Key Takeaways Hasbro raised 2026 revenue growth guidance to 5-7% and lifted its margin and EBITDA outlook.HAS trades below the sector and S&P 500, but above its sub-industry and near its five-year median.Wizards drove profit growth, while Consumer Products losses and a $56 million impairment cloud quality. Hasbro, Inc. (HAS - Free Report) has a better growth story than it had earlier in the year, but the investment case is not one-sided. The company beat expectations, raised its fiscal 2026 outlook and has outperformed its industry over the past six months.
The question is whether that improvement leaves enough room for new buyers. HAS has stronger earnings momentum, but valuation and margin quality still require discipline.
HAS Earnings Momentum Is ImprovingHasbro’s second-quarter fiscal 2026 results gave the bull case more substance. Adjusted earnings of $1.28 per share beat the Zacks Consensus Estimate by 9.4%, while revenues of $1.14 billion topped the consensus mark by 8.9%.
Management now expects fiscal 2026 revenues to rise 5-7% in constant currency, up from its prior view of 3-5%. The adjusted operating margin outlook also improved to 25-26%, while adjusted EBITDA is now projected between $1.45 billion and $1.50 billion.
The first-half numbers show why expectations moved higher. Adjusted operating profit rose 21% to $569 million, and adjusted operating margin expanded 150 basis points to 26.6%. Volume, mix and cost productivity more than offset incremental tariffs and royalty expense.
Why Hasbro Valuation Is Not a Clear BargainHAS does not look stretched against broader benchmarks. The stock trades at 14.19X forward 12-month earnings, below the Zacks Consumer Discretionary sector at 16.2X and the S&P 500 index at 20.85X.
The relative picture is less attractive inside its own sub-industry. The Zacks sub-industry trades at 10.09X forward earnings, making Hasbro look more expensive than the narrower peer group.
The stock also sits close to its five-year median forward earnings multiple of 14.92X. That suggests the market is not assigning an extreme premium, but it also means the shares are not obviously cheap after improving year-to-date and trailing 12-month performance.
Mattel, Inc. (MAT - Free Report) remains a useful comparison for investors evaluating traditional toy demand, brand strength and holiday-season execution. JAKKS Pacific, Inc. (JAKK - Free Report) also provides context for the toy and licensed-product space, where retailer demand and entertainment tie-ins can shift quickly.
Hasbro Profit Quality Still Needs ProofWizards of the Coast and Digital Gaming remains the clearest source of profit strength. In the second quarter, the segment generated $664 million in revenues, up 27%, and $270 million in operating profit.
Magic: The Gathering grew 32% in the quarter, helped by Secrets of Strixhaven and Marvel Super Heroes. Monopoly Go! contributed $44 million in revenues, reinforcing the value of Hasbro’s digital and licensing model.
Consumer Products is less convincing on profitability. Revenues rose 5% to $463 million, but the segment recorded an adjusted operating loss of $8 million because of tariffs, entertainment-related mix shifts and normal seasonality.
Digital spending also adds risk. Hasbro recorded a $56-million impairment tied to canceled digital game projects planned for 2028 and beyond, showing that growth investments can still dilute profit quality.
What Could Move HAS Higher or LowerHAS could move higher if Magic stays resilient, licensing partnerships keep expanding and Consumer Products converts better sell-through into margin improvement. Holiday innovation and entertainment-linked demand also matter because the back half is important for toys and games.
Cost savings remain another catalyst. Hasbro delivered $70 million of savings in the first six months against a $150-million full-year commitment, while management continues to target $1 billion of gross cost savings by fiscal 2027.
The downside case rests on execution. Weaker releases, higher freight, resin and packaging costs, renewed tariff pressure or slower toy demand could weigh on profitability.
Digital execution is another swing factor. Exodus and Warlock remain planned for fiscal 2027, but delays, softer player adoption or further portfolio changes could pressure returns.
How HAS Ranks for Stock PickersThe bottom line is that HAS looks improved, but not clearly mispriced. Growth is better, Wizards remains powerful and guidance has moved higher, yet valuation and segment margin pressure keep the buy case measured.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a middle-ground setup rather than a high-conviction entry call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HAS also has a Growth Score of B, Momentum Score of A and VGM Score of B, which indicate supportive growth and price-performance traits. The Value Score of C argues for timing discipline, especially with the stock trading above its sub-industry multiple.
Investors interested in stocks from the Manufacturing - Tools & Related Products sector have probably already heard of Core & Main (CNM - Free Report) and Lincoln Electric Holdings (LECO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Core & Main has a Zacks Rank of #2 (Buy), while Lincoln Electric Holdings has a Zacks Rank of #3 (Hold) right now. This means that CNM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CNM currently has a forward P/E ratio of 13.86, while LECO has a forward P/E of 22.94. We also note that CNM has a PEG ratio of 1.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LECO currently has a PEG ratio of 1.53.
Another notable valuation metric for CNM is its P/B ratio of 3.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LECO has a P/B of 9.03.
Based on these metrics and many more, CNM holds a Value grade of B, while LECO has a Value grade of D.
CNM is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CNM is likely the superior value option right now.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Newmark Group (NMRK - Free Report) , which belongs to the Zacks Real Estate - Operations industry.
This provider of commercial real estate services has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 13.42%.
For the most recent quarter, Newmark Group was expected to post earnings of $0.27 per share, but it reported $0.33 per share instead, representing a surprise of 22.22%. For the previous quarter, the consensus estimate was $0.65 per share, while it actually produced $0.68 per share, a surprise of 4.62%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Newmark Group lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Newmark Group currently has an Earnings ESP of +14.29%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 29, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Insight Enterprises (NSIT - Free Report) . This company, which is in the Zacks Retail - Mail Order industry, shows potential for another earnings beat.
This information technology provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 11.26%.
For the most recent quarter, Insight Enterprises was expected to post earnings of $2.45 per share, but it reported $2.88 per share instead, representing a surprise of 17.55%. For the previous quarter, the consensus estimate was $2.82 per share, while it actually produced $2.96 per share, a surprise of 4.96%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Insight Enterprises. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Insight Enterprises has an Earnings ESP of +2.94% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways AVT expanded operating margin for a third straight quarter despite lower gross margins from sales mix changes.AVT expects further margin gains from SG&A discipline, improving demand and stronger book-to-bill trends.Avnet targets higher margins in EC and Farnell while maintaining its niche against Arrow and TD SYNNEX. Avnet's (AVT - Free Report) profitability continued to improve in the third quarter of fiscal 2026, even as gross margins remained under pressure, highlighting the benefits of disciplined cost management and operating leverage. The company reported an adjusted operating margin of 3.1%, up 38 basis points (bps) sequentially, marking its third consecutive quarter of expansion. Operating income grew more than twice as fast as sales, reflecting stronger execution across the business.
However, Avnet’s gross margin declined 68 bps year over year to 10.4%, primarily due to a greater mix of lower-margin Asia sales and memory price pass-throughs. Management noted that approximately half of sequential sales growth and one-quarter of year-over-year sales growth came from higher memory prices.
The company's largest Electronic Components (EC) segment expanded its operating margin to 3.5% from 3.2% in the previous quarter, driven by improving business conditions in Europe. Management expects EC operating margins to reach its 4% near-term target within the next fiscal year. Meanwhile, Farnell's operating margin improved to 5.2%, its sixth consecutive quarter of expansion, with management targeting a return to double-digit margins by the second half of 2027.
Looking ahead, rising book-to-bill ratios, improving lead times, stronger demand creation activity and continued SG&A discipline should support further operating margin expansion, even if gross margin remains constrained by product and geographic mix. Alongside this, AVT should also monitor how competitors are adapting to market dynamics and stay ahead of any new advancements.
How Competitors Fare Against AvnetAvnet operates in a competitive technology distribution market where it competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) and TD SYNNEX (SNX - Free Report) . However, Avnet benefits from the niche it has created for itself, which helps to protect its margins.
Arrow Electronics competes directly with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers.
Avnet comes into crossroads with TD SYNNEX in the broader AI infrastructure value chain. AVT plays its role much earlier in the technology value chain by supplying electronic components directly to equipment manufacturers, making the overlap minimal with TD SYNNEX. Given these dynamics, Avnet has little to worry right now.
AVT’s Price Performance, Valuation and EstimatesAvnet shares have soared 86.9% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 60.2% growth.
Avnet YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.26X, which is below the P/S multiple of industry’s P/S multiple of 0.39X. The undervaluation is further substantiated by Zacks Value Score of B.
The Zacks Consensus Estimate for AVT’s fiscal 2026 earnings is pegged at $5.12, implying year-over-year growth of 49%. The estimate has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AVT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Verra Mobility Corporation (NASDAQ: VRRM) 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 Verra securities between February 24, 2026 and May 26, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/VRRM.
Verra Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
(1)Defendants misrepresented the nature and stability of Verra’s relationship with Avis Budget Group (“Avis”), including the likelihood of securing a contract extension;(2)Defendants downplayed the risk that major rental car companies, including Avis, could replace Verra’s services with in-house solutions or alternative third-party providers; and(3)as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading at all relevant times.
What's Next for Verra 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/VRRM. 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 Verra you have until August 4, 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 Verra 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 Verra Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
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Prior results do not guarantee similar outcomes.
LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 4, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Verra Mobility Corporation (“Verra” or the “Company”) (NASDAQ: VRRM) common stock between February 24, 2026 and May 26, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR VERRA INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On May 26, 2026, Verra disclosed that it had received a termination notice from Avis Budget Group regarding its contract. The Company accordingly lowered its full year 2026 financial outlook.
On this news, Verra’s stock price fell $9.23, or 70.6%, to close at $3.85 per share on May 27, 2026, thereby injuring investors.
On June 1, 2026, Verra announced that its President and Chief Executive Officer had been terminated as “the Board determined that a change in leadership [was] needed[.]”
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Verra’s optimistic plan for continued growth in its Commercial Services business was dependent on its relationship with Avis, and in particular obtaining a contract extension with Avis Budget; (2) the Company minimized concerns that major RACs could replace Verra with in-house solutions or outsourced alternatives, making Verra’s 2026 full year guidance increasingly unlikely to be met; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Verra common stock during the Class Period, you may move the Court no later than August 4, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
Key Takeaways PNW expects 4-6% weather-normalized sales growth in 2026, led by manufacturing and data centers. PNW secured nearly 4.5 GW of committed high-load demand, mainly from data centers and manufacturers. PNW plans to invest $7.95B from 2026 to 2028 in generation, transmission and distribution assets. Pinnacle West Capital (PNW - Free Report) benefits from robust economic growth across its service territory, driven by population growth and rising investments in semiconductor manufacturing, data centers and other industrial facilities. These trends support customer growth, boost electricity demand, drive infrastructure investments and expand the regulated rate base.
PNW projects 1.5-2.5% retail customer growth and 4-6% weather-normalized sales growth in 2026. Demand from new manufacturing facilities and several large data centers is expected to contribute 3-5% in 2026 and support 5-7% annual sales growth through 2030. The company has secured nearly 4.5 gigawatts of committed extra high-load customer demand, primarily from data centers and large manufacturers.
The expansion of TSMC's fabrication facilities and increasing investments from semiconductor suppliers across Arizona are driving higher industrial power demand. Rising industrial activity should boost electricity demand and support PNW's long-term earnings growth.
To meet rising electricity demand, PNW continues to expand its infrastructure. Pinnacle West Capital plans to invest $7.95 billion between 2026 and 2028 in generation, transmission and distribution assets to improve reliability and cater to rising demand across its service region. PNW also maintains its 2026 earnings guidance of $4.55-$4.75 per share, indicating confidence in continued demand growth. Construction has started on the Redhawk expansion, which will add approximately 400 megawatts of natural gas capacity, while the company advances the Desert Sun project and evaluates additional generation resources for 2029-2031.
Strong economic expansion, rising industrial electricity demand and disciplined capital investments position PNW to deliver sustainable earnings growth and create long-term value for shareholders.
Economic Expansion Fuels Long-Term Utility GrowthUtilities benefit from economic growth as expanding businesses, industries, data centers and electric vehicle adoption increase electricity demand. This supports utility investments, generates fresh demand for utility services, drives earnings growth and creates long-term shareholder value.
Evergy (EVRG - Free Report) is benefiting from expanding economic activity across Kansas and Missouri. Rising investments in data centers, advanced manufacturing and commercial projects support long-term rate-base and earnings growth.
PPL Corporation (PPL - Free Report) benefits from growing economic activity across Pennsylvania and Kentucky. Expanding data center and industrial investments are driving electricity demand, supporting rate-base expansion and long-term earnings growth.
The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.34% and an increase of 17.60%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Dividend YieldPNW currently offers a 3.45% dividend yield, exceeding the Zacks Utility - Electric Power industry's 3.02% average over the past year.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital shares have risen 14.1% compared with the industry’s 4.6% growth.
Key Takeaways CRDO and MRVL are key AI connectivity players benefiting from rising data-center demand.CRDO expects more than 80% fiscal 2027 revenue growth, led by AECs and a stronger optical ramp.MRVL raised fiscal 2027 revenue guidance to $11.5 billion as data center demand accelerates. The explosive AI-infrastructure buildout has put the spotlight on semiconductor companies as the reshaping of the data center connectivity landscape is creating massive demand for high-speed interconnect and optical solutions.
Both Credo Technology Group Holding Ltd (CRDO - Free Report) and Marvell Technology (MRVL - Free Report) are beneficiaries of this cycle. While both companies operate in the same space, their positioning, scale and strategies differ significantly.
So, the question now arises: Which stock is a better investment pick at present? Let us dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for CRDOCredo is a leading provider of high-speed connectivity solutions for AI infrastructure. At the core of Credo’s business is its Serializer/Deserializer (SerDes) and Digital Signal Processor (“DSP”) technology stack. Leveraging this foundation, Credo offers a diversified suite of solutions, including integrated circuits (ICs), retimers, optical DSPs, Active Electrical Cables (AECs), SerDes chiplets and SerDes IP licensing.
CRDO’s focus on high-performance, energy-efficient connectivity solutions gives it strategic relevance as hyperscalers and cloud service providers overhaul their network architectures.
Fiscal 2026 was a breakout year, with revenues surpassing $1.3 billion, more than tripling year over year. Non-GAAP net income increased more than fivefold.
AECs are the primary growth engine for CRDO as they now play an increasingly critical role in AI-driven networking deployments. According to Credo, the adoption of zero-flap AECs is accelerating because they deliver up to 1,000x higher reliability while consuming roughly 50% less power compared with optical alternatives. These advantages are particularly valuable in large XPU clusters, where network failures can disrupt operations and lead to high costs. Beyond the traditional hyperscalers, Credo is also seeing increasing demand from emerging Neocloud providers.
In addition to AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs). The company expects mid-single-digit sequential growth in the first half of fiscal 2027, followed by a stronger second-half acceleration buoyed by its optical portfolio. Management projects more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. This is expected to support more than 80% year-over-year revenue growth for the full year.
The acquisition of Dust Photonics strengthens Credo’s high-speed optical connectivity portfolio with silicon photonics PIC technology. The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions.
As revenue scales, Credo is beginning to show signs of operating leverage. For fiscal 2027, gross margins are projected to stay in line with fiscal 2026 levels, while non-GAAP net margins are expected to remain around 50%, even as the company continues to invest in R&D.
However, no investment case is without risks. Macroeconomic uncertainties and exposure to the AI investment cycle amid increasing market competition remain concerns. On the last earnings call, Credo noted ongoing tightness in the supply chain. While the company has taken steps to secure capacity, disruptions could still affect its ability to meet demand.
The Case for MRVLMarvell Technology has been in the spotlight for some time now, especially after NVIDIA's chief publicly called it the next trillion-dollar company earlier this year. The company is now a component of the S&P 500 index. MRVL’s strategic pivot to prioritize the data center market is proving to be a successful catalyst amid surging AI-infrastructure spending.
The data center business accounted for 76% of total revenues in the first quarter of fiscal 2027. The company has raised its fiscal 2027 revenue forecast to $11.5 billion, with the upside coming from this business. Data center revenues increased 46% in fiscal 2026. Management expects growth to accelerate to approximately 50% in fiscal 2027 and 55% in fiscal 2028.
Interconnect remains a standout performer within the data center business. Demand for the company’s high-speed connectivity solutions remains strong, prompting management to raise its fiscal 2027 interconnect revenue growth forecast to more than 70% year over year. Demand remains strong for 800G products, while 1.6T solutions based on 200-gig-per-lane technology are ramping following their production launch in the second half of fiscal 2026. Marvell expects 1.6T revenues to increase substantially again in fiscal 2028.
Rapid growth in broadband analog products, including TIAs and drivers, bode well. Management projects revenues from TIAs and drivers to top a $1 billion annualized run rate over the next few quarters. Data center interconnect, or DCI, business represents another important growth opportunity. On the last earnings call, management highlighted that it now ships DCI solutions to all five major U.S. hyperscalers. It expects to gain from rising demand, driven by large-scale AI clusters that increasingly span several data centers.
Marvell has introduced secure 1.6T ZR and ZR+ DCI modules powered by its 2-nanometer coherent DSP, with sampling expected to begin this year. Management sees the DCI module business reaching a $1 billion annualized revenue run rate during fiscal 2028, nearly double the approximately $500 million generated in fiscal 2026.
MRVL is supplementing its organic growth with strategic acquisitions like Celestial AI and Xconn Technologies. Celestial AI specializes in the Photonic Fabric technology, or PF platform, while XConn Technologies will aid in expanding its footprint across PCIe and CXL switch opportunities.
However, Marvell Technology’s growth story comes with risks. Increasing reliance on the data center market makes it vulnerable to any changes in hyperscaler AI capital spending. Stiff competition in the semiconductor space and global trade tensions remain a matter of concern. Marvell expects to make $1 billion in supplier prepayments during fiscal 2027 to capture manufacturing capacity. Although these prepayments are intended to support future material purchases, these could impact cash generation if demand or production fall short of expectations. Apart from significant upfront investments, acquisitions bring along execution and integration risks.
Price Performance & Valuations of CRDO & MRVLYear to date, both CRDO and MRVL are up 55.6% and 144.7%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/sales multiple, Credo is trading at 16.06X, higher than MRVL’s 13.05X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for CRDO & MRVL?Analysts have significantly revised their earnings estimates upwards for CRDO for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
Estimates have been revised 6% upwards for MRVL’s bottom line.
Key Takeaways Axon Enterprise faced margin pressure in Q1 as higher costs, tariffs and R&D spending weighed on results.AXON expects a roughly 25.5% adjusted EBITDA margin in 2026 through cost management and efficiency gains.Axon Enterprise reorganized its business segments to improve cost control and operational efficiency. Axon Enterprise, Inc. (AXON - Free Report) has been subject to rising operating costs and expenses over time. The company’s cost of sales increased 38.8% in the first quarter of 2026, on a year-over-year basis. Also, its selling, general and administrative expenses surged 15.9% in the first quarter.
Although AXON’s adjusted EBITDA in the quarter increased 29.9% year over year to $201.6 million, the adjusted EBITDA margin declined 70 basis points (bps) to 25%. AXON’s adjusted gross margin in the quarter also fell 200 bps to 61.6%. The decline was attributable to the adverse impacts of higher costs and expenses, global tariffs and increased investment in R&D.
Nevertheless, the company’s focus on effective cost management, revenue growth and manufacturing efficiency is anticipated to boost its margin performance. For 2026, AXON currently expects an adjusted EBITDA margin of approximately 25.5%, relatively flat year over year. The company has set a long-term financial target to achieve about 28% of adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.
In first-quarter 2025, Axon Enterprise realigned its business segments to enhance its visibility into segment-specific performance and effectively manage costs. This strategic move is expected to continue supporting its margin performance and operational efficiency.
Peer’s Margin performanceIn first-quarter 2026, Tyler Technologies’ (TYL - Free Report) cost of sales and selling & marketing expenses both increased 6.4% on a year-over-year basis. Despite higher costs, Tyler Technologies’ gross margin improved 90 bps to 51.3% in the quarter, supported by revenue mix improvement and cloud efficiency gains.
Woodward, Inc.’s (WWD - Free Report) total costs and expenses rose 23% year over year in second-quarter fiscal 2026 (ended March 2026). Woodward’s selling, general and administrative expenses also rose 22.1% year over year. Despite the rise in costs, Woodward’s segmental margins expanded, which was supported by sales growth, improved mix of commercial services activity and solid defense OEM demand.
AXON’s Price Performance, Valuation and EstimatesShares of Axon Enterprise have gained 30.1% in the past three months against the industry’s decline of 0.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 54.41X, above the industry’s average of 39.83X. Axon Enterprise carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s 2026 earnings has been stable over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MSCI (NYSE:MSCI) reported upbeat earnings for the second quarter on Tuesday.
The company posted quarterly earnings of $4.94 per share which beat the analyst consensus estimate of $4.93 per share. The company reported quarterly sales of $867.000 million which beat the analyst consensus estimate of $866.439 million.
“In the second quarter MSCI delivered strong financial results along with a record asset-based-fee run rate and accelerated run-rate growth in Index and Private Capital Solutions. We also achieved strength in recurring net-new sales across key client segments and geographies, including our best quarter ever with hedge funds and our best Q2 with asset owners,” said Henry A. Fernandez, Chairman and CEO of MSCI.
MSCI shares rose 1.2% to trade at $568.28 on Wednesday.
These analysts made changes to their price targets on MSCI following earnings announcement.
JP Morgan analyst Alexander Hess maintained the stock with an Overweight rating and lowered the price target from $742 to $700. Evercore ISI Group analyst David Motemeden maintained the stock with an Outperform rating and lowered the price target from $746 to $722. Considering buying MSCI stock? Here’s what analysts think:
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NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Calix, Inc. (NYSE: CALX) 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 Calix securities between January 28, 2026 and April 21, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/CALX.
Calix Case Details
The Complaint alleges that throughout the Class Period, defendants failed to disclose to investors:
(1)the Company’s first quarter margins had significantly benefited from advanced purchasing of memory components; (2)that the Company’s advanced supply of memory components was dwindling; (3)that, as a result, the Company was experiencing negative margin pressure as it was forced to purchase memory components at rising market prices; and (4)that, as a result of the foregoing, Defendants’ positive statements about the Company’s margins, business, operations, and prospects were materially misleading and/or lacked a reasonable basis. What's Next for Calix 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/CALX. 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 Calix 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 Calix 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 Calix Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
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Prior results do not guarantee similar outcomes.
LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming July 27, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Calix, Inc. (“Calix” or the “Company”) (NYSE: CALX) securities between January 28, 2026 and April 21, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR CALIX INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On April 21, 2026, after the market closed, Calix reported results for the first quarter of 2026 earnings, including that “[n]on-GAAP gross margin was 57.2%, a decrease of 80 basis points sequentially.” Further, the Company reported gross margin guidance for the second quarter of 2026 is “55.8% (at the midpoint) is down 140 basis points from the previous quarter. This decline is primarily due the increase in memory component costs.”
In the accompanying earnings call held on the same date, the Company’s Chief Financial Officer, Cory Sindelar, stated “advanced purchasing had allowed us to avoid higher memory component costs during the first quarter. However, that advanced supply has run its course, and we now face market prices.” Sindelar further revealed “reflecting the effects of higher memory component costs,” “[f]or the year, we expect our non-GAAP gross margin to decline between 50 and 150 basis points.”
On this news, Calix’s stock price fell $6.93, or 13.98% to close at $42.65 per share on April 22, 2026, on unusually heavy trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company’s first quarter margins had significantly benefited from advanced purchasing of memory components; (2) that the Company’s advanced supply of memory components was dwindling; (3) that, as a result, the Company was experiencing negative margin pressure as it was forced to purchase memory components at rising market prices; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s margins, business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Calix securities during the Class Period, you may move the Court no later than July 27, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
XAU/USD Current price: $ 4,144US President Donald Trump threatened to intensify attacks on Iran.The United Kingdom released the June Consumer Price Index.XAU/USD is bullish in the near-term, next hurdle at $4,200. The XAU/USD pair extended its weekly rally towards the $4,160 region on Wednesday, holding nearby in the American afternoon. The Greenback found modest demand throughout the first half of the day, but gave up following comments from United States (US) President Donald Trump, threatening to destroy Iran’s power plants and bridges.
“Any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” President Trump shared on Truth Social. The news triggered safe-haven demand, yet again, demand for the precious metal outpaced that for the US Dollar (USD).
Meanwhile, it was the turn of the United Kingdom (UK) to update inflation data. According to the Office for National Statistics (ONS), the Consumer Price Index (CPI) rose 2.6% in the year to June, easing from the 2.8% posted in May. Core annual inflation rose 2.6%, matching the previous reading and slightly higher than the 2.5% anticipated by market players, not enough to fuel rate hike speculation.
Most major economies reported the latest CPI figures in the last few days, and only US and UK inflation receded in June. Canadian and New Zealand figures were above expectations, although not far above previous readings. The numbers are a clear example of how energy-related inflation and, hence, the Middle East war are impacting financial markets these days, and therefore, shaping sentiment and trends.
Easing US inflationary pressures have put a halt to the US Dollar (USD) rally against Gold amid decreasing odds for rate hikes, even in a risk-averse environment.
XAU/USD short-term technical outlook
In the four-hour chart, XAU/USD turned bullish, as the price stands above the 20-period Simple Moving Average (SMA) at $4,060.38, the 100-period SMA at $4,074.44, and the 200-period SMA at $4,124.41, turning this trio into a dense support band beneath the market. Momentum remains constructive, with the Relative Strength Index (RSI) indicator at 66 and the 14-period Momentum indicator holding above its midline, despite losing upward strength.
In the daily chart, XAU/USD turned neutral. The pair holds well below the 200-day SMA at $4,496.16 and the 100-day SMA at $4,501.34, keeping the longer-term trend capped despite the recent bounce. At the same time, XAU/USD reclaimed the 20-day SMA (now at $4,069.95), suggesting some near-term stabilization. Finally, the RSI indicator aims higher at 51, while the Momentum indicator heads nowhere around their midlines.
On the downside, immediate support is located at around $4,100, followed by a congestion of moving averages in the $4,070 region. Deeper pullbacks should deny the bullish case and see the pair battle to retain the $4,000 mark. Resistance, on the other hand, lies at the intraday high at $4,165, followed by the $4,200 threshold.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Investors in AutoZone, Inc. (AZO - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $2100.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for AutoZone shares, but what is the fundamental picture for the company? Currently, AutoZone is a Zacks Rank #3 (Hold) in the Automotive - Retail and Wholesale - Parts industry that ranks in the Top 12% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $55.21 per share to $55.34 in that period.
Given the way analysts feel about AutoZone right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Elanco Animal Health Incorporated (ELAN - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Elanco Animal Health Incorporated currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for ELAN that show why this company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For ELAN, shares are up 4.07% over the past week while the Zacks Medical - Outpatient and Home Healthcare industry is up 1.41% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.92% compares favorably with the industry's 10.34% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Elanco Animal Health Incorporated have increased 15.03% over the past quarter, and have gained 70.66% in the last year. In comparison, the S&P 500 has only moved 6.61% and 20.33%, respectively.
Investors should also pay attention to ELAN's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ELAN is currently averaging 4,014,582 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ELAN.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ELAN's consensus estimate, increasing from $1.10 to $1.11 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that ELAN is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Elanco Animal Health Incorporated on your short list.
NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Texas on behalf of all persons or entities who purchased or otherwise acquired Primoris Services Corporation (“Primoris” or the “Company”) (NYSE: PRIM) securities between August 5, 2025 and June 22, 2026, inclusive (the “Class Period”).
The Complaint alleges that Defendants failed to disclose to investors that: (i) Primoris’ cost estimation, cost-to-complete forecasting, and project oversight processes were deficient and failed to provide reliable estimates of the costs and expected profitability of significant fixed-price renewable energy projects; (ii) as a result, Primoris systematically underestimated the costs and risks of significant fixed-price renewable energy projects that were experiencing material cost overruns, execution problems, and schedule delays; and (iii) accordingly, Defendants’ statements regarding the Company’s estimating processes, project execution, ability to manage project risk, financial performance, and financial guidance lacked a reasonable basis and omitted material adverse facts.
Investors who purchased or otherwise acquired shares of Primoris should contact the Firm prior to the September 21, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces a class action lawsuit on behalf of purchasers of common stock of Primoris Services Corporation (NYSE: PRIM) between August 5, 2025 and June 22 2026. Primoris describes itself as a company that “designs, builds, maintains, and upgrades critical energy and utility infrastructure, including electric grids, natural gas systems, renewable energy projects, pipelines, and communications networks, throughout the Uni.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Atlanta, Pinnacle Financial (PNFP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 1.45%. The regional bank operator is currently shelling out a dividend of $0.50 per share, with a dividend yield of 2.07%. This compares to the Banks - Southeast industry's yield of 1.93% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $2.00 is up 108.3% from last year. Over the last 5 years, Pinnacle Financial has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.56%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Pinnacle Financial's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PNFP for this fiscal year. The Zacks Consensus Estimate for 2026 is $10.18 per share, which represents a year-over-year growth rate of 21.62%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PNFP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Key Takeaways Whirlpool's Q2 sales are likely to fall 4.5% YoY, while earnings are projected to plunge 94.03%.Price hikes and over $150 million in cost savings may aid margins despite soft appliance demand.SDA is expected to grow 13.5%, led by KitchenAid launches, direct sales and share gains. Whirlpool Corporation (WHR - Free Report) is expected to witness declines in its top and bottom lines when it reports second-quarter 2026 results.
The household appliance company’s quarterly revenues are pegged at $3.61 billion, down 4.5% from the prior-year quarter’s figure. The consensus estimate for quarterly earnings has moved downward in the past 30 days to 8 cents per share. However, the consensus mark for earnings indicates a 94.03% fall from the year-ago quarter’s figure.
Whirlpool delivered a negative earnings surprise of 230.2% in the last reported quarter. The bottom line has missed estimates by 55.9%, on average, over the trailing four quarters.
Key Points to Note Ahead of WHR’s Q2 ResultsWhirlpool's second-quarter results are expected to reflect the early benefits of the aggressive pricing actions and cost initiatives announced following a difficult first quarter. Management implemented its largest price increase in more than a decade, including promotional price increases of more than 10%, with additional list-price increases scheduled to take effect during the quarter. The company indicated that these actions would begin benefiting price/mix in the second quarter and continue building through the remainder of the year. Investors will closely monitor whether pricing has remained intact despite a still-soft demand environment and whether the initial recovery in North American margins has started to materialize.
The Zacks Consensus Estimate for MDA North America is currently pegged at $2419 million, indicating a decline of 5.8%.
North American demand trends are likely to remain the biggest determinant of Whirlpool's quarterly performance. Consumer sentiment remained near historic lows following the sharp decline witnessed in March, leading consumers to postpone discretionary appliance purchases and increasingly favor lower-priced products. While management expects March to represent the trough, it also anticipates only a gradual improvement in industry conditions rather than a sharp recovery. Investors will therefore look for evidence that replacement demand has remained resilient, promotional activity has moderated and retail sell-through has stabilized during the quarter.
Margin performance in the second quarter is expected to benefit from Whirlpool's accelerated cost-reduction initiatives and improving competitive dynamics. The company remains on track to deliver more than $150 million in cost savings during 2026 through manufacturing optimization, vertical integration, strategic sourcing and fixed-cost reductions. At the same time, the updated Section 232 tariffs are expected to provide Whirlpool with a structural competitive advantage given its predominantly U.S.-based manufacturing footprint, while imported appliances face materially higher tariff costs. Although raw-material inflation and tariff expenses remain headwinds, management expects the combination of pricing actions and productivity improvements to support a gradual recovery in profitability during the quarter.
Performance across Whirlpool's business segments is likely to remain mixed, with Small Domestic Appliances (SDA) continuing to outperform despite macroeconomic challenges affecting major appliances. Management highlighted another quarter of strong SDA growth, driven by KitchenAid's premium product launches, direct-to-consumer momentum and continued market-share gains. At the same time, major appliance demand is expected to remain pressured by weak consumer confidence, a challenging housing market and ongoing mix headwinds.
The Zacks Consensus Estimate for SDA is currently pegged at $227 million, indicating growth of 13.5%.
What the Zacks Model Unveils for WHROur proven model doesn’t conclusively predict an earnings beat for Whirlpool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Whirlpool currently has an Earnings ESP of -436.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Valuation Picture of WHR StockWith a forward 12-month price-to-earnings ratio of 16.48x, which is below the five-year high of 17.50x and above the Household Appliances industry’s average of 15.57x, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that WHR’s shares have lost 32.7% in the past three months compared with the industry's 27.9% decline.
Image Source: Zacks Investment Research
Stocks Poised to Beat Earnings EstimatesHere are some companies that, according to our model, have the right combination of elements to post an earnings beat:
SharkNinja, Inc. (SN - Free Report) currently has an Earnings ESP of +1.29% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SN is likely to register growth in its bottom and top lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating a 13.5% increase from the figure reported in the year-ago quarter.
The consensus estimate for SN’s second-quarter earnings is pegged at $1.09 per share, implying 12.4% growth from the year-ago quarter’s actual. The consensus mark has dipped a penny in the past 30 days.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 3. MGM is likely to register a top-line increase when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.5 billion, indicating a 1.4% rise from the figure reported in the year-ago quarter.
The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 62 cents a share, implying a 21.5% decrease from the year-earlier quarter. The consensus mark has increased by 2 cents in the past seven days.
Hilton Worldwide, Inc. (HLT - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.
For the to-be-reported quarter, Hilton Worldwide’s earnings are expected to increase 3.6%. Hilton Worldwide reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.6%.
, /PRNewswire/ -- Whirlpool Corporation, one of the world's most iconic home appliance companies, and GrowthLoop, a pioneer in agentic AI-powered marketing solutions, today announced a partnership to drive growth across the company's KitchenAid Small Appliances portfolio. This partnership supports Whirlpool Corporation's customer engagement strategy and activation on its cloud-native data warehouse.
Whirlpool and GrowthLoop are helping teams activate more effectively, deliver more personalized customer experiences, and maximize the value of cloud data. GrowthLoop helps companies unlock a more complete view of its customers, helping teams better understand consumer preferences and engagement opportunities. The insights support more personalized experiences across a portfolio of brands and products.
"A cloud-native data warehouse is central to modernizing our customer engagement strategy across every brand," said Gokul Nair, CIO for KitchenAid Small Appliances. "Collaborating with companies like GrowthLoop helps us maximize this investment—delivering personalized experiences for our consumers and strong, measurable returns for the business."
For Whirlpool Corporation, GrowthLoop is helping build and activate audiences efficiently while supporting an agile approach to customer engagement and experimentation. Whirlpool Corporation is also using the platform to identify high-value subsegments within broader campaigns, helping teams uncover opportunities for more relevant engagement.
Rather than introducing another siloed marketing platform, GrowthLoop enables Whirlpool Corporation to maximize the value of its existing infrastructure, keeping audience intelligence, activation, and measurement centralized within the warehouse.
"The era of the monolithic marketing cloud is over," said Anthony Rotio, co-founder and co-CEO of GrowthLoop. "Legacy infrastructure is killing speed, and today's marketers need faster access to audience insights and activation."
Whirlpool and GrowthLoop are helping teams activate more effectively, deliver more personalized customer experiences, and maximize the value of cloud data.
About GrowthLoop
GrowthLoop is a pioneer in composable, AI-powered marketing on the data cloud, featured on G2 by its customers as a momentum leader with the best ROI for enterprise. The GrowthLoop agentic composable CDP drives compound growth by accelerating the marketing cycle using agentic AI powered by your enterprise cloud data. Working alongside AI agents, teams use GrowthLoop to translate customer data into precise audiences and activate those audiences across real-time customer journeys, measuring and improving performance through always-on analysis — all with zero data movement. Thousands of marketers at enterprises like Costco, Albertsons, and Ford rely on GrowthLoop to bring their AI strategy to life, grow faster with every experiment, personalize every customer touchpoint, and drive rapidly compounding results.
About Whirlpool Corporation
Whirlpool Corporation (NYSE: WHR) is a leading home appliance company, in constant pursuit of improving life at home. As the only major U.S.-based manufacturer of kitchen and laundry appliances, the company is driving meaningful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In 2025, the company reported approximately $16 billion in annual net sales—close to 90% of which were in the Americas—41,000 employees and 35 manufacturing and technology research centers. Additional information about the company can be found at WhirlpoolCorp.com.
Key Takeaways Revvity will launch Signals for Startups in the United States and EMEA in late July 2026.The program offers scalable software, guided onboarding and startup-friendly licensing.It unifies research data, reduces rework and supports investor readiness and long-term growth. Revvity, Inc. (RVTY - Free Report) recently announced the launch of Signals for Startups, a new program to help early-stage biotechnology companies establish scalable digital informatics capabilities from the earliest stages of research. It is scheduled to launch across the United States, Europe, the Middle East and the Africa region in late July 2026.
The program provides startup biotechs with enterprise-grade Signals software, guided onboarding, startup-friendly licensing and best-practice configurations tailored to their needs. By enabling startups to adopt robust informatics capabilities from day one, the program aims to accelerate scientific innovation and research productivity, and reduce the time required to generate value from R&D investments.
Per management, Signals for Startups is built to help emerging biotech companies to grow fast without being held back by fragmented data or workflow challenges that limit their ability to scale. The combination of startup-friendly access, guided onboarding and scalable Signals workflows enables early-stage teams to establish a solid digital foundation, accelerate discovery and prepare for investor readiness and future growth.
Likely Trend of RVTY Stock Following the NewsShares of RVTY have risen 3.8% since the announcement on Monday. Year to date, the stock has gained 14.2% against the industry’s 2.2% fall. However, the S&P 500 has risen 9.5% in the same timeframe.
Revvity’s Signals for Startups program is expected to strengthen its software business by capturing emerging biotech companies early in their lifecycle. As these startups expand, the company can benefit from higher customer retention and increased adoption of its broader Signals portfolio. The initiative also enhances its competitive position in scientific informatics, broadens its presence in the fast-growing biotech sector and creates opportunities for sustained revenue growth through long-term customer relationships.
RVTY currently has a market capitalization of $11.87 billion.
Image Source: Zacks Investment Research
More on the NewsEmerging biotech companies often face the challenge of managing complex research data while operating with limited IT, informatics and operational resources. Signals for Startups addresses these challenges by offering a ready-to-use, scalable informatics environment that allows scientists to focus on innovation rather than system setup. With built-in workflows for both small- and large-molecule research, the platform helps standardize data management, streamline collaboration and create a strong digital foundation from the outset.
The program also provides startups with an easy entry into the Revvity Signals ecosystem through bundled software licenses suited to early-stage organizations, while offering the flexibility to expand as the business grows through funding rounds and commercialization. By replacing disconnected tools and fragmented data management with a unified informatics platform, Signals for Startups helps companies reduce inefficiencies, minimize rework and support long-term research scalability.
The program builds on the broader capabilities of Revvity Signals Software, a comprehensive cloud-based scientific informatics platform that supports research from early discovery through later-stage development. Designed to promote multidisciplinary collaboration, Signals helps research teams centralize scientific data, optimize R&D workflows and accelerate innovation across pharmaceutical, biotechnology, clinical and specialty chemical applications. Trusted by over one million users worldwide, with a 97% renewal rate and used by all of the world's top 20 biopharma companies, Revvity Signals has established itself as a trusted scientific software platform.
Industry Prospects Favoring the MarketGoing by the data provided by Precedence Research, the life science software market is predicted to be valued at $19.65 billion in 2026 and is expected to witness a CAGR of 10.7% through 2035.
Factors like the high investment in drug development and R&D by biotechnology and pharmaceutical companies to manage complex data, the need for integrated and compliant digital solutions, and urgent demand for AI-based automation in drug discovery and clinical trials to decrease time-to-market and R&D costs are boosting the market’s growth.
Other NewsRevvity recently announced that its Signals Software business has been added to Anthropic’s directory for Model Context Protocol connectors, extending the capabilities of Signals AI beyond the Signals One platform. Through the integration, scientists can access Signals AI and connected R&D knowledge using Claude, including Claude Science, Anthropic’s AI workbench for scientific research.
RVTY’s Zacks Rank & Key PicksRevvity currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health (CAH - Free Report) .
West Pharmaceutical, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has an estimated long-term earnings growth rate of 14.4%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion surpassed the Zacks Consensus Estimate by 3.1%.
Intuitive Surgical has an estimated long-term earnings growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.
Cardinal Health, currently carrying a Zacks Rank #2, reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.
Why Institutions Keep Buying Badger Meter After the Big DropBadger Meter NYSE: BMI reported lower second-quarter 2026 sales and earnings from the prior year, but management said revenue improved sequentially as previously awarded advanced metering infrastructure projects began shipping and reaffirmed its expectation for improving quarterly revenue through the rest of the year.
Chief Financial Officer and Treasurer Dan Weltzin said total sales for the quarter were $222.3 million, down 7% year-over-year. Excluding about $2 million in sales from UDlive, which Badger Meter acquired on May 1, base sales declined 7.5% from the prior-year period. However, base sales rose 9% from the first quarter, which management said reflected initial shipment ramps on several awarded projects.
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Badger Meter Gets an Upgrade—2 Stocks That Could FollowChairman, President and Chief Executive Officer Ken Bockhorst said the results were in line with expectations. “As expected, we delivered sequentially improved sales in the second quarter as a number of our previously awarded AMI projects began initial ramping of shipments,” he said. He added that the company saw “a modest increase” in short-term order rates and in flow instrumentation.
Utility Water Sales Decline, Flow Instrumentation Grows Weltzin said utility water sales declined 8% year-over-year, or 9% excluding the acquisition, due to the project pacing dynamics the company has been discussing. Lower AMI-related product revenue was partially offset by higher software and growth in what the company calls beyond-the-meter offerings. On an organic basis, utility sales increased 8% sequentially.
3 bullish mid-cap earnings plays for January 2024Flow instrumentation sales rose 6% from a year earlier, supported by broad-based water application demand. In the question-and-answer session, Bockhorst said the company benefited from orders tied to data center applications, including clamp-on meters and magnetic meters used for cooling towers and flow monitoring. However, he cautioned that the business should still be viewed as having “GDP-like” growth over the company’s five-year strategic horizon.
The company also confirmed that product shipments for the PRASA project have begun. Bockhorst said several other awarded projects have also started, and that the overall cohort of nine previously discussed awarded projects “feels like it’s pretty solid at this point.” Management declined to provide individual project-level details.
Margins Hold Within Range Despite Lower Volumes Operating earnings declined 12% year-over-year, and operating margin fell 110 basis points to 17.7%. Excluding UDlive, base operating margin was 18.4%, down 40 basis points from the year-ago quarter.
Gross margin was 40.8%, down 30 basis points from the second quarter of 2025. Weltzin attributed the decline primarily to lower sales volumes and project mix, but said gross margins remained in the upper half of the company’s normalized range, reflecting “the resiliency of our overall structural mix and pricing discipline.”
Selling, engineering and administrative expenses totaled $51.4 million, down $1.6 million from the prior year. Weltzin said spending controls, lower incentive compensation and cost containment actions more than offset about $3 million of year-over-year spending tied to UDlive and transaction-related costs. The company expects UDlive intangible asset amortization of approximately $5 million annually.
Diluted earnings per share were $1.02, down from $1.17 a year earlier. The effective tax rate was 25.2%, compared with 24.5% in the prior-year quarter.
Cash Flow Lower; Buybacks Continue Free cash flow was $21.9 million, down from $40.6 million in the prior-year quarter. Weltzin cited lower earnings and temporary increases in working capital. Primary working capital as a percentage of sales rose to 22.9% from 20.0% at the end of the prior quarter.
Weltzin said the increase in receivables was related to revenue timing, while inventory levels were above average due to revenue pacing dynamics. He said the company expects to work down inventory through the fiscal year and remains focused on full-year cash flow conversion in excess of 100% of net earnings.
During the quarter, Badger Meter repurchased 204,000 shares for $25.3 million. Weltzin said the company has about $90 million remaining under its current share repurchase authorization and has deployed roughly $80 million in buybacks over the past three quarters. The company also renewed a five-year, $150 million credit facility, which remains undrawn.
Management Reaffirms Full-Year Organic Revenue Outlook Management reaffirmed its outlook for sequential improvement in base quarterly revenue for the balance of 2026. Excluding UDlive, Badger Meter continues to expect full-year organic revenue to be “flat-ish” with 2025 levels.
Bockhorst emphasized that the outlook should not be interpreted as perfectly flat, citing variability in project ramping and short-term order patterns. He said year-over-year base sales growth is expected to be heavily weighted toward the fourth quarter because it represents the company’s easiest comparison.
On short-cycle demand, Bockhorst said the first quarter was an outlier and that second-quarter order rates were “more normal-ish” and typical of the operating environment. He said a higher daily turn rate of orders in the second quarter, combined with project activity, supports the company’s full-year stance.
Management also discussed electronic component cost and availability pressures driven by demand from artificial intelligence and data center build-outs. Weltzin said the company has been able to mitigate the impacts to date, but the pressures are not easing. Bockhorst said Badger Meter has managed similar supply chain challenges before and remains positioned to work through them.
Customer Interest Remains Focused on AMI and Software Bob Wrocklage, Executive Vice President of North America Municipal Utility, said feedback from the AWWA ACE 2026 trade show in Washington, D.C., remained constructive. He said utilities continue to prioritize modernization, efficiency and visibility across water and wastewater networks.
Wrocklage said discussions with consultants and customers focused on both hardware and software components of the company’s Network as a Service offerings, including network resiliency, dynamic multi-carrier SIM technology and the ORION Lens endpoint solution for metal pit lids. He also cited interest in EyeOnWater Premium, the BEACON Field app and Badger Meter’s embedded AI functionality, Cobalt.
Management said the company is continuing to educate utilities on stormwater and sewer line applications through SmartCover and UDlive. Bockhorst said the company’s confidence in the long-term outlook remains intact, supported by replacement demand, AMI adoption, recurring software, beyond-the-meter technologies and acquisitions.
About Badger Meter (NYSE:BMI)Badger Meter, founded in 1905 and headquartered in Milwaukee, Wisconsin, is a global leader in flow measurement and control solutions. The company's core business centers on the design, manufacture and sale of water meters, control valves and related accessories for municipal and industrial water utilities. Over its more than a century of operation, Badger Meter has built a reputation for precision engineering, durability and compliance with international regulatory standards.
The company's product portfolio includes mechanical and ultrasonic water meters, electromagnetic flow meters for industrial applications, and a range of control valves that help utilities manage pressure and flow in distribution networks.
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Should You Invest $1,000 in Badger Meter Right Now?Before you consider Badger Meter, you'll want to hear this.
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LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 3, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Badger Meter, Inc. (“Badger Meter” or the “Company”) (NYSE: BMI) common stock between April 18, 2024 and April 16, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR BADGER METER INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On July 22, 2025, Badger Meter released its second quarter 2025 financial results, reporting below-consensus earnings, revenue growth decline, and margin deterioration. The Company also expected that “absolute sales [would] decline sequentially in the third quarter of 2025.”
On this news, Badger Meter’s stock price fell $40.42, or 16.5%, to close at $204.80 per share on July 22, 2025, thereby injuring investors.
Then, on January 28, 2026, Badger Meter released its fourth quarter 2025 financial results, revealing missed revenue expectations and a “6% sequential decline in utility water sales” due to “previously communicated project pacing effects.”
On this news, Badger Meter’s stock price fell $18.09, or 11%, to close at $146.32 per share on January 28, 2026.
Then, on April 17, 2026, Badger Meter released its first quarter 2026 results, disclosing that total sales were “9% lower than the prior year,” “[u]tility water sales declined 10% year-over-year,” “[o]perating earnings of $35.2 million, with an operating margin of 17.4%, compared to operating earnings of $49.4 million and an operating margin of 22.2% in the prior year,” and “[d]iluted earnings per share (EPS) of $0.93, down from $1.30 in the first quarter of 2025.” The Company cited “project timing” and “softer short-cycle municipal customer ordering.”
On this news, Badger Meter’s stock price fell $36.75, or 24.1%, to close at $115.54 per share on April 17, 2026, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Badger Meter’s financial results during the Class Period were at least partially attributable to the Company’s practice of pulling-forward customer orders to recognize revenue early, which concealed weakening demand and deteriorating near-term order trends; (2) this practice also depleted revenue otherwise available for future periods, ultimately causing the disappointing financial results the Company later reported; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Badger Meter common stock during the Class Period, you may move the Court no later than August 3, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
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Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
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Key Takeaways HWM's commercial aerospace and defense markets fueled strong first-quarter 2026 revenue growth. HWM benefits from aircraft production, defense demand and rising 2026 sales and EPS estimates. LHX posted record backlog and orders, but debt levels and weaker EPS estimate trends remain concerns. Geopolitical instability across the globe has fueled demand for defense equipment and technologies, providing a significant growth tailwind for companies like Howmet Aerospace Inc. (HWM - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) . These are two familiar names operating in the aerospace and defense industry.
Howmet is a leading manufacturer of components and systems for jet engines and airframes, while L3Harris provides integrated aerospace and defense technologies, including avionics, electronic systems, and command-and-control solutions, to customers in the United States and internationally.
Rising global defense spending and the continued recovery in commercial aviation have boosted investor interest in aerospace companies with defense exposure. But which of these two stocks is better positioned to capitalize on these trends? Let’s compare their fundamentals to find out.
The Case for HowmetHowmet’s strongest growth driver remains the sustained momentum in the commercial aerospace market. In the first quarter of 2026, revenues from this market increased 20% year over year to more than $1.2 billion, accounting for 53% of the company’s total quarterly sales. Healthy global air travel has boosted aircraft utilization, driving demand for replacement parts and components supplied by Howmet.
The favorable market environment benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The continued strength was driven by solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. The Fastening Systems segment recorded 14% revenue growth, benefiting from solid demand in both the commercial and defense aerospace markets.
Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.
The company is also benefiting from strength in the defense aerospace market. In the first quarter, revenues from this market rose 10% year over year, fueled by higher demand for engine spares related to the F-35 program and increased orders for legacy fighter jet replacement parts.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.
The Case for LHXL3Harris is well-positioned to benefit from robust U.S. defense spending, supported by favorable budgetary priorities and rising investments in advanced defense technologies. The fiscal 2027 President's Budget Request, introduced in April 2026, proposed roughly $1.5 trillion in funding for national defense programs, creating a favorable demand environment for the company's Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions portfolios.
LHX also remains well aligned with key U.S. defense priorities, including the Golden Dome, missile defense and hypersonic tracking. In the first quarter of 2026, L3Harris generated $7.8 billion in orders, resulting in a robust 1.4x book-to-bill ratio, while its backlog reached a record $40.7 billion, providing strong revenue visibility for future program execution. Strengthening its position further, the company secured a Space Development Agency contract worth up to $843 million to build 18 infrared satellites for the Tranche 3 Tracking Layer, designed to detect and track advanced missile threats.
Also, its Aerojet Rocketdyne subsidiary entered into definitive agreements in April 2026 for a $1.0 billion investment from the U.S. Department of War to expand manufacturing facilities, accelerate research and development, and increase production capacity for critical propulsion and missile technologies.
Beyond the United States, L3Harris continues to benefit from rising defense spending among allied nations. The company is witnessing healthy demand across Europe, the Middle East and the Asia-Pacific region as governments strengthen their defense capabilities. In the first quarter of 2026, the company’s international revenues totaled $1.29 billion, led by the Communications & Spectrum Dominance and Space & Mission Systems.
L3Harris is also sharpening its portfolio while investing in future growth. The company is progressing with the sale of its Space Technology business to AE Industrial Partners for a net enterprise value of $825 million, with the transaction expected to close in the second half of 2026.
Despite these strengths, the company's leveraged balance sheet remains a concern. As of April 3, 2026, L3Harris had $0.59 billion in cash and cash equivalents compared with $9.19 billion in long-term debt.
Also, persistent labor shortages and supply-chain constraints across the aerospace and defense industry continue to pose execution risks, potentially affecting production schedules and timely program deliveries.
The Zacks Consensus Estimate for HWM & LHXThe Zacks Consensus Estimate for HWM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 18% and 32%, respectively. HWM’s EPS estimates for 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for LHX’s 2026 sales and EPS indicates year-over-year growth of 7.7% and 7.6%, respectively. LHX’s EPS estimates have been trending southward over the past 60 days for 2026.
Image Source: Zacks Investment Research
Price Performance and ValuationIn the past year, Howmet shares have soared 49.6%, while L3Harris stock has gained 3%.
Image Source: Zacks Investment Research
HWM is trading at a forward 12-month price-to-earnings ratio of 50.33X, above its median of 26.43X over the last five years. LHX’s forward earnings multiple sits at 21.98X, above its median of 16.70X over the same time frame.
Image Source: Zacks Investment Research
Final Take on HWM & LHXHowmet is benefiting from sustained strength in both commercial and defense aerospace markets, driven by the recovery in air travel, healthy demand for engine spares and higher defense spending. Backed by solid revenue growth and a strong order pipeline, the company continues to enhance shareholder value through dividends and share repurchases.
L3Harris is well-positioned for long-term growth, supported by its strong presence in both domestic and international defense markets, a record backlog and a robust pipeline of programs. However, ongoing supply-chain constraints, labor shortages and a highly leveraged balance sheet continue to pose challenges to its growth outlook.
Given these factors, HWM seems a better pick for investors than LHX currently. While Howmet currently has a Zacks Rank #2 (Buy), LHX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
3 Energy Stocks to Watch Now as LNG Demand SurgesRange Resources NYSE: RRC said its second-quarter 2026 operations kept the company on track with a multi-year growth plan, as executives pointed to record drilling and completion efficiency, rising production and higher pricing expectations for natural gas liquids and natural gas.
Chief Executive Officer Dennis Degner said the quarter marked “a unique milestone” as Range reached the midpoint of the growth plan it announced early last year. He said the company’s cost structure, well performance and marketing portfolio are supporting free cash flow while Range grows production.
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These energy stocks are most-upgraded amid falling oil pricesSecond-quarter production averaged 2.3 billion cubic feet equivalent per day, Degner said. Range expects production to rise ratably through the rest of the year, reaching 2.5 Bcfe per day by year-end as gas processing and related infrastructure move through commissioning. Executives said that outlook remains consistent with prior guidance and positions the company for 2027.
Operational efficiency drives record activity Range reported second-quarter capital spending of $222 million. Degner said the company added a second completion crew to work through part of its drilled-but-uncompleted inventory that had accumulated over the prior 24 months. The quarter also included a spot horizontal rig for a single pad development expected to turn to sales later this year.
10 Best Natural Gas Stocks to Buy NowDegner said Range expects to return to a single horizontal rig and single frac crew in the fourth quarter, keeping capital plans aligned with prior guidance. The company drilled about 190,000 lateral feet during the quarter.
Range highlighted several operational records and efficiency gains during the call:
Drilling crews recorded 19 days in which they drilled more than one mile horizontally, including one 24-hour period above 10,500 feet. Two completion crews completed nearly 1,900 frac stages during the quarter, including downtime for moves between pad sites. The two crews averaged more than 10 stages per day per crew, while the company’s contracted electric frac fleet approached 14 stages per day. The company set records for most frac stages in one day by a single crew, at 20, and highest pumping hours in one day, at 22 hours. Degner said the stronger completion efficiency allowed Range to move a portion of second-half 2026 drilling activity into 2027 while remaining aligned with its 2026 and 2027 capital and development plans. In response to an analyst question, he said Range had planned to use about 400,000 lateral feet of DUC inventory over 2026 and 2027 and remains on track, though it is “a few wells ahead.”
Capital returns and balance sheet remain priorities Chief Financial Officer Mark Scucchi said Range repurchased $78 million of shares in the second quarter, bringing first-half repurchases to $105 million. The company also paid $24 million in dividends during the quarter, for a year-to-date total of $47 million, and reduced debt by $337 million in the first half.
Scucchi said the combined effect represented $489 million of year-to-date enterprise value returned to equity holders, or roughly 5.5% of Range’s market capitalization over six months. Since launching its repurchase program, Range has bought back 35.9 million shares, reducing its share count by nearly 10%, he said.
Scucchi described Range’s balance sheet as “roughly half a turn levered” and said the company is not delaying capital returns or business investments because of balance sheet needs. He also said Range’s balance sheet metrics are stronger than investment-grade peers, though the company remains rated below investment grade. In commercial discussions, Scucchi said, the credit rating has “never been a topic of discussion.”
Marketing outlook improves for NGLs and natural gas Range raised its full-year NGL pricing guidance to a premium of $2.50 per barrel over the Mont Belvieu index, citing strong international pricing and the structure of its physical sales agreements. Degner said Range captured an NGL premium of $3.49 per barrel over Mont Belvieu in the second quarter.
The company also improved its full-year natural gas guidance to a discount of $0.35 to $0.40 per Mcf versus Henry Hub, reflecting what Degner called a strong start to the year.
Degner said U.S. exports of LNG, ethane and LPG grew sharply from year-earlier levels during the second quarter. He said LNG feed gas averaged more than 17 Bcf per day, up 17% from the same period in 2025. U.S. waterborne ethane exports were estimated at 658,000 barrels per day, up 40% year over year, and waterborne propane and butane exports exceeded 2.6 million barrels per day, up 30% year over year.
Degner said Range expects export growth to support domestic fundamentals and pricing across its products. He also pointed to additional LPG export capacity expected in early 2027 and Repauno dock capacity that Range expects to enter service in 2027 as factors supporting continued access to international markets.
Management discusses growth beyond 2027 Executives repeatedly emphasized that Range’s current plan remains on track. Scucchi said the company previously laid out a three-year plan to grow production 20% to about 2.6 Bcfe per day in 2027. He said Range estimates it can maintain that level for less than $600 million of annual drilling and completion capital, or about $0.60 per Mcfe.
In analyst questions, management said growth beyond 2027 will depend on securing a “home” for incremental production. Degner said Range could potentially continue growing at a similar rate after 2027 with similar capital investment, provided demand materializes. He cited in-basin power and data center demand, takeaway capacity and Range’s inventory depth as key factors.
Scucchi said Range has more than 30 years of Marcellus inventory and described growth as a matter of “when and how much,” depending on customer demand and margins. He said the company would not simply grow volumes and sell into the basin without confidence that production has an end market.
Range also discussed potential longer-term flexibility in midstream investments. Degner said the company could evaluate investments in gathering and compression tied to incremental supply deals, depending on the economics of those molecules compared with traditional fee-based arrangements.
Degner said Range’s 2026 capital outlook is unchanged despite some resequencing of drilling activity. He said 2027 capital should be similar to what the company has communicated, unless a larger growth opportunity requires additional investment.
About Range Resources (NYSE:RRC)Range Resources Corporation, headquartered in Fort Worth, Texas, is an independent energy company engaged in the exploration, development and production of natural gas, oil and natural gas liquids. The company focuses its core operations on the Appalachian Basin, with a significant presence in Pennsylvania's Marcellus Shale. Through its drilling and completion activities, Range Resources seeks to optimize production efficiency while maintaining a disciplined approach to capital allocation and cost management.
The company's technical expertise centers on advanced horizontal drilling and hydraulic fracturing techniques, which it applies to unlock unconventional resources.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
New York, New York--(Newsfile Corp. - July 22, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Planet Fitness, Inc. (NYSE: PLNT) 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 Planet Fitness, Inc. securities between November 6, 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/PLNT.
Planet Fitness, Inc. Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Planet Fitness' updated marketing messaging was failing to resonate with, and was actively intimidating, its core target demographic of fitness beginners and casual gym-goers; as a result, the Company was experiencing significant headwinds in net member growth during its critical first-quarter sign-up period, rendering its previously issued fiscal 2026 guidance and long-term financial targets unattainable; contrary to Defendants' representations, Planet Fitness would be required to restructure its marketing strategy, forgoing the benefits it claimed would result from continuing its existing marketing campaign, and abandon its planned Black Card membership price increase upon which its sales projections were based; and as a result of the foregoing, Defendants' statements about the Company's business, operations, financial guidance, and prospects were materially false and misleading at all relevant times.What's Next for Planet Fitness, Inc. 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/PLNT, 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 Planet Fitness, Inc. you have until September 14, 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 Planet Fitness, Inc. 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 Planet Fitness, Inc. Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming September 14, 2026 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Planet Fitness, Inc. (“Planet Fitness” or the “Company”) (NYSE: PLNT) common stock between November 6, 2025 and May 6, 2026, inclusive (the “Class Period”).IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PLANET FITNESS, INC. (PLNT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE.
NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Planet Fitness, Inc. (NYSE: PLNT) 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 Planet Fitness, Inc. securities between November 6, 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/PLNT.
Planet Fitness, Inc. Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Planet Fitness’ updated marketing messaging was failing to resonate with, and was actively intimidating, its core target demographic of fitness beginners and casual gym-goers; as a result, the Company was experiencing significant headwinds in net member growth during its critical first-quarter sign-up period, rendering its previously issued fiscal 2026 guidance and long-term financial targets unattainable; contrary to Defendants’ representations, Planet Fitness would be required to restructure its marketing strategy, forgoing the benefits it claimed would result from continuing its existing marketing campaign, and abandon its planned Black Card membership price increase upon which its sales projections were based; and as a result of the foregoing, Defendants’ statements about the Company’s business, operations, financial guidance, and prospects were materially false and misleading at all relevant times. What's Next for Planet Fitness, Inc. 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/PLNT 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 Planet Fitness, Inc. you have until September 14, 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 Planet Fitness, Inc. 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 Planet Fitness, Inc. Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
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Prior results do not guarantee similar outcomes.
Investors looking for stocks in the Technology Services sector might want to consider either Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) or Symbotic Inc. (SYM).
Bitcoin retreats from $67,000 amid broader market correction.
Original Image Credit: United States Department of the Treasury
Posted July 22, 2026 at 6:35 am EST.
Bitcoin has dipped below $66,000 after climbing as much as 2.5% to trade just shy of $67,000 on Tuesday for the first time since mid-June amid optimism around the Clarity Act and AI.
The move mirrors a broader market correction as investors await Alphabet’s earnings today.
This story is an excerpt from the Unchained Daily newsletter.
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Bitcoin and the broader crypto markets had rallied on reports that the White House on Monday night signed off on ethics language for the Clarity Act, the provision that had stalled the market-structure bill for months. Stoking further optimism, Treasury Secretary Scott Bessent on Tuesday told Fox Business that the bill is at the “1-yard line,” urging a vote before the August recess.
In the backdrop was also a broader tech rally on optimism around AI demand and looming earnings reports. Bitcoin had fallen in tandem with these stocks last Friday.
The End of Crypto Winter? The Clarity Act optimism and the recent rally had again stoked speculation that the extended crypto market downturn is at an end.
“If [Clarity] passes, winter is over,” Bitwise investment chief Matt Hougan said on X. Amid recent developments the market is underestimating the chances of the bill passing this year, Hougan said.
Polymarket bettors most recently put the odds of the bill passing this year at 41%.
The bill has just over 10 working days left till the August recess and needs 60 votes in the Senate, which would require at least seven Democrats to cross over.
Related Listen: Bitcoin and ETH Are Up. But This Crypto Rally Still Lacks Conviction
AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
Adjusted earnings were $2.25 per share, topping the analyst consensus estimate of $2.20. Revenue rose 11% year over year to $1.70 billion, ahead of the $1.696 billion consensus estimate. On a local currency basis, revenue increased 10%.
Equifax narrowed its full-year adjusted EPS guidance to $8.39 to $8.69 from a previous range of $8.34 to $8.74. The midpoint remains in line with the analyst consensus estimate of $8.60.
The company also tightened its full-year revenue outlook to $6.71 billion-$6.78 billion from $6.685 billion-$6.805 billion. The midpoint is broadly in line with the consensus estimate of $6.764 billion.
For the third quarter, Equifax forecast adjusted EPS of $2.15 to $2.25, below the analyst estimate of $2.26. It expects revenue of $1.68 billion to $1.71 billion, compared with the consensus estimate of $1.711 billion.
Equifax shares fell 2.5% to trade at $168.72 on Wednesday.
These analysts made changes to their price targets on Equifax following earnings announcement.
Needham analyst Kyle Peterson maintained the stock with a Buy and lowered the price target from $265 to $245. Barclays analyst Manav Patnaik maintained the stock with an Equal-Weight rating and cut the price target from $215 to $200. RBC Capital analyst Ashish Sabadra maintained the stock with an Outperform rating and lowered the price target from $222 to $194. Considering buying EFX stock? Here’s what analysts think:
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Shares of Pegasystems (PEGA -16.10%) were moving lower today after the enterprise automation software company missed the mark in its second-quarter earnings report, coming up short on both the top and bottom lines.
As a result, the stock was down 13.6% as of 9:49 a.m. ET.
Image source: Getty Images.
Pega comes up short Pega, as the company is often known, said that revenue in the quarter was up 9% to $420.7 million, but that missed estimates at $426.6 million.
The company reported overall annual contract value (ACV) growth of 7%, and 22% ACV growth in Pega Cloud. Management explained the slowdown in ACV growth, saying, "Unprecedented changes in the AI market caused clients to delay their purchasing decisions," which seems to reflect customers spending more on AI-native tools rather than traditional cloud software.
On the bottom line, Pega's adjusted earnings per share increased from $0.28 to $0.35, though that was short of expectations at $0.43.
Pega COO and CFO Ken Stillwell gave the quarter a positive spin, saying, "As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega's strengths."
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What's next for Pega Pegasystems does not give quarterly guidance, which increases the weight of the quarterly results. This is the second quarter in a row that Pegasystems has missed estimates, and its struggles seem to confirm the same headwinds in the enterprise automation software sector that caused IBM stock to plunge last week.
Pega stock looks cheap based on adjusted earnings expectations, but the sell-off is understandable given what seems to be AI disruption.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.
Pegasystems (NASDAQ:PEGA) shares fell about 15% following the release of its second quarter 2026 results, after the enterprise software company missed Wall Street expectations on both earnings and revenue.
The company reported adjusted earnings per share of $0.35 for the quarter, below analyst estimates of $0.43.
Revenue came in at $420.7 million, compared with consensus expectations of $427.4 million.
Revenue increased 9% year over year from $384.5 million, driven by growth in subscription-related businesses. Pega Cloud revenue rose 28% year over year to $213.9 million, while subscription services revenue increased 17% to $288.5 million. Consulting revenue declined 13% to $50.2 million.
Pegasystems highlighted growth in annual contract value (ACV), with total ACV increasing 7% year over year to $1.62 billion, or 8% on a constant currency basis. Pega Cloud ACV grew 22% year over year.
The company also reported strong cash generation during the first half of the year, with operating cash flow reaching $298 million and free cash flow totaling $288 million.
“Pega generated record first-half cash flow and returned substantial capital to shareholders,” Pegasystems’ chief operating officer and chief financial officer Ken Stillwell said in a statement.
“As the market shifts from AI experimentation to tokenomics and reliable business outcomes, that evolution plays directly to Pega’s strengths, and we remain confident in our strategy to capitalize on the opportunity ahead.”
Pegasystems CEO Alan Trefler highlighted the company’s AI-focused product developments, including the release of Pega Infinity 26, which the company said is designed to help enterprises deploy AI with more predictable costs and outcomes.
“Pega Infinity 26 uniquely deploys the power of AI with predictable outcomes and predictable costs by applying agents at design time to optimize run-time token use,” Trefler wrote.
Pegasystems noted that changes in the artificial intelligence market have caused some customers to delay purchasing decisions, impacting ACV growth during the first half of the year. The company warned that these factors could continue to weigh on ACV growth for the remainder of 2026.
3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIATE Connectivity NYSE: TEL reported record adjusted earnings per share and record orders in its fiscal 2026 third quarter, with executives pointing to accelerating demand tied to artificial intelligence infrastructure, power investment, electrification and automation.
Chief Executive Officer Terrence Curtin said the company’s “strategic positioning around the accelerating data and power trend continues to drive broad-based outperformance,” adding that TE is participating in what he described as one of the largest global technology and infrastructure investment cycles. The company now expects full-year fiscal 2026 sales to grow approximately 15%, representing more than $2.5 billion of incremental revenue, while adjusted earnings per share are expected to rise 23% year over year.
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Insiders Sold Big at These 3 Stocks—Should You Worry?For the third quarter, TE Connectivity reported sales of $5.2 billion, up 14% on a reported basis and 12% organically from the prior year. Orders rose 27% year over year to a record $5.7 billion and increased 7% sequentially. The company said it ran a book-to-bill ratio of 1.1 both in the quarter and year to date.
Adjusted earnings per share increased 22% year over year to a record $2.94. Adjusted operating margin expanded 90 basis points to 21.9%. GAAP operating income was $981 million, while GAAP EPS was $2.55, including restructuring, acquisition and other charges as well as amortization expense.
AI and Power Demand Drive Industrial Segment Growth This mid-cap tech stock just jumped 30%...and is still cheapTE’s Industrial Solutions segment posted third-quarter sales growth of 22% on a reported basis and 21% organically. Curtin said the segment benefited from growth across the portfolio, led by more than 30% organic growth in both the Digital Data Networks, or DDN, business and the energy business.
In DDN, sales increased 34% year over year and were up $100 million sequentially. Curtin said the company continues to see demand tied to AI architectures, including increasing deployment of CPUs and networking that expands the market for high-speed copper connectivity. He also said TE sees longer-term opportunities in optical connectivity following its RAM Photonics acquisition, though meaningful revenue from fiber-attached unit technology is not expected until 2028 and beyond.
Responding to analyst questions about copper versus optical connectivity in AI infrastructure, Curtin said TE views the opportunity as “copper and optical,” rather than one replacing the other. He said copper is expected to remain important within racks and scale-up architectures, while optical is already prevalent in scale-out applications. He also noted that rising power requirements in AI systems are creating additional opportunities for TE’s power connectivity products.
Energy sales grew 33% organically in the quarter. Curtin said the business is benefiting from utility grid hardening, aging infrastructure replacement and data center build-outs. He estimated that about one-third of the energy market growth where TE is positioned is driven by data center build-outs, and said the company views the energy business as more of a “mid-teens” grower for the year and into next year.
Automation and Connected Living sales rose 16%, or 14% organically, with growth across every region. Aerospace and defense sales increased 12%, supported by strength in commercial aerospace and defense markets. Curtin said defense is seeing a stronger inflection, particularly in Europe and the U.S., with backlog building as program velocity increases.
Transportation Segment Outperforms Vehicle Production TE’s Transportation Solutions segment grew 7% on a reported basis and 5% organically. Automotive sales increased 5% reported and 3% organically, despite what management described as a decline in vehicle production. Curtin said the company continues to benefit from higher content per vehicle, including data connectivity, electrification of the powertrain and software-defined vehicle architectures.
Curtin said TE expects automotive content outperformance in the range of four to six percentage points for fiscal 2026 and over the longer term. In China, he said TE’s business grew 6% against a 2% decline in production, reflecting eight points of outperformance. He added that exports by Chinese original equipment manufacturers are helping offset a weaker domestic market.
Commercial Transportation sales increased 20% on a reported basis and 18% organically. Curtin cited improving cycle trends across regions and market verticals, new program wins and further electrification of trucks in Asia. Transportation segment adjusted operating margin was 21%.
Record Orders Build Visibility Into Fiscal 2027 Management emphasized that order strength was broad-based. Industrial segment orders increased 36% from the prior year, while Transportation orders rose 19%. Curtin said every business across both segments delivered double-digit order growth.
Within Industrial, year-to-date DDN orders were up more than 70% versus last year, while energy, aerospace and defense, and Automation and Connected Living each posted 20% year-to-date order growth. Curtin said roughly half of the year-over-year Industrial order increase came from DDN, with AI program ramps contributing to backlog that is expected to support fiscal 2027 growth.
Chief Financial Officer Heath Mitts said the company will exit fiscal 2026 with a strong backlog position in both Industrial and Transportation. He said order momentum and backlog growth give management confidence that TE’s performance will continue into next year.
Cash Flow, Capital Returns and Astrodyne TDI Acquisition TE generated $1.2 billion of cash from operations and $883 million of free cash flow in the quarter. Year to date, free cash flow was approximately $2.2 billion. Mitts said TE has returned about $2 billion to shareholders through dividends and share repurchases so far this year and continues to expect free cash flow conversion of roughly 100% for fiscal 2026.
The company also announced an agreement to acquire Astrodyne TDI, a bolt-on acquisition expected to add more than $250 million in annual sales. TE said the purchase price is approximately $1.4 billion and the transaction is expected to close by the end of the calendar year, subject to customary closing conditions.
Curtin said Astrodyne TDI expands TE’s portfolio of power filters and custom power supplies for mission-critical applications, including semiconductor equipment, defense and medical markets. Mitts said the acquisition will be funded with cash and is expected to be accretive to TE’s growth rates and margins at both the company level and within the Industrial segment.
Fourth-Quarter Outlook For the fiscal fourth quarter, TE expects sales of approximately $5.25 billion, up 11% from the prior year, and adjusted EPS of about $3.05. Mitts said the adjusted effective tax rate is expected to be between 22% and 23% in the fourth quarter, while cash taxes are expected to remain well below the adjusted effective rate.
Management said the company continues to manage inflationary pressures through pricing and cost actions while investing in engineering and manufacturing capacity to support future growth.
About TE Connectivity (NYSE:TEL)TE Connectivity NYSE: TEL is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.
The company's products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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TE Connectivity plc (TEL) Q3 2026 Earnings Call July 22, 2026 8:30 AM EDT
Company Participants
Sujal Shah - Vice President of Investor Relations
Terrence Curtin - CEO & Executive Director
Heath Mitts - CFO, Executive VP & Executive Director
Conference Call Participants
Scott Davis - Melius Research LLC
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Ruplu Bhattacharya - BofA Securities, Research Division
Christopher Glynn - Oppenheimer & Co. Inc., Research Division
Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Joseph Giordano - TD Cowen, Research Division
Asiya Merchant - Citigroup Inc., Research Division
Steven Fox - Fox Advisors LLC
Manmohanpreet Singh - JPMorgan Chase & Co, Research Division
Joseph Spak - UBS Investment Bank, Research Division
Colin Langan - Wells Fargo Securities, LLC, Research Division
William Stein - Truist Securities, Inc., Research Division
Shreyas Patil - Wolfe Research, LLC
Presentation
Operator
Everyone, thank you for standing by, and welcome to the TE Connectivity Third Quarter Earnings Call for Fiscal Year 2026. [Operator Instructions] As a reminder, today's call is being recorded.
I would now like to turn the conference over to our host, Vice President of Investor Relations, Sujal Shah. Please go ahead.
Sujal Shah
Vice President of Investor Relations
Good morning, and thank you for joining our conference call to discuss TE Connectivity's third quarter results and outlook for our fourth quarter of fiscal 2026. With me today are Chief Executive Officer, Terrence Curtin; and Chief Financial Officer, Heath Mitts.
During this call, we'll be providing certain forward-looking information, and we ask you to review the forward-looking cautionary statements included in today's press release. In addition, we will use certain non-GAAP measures in our discussion this morning, and we ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items. The press release and related tables, along with the slide presentation, can be found
CBIZ (CBZ - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis provider of outsourced business services is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -22.1%.
Revenues are expected to be $699.41 million, up 2.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.62% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for CBIZ?For CBIZ, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.41%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that CBIZ will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that CBIZ would post earnings of $2.28 per share when it actually produced earnings of $2.50, delivering a surprise of +9.65%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CBIZ doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Jacobs Solutions (J - Free Report) and Advanced Drainage Systems (WMS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Jacobs Solutions has a Zacks Rank of #2 (Buy), while Advanced Drainage Systems has a Zacks Rank of #5 (Strong Sell). This means that J's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
J currently has a forward P/E ratio of 17.93, while WMS has a forward P/E of 21.22. We also note that J has a PEG ratio of 1.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMS currently has a PEG ratio of 1.50.
Another notable valuation metric for J is its P/B ratio of 4.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WMS has a P/B of 5.75.
Based on these metrics and many more, J holds a Value grade of B, while WMS has a Value grade of D.
J sticks out from WMS in both our Zacks Rank and Style Scores models, so value investors will likely feel that J is the better option right now.
Key Takeaways Sterling is expanding from site development into electrical and mechanical work on mission-critical projects.Mission-critical projects made up more than 90% of E-Infrastructure backlog at the end of Q1 2026.A $5.15 billion backlog and cross-selling on data center campuses could support further margin gains. Sterling Infrastructure, Inc. (STRL - Free Report) has already delivered one of the strongest margin expansion stories in the engineering and construction industry. But the next phase of the company's profitability may depend less on project volume and more on how effectively it expands its vertically integrated service model.
That strategy became more evident following Sterling's $561.6 million acquisition of CEC Facilities Group. Traditionally recognized for large-scale site development, STRL can now provide specialty electrical and mechanical services, extending its capabilities further into mission-critical projects such as data centers, semiconductor fabrication facilities and advanced manufacturing plants. Rather than handing projects off to another specialty contractor after site preparation, Sterling is increasingly participating across multiple stages of the project lifecycle.
Early results suggest that the strategy is gaining traction. Mission-critical projects accounted for more than 90% of E-Infrastructure backlog at the end of first-quarter 2026. Segment revenues rose 174% year over year to $597.7 million, while operating income increased 187% to $133.8 million. CEC contributed $156.1 million in quarterly revenues, and Sterling is actively cross-selling its electrical capabilities with the company's legacy civil site-development services. STRL is already executing two major data center campuses under this integrated civil-and-electrical delivery model.
Vertical integration also strengthens the company's competitive position. Large customers increasingly prefer contractors capable of managing multiple phases of complex projects because it reduces coordination risk, streamlines execution and simplifies project oversight. For Sterling, providing a broader range of services increases the opportunity to capture a larger share of project spending, strengthens customer relationships and supports greater revenue visibility through its $5.15 billion combined backlog, particularly across fast-growing AI-driven data center and semiconductor markets.
Disciplined project selection, favorable mix and strong execution have already lifted profitability, while deeper integration across mission-critical projects could provide another avenue for margin expansion.
Integrated Capabilities Are Reshaping Industry CompetitionSterling's vertically integrated strategy reflects a broader industry shift, with contractors expanding their capabilities to capture a larger share of complex infrastructure projects. Companies like Comfort Systems USA, Inc. (FIX - Free Report) and MasTec, Inc. (MTZ - Free Report) are pursuing similar strategies to capitalize on growing demand from AI-driven data centers and other mission-critical facilities.
Comfort Systems continues to deepen its integrated mechanical and electrical capabilities as demand for technology infrastructure accelerates. The company reported a record backlog of $12.5 billion, with advanced technology projects accounting for 56% of revenues and remaining the largest driver of pipeline and backlog. Management also highlighted increased collaboration between its mechanical and electrical businesses, continued investments in modular manufacturing capacity and automation, and acquisitions that expand its electrical capabilities, enabling FIX to deliver more comprehensive solutions for large mission-critical projects.
MasTec is pursuing a similar strategy by broadening its turnkey infrastructure capabilities. Management emphasized that combining civil, power, telecom and construction-management expertise positions the company to capture a larger share of data center and critical infrastructure spending. MTZ continues to expand its self-perform capabilities to improve margins while customers increasingly seek deeper partnerships, alliance agreements and turnkey solutions that provide greater execution certainty for large, complex projects.
STRL Stock’s Price Performance & Valuation TrendShares of this Texas-based infrastructure services provider have surged 126.7% year to date, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.
STRL's YTD Share Price Performance
Image Source: Zacks Investment Research
STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.5, as shown in the chart below.
STRL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Revision of STRLSTRL’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days to $19.12 and $25.83 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 74.7% and 32.9%, respectively.
Image Source: Zacks Investment Research
STRL's Zacks RankSterling stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Enterprise AI adoption is increasing demand for cybersecurity tools to protects AI workloads and identities.FTNT and OKTA are expanding AI security offerings to protect AI infrastructure and digital identities.S and ZS are enhancing AI-powered platforms to secure AI applications, cloud environments and enterprise data. Artificial intelligence (AI) is becoming a key part of enterprise operations. Businesses are using AI to automate tasks, improve customer service, analyze data and help employees work more efficiently. Many organizations are deploying AI agents that can perform tasks and interact with enterprise applications with limited human involvement.
While AI is improving productivity, it is also creating new cybersecurity challenges. AI applications, AI agents and cloud-based AI workloads are expanding the attack surface for businesses. Organizations now need to secure AI identities, protect AI workloads, monitor AI activity and defend their infrastructure from increasingly sophisticated cyber threats. This is driving higher demand for cybersecurity solutions built for the AI era.
Per the McKinsey & Company report, AI-related cybersecurity spending is expected to increase from about 4% of enterprise cybersecurity budgets in 2026 to nearly 15% in 2029, reflecting growing demand for AI security solutions. As enterprise AI adoption continues to grow, Fortinet, Inc. (FTNT - Free Report) , Okta (OKTA - Free Report) , SentinelOne (S - Free Report) and Zscaler (ZS - Free Report) are well-positioned to benefit from rising demand for AI security solutions.
YTD Price Return Performance
Image Source: Zacks Investment Research
Fortinet provides cybersecurity solutions that help organizations protect their networks, cloud environments and endpoints. As enterprises invest in AI infrastructure, this Zacks Rank #1 (Strong Buy) company is expanding its portfolio to secure AI data centers, AI workloads and high-speed AI networks. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet has introduced next-generation firewalls designed for AI data centers and high-speed AI networks to secure AI data centers and internal AI traffic. The company is strengthening its Security Fabric platform with AI-powered security operations, managed detection and response, endpoint security and secure networking, allowing customers to manage their security through a unified platform. With AI driving higher demand for both networking and security products, Fortinet remains well-positioned to benefit from rising investments in AI infrastructure and enterprise AI deployments.
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.15 per share, up by a penny over the past 60 days, suggesting 14.1% growth from the figure reported in 2026.
Okta is a leading identity security company that helps organizations securely manage user identities and access to applications. As enterprises deploy more AI agents and AI applications, this Zacks Rank #2 (Buy) company is expanding its identity platform to help customers securely adopt AI.
Okta recently launched Okta for AI Agents and Auth0 for AI Agents, which enable organizations to discover AI agents, manage their identities, control their access and govern them throughout their lifecycle. The company believes AI agents are becoming a new type of digital identity, making identity security increasingly important as AI adoption grows. Okta has partnered with leading AI companies, including OpenAI, Anthropic, Google, Amazon Bedrock and ServiceNow, to integrate identity security across different AI platforms. These initiatives position Okta to benefit from the growing need to secure AI identities as enterprises expand their AI deployments.
The consensus mark for fiscal 2027 earnings is pegged at $3.83 per share, up 1.1% over the past 60 days, suggesting 9.4% growth from the figure reported in fiscal 2026.
SentinelOne provides AI-powered endpoint, cloud and identity security solutions that help organizations detect and respond to cyber threats in real time. As enterprises expand their AI infrastructure, this Zacks Rank #2 company is investing in technologies that protect AI workloads, AI applications and AI runtime environments.
The company recently launched Wayfinder Frontier AI Services, which combines frontier AI models with human expertise to identify real-world attack paths and prioritize the most critical security risks. SentinelOne is expanding its AI-powered Singularity platform with Purple AI, cloud security and runtime protection to defend AI workloads across cloud, Linux and Mac environments. With AI expanding the attack surface, demand for autonomous security that can respond to threats at machine speed should continue to rise. This positions SentinelOne to benefit as enterprises invest more in securing AI infrastructure and AI-driven environments.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at 36 cents per share, up by a penny over the past 60 days, suggesting 80% growth from the figure reported in fiscal 2026.
Zscaler provides cloud-based cybersecurity solutions that help organizations securely connect users, devices and applications. As enterprises adopt AI across their operations, this Zacks Rank #2 company is expanding its platform to help customers securely use AI applications, protect sensitive data and enforce Zero Trust security.
Zscaler’s Zero Trust Exchange platform can discover AI applications being used across an organization, control which AI tools employees can access and prevent sensitive data from being shared with unauthorized AI applications. The company has added AI-powered features that help security teams detect threats faster and automate routine security tasks. With AI creating new security challenges, the demand for Zscaler’s Zero Trust architecture should continue to rise. As more enterprises deploy AI applications and AI agents, Zscaler remains well-positioned to benefit from the growing need to secure AI use across users, applications and data.
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $4.14 per share, up 3.2% over the past 60 days, suggesting 26.2% growth from the figure reported in fiscal 2025.
David Einhorn built his reputation shorting frauds and buying what no one else would touch. His latest 13F reads as a five-stock roadmap through merger arbitrage, coal, and utility power demand, and one of those names is already sitting 6.6% below a signed $70 all-cash acquisition price. Miss the setup and you’re funding someone else’s payday.
1. Brighthouse Financial (The Merger-Arb Layup Nobody’s Talking About) Brighthouse Financial (NASDAQ:BHF) sits directly on top of a signed deal. Aquarian Capital LLC is acquiring the company at $70.00 per share in an all-cash transaction valued at roughly $4.1 billion, expected to close in 2026 subject to regulatory approvals. That is a hard catalyst with a hard number, and the market is still pricing it well below the deal.
The setup is textbook Einhorn. Shares last traded at $65.64 as of July 17, 2026, leaving a $4.36 gross spread, or 6.6% below the deal price. Underneath the arb, the annuity engine is humming: Q1 2026 adjusted EPS came in at $4.15 versus $235M in adjusted earnings the prior year, with the annuities segment generating $324M in adjusted earnings on $2.18B in sales. Insiders logged 32 recent transactions with a net buying direction, consistent with a deal on track to close.
That kind of spread on a signed deal only stays open when investors doubt the closing. Einhorn clearly doesn’t. Neither, apparently, does the next name on the list, which is riding a very different wave.
2. PG&E (The Data Center Utility Trade) PG&E (NYSE:PCG | PCG Price Prediction) is the direct pipe into California’s AI power demand. The company’s data center pipeline hit approximately 4.6 GW in final engineering, up from 3.6 GW, with more than 10 GW of pre-application interest. Add a $73B five-year capital plan pushing rate base to roughly $106B by 2030, and this is an income compounder with a growth kicker.
The Street sees it. Analyst sentiment breaks down as 14 buy/strong buy ratings, 4 holds, and zero sells, with a consensus target of $22.84. Three data points frame the trade: Q1 2026 non-GAAP core EPS of $0.43 versus $0.33 a year ago, reaffirmed FY2026 non-GAAP core EPS guidance of $1.64 to $1.66, and 9%-plus EPS growth guided annually from 2027 through 2030. Wildfire non-core charges collapsed to $3M from $40M year over year, and no common equity issuance is planned through 2030.
Shares closed at $17.29 on July 17, 2026, up 34.62% over the past year. The base-case AI model targets $22.20, roughly 28.36% upside. If Einhorn is right that AI compute has to plug in somewhere, PG&E is the socket. But the next name plays the same power thesis from a different angle: the ones building the plants.
3. Fluor (The Nuclear Renaissance Contractor) Fluor (NYSE:FLR) is the picks-and-shovels bet on the same electrification story. The company is landing new awards across nuclear, data centers, mining, and uranium enrichment, including a Centrus FEED award, and it monetized its NuScale stake for $2.4B in proceeds since September 2025, including $1.35B in Q1 2026. That cash is being funneled straight back to shareholders via a $1.4B share repurchase target for 2026, with $516M already executed in Q1.
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The quarter was noisy. Adjusted Q1 2026 EPS of $0.14 missed the $0.62 consensus by 77.26%, and revenue of $3.663B missed by 5.92%, down 8% year over year. Segment mix skewed heavily toward Urban Solutions at $2.437B, followed by Energy Solutions at $703M and Mission Solutions at $523M. Crucially, 98% of new awards are reimbursable, insulating margins from execution risk that has plagued this stock for years.
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Shares last printed $49.17, up 24.93% year to date but down 7.49% over the past 12 months. The AI model reads it as fairly valued at $49.98 (HOLD), with a bull-case path to $55.88. Einhorn’s edge here is patience: the backlog tells the real story. Which brings us to the position he has held longer than any of them.
4. Green Brick Partners (The Homebuilder Hiding in Plain Sight) Green Brick Partners (NYSE:GRBK) is Greenlight’s longest-standing anchor position, a Texas-heavy homebuilder Einhorn helped bring public. The setup: peer-leading margins and a fortress balance sheet in a housing market everyone assumes is broken. Homebuilding gross margins hit 29.4% in Q4 and 30.5% for FY2025, with net homebuilding debt-to-total capital of just 6.3% and roughly $520M in liquidity.
The Q4 print did the work. Adjusted diluted EPS of $1.78 beat the $1.67 consensus by 6.59%, revenue of $552.61M beat by 15.73%, and net new orders hit a record 883 units. Lot position expanded to 48,828 lots, and a fresh $150M share repurchase was authorized. Valuation is unusually cheap for a builder with these margins: trailing P/E of 11, forward P/E of 11, and price-to-book of 1.66.
Shares traded at $72.75 on July 17, 2026, up 20% year to date and 248.42% over five years. The AI model calls a modest BUY with a $76.42 base case and $80.94 bull case. Einhorn’s read: buy quality when the sector is out of favor. Which sets up the punchline, a name Wall Street left for dead a decade ago.
5. Core Natural Resources (The Coal Comeback Payoff) Core Natural Resources (NYSE:CNR) is the trade everyone else is too embarrassed to make. Coal, of all things, is where the AI power thesis and policy tailwinds collide. AI-driven data center power demand is projected to grow 3.7% annually over five years, coal has been designated a critical material under 45X, and the One Big Beautiful Bill Act reduced federal royalty rates. Einhorn has traded this book before, going back to his CONSOL Energy position from January 11, 2021.
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The Q1 print flipped the narrative. EPS of $0.41 beat the $0.34 consensus by 20.80%, revenue of $1.084B beat by 1.97%, and net income swung to $21M from a $69.3M loss year over year. The metallurgical segment’s adjusted EBITDA flipped from -$20.84M to +$57.97M, with cash costs falling 11% to $92.35 per ton. Capital returns are aggressive: $733.8M remaining under a $1B buyback after repurchasing 464,600 shares at an average $90.23 in Q1.
Shares closed at $82.66, up 15.84% year over year and 398.4% over five years. Analysts are unanimous: 4 buy ratings, zero holds or sells, with a consensus target of $105.25 and an AI base case of $115.99, or 40.32% upside. Rare-earth exploration at the Powder River Basin, showing grades above 1,000 ppm at Black Thunder, is an optionality kicker no one is paying for.
The Thread Einhorn’s five longs share a structure: hard catalysts, cheap valuations, and out-of-consensus narratives. A signed $70 cash deal at BHF, 28.36% modeled upside at PCG, buyback machines at FLR and GRBK, and a coal payoff modeled at 40.32% upside. The skeptic is on offense, positioned for the trades the rest of the market still refuses to make. The 13F is filed. The clock is running.
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The market expects Comstock Resources (CRK - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis oil and gas company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -84.6%.
Revenues are expected to be $415.15 million, down 11.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.98% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Comstock?For Comstock, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -11.11%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Comstock will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Comstock would post earnings of $0.23 per share when it actually produced earnings of $0.15, delivering a surprise of -34.78%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Comstock doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Investors interested in Medical - Instruments stocks are likely familiar with Integra LifeSciences (IART - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Integra LifeSciences is sporting a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IART is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
IART currently has a forward P/E ratio of 7.77, while SONVY has a forward P/E of 17.84. We also note that IART has a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SONVY currently has a PEG ratio of 3.63.
Another notable valuation metric for IART is its P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 4.46.
Based on these metrics and many more, IART holds a Value grade of B, while SONVY has a Value grade of C.
IART is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IART is likely the superior value option right now.
The market expects Houlihan Lokey (HLI - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis investment banking company is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of -23.4%.
Revenues are expected to be $614.11 million, up 1.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 9.55% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Houlihan Lokey?For Houlihan Lokey, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Houlihan Lokey will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Houlihan Lokey would post earnings of $1.84 per share when it actually produced earnings of $1.63, delivering a surprise of -11.41%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Houlihan Lokey doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Financial - Miscellaneous Services industry, PJT Partners (PJT - Free Report) , is soon expected to post earnings of $1.65 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +7.1%. Revenues for the quarter are expected to be $443 million, up 8.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for PJT Partners has been revised 3.9% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that PJT Partners will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways EWBC beat Q2 earnings estimates as net interest income and fee income increased y/y.EWBC reported higher loans and deposits to record levels, while lower provisions supported results.EWBC posted stronger capital and profitability ratios, though expenses increased y/y. East West Bancorp, Inc.’s (EWBC - Free Report) second-quarter 2026 earnings per share of $2.63 beat the Zacks Consensus Estimate of $2.61. Moreover, the bottom line increased 17.4% from the prior-year quarter’s level.
The results were primarily aided by an increase in net interest income (NII) and non-interest income alongside lower provisions. Also, loan and deposit balances increased sequentially in the quarter to record levels. However, higher non-interest expenses acted as a spoilsport.
Net income was $363.7 million, up from $310.3 million in the prior-year quarter.
EWBC’s Revenues & Expenses IncreaseQuarterly net revenues were $791.1 million, up 12.5% year over year. Moreover, the top line beat the Zacks Consensus Estimate of $785.9 million.
NII amounted to $684.7 million, which increased 11% year over year. Further, the net interest margin (NIM) expanded eight basis points (bps) to 3.43%. We expected NII and NIM to be $697 million and 3.49%, respectively.
Total non-interest income was $106.5 million, up 23.6% year over year. The rise was driven by an increase in almost all fee income components, except for customer derivative income. In the reported quarter, the company recorded other investment losses against a gain in the year-ago quarter. We estimated non-interest income to be $87.4 million.
Non-interest expenses totaled $290.6 million, up 13.5% from the prior-year quarter’s level. The rise was due to an increase in all cost components except deposit account expense. Our estimate for the same was $284.3 million.
The efficiency ratio was 36.73%, up from 36.41% in the prior-year quarter. A rise in the efficiency ratio indicates a deterioration in profitability.
As of June 30, 2026, net loans held for investment (HFI) were a record $58.1 billion, reflecting a 1.5% rise sequentially. Further, total deposits rose 1.7% from the previous quarter to a record $70.1 billion.
East West Bancorp’s Credit Quality: A Mixed BagAnnualized quarterly net charge-offs were 0.19% of average loans HFI, up eight bps from the prior-year quarter’s level. Non-performing assets totaled $247 million, up 43.9% from the prior-year quarter.
However, provision for credit losses was $33 million, down from $45 million in the prior-year quarter. Our estimate for the same was $36 million.
EWBC’s Capital & Profitability Ratios ImproveAs of June 30, 2026, the common equity Tier 1 (CET1) capital ratio was 15.44%, up from 14.51% as of June 30, 2025. The total risk-based capital ratio was 16.75%, up from 15.82% a year ago.
Return on average assets was 1.75%, up from 1.62% in the prior-year quarter. Return on average tangible equity was 16.88%, up from 16.39%.
East West Bancorp’s Share Repurchase UpdateIn the reported quarter, East West Bancorp did not repurchase any shares.
Our View on EWBCEast West Bancorp is well-poised for organic growth with robust loan improvement, solid deposit balances and diversified fee income streams. However, a rise in expenses and a weak asset quality amid the tough operating backdrop are likely to hurt the bottom line.
Currently, EWBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
The market expects PennyMac Financial (PFSI - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis mortgage banking and investment management company is expected to post quarterly earnings of $2.08 per share in its upcoming report, which represents a year-over-year change of +103.9%.
Revenues are expected to be $535.43 million, up 20.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 11.9% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for PennyMac?For PennyMac, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that PennyMac will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that PennyMac would post earnings of $2.22 per share when it actually produced earnings of $2.19, delivering a surprise of -1.35%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PennyMac doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
SummarySeagate Technology shares continued to advance as demand for high-capacity storage tied to AI data-center buildouts supported further positive earnings revisions.On balance, the Fund's artificial intelligence positioning was a net positive contributor to relative performance during the quarter.We added the Humana position on the view that earnings are at a cyclical trough, with MA margins currently depressed, in some cases negative, as elevated medical cost trends have outpaced premium growth across the industry.Intuit was sold following a disappointing growth outlook within its TurboTax segment, where our expectations had been high. Alistair Berg/DigitalVision via Getty Images
The following segment was excerpted from the Nomura Core Equity Fund Q2 2026 Commentary.
Within the Fund For 2Q26, Nomura Core Equity Fund Institutional Class (ICIEX) shares outperformed the Fund's benchmark, the S&P 500
Key Takeaways HWC matched Q2 earnings estimates as higher NII, fee income and lower provisions supported results.HWC posted higher revenues, expanded NIM and sequential growth in loans and deposits.Hancock Whitney's higher y/y expenses weighed on efficiency. Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2026 earnings per share of $1.55 matched the Zacks Consensus Estimate. The bottom line rose 17.4% from the prior-year quarter.
Results were supported by higher net interest income (NII) and non-interest income, along with a decline in provisions. Also, a sequential increase in loans and deposit balances was a positive. However, higher expenses were the undermining factor.
Net income available to common shareholders was $127 million, up 11.8% from the prior-year quarter. Our estimate for the metric was $124.6 million.
HWC’s Revenues Improve, Expenses RiseQuarterly total revenues were $401.4 million, which surpassed the Zacks Consensus Estimate of $396.4 million. The top line also increased 6.9% year over year.
NII (on a tax-equivalent basis) increased 5.6% year over year to $295.2 million. The net interest margin (NIM) was 3.56%, which expanded seven basis points (bps). Our estimates for NII and NIM were $291.2 million and 3.57%, respectively.
Non-interest income was $108.4 million, up 10% year over year. The rise was driven by an increase in service charges on deposit accounts, trust fees, bank card and ATM fees, and investment and annuity fees and insurance commissions. We had projected non-interest income of $107.1 million.
Total non-interest expenses (GAAP) increased 4.4% to $225.4 million. We had projected expenses of $227.1 million.
The efficiency ratio increased to 55.31% from 54.91% in the year-ago quarter. An increase in the efficiency ratio indicates a deterioration in profitability.
HWC’s Loans & Deposits Rise SequentiallyAs of June 30, 2026, total loans were $24.6 billion, up 2.5% from the prior quarter. Total deposits were $29.6 billion, up 1.9% from the previous quarter. Our estimates for total loans and deposits were $24.5 billion and $29.2 billion, respectively.
HWC’s Credit Quality ImprovesThe provision for credit losses was $13.8 million, down 7.7% from the prior-year quarter. Our estimate for provisions was $11.4 million.
Net charge-offs (annualized) were 0.16% of average total loans, down 15 bps from the prior-year quarter.
HWC’s Capital Ratios Decline, Profitability Ratios IncreaseAs of June 30, 2026, the Tier 1 leverage ratio was 10.87%, down from 11.35% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.18%, down from 13.97% as of June 30, 2025.
At the end of the second quarter of 2026, the return on average assets was 1.42%, up from 1.32% in the year-ago period. The return on average common equity was 11.52%, up from 10.63% in the prior-year quarter.
HWC’s Share Repurchase UpdateIn the reported quarter, HWC repurchased 712,966 shares at an average price of $68.28 per share.
Our View on Hancock WhitneyIn May, Hancock Whitney agreed to acquire OFB Bancshares, Inc. and combine the latter’s local relationships with its broader platform and expanded private banking and fee-income capabilities, supported by the 2025 Sabal Trust acquisition. Together, these actions are expected to support HWC’s top line over time through loan growth, a continued shift toward full-relationship lending and sustained investment in higher-growth markets.
Additionally, the company’s bond restructuring efforts and stabilizing funding costs are expected to continue to support NII expansion. However, weakening asset quality and elevated expenses remain key challenges.
Currently, Hancock Whitney carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksCommerce Bancshares Inc.’s (CBSH - Free Report) second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.
CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.
F.N.B. Corporation (FNB - Free Report) reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.
FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.
The market expects Churchill Downs (CHDN - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis racetrack operator and gambling company is expected to post quarterly earnings of $3.51 per share in its upcoming report, which represents a year-over-year change of +13.2%.
Revenues are expected to be $974.36 million, up 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Churchill Downs?For Churchill Downs, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Churchill Downs would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Churchill Downs doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
