When building a long-term, buy-and-hold portfolio in the healthcare sector, it is best to avoid biotech stocks, which can be more speculative, in favor of larger, more established healthcare companies with deep structural advantages.
Look for companies with wide economic moats, dependable dividends, reliable cash flows, and strong secular tailwinds from our aging population. Three of the best buy-and-hold healthcare stocks that fit this criteria perfectly are Johnson & Johnson (JNJ 2.19%), Abbott Laboratories (ABT 0.83%), and UnitedHealth Group (UNH 2.24%). Here's why I like each of these stocks.
Image source: Getty Images.
Johnson & Johnson's enormous R&D drives its success Johnson & Johnson is the ultimate set-it-and-forget-it healthcare giant. Since the 2023 spinoff of its consumer health division, now Kenvue, the company's remaining segments, innovative medicine and medtech, have improved the company's margins.
In the first quarter, Johnson & Johnson reported revenue of $24.1 billion, up 9.9%. Its adjusted earnings per share (EPS) of $2.70 topped analysts' expectations of $2.68. Johnson & Johnson upgraded its full-year forecast to say it expects between $99.7 billion and $100.7 billion in yearly sales, up 6.4% at the midpoint, and adjusted EPS of $11.45 to $11.65, up 7.1% at the midpoint.
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The company's huge research and development budget yields a steady pipeline of new therapeutics, helping insulate it against the regular patent cliffs that cripple smaller drugmakers. J&J spent more than $3.5 billion in the first quarter on R&D. The company's top launches this year are the plaque psoriasis treatment Icotyde and its integrated cardiac ablation platform, the Thermocool SmartTouch SF catheter.
The company has increased its dividend for 64 consecutive years, including a 3% boost this year, making it a Dividend King, one of the stocks that have increased their dividends for 50 or more years. Backed by a pristine balance sheet with $22.1 billion in cash and marketable securities, its dividend is arguably one of the safest among healthcare stocks.
Abbott Laboratories' diversity is its superpower Abbott is the gold standard for a diversified, multilayered bet on global healthcare demand. It operates across four major pillars: medical devices (including the continuous glucose monitoring system, Freestyle Libre), diagnostics, nutrition, and established pharmaceuticals.
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Abbott's geographic and operational diversification protects it against localized regulatory changes or single-product downturns. When one sector faces friction, another typically steps in to pick up the slack. For instance, surging demand for its cardiac and diabetes medical devices has consistently driven robust baseline growth. In the first quarter, while sales for its nutrition segment fell, sales for medical devices, diagnostics, and established pharmaceuticals all increased.
Abbott reported first-quarter sales of $11.2 billion, up 7.8% year over year, and adjusted EPS of $1.15, up 6% from the same period a year ago. It said it expects full-year revenue growth of 6.5% to 7.5% and full-year adjusted EPS of $5.38 to $5.58, up 6.4% at the midpoint, including $0.20 in dilution from its $21 billion acquisition of Exact Sciences. That deal is expected to bolster the company's sales of cancer screening and precision oncology diagnostics.
Abbott is a Dividend King. It has increased its dividend for 54 consecutive years, including a 6.8% raise effective this year, backed by efficient operational cash conversion that allows it to easily fund future organic growth and reward patient investors.
UnitedHealth Group's duality and size help it dominate Rather than betting on which manufacturer produces a drug or device, UnitedHealth lets you invest in the company that manages the system's capital flow. As the largest private health insurer in the U.S., it sits squarely at the center of the domestic economy.
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UnitedHealth Group's real strength lies in its dual-engine model. Beyond traditional health insurance, its Optum division manages data analytics, pharmacy care, and direct healthcare delivery. By serving its own insurance members through its own Optum clinics and pharmacies, it effectively captures profits on both ends of the healthcare delivery pipeline, a vertical integration advantage.
UnitedHealthcare Group reported first-quarter revenue of $111.7 billion, up 2% year over year, led by its UnitedHealthcare segment at $86.3 billion, up 2% from the first quarter of 2025. EPS was $6.90, up less than 1%, year over year. It said it expects full-year EPS of more than $17.35, up at least by 31%.
UnitedHealth Group generates huge, steady free cash flows, including $8.9 billion in the first quarter, or 1.4 times net income. While it has only raised its dividend for 17 consecutive years, its 2.1% yield is similar to those of Johnson & Johnson and Abbott, and it has boosted its dividend at a higher rate during the past decade.
Know what you're getting All three healthcare stocks provide low volatility and a high margin of safety. Their long records of dividend increases show how they have effectively managed high cash flows. Though their revenue growth isn't astronomical, all three companies benefit from built-in diversity, which serves them well, particularly in tough economic times.
The other reason to see these stocks as great buy-and-hold investments is that they consistently develop new revenue streams. Johnson & Johnson and Abbott invest heavily in R&D to develop new products, while UnitedHealth Group benefits from serving as both an insurer and a healthcare provider.
Abbott (ABT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of infant formula, medical devices and drugs have returned +4.8% over the past month versus the Zacks S&P 500 composite's -0.9% change. The Zacks Medical - Products industry, to which Abbott belongs, has gained 8.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Abbott is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +1.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $5.48 for the current fiscal year indicates a year-over-year change of +6.4%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.05 indicates a change of +10.4% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Abbott, the consensus sales estimate for the current quarter of $12.48 billion indicates a year-over-year change of +12%. For the current and next fiscal years, $50.42 billion and $54.94 billion estimates indicate +13.7% and +9% changes, respectively.
Last Reported Results and Surprise HistoryAbbott reported revenues of $11.16 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.15 for the same period compares with $1.09 a year ago.
Compared to the Zacks Consensus Estimate of $11.02 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +0.88%.
Over the last four quarters, Abbott surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Eli Lilly (LLY - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugmaker have returned +7.3% over the past month versus the Zacks S&P 500 composite's -0.9% change. The Zacks Large Cap Pharmaceuticals industry, to which Lilly belongs, has gained 13.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Lilly is expected to post earnings of $8.98 per share for the current quarter, representing a year-over-year change of +42.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%.
For the current fiscal year, the consensus earnings estimate of $35.6 points to a change of +47.1% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $44.58 indicates a change of +25.2% from what Lilly is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Lilly.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Lilly, the consensus sales estimate for the current quarter of $20.28 billion indicates a year-over-year change of +30.3%. For the current and next fiscal years, $85.73 billion and $98.61 billion estimates indicate +31.5% and +15% changes, respectively.
Last Reported Results and Surprise HistoryLilly reported revenues of $19.8 billion in the last reported quarter, representing a year-over-year change of +55.5%. EPS of $8.55 for the same period compares with $3.34 a year ago.
Compared to the Zacks Consensus Estimate of $17.62 billion, the reported revenues represent a surprise of +12.37%. The EPS surprise was +21.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lilly is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lilly. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways RTX stock surged 36.6% in the past year, outpacing its industry and the sector.RTX is advancing its defense and aerospace portfolio with new contracts and technology milestones.RTX's 2026 sales and earnings estimates point to growth, while its liquidity ratio stays above one. RTX Corporation (RTX - Free Report) stock has surged 36.6% in the past year, outperforming the Zacks Aerospace-Defense industry’s growth of 6.6%. It also outperformed the broader Zacks Aerospace sector’s growth of 11% and the S&P 500’s return of 23.7% in the same time frame.
Image Source: Zacks Investment Research
Other industry players, such as General Dynamics (GD - Free Report) and Lockheed Martin (LMT - Free Report) , have delivered a similar performance in the past year. Shares of GD and LMT have gained 26.7% and 16.4%, respectively, in the said period.
Given RTX’s strong recent performance, some investors may feel inclined to buy the stock quickly. However, it is important to evaluate whether the company’s fundamentals can support sustainable long-term growth or if the recent rally is temporary. A clear understanding of RTX’s growth outlook and associated risks is essential for making a well-informed investment decision.
Tailwinds for RTXRTX continues to strengthen its aerospace and defense business through new contract wins and technological advancements. In June 2026, its Pratt & Whitney unit achieved a major milestone as the F119 engine surpassed 1 million flight hours, powering the Lockheed Martin F-22 Raptor. The achievement highlights the engine's long-term reliability and its critical role in supporting the U.S. Air Force's premier air superiority fighter.
Also in June, RTX announced that it is developing a large-aperture telescope for the Lazuli Space Observatory, part of the Eric and Wendy Schmidt Observatory System. The 3.1-meter unobscured aperture telescope will be the largest of its kind launched on a commercial platform and is expected to deliver sharper imagery, greater sensitivity and faster data collection through advanced materials and digital engineering.
Moreover, Raytheon secured a $1.1 billion contract from the U.S. Navy to produce AIM-9X Block II missiles. The award includes the production of missiles, as well as associated hardware and software, to replenish U.S. military inventories and meet growing demand from allied nations through Foreign Military Sales.
These developments highlight RTX's continued focus on strengthening its defense portfolio, expanding advanced aerospace technologies and supporting long-term growth through innovation and strategic defense programs.
Estimates for RTX’s 2026 Sales and EarningsThe Zacks Consensus Estimate for RTX’s 2026 sales implies year-over-year growth of 6%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 9.9%.
Image Source: Zacks Investment Research
The stock’s annual bottom-line estimates have remained constant over the past 60 days.
Image Source: Zacks Investment Research
RTX’s ValuationIn terms of valuation, RTX’s forward 12-month price-to-sales (P/S) is 2.76X, a premium to the industry average of 2.64X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry average.
Image Source: Zacks Investment Research
General Dynamics and Lockheed Martin are trading at a discount in comparison with RTX. GD’s forward 12-month price-to-sales is 1.80X, while LMT’s forward 12-month price-to-sales is 1.56X.
Liquidity Position of RTXRTX has a current ratio of 1.02. The ratio, being more than one, indicates that RTX possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, General Dynamics and Lockheed Martin, also maintain current ratios above one. GD has a current ratio of 1.38, while LMT holds 1.14.
What Should an Investor do Now?RTX continues to benefit from rising earnings estimates, solid long-term growth prospects and a strong liquidity position. Backed by these strengths and its expanding presence across the aerospace and defense markets, the stock remains a compelling choice for investors seeking long-term growth.
RTX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The first half of 2026 is in the books, and it's been a fairly strong year for the markets thus far. Both the Nasdaq and the S&P 500 are well into positive territory with gains of about 11% and 9%, respectively.
However, there are also plenty of stocks that have been struggling. The Nasdaq-100 index features the top stocks on the Nasdaq, but the three worst performers at the halfway mark are down considerably, more than 35%. Intuit (INTU 2.21%), Adobe (ADBE 0.62%), and Workday (WDAY +0.54%) have been the worst three stocks on the index. They're down big and might be enticing options for bargain hunters, but can they recover in the second half and be good buys today?
Image source: Getty Images.
Intuit Software stocks have taken a beating this year, with Intuit among the most battered. Year to date, it's down close to 60% as investors appear to be in panic mode. The company, known for its accounting and tax software, has seen its market cap fall to about $75 billion and now trades at roughly 17 times trailing earnings.
This is an example of where I think investors are overreacting due to the perceived threats of artificial intelligence (AI). While AI can disrupt many industries, whether people will trust it with sensitive information, such as tax and finance, is a big leap, one that is by no means a sure thing. AI's biggest shortcoming is a lack of trust and the ability to consistently provide users with reliable, accurate information. This is where Intuit's software products still possess significant value.
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The company generated 10% revenue growth in its most recent quarter (for the period ending April 30) and also raised its full-year guidance. Intuit's business isn't in as much danger as the stock's sell-off might have you believe. At such a low valuation, the tech stock could be an attractive buy right now, particularly for long-term investors willing to be patient. While a rally may not be coming in the second half, it could still possess tremendous upside in the long run.
Adobe Another software stock that's down big is Adobe. It has fallen 37% through the first six months of the year. Its decline may have been even steeper if not for its struggles in the past; over the past five years, it has declined by about 63%.
The one thing AI is really good at is creating images, and that's Adobe's bread and butter, as its Photoshop software is known for high-quality editing. Professionals rely on its software, and here, too, I can't help but wonder if there is an overreaction to AI. While AI can make images easily, it can also be challenging to make an image look precisely as needed. To make specific edits, there may still be a need for a trusted photo-editing software such as Photoshop.
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Adobe's revenue still rose by 13% in its May quarter, as it has been using AI to drive growth by incorporating it into its software to help add value for users. At a lowly 13 times earnings, the stock is heavily discounted and even offers an attractive margin of safety. At such a discount, it may be too cheap to pass up on the stock, as its fundamentals remain sound. A catalyst, however, may not be around the corner, and so while the stock may rally in the long run, a big surge may not necessarily happen in the second half.
Workday Workday was the third-worst-performing stock on the Nasdaq-100 as of the halfway mark of 2026, performing only slightly better than Adobe but still down around 37%. Businesses use the company's cloud platform to manage their operations, and it, too, uses AI and machine learning to help customers automate processes and workflows.
While the stock has declined this year, its valuation isn't as cheap as the others on this list; its price-to-earnings multiple is over 40. That is a bit rich for a company whose growth rate was just under 14% in its most recent quarter. AI is a bit complicated here, as it is both an opportunity and a risk for Workday: it can improve its operations and make it easier for its customers to do the same.
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However, I believe trust remains a major issue, and many businesses are likely to continue feeling most comfortable using Workday to safeguard their data, with or without AI. But with its high valuation, I'm least confident there will be a turnaround for the stock in the near future, as there may still be more room for it to decline.
Lockheed Martin (LMT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this aerospace and defense company have returned +4.2% over the past month versus the Zacks S&P 500 composite's -0.9% change. The Zacks Aerospace - Defense industry, to which Lockheed belongs, has gained 10.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Lockheed is expected to post earnings of $7.28 per share for the current quarter, representing a year-over-year change of -0.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $29.88 for the current fiscal year indicates a year-over-year change of +29.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $32.22 indicates a change of +7.8% from what Lockheed is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Lockheed.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Lockheed, the consensus sales estimate of $19.41 billion for the current quarter points to a year-over-year change of +6.9%. The $79.05 billion and $82.47 billion estimates for the current and next fiscal years indicate changes of +5.3% and +4.3%, respectively.
Last Reported Results and Surprise HistoryLockheed reported revenues of $18.02 billion in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $6.44 for the same period compares with $7.28 a year ago.
Compared to the Zacks Consensus Estimate of $18.12 billion, the reported revenues represent a surprise of -0.57%. The EPS surprise was -3.45%.
Over the last four quarters, Lockheed surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lockheed is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lockheed. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Lockheed said Ultra Maritime's portfolio of anti-submarine warfare will complement and expand its ability to offer sonar solutions for maritime platforms.
Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) has extended its chip partnership with Apple Inc (NASDAQ:AAPL, XETRA:APC) through 2031, expanding a long-running supply agreement covering custom semiconductor development and production.
The expanded arrangement, disclosed by Broadcom in a regulatory filing, builds on a relationship that has lasted for years. Apple is widely viewed as one of Broadcom’s largest customers and is estimated to account for roughly 20% of the chipmaker’s annual revenue.
Under the revised deal, Broadcom will continue developing custom application-specific integrated circuit (ASIC) chips for Apple, with the company stating in the filing that the components will be used across “multiple generations of Apple products.” Financial terms were not disclosed.
Broadcom has historically supplied Apple with a range of connectivity and radio frequency components used in devices such as iPhones, including Bluetooth, Wi-Fi and cellular-related semiconductors.
While Apple has been increasing its internal chip design efforts, rolling out in-house modem technologies such as the C1 and C1X and introducing proprietary wireless chips in some products, it continues to rely on Broadcom for certain networking and RF components.
The companies previously signed a multibillion-dollar agreement in 2023 focused on 5G radio frequency components manufactured in the United States. The latest extension broadens the scope of the partnership as demand increases for custom silicon used in artificial intelligence-related systems and infrastructure.
Broadcom has also been expanding its AI chip business, working with major technology firms including Alphabet and Meta Platforms on custom silicon for data centers. Shares of Broadcom rose in premarket trading following the announcement.
Apple is separately developing its own AI server chips, codenamed Baltra, which are expected to support cloud-based Apple Intelligence features such as generative text and image tools. Those systems are expected to integrate Broadcom technology for networking and connectivity.
Wedbush Securities said the updated agreement “seems to suggest AVGO will be assisting with more compute oriented products,” though it said it is unclear whether the custom ASICs will be directed toward device-level applications such as edge AI or toward data center infrastructure similar to Broadcom’s existing work with companies including Google, Meta Platforms, and OpenAI.
The brokerage added that, regardless of the end use, it views the development positively for Broadcom as “another customer win,” and as further evidence of the growing importance of silicon IP and design capabilities amid accelerating AI-driven demand across hardware and infrastructure markets.
Shares of Broadcom added 5% on the news, while Apple stock added 1%.
Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) has extended its chip partnership with Apple Inc (NASDAQ:AAPL, XETRA:APC) through 2031, expanding a long-running supply agreement covering custom semiconductor development and production.
The expanded arrangement, disclosed by Broadcom in a regulatory filing, builds on a relationship that has lasted for years. Apple is widely viewed as one of Broadcom’s largest customers and is estimated to account for roughly 20% of the chipmaker’s annual revenue.
Under the revised deal, Broadcom will continue developing custom application-specific integrated circuit (ASIC) chips for Apple, with the company stating in the filing that the components will be used across “multiple generations of Apple products.” Financial terms were not disclosed.
Broadcom has historically supplied Apple with a range of connectivity and radio frequency components used in devices such as iPhones, including Bluetooth, Wi-Fi and cellular-related semiconductors.
While Apple has been increasing its internal chip design efforts, rolling out in-house modem technologies such as the C1 and C1X and introducing proprietary wireless chips in some products, it continues to rely on Broadcom for certain networking and RF components.
The companies previously signed a multibillion-dollar agreement in 2023 focused on 5G radio frequency components manufactured in the United States. The latest extension broadens the scope of the partnership as demand increases for custom silicon used in artificial intelligence-related systems and infrastructure.
Broadcom has also been expanding its AI chip business, working with major technology firms including Alphabet and Meta Platforms on custom silicon for data centers. Shares of Broadcom rose in premarket trading following the announcement.
Apple is separately developing its own AI server chips, codenamed Baltra, which are expected to support cloud-based Apple Intelligence features such as generative text and image tools. Those systems are expected to integrate Broadcom technology for networking and connectivity.
Wedbush Securities said the updated agreement “seems to suggest AVGO will be assisting with more compute oriented products,” though it said it is unclear whether the custom ASICs will be directed toward device-level applications such as edge AI or toward data center infrastructure similar to Broadcom’s existing work with companies including Google, Meta Platforms, and OpenAI.
The brokerage added that, regardless of the end use, it views the development positively for Broadcom as “another customer win,” and as further evidence of the growing importance of silicon IP and design capabilities amid accelerating AI-driven demand across hardware and infrastructure markets.
Shares of Broadcom added 5% on the news, while Apple stock added 1%.
Sometimes, it just takes the mention of a new deal with a prominent customer for a stock to grab investors' attention. This is clearly demonstrated today with Broadcom (AVGO +4.05%) stock after the company reported an update on a collaboration with a well-known partner in a regulatory filing.
As of 10:41 a.m ET, shares of Broadcom are up 5%.
Image source: Getty Images.
A peek at a partnership that extends for (at least) five more years Broadcom reported in a regulatory filing today that it and Apple (AAPL +1.26%) have reached an agreement to expand their technology collaboration through 2031. According to the filing, Broadcome will "develop and supply a range of custom ASIC [application-specific integrated circuits] silicon products for use in multiple generations of Apple products.
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In 2023, Apple announced a multi-billion-dollar deal with Broadcom to develop 5G radio frequency and wireless connectivity components.
Broadcom provides ASIC silicon products for a variety of applications, including data centers and cloud infrastructure.
Is Broadcom stock a buy on news of its continued collaboration with Apple? Even before news of its expanded partnership with Apple, Broadcom stock was a great option for those seeking exposure to leading semiconductor stocks -- especially those benefiting from the boom in artificial intelligence (AI). With Broadcom keeping Apple on its dance card for another five years, the tech stock, moreover, is even more attractive.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Broadcom. The Motley Fool has a disclosure policy.
COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. has begun updating certain engine calibrations to give operators more time to complete needed repairs and help minimize unnecessary downtime related to diesel exhaust fluid (DEF) inducements. The updates continue to support emissions compliance and the performance of selective catalytic reduction technology, with a focus on the people and businesses that depend on this equipment to do their jobs every day.Following updated guidance from the U.S. Envi.
Key Takeaways U.S. auto demand stayed resilient in the first half of 2026 despite rates, fuel costs and policy uncertainty.Cox Automotive forecasts 2026 new-vehicle sales of 15.8 million units, down 2.9% from 2025.CMI, GM, GTX and DORM all carry favorable analyst ratings and upside potential. The U.S. auto market held up better than many expected in the first half of 2026. June vehicle sales remain close to the pace seen over the previous three months, signaling a period of stability after a volatile start to the year. Despite geopolitical tensions, elevated fuel prices, and an uncertain policy environment, demand for new vehicles has remained surprisingly resilient, with buyers continuing to make purchases instead of pulling back sharply.
That said, affordability remains a key challenge. High interest rates, rising household expenses, and tighter budgets have made buying a new vehicle more difficult for many consumers. At the same time, strong equity markets and healthy household wealth have helped offset some of these pressures, preventing a steeper slowdown in demand.
Even so, the industry is expected to cool modestly this year. Per Cox Automotive, full-year new-vehicle sales are forecast at 15.8 million units, down 2.9% from 2025. Much of that decline reflects last year's unusually strong performance rather than a sharp deterioration in demand.
While inflation, borrowing costs and cautious consumer spending remain headwinds, the auto industry's resilience has created opportunities for companies with strong fundamentals. Against this backdrop, Wall Street sees several auto stocks as well-positioned to outperform, supported by favorable analyst ratings and upside potential.
4 Broker-Loved Auto PicksFour auto stocks have been shortlisted with the help of the Zacks Stock Screener. These are Cummins, Inc. (CMI - Free Report) , General Motors (GM - Free Report) ,Garrett Motion Inc. (GTX - Free Report) and Dorman Products (DORM - Free Report) . Each of these stocks has a Zacks Rank #2 (Buy) with Average Broker Recommendation of 2 or less on a scale of 1 to 5 (Strong Buy to Strong Sell).
CumminsCummins is one of the world's leading manufacturers of engines and powertrain solutions, with a diversified business spanning commercial vehicles, industrial equipment, and power generation. The company is benefiting from robust demand for backup power systems, particularly from data centers and other mission-critical facilities, providing steady growth for its Distribution and Power Systems businesses. It has also raised its outlook for the Engine and Components segments, driven by stronger-than-expected demand for heavy- and medium-duty trucks in North America.
Beyond its core operations, Cummins continues to invest in technologies that support the transition to cleaner transportation. Its collaboration with Komatsu to develop hybrid powertrains for mining haul trucks highlights its commitment to long-term growth and decarbonization. Backed by a strong balance sheet, shareholder-friendly capital allocation, and an investment-grade credit profile, Cummins remains well-positioned to deliver sustainable value over the long run.
Out of the 20 brokers covering CMI stock, 13 have Strong Buy/Buy recommendations, giving the company an ABR of 1.75. The Wall Street average price target of $733.35/share suggests a nearly 11% upside for the stock from the current levels.
General MotorsGeneral Motors remains one of the strongest legacy automakers, backed by its leadership in the U.S. market and a highly profitable lineup of trucks and SUVs. Disciplined pricing and lower incentive spending continue to support margins, while its China business is stabilizing after restructuring efforts, with management expecting it to remain profitable in 2026.
Beyond vehicle sales, GM is rapidly expanding its high-margin software and services business through OnStar and Super Cruise. Digital revenues grew more than 20% year over year in the first quarter, and management expects it to reach about $3.1 billion in 2026 as its subscriber base continues to expand. The company also boasts a strong balance sheet, ending the first quarter with more than $19 billion in automotive cash. This financial strength gives GM the flexibility to invest in future growth while continuing share buybacks and dividend payments to reward shareholders.
Out of the 29 brokers covering GM stock, 20 have Strong Buy/Buy recommendations, giving the company an ABR of 1.84. The Wall Street average price target of $94.07/share suggests a nearly 24% upside for the stock from the current levels.
GarrettGarrett is strengthening its position as a leader in turbocharging technology while expanding into faster-growing electrification and industrial markets. The company continues to secure new program awards, supported by its strong engineering capabilities and broad technology portfolio. At the same time, Garrett is making steady progress toward its goal of generating about $1 billion in zero-emission technology revenues by 2030. Its portfolio includes high-speed e-powertrain solutions, fuel-cell compressors, and e-cooling compressors, positioning the company to benefit from the shift toward cleaner mobility.
Beyond automotive, Garrett is diversifying into HVAC, industrial cooling, and power-generation markets with its new oil-free centrifugal compressor technology, which offers meaningful energy-efficiency improvements over conventional systems. Management's upbeat 2026 outlook further reinforces confidence in the company's growth trajectory, while its expanding presence across both traditional and emerging technologies provides multiple long-term growth opportunities for investors.
Four of the six brokers covering GTX stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.83. The Wall Street average price target of $35.60/share suggests a nearly 12% upside for the stock from the current levels.
DormanDorman is well-positioned to benefit from resilient demand in the automotive aftermarket, supported by an aging vehicle fleet and consumers keeping vehicles on the road for longer. Dorman is benefiting from its innovation-led strategy, developing replacement parts that improve on original equipment designs and help the company gain market share in the automotive aftermarket. Its expanding portfolio of complex electronic components, which management expects to grow faster than the overall business, provides another important growth driver.
Management expects margins to improve through the remainder of 2026 as tariff-related costs ease and benefits from supplier diversification, productivity, and automation initiatives begin to materialize. Dorman also reaffirmed its full-year outlook, reflecting confidence in sustained sales growth and profitability. With low leverage, ample liquidity and strong cash generation, Dorman has the financial flexibility to invest in product innovation, pursue strategic acquisitions, and continue returning capital to shareholders.
Eight of the nine brokers covering DORM stock have Strong Buy/Buy recommendations, giving the company an ABR of 1.22. The Wall Street average price target of $152.25/share suggests a nearly 11% upside for the stock from the current levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
The REIT and Equity Trust - Other industry has a favorable outlook as AI-ready infrastructure, high-quality industrial assets, lodging properties and modern office spaces gain importance. REITs such as Pebblebrook Hotel Trust (PEB - Free Report) , Hudson Pacific Properties, Inc. (HPP - Free Report) and STAG Industrial, Inc. (STAG - Free Report) benefit from exposure to innovation hubs, travel recovery, e-commerce, supply-chain shifts and scarce, purpose-built properties tied closely to tenant needs.
Still, growth is not risk-free. Attractive assets can be costly to build, upgrade and operate, while financing limits, construction inflation, labor tightness and project delays may pressure returns without disciplined execution.
About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructure and more. Equity REITs lease out space within these properties to tenants, generating income through rental payments. Economic growth assumes a central role within the real estate sector as economic expansion directly correlates with higher demand for real estate, increased occupancy rates and greater bargaining power for landlords to command higher rental rates. The performance of Equity REITs hinges on the specific dynamics of their underlying assets and the geographic location of their properties. In today’s world, real estate is becoming more closely tied to how companies operate, how technology grows, and how people use specialized spaces.
What's Shaping the Future of the REIT and Equity Trust - Other Industry? AI-Ready Real Estate Is Becoming a Clear Advantage: There is a rising need for properties that can support heavier digital use. As companies depend more on artificial intelligence, cloud services, secure data handling and constant connectivity, the real estate behind these systems is becoming more valuable. Data centers, communication towers and fiber-linked assets are no longer seen as simple support facilities. They are part of the core setup that allows businesses to store information, process it quickly and stay connected with customers and employees. This gives REITs in this area a strong long-term role, but only when they can offer reliable power, technical capacity, strong operations and room for tenant growth.
High-Quality Properties Are Getting More Attention: Another positive trend is that useful, purpose-built properties are gaining more importance. Industrial and logistics facilities, health care buildings, life science assets, lodging properties, communication infrastructure and selected modern office buildings all serve practical needs that tenants cannot easily ignore. Companies are more careful about space today, but they still need buildings that help them move products, treat patients, support research, host business travel, improve connectivity or bring employees together in better-quality workplaces. This makes the quality and function of the asset more important than simply owning a large portfolio. For REITs, the stronger opportunity is in properties that are closely tied to tenant operations and harder to replace with cheaper or less suitable space. In offices, demand favors modern, well-located spaces that support in-person work. In industrial, efficient facilities help companies manage supply chains and automation. In health care and life sciences, demand is tied to care delivery, research and specialized operations. In storage, operators are using data, pricing tools and careful expansion to protect value.
Costs and Execution Risks Remain a Pressure Point: The main negative is that demand does not automatically turn into easy growth. Many of the most attractive REIT property types are expensive to build, upgrade and operate. Data centers need large power commitments, cooling systems, technical planning and strong infrastructure. Health care and life science properties often require special layouts, compliance standards and ongoing investment. Logistics assets may need modern design, automation support and strong access points. At the same time, financing can be harder to secure, construction costs remain a concern, labor can be tight, and project delays can affect returns. This means the next phase of the REIT industry will likely favor owners that are selective, patient and financially disciplined. The opportunity is real, but chasing growth without careful execution could create more pressure than progress.
Zacks Industry Rank Indicates Bright Prospects The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #67, which places it in the top 27% of 246 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates healthy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the northward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group’s growth potential of late.
Before we present a few stocks that you might want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Lags Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed the S&P 500 composite and the broader Zacks Finance sector in a year.
The industry has risen 12.6% during this period compared with the S&P 500’s growth of 23.5% and the broader Finance sector’s 13.2% increase.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing REIT - Others, we see that the industry is currently trading at 17.23 compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 20.75. However, the industry is trading above the Finance sector’s forward 12-month P/E of 16.42. This is shown in the chart below.
Forward 12 Month Price-to-FFO (P/FFO) Ratio
Over the last five years, the industry has traded as high as 22.27X and as low as 12.86X, with a median of 15.81X.
3 REIT and Equity Trust - Other Stocks to Buy Hudson Pacific Properties: This REIT is focused on high-quality office and studio assets in leading West Coast innovation and media markets. The company’s portfolio spans the San Francisco Bay Area, Seattle, Los Angeles and Vancouver, with about 12.9 million square feet of in-service office space and 45 studio stages.
Its assets serve technology, media, entertainment and professional-services tenants seeking modern, well-located work and production environments.
HPP offers investors exposure to markets shaped by AI, technology and content creation. Around 75% of its annualized base rent is tied to the San Francisco Bay Area, one of the world’s deepest innovation hubs.
With premium office properties, a differentiated studio platform and locations in supply-constrained markets, HPP is positioned to benefit as tenant demand strengthens.
HPP currently sports a Zacks Rank #1 (Strong Buy). The stock has rallied 15.8% over the past month. The consensus mark for 2026 FFO per share has been revised upward over the past two months to $1.05. The consensus estimate for 2027 FFO per share has moved north over the same time frame. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pebblebrook Hotel Trust: This is a lodging REIT focused on urban and resort hotels in major U.S. gateway and leisure markets. Its portfolio is concentrated in luxury and upper-upscale assets, with a balanced demand mix across leisure transient, business transient, leisure group and business group travel.
Currently, the portfolio comprises 43 hotels, totaling around 10,900 guest rooms across 13 urban and resort markets.
PEB’s investment thesis centers on quality assets, recovery upside and disciplined capital allocation. The company sees about $90 million of potential Hotel EBITDA upside through 2028, supported by urban normalization, resort ramp-up and redevelopment returns.
Its markets face limited new supply, forecast at roughly 0.5% in 2026, which can support pricing power. With 81% of hotels largely unencumbered and 90% fee-simple or preferred-ground-lease ownership, PEB offers meaningful flexibility and appeal for investors.
PEB currently sports a Zacks Rank #1. The stock has gained 11.5% over the past month. The consensus mark for 2026 FFO per share has been revised 2.4% upward over the past month to $1.68 per share, suggesting a 6.33% increase year over year.
STAG Industrial: This is a pure-play industrial REIT focused on owning and operating warehouse, distribution and light manufacturing properties across major U.S. industrial markets. The company’s platform spans 601 buildings and about 120.3 million square feet across 41 states, with a strategy centered on diversified industrial real estate and disciplined operations.
STAG offers investors exposure to durable demand drivers such as e-commerce, supply-chain reconfiguration, nearshoring and onshoring.
Around 31% of its portfolio handles e-commerce activity, and about one-third is located within 60 miles of major megasite projects. With broad market coverage, embedded rent growth and limited secured debt, STAG presents a scalable industrial growth platform.
STAG currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2026 FFO per share has been raised marginally over the past month to $2.64, suggesting a 3.53% year-over-year increase. The stock has risen 5.4% over the past month.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Archer Daniels Midland (ADM - Free Report) . ADM is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.41, while its industry has an average P/E of 15.42. Over the past year, ADM's Forward P/E has been as high as 14.13 and as low as 9.50, with a median of 11.12.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.87.
Finally, we should also recognize that ADM has a P/CF ratio of 13.25. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ADM's current P/CF looks attractive when compared to its industry's average P/CF of 15.17. Over the past 52 weeks, ADM's P/CF has been as high as 13.80 and as low as 7.44, with a median of 9.16.
Value investors will likely look at more than just these metrics, but the above data helps show that Archer Daniels Midland is likely undervalued currently. And when considering the strength of its earnings outlook, ADM sticks out as one of the market's strongest value stocks.
Key Takeaways ADM's Ag Services operating profit rose 26% YoY to $200M in Q1.ADM benefited from higher soybean and sorghum shipments to China and strong U.S. corn exports.ADM sees momentum continuing as China resumes normalized North American soybean purchases. Archer Daniels Midland Company’s (ADM - Free Report) Ag Services business showed encouraging signs of recovery in the first quarter of 2026, supported by stronger export activity across North America. The company benefited from higher shipments of soybeans and sorghum to China, while a robust U.S. corn export program also contributed to improved performance. These factors helped Ag Services operating profit increase 26% year over year to $200 million despite a challenging global trade backdrop. Management also noted that the prior-year comparison was affected by export duties, making this quarter's improvement even more notable. The stronger export performance highlights ADM's ability to capitalize on favorable trade flows and efficiently connect global agricultural supply with demand.
Management believes the momentum could continue through the remainder of the year. As part of its updated outlook, ADM assumes China will resume a more normalized purchasing pattern for North American soybeans, providing additional support to export volumes. The company also continues to leverage its extensive merchandising network to capture trading opportunities created by shifting commodity flows and evolving global demand. Combined with a more constructive biofuels environment, these factors contributed to management raising its full-year adjusted EPS guidance, reflecting growing confidence in the underlying business environment.
The outlook, however, is not without risks. Management acknowledged that global trade policies, tariffs and geopolitical developments remain key variables, particularly regarding China's purchasing behavior later in the year. Nevertheless, ADM believes its diversified global origination, merchandising and logistics capabilities position the company to adapt quickly as trade flows evolve. While external uncertainties persist, the first-quarter performance suggests that Ag Services is benefiting from improving export fundamentals and disciplined execution, providing an important earnings tailwind as ADM pursues stronger growth in 2026.
ADM’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #2 (Buy) company have gained 31.2% in the past six months, outperforming both the industry and the broader Consumer Staples sector, which rose 21.6% and 13.2%, respectively.
ADM Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is ADM a Value Play Stock?From a valuation standpoint, ADM trades at a forward price-to-earnings ratio of 16.23X, higher than the industry’s average of 15.42X.
ADM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to ConsiderFomento Economico Mexicano (FMX - Free Report) participates in the beverage industry through Coca-Cola FEMSA, which is the world’s largest franchise bottler for Coca-Cola products. FMX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX’s 2026 sales and earnings suggests growth of 17.3% and 130.9%, respectively, from the year-ago reported figures. The company delivered a trailing four-quarter negative earnings surprise of 17%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA has a Zacks Rank of 2.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The Bitcoin (CRYPTO:BTC) market has spent years rewarding companies that accumulated as much cryptocurrency as possible. That strategy worked brilliantly while Bitcoin prices climbed and capital remained easy to access. But higher financing costs, growing leverage, and the emergence of preferred stock obligations are forcing some companies to rethink the rules.
For Strategy (NASDAQ:MSTR | MSTR Price Prediction), that shift arrived last week when the company revealed Bitcoin sales would become a permanent feature of its capital allocation strategy. Just days later, investors got their first look at what that actually means.
Last Week’s Announcement Was a Warning Strategy announced last week that selling Bitcoin could be used to support dividends on its Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ:STRC) and strengthen corporate liquidity.
The change marked a major departure from Michael Saylor’s long-standing message that Bitcoin was an asset to accumulate, not sell. Strategy authorized up to $1.25 billion in Bitcoin sales that could be used to support its financial obligations, including preferred dividend payments.
At the time, many investors viewed the announcement as a precautionary measure. It now appears the company was preparing shareholders for what came next.
This morning, Strategy disclosed it had sold 3,588 Bitcoin for approximately $216 million to fund preferred stock dividends and bolster cash reserves. That single transaction consumed roughly 17% of the entire $1.25 billion sales authorization in less than a week.
STRC preferred shareholders are entitled to dividend payments before common shareholders receive anything. By selling Bitcoin to ensure those payments continue, Strategy is effectively prioritizing preferred investors over common stock owners.
Granted, preferred securities were always senior to common shares. That’s how the capital structure works. But investors buying Strategy’s common shares largely accepted the stock because it offered leveraged exposure to Bitcoin. The investment thesis was simple: buy Strategy and gain amplified upside from rising Bitcoin prices.
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Selling Bitcoin to support preferred dividends changes that equation. Every Bitcoin sold reduces the company’s exposure to the very asset common shareholders came to own indirectly.
Why Buying MSTR Has Become a Higher-Risk Bet The market’s reaction was immediate. Bitcoin fell nearly 3% to around $61,700 following the announcement, while MSTR shares dropped roughly 6% at the market open.
That decline adds to an already painful stretch for shareholders. Strategy stock has lost nearly 75% of its value over the past year. The risks now extend beyond Bitcoin’s normal volatility.
Investors face multiple layers of uncertainty:
Bitcoin price risk Corporate financing risk Preferred dividend obligations Potential future Bitcoin sales Dilution from additional capital raises Compare that to simply owning Bitcoin directly or through a spot Bitcoin ETF. A spot ETF tracks Bitcoin’s price without introducing corporate leverage, preferred securities, dividend obligations, or management capital allocation decisions. Investors get exposure to the asset they want without additional layers of complexity.
That simplicity matters when markets become volatile.
Key Takeaway In short, last week’s announcement wasn’t a footnote — it was a roadmap. Strategy has already used more than 17% of its $1.25 billion Bitcoin sales authorization after unloading 3,588 BTC for $216 million. The move protects STRC preferred shareholders and strengthens cash reserves, but it also shifts risk onto common shareholders who expected maximum Bitcoin exposure. Saylor is now managing a far more complicated capital structure than he was several years ago. The company has obligations that extend beyond simply buying and holding Bitcoin.
Regardless, common shareholders should recognize that Strategy is no longer a pure Bitcoin accumulation story. It has become a leveraged financial vehicle balancing debt, preferred dividends, and cryptocurrency holdings.
For investors seeking Bitcoin exposure today, the cleaner choice is increasingly either Bitcoin itself or a low-cost spot Bitcoin ETF. Both provide direct exposure to the asset without the added risks that now come with owning Strategy stock.
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Strategy MSTR (formerly known as Microstrategy), the largest corporate holder of Bitcoin, disclosed on Monday that it sold 3,588 Bitcoins for approximately $216 million last week.
The sale was part of a newly introduced treasury framework designed to support preferred stock obligations and strengthen its cash reserves.
The software company sold 1,363 Bitcoins between June 29 and June 30 for $80.8 million at an average price of $59,256 per Bitcoin.
It then sold another 2,225 Bitcoin between July 1 and July 5 for $135.2 million at an average price of $60,773 per Bitcoin, according to an SEC filing.
The sales reduce Strategy's total holdings to 843,775 Bitcoin.
According to Executive Chairman Michael Saylor, the company acquired those holdings at an average purchase price of $74,476 per Bitcoin, representing a total cost of about $63.7 billion, including fees and expenses.
Strategy stock fell 2% in trading on Monday after the announcement.
The Bitcoin sale follows Strategy's June 29 announcement of its Digital Credit Capital Framework, a financial restructuring aimed at strengthening the company's balance sheet and reassuring investors.
According to the filing, proceeds from the Bitcoin sales were used to fund distributions on preferred stock and replenish part of the company's US dollar reserve, which stood at $2.6 billion as of July 5.
Under the new policy, the reserve can only be used to pay preferred stock dividends and interest payments and must be sufficient to cover at least 12 months of those obligations.
The company also introduced a BTC Monetization Program that allows it to sell up to $1.3 billion worth of Bitcoin to support the reserve, fund preferred stock dividends and interest payments, or repurchase digital credit securities and common stock.
As of July 5, none of that capacity had been used beyond the latest sales.
Strategy also authorized separate $1 billion repurchase programs for digital credit securities and Class A common stock.
In its second-quarter financial update, Strategy reported an $8.3 billion loss on digital assets, consisting of an $8.3 billion unrealized loss and a $0.9 million realized loss.
The company said the market value of its Bitcoin holdings fell below their purchase cost at the end of the quarter, prompting it to fully offset the related deferred tax benefit with a valuation allowance.
Based on current prices, Strategy's Bitcoin holdings are valued at roughly $52.3 billion.
The company controls more than 4% of Bitcoin's maximum supply of 21 million coins.
Bitcoin fell around 2% following the filing, while Strategy shares declined 2% in trading after closing 7.9% higher on Thursday. Robinhood Markets and Coinbase Global each rose 3% and 1% respectively.
In a social media post, Saylor said Bitcoin's next phase of growth would be driven less by protocol changes and halving cycles and more by institutional capital, credit markets and financial infrastructure.
The company's decision to formalize Bitcoin sales drew mixed reactions from analysts.
JPMorgan said the policy introduces "avoidable two-way risk" because Strategy could now become both a buyer and seller of Bitcoin.
Bernstein, however, said before the latest disclosure that Strategy was unlikely to face forced Bitcoin sales, citing its liquidity position and reserve coverage.
The firm noted that Strategy has accumulated about 175,000 Bitcoin for roughly $14 billion so far in 2026 and maintained its $150,000 year-end Bitcoin price target.
Benchmark reiterated its Buy rating on Strategy with a $570 price target following the Digital Credit Capital Framework announcement, while TD Cowen lowered its price target to $260 from $400, citing a weaker Bitcoin price outlook.
HOUSTON, July 06, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation (SYY) is proud to announce that 25 delivery partners have been named to the International Foodservice Distributors Association (IFDA) 2026 Truck Driver Hall of Fame, one of the highest honors in foodservice distribution.
Sysco’s inductees are part of a record-breaking Hall of Fame class of 108 drivers recognized by IFDA this year. Nearly doubling Sysco's representation from last year, the recognition reflects the strength of the company’s transportation teams and its ongoing commitment to safety and operational excellence.
Hall of Fame drivers must meet rigorous standards:
At least 25 years of continuous service with an IFDA member company.25 years without a chargeable accident.No moving violations within the past five years. Induction into the Hall of Fame represents a lifetime achievement and a testament to a decades-long career of safe driving, customer service and professional excellence.
“Our delivery partners are the face of our business, and we are incredibly proud of their great work, reliability and commitment to safety. They earned this well-deserved recognition from IFDA because of this dedication to our communities and customers,” said Bryce White, Vice President for U.S. Operations and Global Center of Excellence at Sysco.
Sysco delivery partners play a vital role in helping the company's customers succeed every day. Beyond safely operating specialized equipment and navigating complex delivery routes, they serve as trusted frontline representatives, building relationships with customers and helping restaurants, healthcare facilities, educational institutions and other food-away-from-home operators receive the quality products and service they expect.
The 2026 Sysco inductees will be recognized on Sept. 14, 2026 at the IFDA Truck Driver Hall of Fame ceremony in San Antonio.
About Sysco
Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 339 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $81 billion in fiscal year 2025 that ended June 28, 2025.
As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.
For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.
Key Takeaways Welltower reported senior housing occupancy, rental growth and margin gains in first-quarter 2026.CareTrust is expanding through acquisitions while benefiting from improving skilled nursing occupancy.LTC Properties cited rising occupancy and limited new construction supporting senior housing demand. An updated edition of the May 19, 2026, article.
A rapidly aging population remains one of the most compelling long-term investment themes in healthcare. While investors often focus on pharmaceutical companies, biotech innovators and medical device makers, another segment that continues to benefit from the same demographic shift is healthcare real estate and senior care services. As the population aged 60 and older expands steadily over the coming decade, demand is increasing not only for medical treatments but also for senior housing, assisted living, memory care, rehabilitation and long-term care facilities. This structural demand continues to position healthcare real estate investment trusts (REITs) and senior care operators at the center of the longevity economy.
Companies such as Welltower (WELL - Free Report) , CareTrust REIT (CTRE - Free Report) and LTC Properties (LTC - Free Report) remain well-positioned to benefit from these trends by expanding senior housing exposure, capitalizing on improving occupancy and strengthening cash flows supported by favorable demographic fundamentals. Let's delve deeper.
Healthcare REITsHealthcare REITs and operators own and manage the properties, leases and care infrastructure that generate relatively stable, demographic-driven cash flows. The senior housing industry continues to benefit from longer life expectancy, an aging population and rising demand for memory care, assisted living and skilled nursing services. Meanwhile, new construction remains constrained as elevated financing, labor and construction costs continue to limit development activity. This combination of robust demand and historically low new supply is supporting occupancy gains, rental growth and stronger operating performance across existing senior housing portfolios.
According to NIC MAP data, senior housing occupancy in the 31 primary U.S. markets reached 89.5% in the first quarter of 2026, marking the 19th consecutive quarter of occupancy growth, while inventory growth slowed to a record low. Researchers expect occupancy to surpass 90% before the end of 2026 if current trends persist.
Against this backdrop, leading healthcare REITs such as Welltower, National Health Investors and LTC Properties have continued increasing their exposure to senior housing and skilled nursing assets through acquisitions, development partnerships and portfolio optimization, positioning themselves to benefit from favorable supply-demand dynamics and the long-term expansion of the silver economy.
Operators and Care-Focused REITsAt the operating level, companies like Ensign Group (ENSG - Free Report) , Omega Healthcare Investors (OHI - Free Report) and CareTrust REIT remain closely tied to the day-to-day care needs of an aging population. Longer life expectancy and the growing prevalence of chronic illnesses, cognitive impairment and other complex health conditions continue to drive sustained demand for skilled nursing, post-acute rehabilitation and long-term care services.
Ensign benefits through the direct operation of skilled nursing and senior living facilities, while Omega and CareTrust generate income primarily by owning healthcare properties that are leased to skilled nursing, transitional care and rehabilitation operators. Unlike innovation-driven areas of healthcare that can be influenced by clinical trial outcomes or product cycles, these business models are supported by essential care services that remain necessary regardless of economic conditions. As demographic tailwinds strengthen and industry fundamentals continue to improve, healthcare REITs and senior care operators remain well-positioned to benefit from the growing demand for aging-related care infrastructure.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
3 Seniors & Aging Demographics Stocks in the SpotlightWelltower: It is one of the largest healthcare REITs globally, with a portfolio focused on senior housing, post-acute care facilities and outpatient medical properties across the United States, Canada and the United Kingdom. The company's senior housing operating portfolio includes independent living, assisted living and memory care communities managed by leading healthcare operators.
Welltower, during its first-quarter 2026 earnings, delivered a strong operating performance in its senior housing operating portfolio, supported by healthy occupancy gains, rental rate growth and improved operating margins. During the quarter, Welltower remained active in acquiring and developing senior housing assets while highlighting unprecedented demand driven by the aging population alongside historically low levels of new supply. The company indicates that these favorable demographic and industry fundamentals continue to support a multiyear growth opportunity for its senior housing platform. The stock currently holds a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CareTrust: It is a self-administered healthcare REIT that owns skilled nursing facilities, assisted living communities, memory care facilities and other healthcare-related properties across the United States. The company leases its properties to independent healthcare operators under long-term agreements, generating rental income from essential post-acute and long-term care services.
CareTrust continues expanding its portfolio through acquisitions of skilled nursing and seniors housing properties while maintaining strong rent collections and operator performance. Management during its first-quarter 2026 earnings noted that demographic tailwinds, improving occupancy across the skilled nursing sector and disciplined capital deployment continue to create attractive investment opportunities. The company remains focused on partnering with experienced operators and growing its portfolio in markets where demand for long-term care and senior housing is expected to increase as the U.S. population ages. These factors position CareTrust to benefit from the long-term expansion of aging-related healthcare infrastructure. The stock currently holds a Zacks Rank #2.
LTC Properties: This healthcare REIT invests primarily in seniors housing and healthcare properties in the United States. Its portfolio consists of assisted living communities, memory care facilities, independent living communities and skilled nursing centers, which are operated by experienced regional and national healthcare providers under long-term lease and financing arrangements.
According to the company's first-quarter 2026 announcement, LTC continued executing its capital deployment strategy through investments in seniors housing and skilled nursing assets while maintaining a diversified portfolio. Management highlighted improving operating fundamentals across the seniors housing sector, supported by favorable demographic trends, rising occupancy and limited new construction. The company also emphasized disciplined investment underwriting and partnerships with quality operators as it seeks to make the most of the rising demand for senior housing and long-term care facilities. These trends position LTC to benefit from the aging U.S. population and improving industry fundamentals. The stock currently has a Zacks Rank #3 (Hold).
CrowdStrike's Falcon Flex adoption is strengthening recurring revenue growth, but premium valuation and slowing sales growth warrant a cautious approach.
, /PRNewswire/ -- The Allstate Corporation (NYSE: ALL) announced the schedule for its second-quarter 2026 financial results and earnings conference call.
Allstate Q2 2026 Earnings Call and Release Schedule
Earnings Release Date: Wednesday, August 5, 2026, after 4:15 p.m. ET Earnings Call Date: Thursday, August 6, 2026, at 9 a.m. ET Where to Listen: www.allstateinvestors.com Financial Results Release (Form 8-K)
Allstate will file its Q2 2026 financial results via a Form 8-K with the Securities and Exchange Commission (SEC) after 4:15 p.m. ET on Wednesday, August 5, 2026. The earnings release and investor supplement will be accessible immediately afterward on the SEC website (www.sec.gov) and the Allstate Investor Relations website (www.allstateinvestors.com).
Live Webcast and Conference Call Details
Management will host a live conference call and webcast to discuss the second-quarter results at 9 a.m. ET on Thursday, August 6, 2026. Join the live webcast or access the replay shortly after the call concludes by visiting the Allstate Investor Relations website.
Additional Investor Resources
Through the Allstate Investor Relations website, shareholders can:
View the Q2 2026 Form 8-K, earnings release and investor supplement. Subscribe to Allstate's email alerts and RSS feeds for real-time financial news and material announcements. View preliminary dates and times for future earnings calls and webcasts. About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with affordable, simple and connected protection for autos, homes, electronic devices and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate has more than 212 million policies in force and is widely known for the slogan "You're in Good Hands with Allstate." For more information, visit www.allstate.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ares Capital (ARCC - Free Report) .
Ares Capital currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, nine are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60% and 13.3% of all recommendations.
Brokerage Recommendation Trends for ARCC
Check price target & stock forecast for Ares Capital here>>>
While the ABR calls for buying Ares Capital, 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.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ARCC Worth Investing In?In terms of earnings estimate revisions for Ares Capital, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.91.
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 Ares Capital. 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 Ares Capital.
Cloudflare (NET +2.65%) could become a key toll road for the internet as AI agents drive more traffic across the web. Pay Per Crawl gives the company a fascinating new revenue angle, but valuation, competition, and insider selling make the stock a much harder call.
*Stock prices used were the market prices of June 27, 2026. The video was published on July 5, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
LOS ANGELES, July 06, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lucid Group, Inc. (“Lucid” or “the Company”) (NASDAQ: LCID) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 25, 2026 and April 13, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before July 28, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Lucid’s deliveries were disrupted by a supplier quality issue. The Company suffered a material impact on its business results due to this quality issue. The Company overstated the strength of manufacturing capabilities. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Lucid, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP informs that on February 24, 2026, Lucid Group's leadership told investors the company had achieved "structural" progress and a "repeatable operating cadence heading into 2026." Six weeks later, Lucid revealed it delivered only 3,093 vehicles in Q1, missing expectations by over 40%, after a 29-day delivery halt it never disclosed during those weeks of optimism. The stock slumped from nearly 8.80 across two corrective disclosures.
Levi & Korsinsky, LLP highlights the contrast between Lucid Group, Inc.'s (NASDAQ: LCID) promises to investors and the results that followed. Check if you can recover your LCID investment losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
LCID shares declined 11.35% on the first corrective disclosure and an additional 4.76% on the second, combining for a reduction of $1.57 in share price.
The Promise
In late February 2026, Lucid's executives painted a picture of operational maturity and discipline. The lawsuit contends that management made specific, quantifiable representations about the company's trajectory:
An underlying production run rate "that supports up to 7,500 vehicles per quarter"Progress described as "structural" and "not the result of temporary measures"Quality problems with Gravity hardware characterized as overcomeDays on hand of 108 in December, with expectations to "trend down in Q1 2026"A focus on "predictable execution and repeatable process improvements"
These statements were delivered at the Q4 2025 earnings call on February 24, 2026, and reinforced at the March 12, 2026 investor day, where management emphasized "near-term execution" and "scaling Lucid Gravity" as 2026 priorities.
The Reality
The action claims that while these assurances were being made, a supplier quality issue had already disrupted Gravity deliveries in February 2026. According to the complaint, an unauthorized supplier change resulted in seatbelt anchor welds that did not meet safety standards, forcing Lucid to pause deliveries for 29 days and recall 4,476 vehicles. The filing asserts this was not disclosed until April 3, 2026.
The Numbers: Promised vs. Actual
Expected Q1 Deliveries: 5,237 vehicles → Actual: 3,093 vehicles (41% miss)Expected Q1 Revenue: 280-$284 million (35% shortfall)Expected Operating Trajectory: Improving unit economics → Actual: 1.005 billion operating lossExpected GAAP EPS: -3.46 (missed by $0.83)Capital Position: Positioned for discipline → Actual: $1.05 billion capital raise announced, including dilutive stock offering
What the Lawsuit Alleges About the Gap
The complaint contends that this was not a case of unforeseeable market conditions. As alleged, deliveries were "particularly hit in February" and the disruption was already underway when executives described their operations as structurally improved. The lawsuit asserts that by continuing to tout enhanced capabilities while concealing a known supply chain failure, defendants maintained artificially inflated stock prices during the Class Period.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The gap between what Lucid told investors in late February and what was actually occurring in its delivery operations raises serious questions about the adequacy and timeliness of its disclosures." -- Joseph E. Levi, Esq.
Calculate your potential LCID recovery amount or call (212) 363-7500.
LEAD PLAINTIFF DEADLINE: July 28, 2026
ABOUT LEVI & KORSINSKY, LLP -- Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the LCID Lawsuit
Q: When did Lucid Group allegedly mislead investors? A: The class period runs from February 25, 2026 to April 13, 2026. The alleged fraud was revealed through corrective disclosures on April 3, 2026 and April 14, 2026, causing combined stock declines of $1.57.
Q: What specific misstatements does the LCID lawsuit allege? A: The complaint alleges Lucid Group made materially false or misleading statements regarding its manufacturing and delivery capabilities, including claims of "structural" progress and a "repeatable operating cadence," while a 29-day supplier-driven delivery halt was already disrupting operations. When the true state was revealed, the stock price declined sharply.
Q: What if I already sold my LCID shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: How do I know if I lost enough money to be the lead plaintiff? A: There is no minimum loss threshold. Courts appoint the investor with the largest provable loss who is willing and able to represent the class adequately. Contact Levi & Korsinsky before July 28, 2026 to evaluate.
Q: What do LCID investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: Has Levi & Korsinsky handled similar cases before? A: Yes, including securities class actions involving revenue inflation, earnings guidance fraud, dividend misrepresentation, and executive misconduct across numerous industries.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Something exciting is happening with EV stocks right now: They are transforming into AI stocks.
Consider Tesla. The company has posted negative growth in its automobile business for several years in a row. Yet the company's valuation has soared to $1.2 trillion thanks to its massive AI investments, which will help it target multitrillion-dollar growth opportunities involving self-driving cars and robotaxis.
While its share price hasn't reflected its ambitions, the same is true for Rivian Automotive. In December, Rivian held its first "AI Day." The company's AI investments are now expected to accelerate so rapidly that it recently lowered its 2027 profit guidance.
But what about Lucid Group (LCID +4.61%)? The EV maker has announced its own AI and autonomy initiatives, yet shares have continued to sink. Lucid's stock has nearly been cut in half so far in 2026, with a market capitalization that now hovers just above $2 billion -- roughly 90% smaller than Rivian and more than 99% smaller than Tesla.
Is Lucid stock ready to stage a huge rebound? Potentially, but there's one major risk that could sink the story.
Today's Change
(
4.61
%) $
0.28
Current Price
$
6.36
Lucid faces one key risk to growth Last October, Lucid claimed that it would be delivering "one of the world's first consumer-owned Level 4 autonomous vehicles ... enabling true 'eyes-off, hands-off, mind-off' capabilities." In addition, the company announced that it will be building "a unified AI factory to build smart factories and transform their enterprise leveraging Nvidia Omniverse and Nvidia AI Enterprise software libraries."
There were a lot of buzzwords in the announcement. In short, Lucid wanted to let the market know that it was going all-in on AI. That strategy, after all, worked fairly well for Tesla and a host of other companies that pivoted hard toward AI. There's just one problem with Lucid's plan: access to capital.
Image source: Lucid Group.
Lucid has several reliable capital partners, chief of which is Saudi Arabia's Public Investment Fund. The Saudi sovereign wealth fund has been Lucid's majority owner since 2019 and poured billions of dollars into the business over the years.
Pursuing an AI-first strategy will be capital-intensive. If Tesla has yet to scale production of a consumer-grade fully autonomous vehicle despite having unparalleled access to cheap capital, how can Lucid -- with an unprofitable core business and less than $1 billion in cash on hand -- hope to do so without raising huge amounts of new capital at a record-low stock price?
Lucid may achieve a unique breakthrough that sends its stock price soaring. But in reality, I expect cash burn to remain elevated, with share dilution accelerating to the point that it will be difficult to overcome that shareholder drag with positive catalysts like rising revenues or improved gross margins.
In short, Lucid stock is cheap for a reason. And shareholders should view the company more like a lottery ticket at this point versus a traditional investment.
NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies that for much of late 2025 and early 2026, investor sentiment surrounding ZoomInfo Technologies, Inc. (NASDAQ: GTM) was shaped by a narrative of improving business momentum, accelerating AI adoption, and improving retention metrics. That optimism evaporated on May 12, 2026, when shares lost $1.98 per share, a decline of approximately 33%, after the company disclosed a sharp deterioration in its growth outlook and slashed full-year 2026 guidance.
NEW YORK, July 6, 2026 -- Levi & Korsinsky, LLP provides context on how investor sentiment toward ZoomInfo Technologies, Inc. (NASDAQ: GTM) evolved during the Class Period of November 3, 2025 through May 11, 2026, and how shareholders were allegedly harmed when the true state of the business was revealed. Find out if you qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Shares fell approximately 33%, or $1.98 per share, following ZoomInfo's Q1 2026 earnings disclosure on May 11, 2026. The lead plaintiff deadline is August 24, 2026.
The Early Optimism
The Q3 2025 earnings release on November 3, 2025 carried hallmarks of a turnaround story: record quarterly revenue of $318 million, 5% year-over-year growth, net revenue retention climbing to 90% (the highest since Q2 2023), and a return to Rule of 40 status for the first time in six quarters. The Operations suite was growing over 20% annually and represented more than 15% of total business.
Management also highlighted that the Operations suite was growing more than 20% year over year and represented more than 15% of annual contract value at successive investor conferences throughout November and December 2025, describing ZoomInfo as an "AI beneficiary" with a "generational opportunity" ahead. Full-year 2025 revenue guidance was raised.
The Growing Concerns
Beneath the surface, the lawsuit contends, material headwinds were already undermining the bullish narrative:
Customers in the downmarket segment were experiencing weakening retention and higher churn that management did not adequately discloseThe legacy seat-based subscription model faced structural pressure as customers migrated toward consumption-based usageEnterprises were developing their own internal AI-driven go-to-market solutions, reducing dependence on ZoomInfo's platformDespite management's positive descriptions of Copilot, GTM Workspace, and other AI initiatives, these offerings were not preventing weakening demand in the Company's legacy business. These headwinds were allegedly known to management even as they projected "confidence in our path ahead" and guided for positive revenue growth in fiscal 2026.
The Breaking Point
On May 11, 2026, after the market closed, ZoomInfo reported Q1 2026 results that reduced the Company’s growth outlook. The company unveiled a sharp decline in its growth outlook and cut its 2026 full-year financial guidance. The contrast between six months of bullish commentary and this sudden reversal triggered an immediate reassessment. GTM shares fell from 4.06 on May 12, 2026.
Sentiment Arc and Investor Harm
The action asserts that the arc from confidence to collapse was not the product of sudden, unforeseeable market shifts. Rather, plaintiffs contend management amplified a turnaround narrative while concealing deteriorating fundamentals in the very segments that would later drive the guidance cut. Investors who purchased GTM shares during the Class Period relied on a sentiment environment that was allegedly sustained by incomplete and misleading disclosures.
"Investor confidence depends on receiving truthful information from the companies they invest in. When the gap between public messaging and internal reality grows this wide, shareholders bear the cost," stated Joseph E. Levi, Esq.
Join the GTM recovery action or contact Joseph E. Levi, Esq. at (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Investors who suffered losses have until August 24, 2026 to seek appointment as lead plaintiff.
Frequently Asked Questions About the GTM Lawsuit
Q: When did ZoomInfo allegedly mislead investors? A: The class period runs from November 3, 2025 to May 11, 2026. During this time, ZoomInfo allegedly made materially false or misleading statements about its growth trajectory, customer retention, and the viability of its AI product transition. The alleged fraud was revealed through the corrective disclosure on May 11, 2026, causing a 33% stock price decline.
Q: How much did GTM stock drop? A: Shares fell approximately 33%, a decline of $1.98 per share, after ZoomInfo disclosed a sharp decline in its growth outlook and lowered its 2026 full-year financial guidance. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.
Q: What do GTM investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my GTM shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline of August 24, 2026 applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
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.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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: Corning (GLW - Free Report) New York-based Corning Incorporated started out as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets. Corning reports results under five operating segments following changes to its reporting structure in the first quarter of 2026.
GLW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. GLW has a Growth Style Score of B, forecasting year-over-year earnings growth of 26.6% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $3.19 per share. GLW boasts an average earnings surprise of +2.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, GLW should be on investors' short list.
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 DraftKings (DKNG - Free Report) .
DraftKings currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 24 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 66.7% and 8.3% of all recommendations.
Brokerage Recommendation Trends for DKNG
Check price target & stock forecast for DraftKings here>>>
While the ABR calls for buying DraftKings, 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.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
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.
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.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DKNG a Good Investment?In terms of earnings estimate revisions for DraftKings, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.15.
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 DraftKings. 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 DraftKings.
SummarySouthwest Airlines is initiated with a "Buy" rating, citing a turnaround, strong forward earnings trends, and favorable macro tailwinds.LUV expects EPS to more than triple to $2.96 this year, with out-year earnings potentially exceeding $4.50 and normalized growth by FY 2028.Valuation appears attractive; applying a low-teens P/E to $4.50 normalized EPS suggests shares could reach $60, supported by strong travel trends and lower energy costs.Technical momentum is bullish, with the 200-day moving average rising and price support near $45; resistance is seen at $55, with potential for mid-$60s within 12 months. Getty Images
Airline stocks have sprung back to life as tensions in the Middle East have eased. An outright crash in WTI and Brent crude oil is a clear tailwind, and we’ll find out soon how the world’s biggest airlines performed heading into
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Dell Technologies is rising sharply after President Donald Trump publicly voices his support for the company and its products. It's not the first time he had endorsed the computer company.
Dell Technologies (NYSE:DELL | DELL Price Prediction) stock is up 6% in midday trading Monday, running to about $419 after a broad bid returned to AI infrastructure names to open the week. The move puts Dell back near the top of the large-cap tech leaderboard for the session.
Peers are participating, but not equally. Hewlett Packard Enterprise (NYSE:HPE) stock is up 5% to $43.46, while Super Micro Computer (NASDAQ:SMCI) stock is essentially flat at $27.19. That gap sets up the title question cleanly.
The short answer: yes. Dell is outperforming both peers on today’s tape, and it is outperforming them by a wide margin in 2026 so far.
What Is Driving Today’s Rebound There’s no confirmed Dell-specific news catalyst on the tape today. The move reads as part of a broader AI-infrastructure and tech rebound, with chips, memory, and cybersecurity names also bid to start the week. Semiconductor ETF flows were sharply positive in Thursday’s session, with Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA:SOXS) up 17% on heavy volume as traders repositioned into hardware exposure.
The supporting bull narrative for Dell is the AI order book. Last quarter Dell reported AI-optimized server revenue of $16.13 billion, up 757% year over year, alongside $24.4 billion in AI orders booked in the quarter. That backlog is what’s keeping Dell shares in demand on days when the AI trade is working.
The 2026 Scoreboard Dell is leading today and running away with the year. Dell stock is up 232% year to date (YTD), well ahead of Hewlett Packard Enterprise stock, which is up 81% YTD. Super Micro Computer stock, by contrast, is down 7% YTD and roughly flat on the session.
That trio tells you where the market is currently paying up. Dell is being treated as the scale leader in AI server delivery, HPE is getting credit for its Juniper Networks integration and 148% networking segment growth, and Super Micro Computer is stuck under a governance overhang tied to an independent board review of export-control matters.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut. Grab the names FREE today.
Bull and Bear Case on Dell The bull case is straightforward. Dell posted Q1 FY2027 revenue of $43.84 billion, up 88% year over year, and management raised Dell’s full-year FY2027 guidance to a range of $165 billion to $169 billion in revenue, with an AI-optimized server target of $60 billion. Analyst sentiment has followed the numbers higher, with an average price target of $485 across the covering desks.
The bear case is equally real, however. AI server hardware carries thin margins, and Dell’s gross margin already compressed to 18% from 21% year over year as the mix shifted. Dell shares are richly extended after an enormous run, trade at a P/E ratio of 31x, and have been volatile recently.
Meanwhile, HPE looks like the middle performer with a cleaner margin story, and Super Micro Computer is the cautionary tale. Super Micro Computer stock trades at a forward P/E ratio of 9x, which is cheap for a reason given the audit questions and the recent Q3 revenue miss of 18%.
What to Watch Next These are volatile names, and a single session doesn’t change the long-term thesis. Investors leaning into Dell stock here should consider keeping their position sizes modest, since the stock’s recent range has been wide and today’s rally lacks a confirmed company-specific catalyst.
Still, the verdict on the title question is clear. Dell stock is outperforming both Hewlett Packard Enterprise stock and Super Micro Computer stock today, and it’s outperforming them decisively in 2026. Traders can watch for whether Dell holds above $415 handle into the close and whether HPE keeps pace, which would confirm that the AI-infrastructure bid is real and not just a Monday reflex.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut. Grab the names FREE today.
Applied Materials (AMAT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of chipmaking equipment have returned +33.1%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Electronics - Semiconductors industry, which Applied Materials falls in, has lost 16.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Applied Materials is expected to post earnings of $3.35 per share for the current quarter, representing a year-over-year change of +35.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $12.11 for the current fiscal year indicates a year-over-year change of +28.6%. This estimate has changed +0.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $15.98 indicates a change of +32% from what Applied Materials is expected to report a year ago. Over the past month, the estimate has changed +1.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Applied Materials is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Applied Materials, the consensus sales estimate for the current quarter of $8.98 billion indicates a year-over-year change of +23%. For the current and next fiscal years, $33.29 billion and $41.76 billion estimates indicate +17.3% and +25.5% changes, respectively.
Last Reported Results and Surprise HistoryApplied Materials reported revenues of $7.91 billion in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $2.86 for the same period compares with $2.39 a year ago.
Compared to the Zacks Consensus Estimate of $7.69 billion, the reported revenues represent a surprise of +2.82%. The EPS surprise was +6.72%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Applied Materials is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Applied Materials. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
LOS ANGELES, July 06, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Zoetis Inc. (“Zoetis” or “the Company”) (NYSE: ZTS) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between January 14, 2025 and May 6, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before July 27, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Zoetis suffered from weakening veterinarian prescription growth for its Librela medication after the FDA issued safety warnings about neurological complications in dogs. The Company’s Trio product lost market share to competitors. The Company’s Apoquel and Cytopoint dermatology products lost market share to newly launched competing treatments for dogs. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Zoetis, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zoetis Inc. (NYSE: ZTS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/ZTS.
Zoetis Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements concerning the growth, competitive positioning, market share, and veterinarian adoption of key products within the Companion Animal segment while failing to disclose that:
(1)veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2)Zoetis’ Simparica Trio was losing significant market share to a lower-priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3)Zoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment. What's Next for Zoetis Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/ZTS. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zoetis you have until July 27, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zoetis Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zoetis Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zoetis Inc. (NYSE: ZTS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/ZTS.
Zoetis Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements concerning the growth, competitive positioning, market share, and veterinarian adoption of key products within the Companion Animal segment while failing to disclose that:
veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs;Zoetis’ Simparica Trio was losing significant market share to a lower-priced competing canine parasiticide with broader indicated use in a slowing overall market; andZoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.
What's Next for Zoetis Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/ZTS. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zoetis you have until July 27, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zoetis Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zoetis Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
ZIM Integrated Shipping Services (ZIM) stock is under immense pressure this morning following a massive regulatory roadblock to its highly anticipated buyout.
The sell-off even saw ZIM sink below its 20-day and 50-day moving averages on Monday, signaling the bears are beginning to take back control across multiple timeframes.
Following today’s weakness, ZIM shares are down nearly 20% versus their year-to-date high.
Investors bailed on ZIM stock after Prime Minister Benjamin Netanyahu and his Defense Minister Israel Katz both came out in staunch opposition of the firm’s proposed $4.2 billion acquisition by Hapag-Lloyd.
Back in February, the German shipping giant agreed to buy ZIM Integrated for $35 a share in cash. But in a recent government meeting, Prime Minister Netanyahu flatly stated that the acquisition is “not on the agenda at all.”
Defense Minister Katz echoed his stance, acting on advice from the defense establishment that the sale in its current format fails to preserve Israel's strategic security interests.
Government officials specifically raised red flags over the fact that major sovereign and institutional investors from Qatar and Saudi Arabia hold significant ownership stakes in Hapag-Lloyd.
Note that ZIM Integrated is currently hovering around $24, versus its pandemic-era high of nearly $85.
Because the State of Israel holds a “Golden Share” in the company, the government has strict legal authority to veto any ownership transfer that it deems a threat to maritime sovereignty or national interest.
Crucially, Minister Katz explicitly threatened to exercise this authority if necessary.
Therefore, investors are rapidly pricing in the reality that this multi-billion dollar premium exit is falling apart.
ZIM issued a brief press release this morning stating they “continue to act in accordance with the agreement” and are collaborating with state authorities, but the definitive pushback from the very top of Israel’s leadership has stripped away most of the merger premium that was baked into ZIM shares.
With the $35-a-share buyout premium rapidly evaporating, ZIM Integrated’s immediate technical setup looks increasingly precarious.
Surrendering the key 20-day and 50-day moving averages in a single session changes the near-term narrative from a stable arbitrage play to an aggressive battle for support.
If the Israeli government formalizes its veto using the Golden Share, ZIM stock will have to pivot back to navigating a volatile, post-pandemic freight market entirely on its own fundamental merits.
For now, the company remains chained to geopolitical headlines – and the market is signaling that unless Hapag-Lloyd can restructure the deal to pacify Israel’s defense establishment, the path of least resistance is likely lower.
Note that Wall Street analysts also currently have a consensus “Hold” rating only on Zim Integrated
Qualys is rated Buy, with a 13%+ upside expected over the next year, driven by surging vulnerability management demand. Recent analyst upgrades, especially from JPMorgan, and industry tailwinds have fueled a significant rally in QLYS shares. QLYS benefits from AI-driven vulnerability detection, new product launches, and robust management guidance for FY2026.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Carvana (CVNA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Carvana currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 14 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 60.9% and 13% of all recommendations.
Brokerage Recommendation Trends for CVNA
Check price target & stock forecast for Carvana here>>>
While the ABR calls for buying Carvana, 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.
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.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CVNA Worth Investing In?In terms of earnings estimate revisions for Carvana, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.58.
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 Carvana. 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 Carvana.
Key Takeaways HOOD launched Robinhood Chain, an Arbitrum-based Layer 2 for tokenized assets and DeFi apps.Robinhood rolled out Stock Tokens in its wallet across 120 countries, subject to local availability.HOOD is expanding futures in Europe and adding AI-powered Agentic Trading for crypto in the U.S. Last week, Robinhood Markets (HOOD - Free Report) used its “Robinhood Presents: The World is Flat” keynote in London to outline one of its broadest product and international expansion pushes yet. This positions the company more deeply in crypto, tokenized assets, decentralized finance (DeFi) and AI-powered trading.
Robinhood Chain Goes LiveThe biggest announcement was the public main net launch of Robinhood Chain, an Arbitrum-based Layer 2 blockchain built for tokenized real-world assets and DeFi applications. The chain is designed to support lending, borrowing and other on-chain financial products, with partners including Uniswap, Pleiades, Alchemy, BitGo and Chainlink.
Robinhood said the platform gives builders a permissionless environment while connecting directly with its growing crypto and wallet ecosystem.
Stock Tokens & Onchain Lending Expand HOOD’s AccessRobinhood launched Stock Tokens in the Robinhood Wallet across more than 120 countries, subject to local availability. These products offer eligible users 24/7 economic exposure to certain U.S. stocks and ETFs through tokenized instruments while also allowing use across DeFi applications such as lending pools and collateralized activity. Nonetheless, these tokens do not provide legal or beneficial ownership of the underlying shares.
In the United States, HOOD is rolling out Robinhood Earn, a self-custody lending product that allows eligible users to lend USDG through the Morpho protocol at an estimated 7% APY. The product is supported by partners, including Steakhouse, Ethena, Spark and Maple.
Robinhood Goes Global With New LaunchesRobinhood is expanding perpetual futures in Europe beyond crypto to commodities, ETFs and foreign exchange, including gold, silver, QQQ, EUR/USD, WTI and Brent crude, with up to 10X leverage. In the United States, the company is adding maker order types for crypto traders, with fees as low as 0% depending on volume.
The company also confirmed plans to launch crypto trading in the U.K., expand services in Canada following its WonderFi acquisition and eventually offer brokerage services in Singapore. Agentic Trading is being extended to crypto, allowing eligible U.S. users to connect AI agents to Robinhood data and automate strategies within user-defined guardrails. Earlier in May, it rolled out AI agents for trading and credit card purchases.
Our Take on HOOD’s Expansion InitiativesThese announcements broaden Robinhood’s revenue base beyond trading. Over time, crypto trading, tokenized assets, lending, futures, subscriptions and international expansion are expected to lift transaction-based revenues, assets under custody and customer engagement.
As adoption scales, Robinhood’s ecosystem strategy will likely support higher average revenue per user and more recurring financial activity across markets.
Over the past three months, Robinhood shares have soared 61.8%, massively outperforming the industry’s growth of 11.1%.
Image Source: Zacks Investment Research
HOOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Robinhood’s Peers Are Also Diversifying Their BusinessesSimilar to HOOD, its two close peers, Charles Schwab (SCHW - Free Report) and Interactive Brokers Group (IBKR - Free Report) , are expanding and diversifying their revenue base.
Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. Schwab’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Interactive Brokers is expanding through global market access, high-yield cash balances, securities lending, institutional services, retirement accounts and advisor solutions. Interactive Brokers’ interest income, international reach and technology platform reduce trading-commission reliance while supporting scalable growth.
Robinhood Markets, Inc. (HOOD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned +36.7%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Financial - Investment Bank industry, which Robinhood Markets falls in, has gained 8.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Robinhood Markets is expected to post earnings of $0.41 per share for the current quarter, representing a year-over-year change of -2.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.
For the current fiscal year, the consensus earnings estimate of $1.81 points to a change of -11.7% from the prior year. Over the last 30 days, this estimate has changed -1.3%.
For the next fiscal year, the consensus earnings estimate of $2.49 indicates a change of +37.2% from what Robinhood Markets is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Robinhood Markets.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Robinhood Markets, the consensus sales estimate for the current quarter of $1.2 billion indicates a year-over-year change of +21.8%. For the current and next fiscal years, $4.99 billion and $6.24 billion estimates indicate +11.5% and +25.1% changes, respectively.
Last Reported Results and Surprise HistoryRobinhood Markets reported revenues of $1.07 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $0.38 for the same period compares with $0.37 a year ago.
Compared to the Zacks Consensus Estimate of $1.14 billion, the reported revenues represent a surprise of -6.07%. The EPS surprise was -5%.
Over the last four quarters, Robinhood Markets surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Robinhood Markets is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Robinhood Markets. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Every so often, a stock arrives at a genuinely interesting disconnect — where the underlying business is firing on all cylinders while the near-term earnings math tells a more cautious story.
Right now, Robinhood sits at a Zacks Rank #3 (Hold), and that comes down to the engine that drives the Zacks Rank: earnings estimate revisions. First-quarter 2026 results disappointed back in April, with EPS of $0.38 falling short of the $0.41 consensus and revenue of $1.07 billion missing expectations, sending the stock down nearly 15% on the print.
Management also raised its full-year operating-expense outlook by $100 million to fund the build-out of the new “Trump Accounts” initiative, adding cost pressure. As a result, the 2026 Zacks Consensus Estimate has been trimmed to around $1.81 per share, which implies a year-over-year decline of roughly 12%.
That is not the rising-estimate profile that earns a top rank. But the stock has flipped back into an uptrend, sending shares surging more than 70% off the late-April bottom and warranting renewed attention.
Image Source: StockCharts
How Robinhood’s Rating Could Improve Now to the other side of the ledger — because it’s substantial. Strip away the quarterly earnings noise and Robinhood’s core growth metrics are, frankly, remarkable. Total platform assets reached $377 billion in May, a 48% year-over-year jump, while net deposits of $18 billion in the first quarter extended a streak of 20%-plus annualized growth that management has called its “North Star” metric.
Gold subscribers hit a record 4.3 million, up 36% relative to the same time last year, and now account for roughly 40% of new customers — a powerful signal that Robinhood is deepening its relationship with users, not just adding accounts.
This matters enormously because a larger, stickier asset base compounds into higher net interest income, securities-lending revenue, and transaction activity, creating durable, recurring income streams that cushion the company against the trading-volume volatility that has historically defined it.
The diversification story is where the bull case really takes shape. Robinhood is methodically transforming from a commission-free trading app into a full-spectrum financial platform. Robinhood Banking has grown fivefold in a single earnings cycle, with over $2 billion in net deposits and a 40% direct-deposit attach rate.
Gold credit cards surpassed 800,000 customers with $15 billion in annualized purchase volume, on track to exceed one million cards. And perhaps most intriguing is the push into prediction markets through Rothera, the exchange Robinhood built with Susquehanna. Event contracts have exploded — more than 12 billion traded in 2025 and over 16 billion so far in 2026 — and by routing this flow through infrastructure it controls, Robinhood can capture more economics, control listings, and tighten the customer experience.
With the World Cup providing a marquee mainstream test, Rothera represents exactly the kind of new revenue lever that doesn’t depend on stock-trading activity.
Crucially, management’s own guidance points toward recovery: it has projected second-quarter EPS around $0.45 and revenue near $1.23 billion. And while 2026 estimates imply a slowdown, the 2027 Zacks Consensus EPS Estimate of $2.49 implies about 37% growth — evidence that analysts see the current soft patch as temporary rather than structural.
Image Source: Zacks Investment Research
This brings us to the catalyst that could change the entire complexion of the story: the July 29th earnings release. The Zacks Rank is, at its heart, a momentum indicator for estimate revisions — and a strong second-quarter print, particularly one accompanied by raised guidance, could flip that trend from negative to positive.
If Robinhood delivers a beat and demonstrates that its banking, credit, and prediction-market initiatives are scaling faster than the market appreciates, upward estimate revisions would likely follow, and with them the potential for a Zacks Rank upgrade. In other words, the same mechanism keeping HOOD at a Hold today could work powerfully in its favor. That is precisely the kind of setup patient, forward-looking investors like to position ahead of.
Bottom LineThe current Zacks Rank #3 (Hold) for HOOD exists for good reason — 2026 estimates are falling, the company missed last quarter, and elevated spending is pressuring near-term profitability. The valuation leaves little room for error, with Robinhood trading at a steep premium to its industry.
Yet Robinhood is a genuinely high-quality, fast-compounding fintech that has proven itself over the past few years. The underlying business tells a story of accelerating asset growth, deepening customer engagement, and a widening set of revenue engines that increasingly insulate the company from its trading-volume roots.
The late July date should be circled on the calendar: a strong print could be the spark that re-rates both the estimates and the stock. Robinhood hasn’t yet earned its way back to a Strong Buy — but it may be closer than the current rank suggests.
Disclosure: Robinhood (HOOD - Free Report) is a current holding in the Zacks Headline Trader portfolio.
UiPath (PATH - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this enterprise automation software developer have returned +4.2%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has lost 3.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, UiPath is expected to post earnings of $0.15 per share, indicating no change. The Zacks Consensus Estimate has changed +9.6% over the last 30 days.
The consensus earnings estimate of $0.8 for the current fiscal year indicates a year-over-year change of +11.1%. This estimate has changed +6.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +12.7% from what UiPath is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UiPath.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of UiPath, the consensus sales estimate of $397.59 million for the current quarter points to a year-over-year change of +9.9%. The $1.78 billion and $1.92 billion estimates for the current and next fiscal years indicate changes of +10.4% and +8.2%, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
NEW YORK & HOUSTON--(BUSINESS WIRE)--Blackstone (NYSE: BX) today announced that funds managed by Blackstone Energy Transition Partners (“Blackstone”) have entered into a definitive agreement to acquire Dresser Utility Solutions (“Dresser”), a premier provider of mission-critical natural gas and water measurement, control and infrastructure equipment solutions, from First Reserve. This represents the first investment of the most recent vintage of Blackstone's private equity energy transition veh.
NEW YORK, July 06, 2026 (GLOBE NEWSWIRE) -- Nasdaq today rang the opening bell live from the White House, marking the celebration of 250 years of American independence — and the first trading day for Trump Accounts, a new initiative that expands access to long-term investing for American children.
The White House ceremony brought together leaders from Nasdaq and the New York Stock Exchange (NYSE) alongside President Trump and senior government officials. It also marked the first joint opening bell ceremony between Nasdaq and the NYSE.
"We are grateful to President Trump for his vision in creating Trump Accounts, and we are honored to help celebrate this historic milestone,” said Adena Friedman, Nasdaq Chair and CEO. “At Nasdaq, we believe in the power of long-term investing to change lives for the better. Now, every American newborn will have a direct, personal connection to the success of our economy, while they build their savings throughout their childhood through compounding market returns. Today, we ring the opening bell for every child who will grow up, not just following the American economy, but owning a piece of it."
July 6, 2026, marks the first stock market trading day following the launch of Trump Accounts, a new tax-advantaged investment tool for children under the age of 18. Under the program's federal pilot, the U.S. Department of the Treasury is providing a one-time $1,000 seed contribution for eligible children born between January 1, 2025, and December 31, 2028. Additionally, the framework allows any child under the age of 18 with a valid Social Security number to participate, making them eligible to receive contributions of up to $5,000 annually from families, friends and employers, as well as major independent philanthropic grants.
Nasdaq's participation in today's ceremony builds on its commitment to the Trump Accounts initiative first announced in April 2026. On behalf of eligible newborn children of its employees, Nasdaq will match the government's one-time $1,000 contribution — so those children will begin their investing journey with $2,000 already working for their future. Nasdaq also plans to provide employees with the opportunity to make additional contributions through payroll deduction, reinforcing its longstanding commitment to financial literacy, employee financial wellness, and broad participation in the financial system.
For 250 years, American economic leadership has been built on a foundation of broad participation. America's capital markets are the deepest and most innovative in the world, and Trump Accounts extend that participation to every American child — from birth. As we look forward to the next 250 years, this historic initiative represents a defining commitment to long-term financial wellness and economic participation of every American citizen. For more information about Trump Accounts and account eligibility, visit www.TrumpAccounts.gov or www.nasdaq.com.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading technology platform that powers the world's economies. We architect the infrastructure of the world's most modern markets, power the innovation economy, and build trust in the financial system. We empower economic opportunity by designing and deploying advanced technology, data, and intelligence solutions that enable our clients to capture opportunities, navigate risk, and strengthen resilience. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
Cautionary Note Regarding Forward-Looking Statements:
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to the matching program and the benefits. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, and U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Relations Contact:
Chris Hayden
+1.301.523.5829 [email protected]
Zscaler (ZS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this cloud-based information security provider have returned +12.7%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Security industry, which Zscaler falls in, has lost 11.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Zscaler is expected to post earnings of $1.09 per share, indicating a change of +22.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.14 points to a change of +26.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.57 indicates a change of +10.6% from what Zscaler is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Zscaler is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Zscaler, the consensus sales estimate for the current quarter of $877.19 million indicates a year-over-year change of +22%. For the current and next fiscal years, $3.33 billion and $3.9 billion estimates indicate +24.6% and +17.2% changes, respectively.
Last Reported Results and Surprise HistoryZscaler reported revenues of $850.47 million in the last reported quarter, representing a year-over-year change of +25.4%. EPS of $1.08 for the same period compares with $0.84 a year ago.
Compared to the Zacks Consensus Estimate of $834.76 million, the reported revenues represent a surprise of +1.88%. The EPS surprise was +8%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zscaler is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zscaler. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cenovus Energy (CVE - Free Report) Cenovus Energy Inc. is a Calgary, Canada-based integrated energy company. The company produces crude oil, natural gas and natural gas liquids, and markets its production across North America and international markets. Its upstream operations are mainly in Canada and the Asia Pacific region. Its downstream operations include upgrading and refining assets in Canada and the United States.
CVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of B, forecasting year-over-year earnings growth of 96.1% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.74 to $3.02 per share. CVE also boasts an average earnings surprise of +50.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
Space Exploration Technologies (NASDAQ:SPCX) is the blue-chip stock to bet on the future of the space economy. With the promise of satellite connectivity and orbital data centers, Elon Musk’s space company really does feel not only exciting but like the missing piece to a growth portfolio that seeks to cover all bases in this AI revolution.
Whether the next growth frontier beyond AI lies in space remains the big question, but, in any case, SpaceX stands out as the play for investors who are willing to pay that premium price of admission. After a surge past $211 per share, shares of Space Exploration Technologies have pretty much taken a round trip back to levels where it spent most of its very first day of trading, at around $160 per share.
With limited float and a sky-high valuation that implies a market cap of more than $2.1 trillion, perhaps it’s best to wait around for more shares to hit the market as the valuation looks to settle in a range that doesn’t bake in so much going right.
SpaceX’s expensive, and it might not be immune to CapEx fears It’s a steep valuation, to say the least, and while there’s definitely disruptive potential there, especially when it comes to Starlink and its ability to take market share away from the telecom incumbents, I still think that it will become just a bit tougher to justify paying up for Elon Musk’s space titan, especially if investors really start expressing their distaste for AI-related CapEx.
In prior pieces, I expressed my concern about a potential CapEx reality check, especially given the pace at which data centers are going up.
For now, investors seem quite pleased that SpaceX is making big money selling AI compute to others. But as the firm builds infrastructure to meet its own needs, questions linger as to whether investors will believe in Mr. Musk’s vision or if SpaceX will experience a similar CapEx hangover as the Mag Seven hyperscalers have.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Rocket Lab didn't make the cut. Grab the names FREE today.
In many ways, SpaceX is a big bet on AI following the merger with xAI. And, as you’re probably aware, it costs a lot to play and even more to move to the front of the pack with the likes of the frontier-level innovators. For Mr. Musk, who plays the win, I think CapEx could have the potential to be significant.
Rocket Lab looks enticing after a dip Either way, for investors willing to wait for SpaceX shares to come in a bit, I think it makes sense to consider some of the other space plays out there, even though SpaceX dwarfs the market caps of its rivals combined.
In my view, I think names like Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) are also worth keeping tabs on for investors looking for a more diversified space portfolio. Specifically, for investors looking to play the space hardware and commercial launch service side of the business with less emphasis on AI, data centers, and, of course, exposure to fabs and chips, I think Rocket Lab could make for a great supplement to a SpaceX position, especially while it’s down around 33% from its highs.
Who knows how many SpaceX shareholders sold off the name in the weeks leading up to the SpaceX IPO? Either way, the “sell the proxy” rotation might be exhausted, opening a window of opportunity for investors seeking launch exposure beyond Elon Musk’s much-hyped firm.
Of course, there isn’t quite a replacement for SpaceX, a mega-cap AI-space titan that I do think investors should seek exposure to, perhaps after the valuation comes in (a $1.25 trillion market cap makes more sense, in my view). In the meantime, investors in the Nasdaq 100 may already have more than enough exposure to the giant as Mr. Musk looks to execute on his grand vision.
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