case was granted, arguing that the regulator had faced an impossible task in designing a scheme to satisfy all parties.

He has cut his rating to 'sector perform' from 'outperform' and slashed his price target to 470p from 625p.

11.17am: More cash returns from UK banks? Britain's biggest banks could see their capital rules eased this week, when the Bank of England sets out the next stage of a review that could free up cash for lending and shareholder returns.

The central bank's Financial Policy Committee publishes its half-yearly Financial Stability Report on Tuesday at 10.30 am, with a press briefing to follow later in the day.

Attention will focus on two technical measures that determine how much loss-absorbing capital lenders must hold against their assets.

The first is the common equity tier one ratio, a core gauge of a bank's financial strength relative to its risk-weighted assets.

The second is the leverage ratio, a simpler backstop that measures capital against total assets regardless of how risky they are.

Expectations are rising that the committee will float fresh proposals on both, following a series of consultations launched late last year.

10.43am: Construction sector analysis The UK construction sector is not yet seeing signs of a 'Burnham boost’ in the PMI, despite the incoming premier’s apparent emphasis on investment spending, says Rob Wood at Pantheon Macroeconomics.

"We estimate that the headline activity index is consistent with construction sector output falling by around 3.0% three-months-on-three-months, the same signal as in May."

The signals from the PMI have "dramatically undershot" actual activity in the construction sector recently, with output rising by 1.7% three-months-on-three months in April, so Wood says he is continuing to take the PMI with a pinch of salt.

"But we continue to think that construction sector output will rise only slowly in any case, with the MPC keeping rates on hold as inflation rises, while input price pressures ease only slowly."

A positive was the future activity index jumping to 59.7, from 53.0 in May, while the new orders balance rose to 41.5, from 37.5.

"But the PMI continues to suggest that activity remains chronically weak across all main areas of construction sector activity," Wood notes, with price pressures "intense", despite a drop in energy prices.

"Easing energy costs should continue to weigh on price pressures, but the apparent stickiness of input costs in the construction sector suggests that the viability of projects will continue to weigh on activity for the coming months."

10.24am: AI carramba Samsung's confidence over AI demand has provided a positive ripple through the chip sector this morning.

There was a telling quote from a senior executive at a pre-earnings meeting with staff, according to reports by local industry sources this morning: "This year's profit will exceed the cumulative profit generated over the past 40 years since we entered the semiconductor business."

This underlines the scale of the infrastructure spending behind the AI boom.

Samsung is expected to report second-quarter operating profit of 84.6 trillion won ($55bn/£41bn) tomorrow, potentially setting a new record for a technology company and reinforcing investor bets that the AI trade still has further to run.

10.03am: Early morning boost for high street England's World Cup win over Mexico gave a "significant boost" for UK high streets, according to footfall data from MRI Software.

Footfall across UK high streets increased by 143.6% year on year, as supporters headed out to watch the Three Lions progress to the quarter-finals.

However, this is not surprising as the data measured footfall between midnight and 6am on a Monday, when last year there was no World Cup and this year, apart from pubs nothing else much was open.  

Jenni Matthews, retail analyst, says market towns and historic towns "were the star players, suggesting supporters opted to stay local and soak up the atmosphere in nearby pubs, bars and community venues".

"For the hospitality sector, this is exactly the kind of result they’ll have been hoping for.

"At a time when consumers remain selective about where they spend, the World Cup is proving to be a powerful footfall driver, creating a welcome boost for the night-time, and local economy.

"As England prepares for its next game, we expect these uplifts to gather momentum, especially as they enter the quarter finals. For retailers and operators, the game plan is clear: align staffing, promotions and trading hours with key matches to make the most of the increased footfall, longer dwell times and celebratory spending that major sporting moments can bring." 

9.40am: UK construction activity remains subdued  UK construction activity improved slightly last month, according to the latest PMI survey.

The construction PMI rose to 38.4 in June, from 38.2 in May, which was below the consensus forecast 40 and still well below the 50 mark that separates expansion from contraction. 

"The downturn in UK construction output lost some intensity in June amid a softer reduction in commercial building work," says Tim Moore, economics director at S&P Global Market Intelligence.

"House building and civil engineering activity nonetheless registered sharper declines than in May, with the latter seeing its weakest performance since the start of the pandemic.

"New work decreased to the least marked extent since March, despite widespread reports of challenging market conditions.

"Construction companies commented on headwinds from subdued housing sales, elevated interest rates and squeezed consumer finances, alongside cutbacks to business investment plans.

"Some firms noted delays with infrastructure work and fewer public sector tender opportunities, but energy markets were cited as an area of positivity.

"Supply chain challenges appear to have receded, with vendor delivery times lengthening to the smallest degree since March.

"Construction companies also reported a slowdown in input price inflation from the near four-year peak seen in May.

"June data indicated a recovery in business activity expectations across the construction sector since May, although confidence levels remain well short of historic trends. A number of survey respondents suggested recent new contract awards and an expected improvement in broader market conditions had underpinned optimism."

9.11am: FTSE at four-month high, European stocks hit new records After over an hour of trading, the Footsie is up almost 50 points at 10,729, pushing further back towards levels last seen in the days before the US and Israel started bombing Iran. 

Mainland European markets have opened mostly higher too, led by with Italy's FTSE MIB up 0.6% and Germany's DAX up 0.4%, both at a new record highs. 

France's CAC 40 is up 0.6%, while Spain's IBEX has bucked the trend, falling 0.3%.

The pan-European Stoxx 600 up 0.2%, setting fresh all-time highs. Topping the risers is easyJet, followed by gains for defence stocks Leonardo, Saab and Renk, mirroring moves in London.

Deals are lifting various sectors, with defence helped by news that US giant Lockheed Martin will acquire naval group Ultra Maritime in a $3.5 billion deal. 

Technology stocks are lagging with semiconductor equipment makers BE Semiconductor, ASM International and VAT Group all down sharply.

"Stocks keep grinding higher with European shares at records this morning on the back of a positive week," says market analyst Neil Wilson at Saxo.  

He notes that ships are transiting the Strait of Hormuz, which has seen Brent crude prices fell 1.2% to $71.25 a barrel. 

"Now we look to earnings," says Wilson. "Q2 was a bumper quarter for the stock market, but we’ll find out soon enough if the optimism over earnings is justified. 

"Samsung reports tomorrow, the first of the AI tests. Earnings season proper doesn’t start on Wall Street until 14 July, when Citigroup and JPMorgan report, though this week we have PepsiCo and Delta Air Lines. Shell reports its Q2 trading update tomorrow."

FactSet says 111 S&P 500 companies have issued EPS guidance for the second quarter, of which 48 have issued negative EPS guidance and 63 have issued positive guidance, with the proportion of positive guidance well above the five-year average of 44 and the 10-year average of 41. 

Ten of the eleven sectors are forecast to report year-on-year EPS growth, led by energy, IT and materials, the FactSet data reveals, with only health care expecting a decline.  

"Earnings growth has been central to the market’s broad advance this year," says Wilson. "Expectations for earnings growth are so strong that we’re in a kind of bubble - the market seems priced for perfection.

"A drop in Treasury yields after the softer-than-expected nonfarm payrolls report was a lift but I think this a market that is more dependent on earnings delivering very high expectations than on short-term interest rates."

8.39am: Airlines and pubs in good mood  Shares in easyJet have flown almost 10% higher to 610p but are still well below the 690p potential offer price. 

Sector peer Jet2 is up 3.8% too, while long-haul peer IAG has risen 2.1%.

The FTSE 100 and FTSE 250 are both on the front foot, up 0.4% and 0.3%. 

Market analyst Susannah Streeter at Wealth Club says London shares have moved lightly higher, "with little on the economic calendar to fully jolt markets awake".

Pub company shares are raising a glass to Jude Bellingham, Harry Kane and the brave late defensive battling from Dan Burn et al, with Wetherspoons up 2.2%, Mitchells & Buttlers, and Young's both up just under 2%. 

"England's stunning World Cup victory over Mexico will be seen as a big win for the hospitality industry, with bars and pubs set to cash in further on the team's progress as fans celebrate," says Streeter.

"The tills were ringing all night at establishments which stayed open for the game, and the tournament is expected to provide a multi-million-pound boost to the industry as England's run continues."

Spending at pubs and bars was already running 17.3% higher during the first two weeks of England's World Cup campaign than in the preceding fortnight, according to payments company Dojo, with July's takings expected to swell further.

"Football fever is also likely to trigger a fresh wave of spending on party food, cold drinks and barbecue essentials, as fans make the most of the good weather in the run-up to the game against Norway on Saturday," says Streeter. 

"With the mood turning euphoric towards the England team, it could help provide a short-term lift to consumer confidence.

"However, if England's run is cut short next weekend, the feel-good factor could fade just as quickly, leaving any boost to spending likely to prove temporary rather than the start of a sustained improvement in household optimism." 

8.15am: FTSE's coming home? The FTSE 100 has started higher in early deals, confounding futures traders. 

It's up 22 points to 10,701, with a mix of sectors contributing to the move. 

Top of the leaderboard are RELX, IAG, Babcock, Aberdeen, Experian, Barratt Redrow and BAE Systems. 

At the bottom is Mexican precious metals miner Fresnillo.  

7.59am: Financial services slumped last quarter, says CBI The mood in the City turned sour last quarter, following the outbreak of the war in the Middle East, a closely watched CBI survey has revealed.

Unsurprisingly, given the spike in oil prices causing jitters about inflation and worries about interest rates, financial services activity slumped in the quarter, with business volumes swinging from strong growth at the start of the year to a sharp contraction.

Profitability also fell heavily, to -65% in June from +38% in March, and sentiment deteriorated from a +31% measure in March to -34% in June.

There were a couple of brighter spots. The staff headcount measure increased for the first time in two years and plans for spending on IT are the strongest since 2021, suggesting companies are still prepared to invest in technology.

Even so, the industry does not expect a quick rebound, with business volumes and profits forecast to keep falling in the current quarter, albeit at a slower pace.

Louise Hellem, CBI Chief Economist, said: "The political transition underway must not slow delivery of the government’s Financial Services Growth and Competitiveness Strategy at a time when activity has deteriorated and firms are facing a more uncertain outlook.

"Maintaining momentum on reforms – including continuing work with the FCA and PRA to deliver a more growth focused regulatory framework – will be essential to strengthening the UK’s competitiveness and supporting investment.

"The forthcoming Mansion House speech provides an important opportunity to boost confidence in the reform agenda by demonstrating progress already made and setting out clear next steps for delivery."

7.53am: easyjet likes new offer and Avon Tech NATO contract win  A couple of other stories. 

The board of easyJet says it "would be minded to recommend" a new and improved takeover offer from investment firm Castlelake if a firm bid is made, as the parties agreed an extension to takeover talks.

Castlelake submitted a fifth proposal on Saturday to buy the shares it does not already own for 690p in cash, alongside a partial unlisted share alternative. This is up from a 650p bid a week and a half ago. 

Avon Technologies has won a $10.8 million order to supply respirators to a European Nato member.

The order was placed by an existing customer through the framework contract run by the Nato Support and Procurement Agency (NSPA), which buys equipment on behalf of the alliance.

7.42am: European investor confidence improves Euro zone investor confidence improved far more than expected in July, with the Sentix index rising to -3.1 from -13.4, marking its third straight monthly gain and comfortably beating forecasts of -10.0.

Sentix says: "The slump in sentiment ‌caused by the Iran conflict is slowly being overcome. The German government's latest reform efforts are having an impact."

Economic expectations turned positive for the first time since March, adding to signs that confidence in the region's outlook is improving.

7.31am: ITV agrees deal to sell broadcast arm to Sky ITV has finally reached a deal to sell its broadcasting business to Sky for up to £1.6 billion, resulting in shareholders getting a cash return of around £950 million.

The sale covers the arm behind ITV's television channels and its ITVX streaming service, alongside shows including Coronation Street, Emmerdale, Love Island and I'm a Celebrity…Get Me Out of Here!.

Sky, the pay-television group owned by the US media company Comcast, will pay £1.2 billion in cash at completion.

FTSE 100 Live pre-open London's blue-chip shares are expected to make a sleepy start to the week, mirroring happy but weary England fans who stayed up to watch the World Cup victory over Mexico in the early hours.

The FTSE 100 is indicated to fall around 10 points on the futures market, having last week added 171.01 points and notched its highest level since the Iran war started. 

Asian markets are mixed this morning, while US futures are modestly positive after a long weekend, with the S&P 500 and Nasdaq pointing 0.3% and 0.7% higher respectively and the Dow Jones indicated just above flat. 

Here's market analyst Ipek Ozkardeskaya at Swissquote to sum things up: "Last week ended on a positive note for European equities, as US markets were closed for the July 4th holiday."

In Europe, the Stoxx 600 advanced to a fresh record high despite a slight rebound in bond yields after Friday’s PMI data showed stronger-than-expected activity in June, she adds, with FTSE 100 also approaching its own record highs levels (just above 10,900 reached back in February) despite drags from oil and mining stocks.

"Speaking of oil, Friday’s data showed that several OPEC+ producers increased production, and the group also announced that it would raise output by 188K bpd, further unwinding the restriction strategy put in place back in 2023," she says.

"The increase won’t materially change global supply, but it comes at a time when supply-glut talk is resurfacing, pulling oil prices lower (along with the Middle East de-escalation), and after the UAE quit OPEC, hinting at an upcoming battle for market share rather than cartel-boosted profits."

Brent crude is up 0.3% at $72.30 this morning, amidst some news in the Strait of Hormuz suggesting that some tankers made U-turns, but eventually crossed the Strait.

"So, the new week starts on a mixed note. European futures are pointing to a cautious start, while tech-heavy US futures are leading gains before the European open, despite mixed sentiment toward tech in Asia."

Korea's Kospi slightly in the red after news that Samsung would increase the prices of its memory chips by another 20%. 

"Remember, high triple-digit percentage rises in memory chip prices have started to squeeze profits at hardware makers, making the demand outlook cloudier for memory chip makers and investors anxious and undecided about whether the news is good or bad," says Ozkardeskaya.

Hon Hai Precision, also known as Foxconn, Apple’s main iPhone assembler and a manufacturing partner for Nvidia, reported an almost 40% jump in quarterly sales, beating estimates, but its share price barely reacted to the news.

Elsewhere, SpaceX has entered the Nasdaq 100 index, which is expected to increase the benchmark's volatility, and this week also marks the end of the quiet period for the company as Wall Street firms will start publishing their first research notes.

This week also brings the first breadcrumbs of the US earnings season, with consumer-facing names including PepsiCo and Levi’s, while macro news includes FOMC minutes.

UK data today includes a CBI report, new car sales and the S&P Global construction PMI. 

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Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Ford Motor Company (F - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

Ford Motor Company is a member of the Auto-Tires-Trucks sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ford Motor Company is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for F's full-year earnings has moved 7.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, F has gained about 1.8% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 9.9% on average. This shows that Ford Motor Company is outperforming its peers so far this year.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Federal Signal (FSS - Free Report) . The stock has returned 20.7% year-to-date.

In Federal Signal's case, the consensus EPS estimate for the current year increased 4.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Ford Motor Company belongs to the Automotive - Domestic industry, a group that includes 17 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, this group has lost an average of 10.1% so far this year, meaning that F is performing better in terms of year-to-date returns. Federal Signal is also part of the same industry.

Ford Motor Company and Federal Signal could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Goldman Sachs (GS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.

Goldman Sachs is one of 881 companies in the Finance group. The Finance group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Goldman Sachs is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for GS' full-year earnings has moved 4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, GS has moved about 16.2% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 5.3% on average. This means that Goldman Sachs is outperforming the sector as a whole this year.

Another stock in the Finance sector, Abacus Global Management, Inc. (ABX - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 38.7%.

The consensus estimate for Abacus Global Management, Inc.'s current year EPS has increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Goldman Sachs belongs to the Financial - Investment Bank industry, a group that includes 22 individual companies and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have gained about 7.6% so far this year, so GS is performing better this group in terms of year-to-date returns.

Abacus Global Management, Inc., however, belongs to the Financial - Miscellaneous Services industry. Currently, this 115-stock industry is ranked #100. The industry has moved -8.2% so far this year.

Goldman Sachs and Abacus Global Management, Inc. could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.

Key Takeaways CINF benefits from Commercial Lines growth, disciplined underwriting and strong agency relationships.Specialty, Personal Lines and pricing initiatives support diversified earnings and profitable premium growth. Cincinnati Financial generates strong cash flow while rewarding shareholders through dividends and buybacks. Cincinnati Financial Corporation’s (CINF - Free Report) shares have risen 31.3% in a year, outperforming the industry’s growth of 7.2%. Its share price closed at $192.03 on Thursday and reached a 52-week high of $192.09, reflecting investor confidence.

Strong underwriting performance, healthy premium growth, improved pricing and higher investment income, along with a robust capital position, have increased investors' confidence. The company has surpassed earnings estimates in each of the last four quarters, with an average of 27.5%. While its premium valuation may limit multiple expansion, continued underwriting discipline, healthy premium growth and improving investment income should support long-term earnings growth.

Cincinnati Financial’s shares have outperformed its peers, including Arch Capital Group Ltd. (ACGL - Free Report) and W.R. Berkley Corporation (WRB - Free Report) , which have gained 14.3% and 1.9%, respectively, while Palomar Holdings, Inc. (PLMR - Free Report) has lost 3.7% in a year.

1-Year Price Performance: CINF, ACGL, WRB, PLMR & Industry
Image Source: Zacks Investment Research

CINF’s Premium ValuationCincinnati Financial’s shares are trading at a premium to the industry. Its price-to-book value of 1.89X is higher than the industry average of 1.5X. However, it has a Value Score of B.

Image Source: Zacks Investment Research

CINF’s Growth Projection EncouragesThe Zacks Consensus Estimate for Cincinnati Financial’s 2026 earnings per share (EPS) is pinned at $8.66, indicating a year-over-year increase of 8.9%. The estimate for 2026 revenues is pegged at $12.05 billion, implying a year-over-year improvement of 7.7%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 4.9% and 6.6%, respectively, from the corresponding 2026 estimates.

The expected long-term earnings growth is pegged at 5.3%.  It has a Growth Score of B.

CINF’s Higher Return on EquityReturn on equity in the trailing-12 months was 10.6%, better than the industry average of 7.4%. This highlights the company’s efficiency in utilizing shareholders’ funds.

Factors Acting in Favor of CINFCincinnati Financial’s Commercial Lines Insurance segment has been consistently witnessing growth over the past several quarters, led by disciplined pricing, policy-level risk selection and strong independent agency relationships.  The company continues to leverage its agency-centric model to expand Commercial Lines through deeper agency relationships, expand its product offerings and drive profitable premium growth. Its disciplined underwriting approach and focus on risk selection should continue to support Commercial Lines' profitability despite a moderating pricing environment.

Cincinnati Financial continues to strengthen its diversified insurance platform through pricing discipline and targeted growth initiatives. Management expects property and casualty underwriting results to benefit from continued price increases and the expansion of Cincinnati Re and Cincinnati Global, which enhance pricing precision, broaden product offerings and improve income stability.

The Excess & Surplus (E&S) business continues to benefit from strong new business, favorable renewal pricing and product expansion. Meanwhile, Personal Lines remains a key growth driver, which is supported by the Cincinnati Private Client business, higher renewal pricing and geographic diversification. These businesses diversify earnings, reduce volatility and support long-term profitable growth.

Net investment income increased 14% year over year in the first quarter of 2026, driven by higher reinvestment yields, growth in fixed-income investments, and robust operating cash flows, which more than doubled year over year to $656 million in the first quarter of 2026. Backed by a large, high-quality investment portfolio, these factors continue to provide a meaningful earnings tailwind alongside underwriting operations.

Cincinnati Financial’s expansion strategy is driven by its exclusive partnerships with local, independent insurance agencies. This relationship-based model fosters strong customer loyalty, high retention rates and consistent business growth. As the insurer expands its agency network into underserved markets, it remains well-positioned to drive sustainable premium growth, deepen market penetration and create long-term shareholder value.

Cincinnati Financial has returned capital to its shareholders through share buybacks, dividend hikes and special dividends. It has an excellent track record of raising dividends for 65 straight years. Its dividend yield of 2.% is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors.

Risks for CINF StockCincinnati Financial’s results remain sensitive to catastrophe activity, particularly in property lines, and severity can vary sharply by period. Although reinsurance provides protection, elevated catastrophe losses could pressure underwriting margins.

Management continues to emphasize risk selection and segmentation, but rising loss costs, social inflation, larger jury awards and increasing claim severity could pressure profitability despite conservative reserves.

ConclusionStrong performance at the Commercial Lines segment, pricing discipline, agent-focused business models, higher investment income, consistent cash flow and prudent capital deployment support growth. However, exposure to catastrophe losses and loss-cost trends, including social inflation, remains a risk.

Higher return on equity, favorable growth estimates and an impressive dividend history should continue to benefit Cincinnati Financial over the long term. A VGM Score of A instils confidence. Given the premium valuation, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Hewlett Packard Enterprise (HPE - Free Report) Headquartered in Spring, TX, Hewlett Packard Enterprise Company was formed as a result of the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.

HPE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.1; value investors should take notice.

For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.00 to $3.41 per share. HPE boasts an average earnings surprise of +16%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, HPE should be on investors' short list.

Wall Street enters the week with investors focused on the start of the second quarter earnings season, the Federal Reserve's latest meeting minutes and a handful of economic releases that could offer fresh insight into the outlook for interest rates, economic growth and the artificial intelligence-driven rally that has powered US equities.

The week's key events include Wednesday's release of the minutes from the Federal Open Market Committee's June meeting, the ISM services purchasing managers index, earnings from companies including PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) and Levi Strauss & Co (NYSE:LEVI), as well as several developments in the semiconductor industry that could influence sentiment toward AI-related stocks.

Kathleen Brooks, research director at XTB, said the Fed minutes will be one of the week's main catalysts as investors look for evidence of how policymakers are weighing persistent inflation risks against signs of a slowing labor market. She said the minutes could shed more light on the divide between officials focused on inflation and those increasingly concerned about employment.

Brooks also said Treasury markets will remain in focus after yields rose last week, noting investors will be watching whether bond markets reverse course as trading resumes following the July 4 holiday.

Technology stocks are expected to remain under close scrutiny after volatility emerged in the semiconductor sector. Brooks said last week's selloff raised questions about whether the rapid pace of AI infrastructure spending is beginning to slow, citing reports that Apple could source memory chips from China and Meta's decision to begin selling AI computing capacity.

However, she said the recent weakness appears to be a pullback rather than a broader reversal, pointing out that semiconductor stocks have posted substantial gains this year. Brooks added that earnings and forward guidance from Samsung Electronics (KRX:005930) this week will be closely watched, as strong demand forecasts from one of Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)'s key suppliers could help restore confidence in the AI investment cycle.

Outside the technology sector, Brooks said investors will also be monitoring the ISM services index for signs of how the broader US economy is performing beyond the AI-driven investment boom. She said particular attention will be paid to the employment and new orders components, with weaker readings potentially reinforcing concerns about slowing economic activity.

Ipek Ozkardeskaya, senior analyst at Swissquote, also expects technology valuations to remain a central market theme this week. She said investors will continue debating whether the sector's strong gains remain supported by fundamentals or whether valuations are becoming stretched.

She pointed to SpaceX Corp (NASDAQ:SPCX)'s addition to the Nasdaq-100 index as another event likely to attract investor attention, saying the company's inclusion and the start of Wall Street research coverage following the end of its quiet period could increase volatility in the index. Ozkardeskaya said SpaceX's high valuation, concentrated ownership structure and relatively limited public float may fuel further debate about the composition of major US equity benchmarks.

Alongside the Fed minutes, investors will also hear from several Federal Reserve officials during the week. According to Deutsche Bank economists, speeches from Governor Christopher Waller, New York Fed President John Williams and Dallas Fed President Lorie Logan will be monitored for clues on how policymakers are interpreting recent economic data and whether Chair Kevin Warsh's preference for less forward guidance is leading to a more restrained approach to Fed communications.

Deutsche Bank said the relatively light economic calendar means monetary policy messaging could have an outsized influence on markets, with investors looking for any indication of how officials' views on inflation, growth and the labor market are evolving heading into the second half of the year.

While mainstream retail investors spent the first half of 2026 hyper-focused on Nvidia, chip legacy giants AMD and Intel INTC stock quietly engineered a stunning regime change.

Leaving NVDA’s relatively muted H1 performance in the dust, both processing underdogs capitalized on massive rotational capital and a critical broadening of the artificial intelligence (AI) infrastructure narrative.

However, as Wall Street transitions into the second half of the year, a sharp multi-day cooling period across the semiconductor space has forced a crucial tactical question: can these newly crowned semiconductor leaders sustain their blistering momentum, or are valuations stretched too thin?

The primary catalyst behind this H1 outperformance stems from a massive expansion in enterprise hardware budgets, moving beyond ultra-high-end graphics processing clusters into core data center infrastructure.

Intel’s dramatic operational turnaround under CEO Lip-Bu Tan alongside accelerating shipments of advanced server processors sparked a massive repricing event, lifting the stock from under $40 in January to an institutional high of $139.63 on June 30.

Simultaneously, AMD stock witnessed unprecedented demand for its Instinct accelerator lineup, pushing shares toward an all-time high of $584.73 last week.

Wall Street analysts rapidly adjusted models upward as data center operators diversified supply chains away from a single vendor, proving that the secondary tier of silicon providers could capture major enterprise market share.

Conversely, Nvidia’s relatively sluggish price action during the first half of 2026 reflects a classic consolidation phase following years of exponential, multi-bagger gains.

Trading near $195.79, the market heavyweight has struggled with premium valuation exhaustion as institutional asset managers rotated capital into cheaper, high-upside laggards like Intel shares.

Compounding this relative underperformance are emerging supply chain whispers; recent technical notes citing manufacturing delays for Nvidia’s next-generation Kyber NVL144 rack-scale systems have temporarily cooled near-term forward guidance expectations.

While NVDA fundamental business machine continues generating huge revenue and maintaining high double-digit margins, its stock has temporarily lost its near-monopolistic grip on market momentum as the broader tech sector seeks out more balanced, lower-multiple infrastructure bets.

As July regular trading gets underway, both leading underdogs faced immediate “profit-taking” headwinds that test the structural durability of their recent gains.

But after dropping to $120.35 late last week, Intel has fought back to $125.83, while AMD shares reclaimed $566.14 following a Wells Fargo price target bump to $615 and a high-profile design win with autonomous driving startup Turing.

These quick recoveries indicate that institutional dip-buyers remain highly aggressive ahead of the upcoming Q2 corporate earnings cycle.

Whether this mid-summer turbulence is a healthy consolidation or the prelude to a wider cyclical correction depends heavily on upcoming hardware shipment data, but for now both AMD and Intel stock look poised for continued momentum ahead as the AI focus shifts from training to inference.

Rick Ducat points to Pfizer (PFE) as an underperformer in the healthcare sector and greater S&P 500 (SPX). However, shares of the company show some signs of strength that Rick believes sets the stage for a rebound even after the stock was hit with a recent downgrade.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Lowe's (LOW - Free Report) .

Lowe's currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.

Of the 31 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 64.5% and 3.2% of all recommendations.

Brokerage Recommendation Trends for LOW

Check price target & stock forecast for Lowe's here>>>

The ABR suggests buying Lowe's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in LOW?Looking at the earnings estimate revisions for Lowe's, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $12.48.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Lowe's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Lowe's.

As International Business Machines Corp. (NYSE: IBM) stock price retests a crucial multi-month resistance level, Wamsi Mohan, a Wall Street analyst from Bank of America Corporation (NYSE: BAC), reiterated his 12-month bullish sentiment.

In a note to clients on Monday, July 6, Mohan maintained a Buy rating and raised his 12-month price target to $330 from $315. At today’s price of $296.94, the new target for IBM stock implies an upside of approximately 11.13% over the next 12 months.

Mohan highlighted several positive catalysts behind the upgrade. He expects IBM to modestly raise its FY26 guidance on both revenues and free cash flow (FCF).

As such, the analyst sees additional upside for IBM stock from faster-than-expected synergies related to the Confluent acquisition. Furthermore, Mohan cited stronger growth in the company’s software business and its power and storage segment within the infrastructure space.

According to the note, Confluent is expected to generate $340 million in revenue in the second fiscal quarter, representing about 5% of software revenue growth. Mohan emphasized IBM’s ongoing mix shift toward higher-margin software, which is driving robust free cash flow generation and providing long-term optionality from quantum computing initiatives.

IBM stock price forecast and outlook Following Mohan’s bullish IBM stock forecast, 17 Wall Street analysts have an average estimate of $302.94, based on data from TipRanks.

​

IBM stock 12-month forecast. Source: TipRanks The Wall Street analysts could be signaling an average moderate Buy on IBM stock following its consolidation over the past 12 months. At the time of reporting, the IBM share price is trading near the same resistance level established in 2025.

IBM share price. Source: Finbold If the IBM share price is rejected again at this resistance, the Wall Street analysts’ IBM stock price forecast could be invalidated. However, if the IBM share price retests this year’s peak, Mohan’s target could be hit.

Key Takeaways Phillips 66 is up 39.5% in a year, beating the industry's 37.9% rise amid stronger fundamentals.Softer WTI oil prices may aid PSX's refining margins by lowering crude purchase costs.PSX's midstream and chemicals businesses add stability, while 2026 earnings estimates have risen. Phillips 66 (PSX - Free Report) has surged 39.5% over the past year, outperforming the 37.9% improvement of the composite stocks in the industry. Following the run-up, investors who are not invested in the stock might think it’s too late to bet on the stock right away. However, before concluding on this point, let’s analyze the large-cap stock’s fundamentals and the overall business environment.

Image Source: Zacks Investment Research

How Softer Oil Is Aiding Phillips 66's Refining SegmentWest Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly down from the mark of more than $100 per barrel reached in May this year. Phillips 66, like Valero Energy Corporation (VLO - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) , two other players belonging to the same space, is likely to gain from the softer crude pricing environment.

This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products. Thus, Phillips 66, which generates significant margin from its refining activities, is likely to benefit from lower oil prices.

Resilient Business Model of PSXAlthough a leading refiner, PSX, unlike most of its refining peers, has diversified the business across midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating significant capital for midstream.

Midstream business, by its very definition, is stable since the company generates stable cash flows as the assets are being utilized for the long term and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from the commodity price volatility to a great extent.

Phillips 66’s Positive Earnings Estimate RevisionsFor 2026, the leading refining player has witnessed upward earnings estimate revisions over the past seven days, as evident from the snapshot below. Likewise, Valero Energy and Par Pacific have also witnessed upward revisions for 2026 estimates over the same time frame. 

Image Source: Zacks Investment Research

What to Do With the Stock?Now, turning to the valuation picture, it seems investors are willing to pay a premium for the stock, given the resilience of the large-cap refiner’s business model. It is to be noted that Phillips 66 is trading at a trailing 12-month EV/EBITDA multiple of 12.64x, which is higher than the broader industry average of 5.49x. Valero Energy and Par Pacific Holdings, two other refiners, are valued at 8.16x and 4.65x, respectively.

Image Source: Zacks Investment Research

Thus, PSX appears to be a compelling investment at current levels, supported by a favorable refining and midstream operating environment, as well as upward earnings estimate revisions that are being reflected in its premium valuation. Currently, the stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Agnico Eagle Mines (AEM - Free Report) Toronto, Canada-based Agnico Eagle Mines Limited is a gold producer with mining operations in Canada, Mexico and Finland, and exploration activities in Canada, Europe, Latin America and the United States. It successfully completed its merger with Kirkland Lake Gold in February 2022.

AEM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. AEM has a Growth Style Score of A, forecasting year-over-year earnings growth of 59.7% for the current fiscal year.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $13.22 per share. AEM boasts an average earnings surprise of +9.9%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AEM should be on investors' short list.