Track market-moving stories before they get noisy

Key Takeaways HP's Q3 revenues are expected to rise 4.8% to $14.60 billion, while EPS is projected to decline 12%.AI PCs, premium systems and Windows 11 refresh demand are expected to support HP's Personal Systems business.Rising memory, resin and transportation costs could weigh on HP's Q3 profitability and Print margins. HP Inc. (HPQ - Free Report) is slated to release third-quarter fiscal 2026 results on Aug. 26.

The Zacks Consensus Estimate for revenues is pegged at $14.60 billion, suggesting an improvement of 4.8% from the prior-year quarter.

HP expects non-GAAP earnings per share between 61 cents and 71 cents for the fiscal second quarter. The Zacks Consensus Estimate for earnings has remained unchanged at 66 cents over the past 30 days, suggesting a year-over-year decline of 12%.

In the trailing four quarters, HPQ’s earnings matched the Zacks Consensus Estimate in one of the trailing four quarters and surpassed thrice, with an average surprise of 6.7%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence HPQ’s Q3 ResultsHP’s fiscal third-quarter performance is likely to have been supported by continued momentum in the Personal Systems business, particularly from AI PCs, premium PCs and higher-margin attached services. In the second quarter, Personal Systems revenues increased 13% year over year, with AI PCs, advanced compute solutions and workforce solutions delivering double-digit revenue growth. Strength in the AI PC category, driven by Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted top-line growth.

The ongoing Windows 11 refresh cycle and demand for AI at the edge are also expected to have supported HPQ’s prospects in the fiscal third quarter. Management noted that around 30% of the installed PC base was still on Windows 10 at the end of the fiscal second quarter, leaving room for additional refresh activity. HP also expects structural demand for AI PCs and premium PCs to remain strong as customers increasingly move AI workloads toward the edge for benefits such as lower latency, privacy and lower costs.

Growing customer adoption of gaming experiences is expected to have aided the fiscal third-quarter performance. The company’s wide portfolio of gaming gear, which includes OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, is likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.

However, rising memory prices are likely to have weighed on HP’s profitability in the fiscal third quarter. Memory and storage solution providers are redirecting their resources toward high-margin memory used in AI servers and data centers. This shift has tightened supply for standard DRAM and NAND for laptops and desktops, which has pushed memory prices sharply higher. Since memory accounts for a meaningful portion of a PC’s total build cost, rising prices are eroding PC vendors’ margins.

HP expects inflationary pressures beyond memory and storage, including higher oil prices and related transportation costs. In Print, rising resin and transportation costs are expected to have pressured margins in the fiscal third quarter, while incremental hardware placements and normal seasonality are also likely to have weighed on profitability. Management expects Print operating margins to be near the lower end of its long-term range in the third quarter of fiscal 2026.

Earnings Whispers for HPQOur proven model does not conclusively predict an earnings beat for HP this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

HPQ has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.

Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.

Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.

Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.

Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.

Key Takeaways Trade Desk expects Q3 revenues of at least $650 million and adjusted EBITDA of about $160 million.Macro pressure in CPG and autos is weighing on Trade Desk's near-term visibility.CTV, retail media, AI and international growth remain key long-term opportunities for Trade Desk. The Trade Desk (TTD - Free Report) delivered muted second-quarter 2026 results and issued a cautious third-quarter outlook, reflecting macroeconomic pressures and execution challenges.

Quarterly revenues increased 3% year over year to $715 million. Adjusted EBITDA totaled $241 million, representing a margin of 34%. For the third quarter, management expects revenues of at least $650 million and adjusted EBITDA of approximately $160 million.

Trade Desk highlighted ongoing pressure in key verticals such as Food & Drink and Home & Garden as consumer-packaged goods (“CPG”) brands face geopolitical tensions, inflation and consumer softness. While automotive is an “area of strength overall”, it is also impacted by tariffs, added management. CPG and autos together account for about 25% of platform spend, increasing exposure to cautious enterprise budgets. The company also admitted execution gaps that contributed to the underperformance.

Near-term visibility remains challenging as management's third-quarter guidance assumes no meaningful improvement in the macro backdrop.

Nonetheless, Trade Desk retains long-term opportunities in CTV, retail data and international expansion. In the second quarter, video — which includes CTV — represented a low-50s percentage share of the total business. The shift from linear TV to CTV is still in early stages, providing a long runway for growth. CTV revenues in both EMEA and APAC increased more than 50% year over year, showing that adoption is broadening beyond the United States.

The company had 217 clients with joint business plans in the second quarter, up 38% year over year. Revenues under those plans grew at six times the company’s overall revenue growth rate.

Beyond CTV, retail media has emerged as one of the fastest-growing areas in the digital advertising space. Trade Desk highlighted that participating retailers represented more than 80% of U.S. retail sales. The company also renewed its partnership with Walmart.

Trade Desk is leaning into AI and measurement that tie media to outcomes. Its new measurement framework is currently in alpha and is built to assign value across the customer journey, added Trade Desk. Further, Trade Desk is ramping Audience Unlimited, which is now moving to open beta. Management also plans to launch the Zuma upgrade (for platform usability) in August 2026 to streamline navigation, workflows and troubleshooting while enhancing user experience.

While these initiatives provide potential growth catalysts, weaker visibility, macroeconomic pressures and execution issues suggest that TTD's near-term growth trajectory remains challenging. Compounding the issues is the intensifying competition in the ad tech space from the likes of walled gardens like Amazon (AMZN - Free Report) and smaller rivals like Magnite (MGNI - Free Report) .

Mapping the Competitive TerrainMagnite’s core growth engine, CTV business, continues to deliver strong performance. Second-quarter 2026 CTV contribution ex-TAC of $97 million was up 36% year over year, now accounting for 51% of total contribution ex-TAC.

Magnite noted that the top 10 CTV accounts grew in the mid-to-high 40% range. MGNI works with some of the biggest names in the industry, such as Roku, Netflix, VIZIO, Walmart and Warner Bros. Discovery. Momentum in its ClearLine platform and the SpringServe (CTV ad serving and SSP platform) bode well. Like Trade Desk, MGNI is also embedding AI across its platform to improve pricing, campaign execution, decision-making and workflow automation.

Amazon’s advertising business has gradually emerged as a strong contender in the digital advertising space, leveraging its first-party data.  At the center of Amazon’s ad business lies its DSP platform. AMZN’s DSP platform enables advertisers to plan, activate and measure full-funnel investments.

Advertising revenues jumped 26% year over year to $19.8 billion in the second quarter, with Sponsored Products remaining its key growth driver. Amazon is also witnessing continued growth and engagement in Prime Video ads and live sports, with inventory across NBA, WNBA, Thursday Night Football and NASCAR selling out. The company is strengthening its advertising capabilities through AI-powered tools such as Ads Agent, which reduces campaign setup and targeting time.

TTD Price Performance, Valuation and EstimatesShares of TTD have declined 24.2% in the past month, while the Zacks Internet – Services industry has inched up 0.2%.

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In terms of forward price/earnings, TTD’s shares are trading at 7.23X, lower than the Internet Services industry’s ratio of 20.13X.

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The Zacks Consensus Estimate for TTD’s earnings for 2026 has been significantly revised downward over the past 60 days.

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TTD currently carries a Zacks Rank #4 (Sell).

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

Key Takeaways WDAY launched AI Research to build reliable, trustworthy and efficient enterprise AI systems.Workday's selective AI memory improved precision by 12%, quality by 8% and speed by around 31%.WDAY found specialized AI agents raised decision-making accuracy 5.8% while meeting constraints. Workday, Inc. (WDAY - Free Report) has launched Workday AI Research, a dedicated technical research team focused on developing reliable, trustworthy and efficient enterprise artificial intelligence (AI). The initiative aims to address key challenges associated with deploying AI agents across business operations, including memory, accuracy, privacy, explainability and governance.

Workday’s researchers are focusing on key areas such as AI memory, multi-agent collaboration, recommendation systems, AI training and resource optimization. Its research has been accepted at several leading global AI and technology conferences. To further strengthen its research efforts, the company has introduced an AI Research PhD Fellowship that offers $50,000 in annual funding, mentorship and opportunities to collaborate with its researchers.

The company’s recent research found that a selective AI memory system can help agents retain important information while filtering outdated or unreliable data, improving precision by 12%, overall quality by about 8% and speed by around 31%. It also found that multiple specialized AI agents can improve decision-making, increasing accuracy by 5.8% while ensuring responses met defined constraints.

Workday’s research also highlights the need for effective data deletion, as information removed from an AI agent’s memory may remain in previous summaries. The company’s investment in AI research reflects its focus on building reliable, transparent and well-governed AI systems that can improve automation.

How Are Competitors Advancing in Enterprise AI?Workday faces competition from Oracle Corporation (ORCL - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) . Oracle is expanding its enterprise AI efforts through Oracle Cloud Infrastructure and AI-powered Fusion Cloud Applications. The company is adding AI agents to automate workflows and support business operations across finance, HR and supply chain functions. Oracle is bringing Google’s Gemini models to its enterprise applications, giving customers more options for building and deploying AI agents.

ADP is strengthening its enterprise AI capabilities through ADP Assist, which provides AI agents for HR and payroll functions. The company introduced an AI agent that identifies payroll variances, suggests corrective actions and helps resolve issues before errors occur. ADP is using AI to deliver workforce insights, automate routine tasks and support decision-making while maintaining human oversight and governance.

Workday’s Price Performance, Valuation & EstimatesWorkday shares have lost 13.3% over the past year compared with the industry’s decline of 13.5%.

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From a valuation standpoint, Workday trades at a forward price-to-sales ratio of 4.31, above the industry average of 3.87.

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Earnings estimates for fiscal 2027 have increased 0.6% to $10.81 over the past 60 days, while the same for fiscal 2028 have decreased 0.1% to $12.66.

Image Source: Zacks Investment Research

Workday currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways MED's enhanced compensation plan prioritizes Executive Director development and stronger field performance.Active earning coaches fell 48.7% to about 11,700 amid rapid GLP-1 adoption in traditional weight loss.Average revenue per active earning coach rose 41% to $6,529, signaling improved coach productivity. Medifast, Inc.’s (MED - Free Report) has made substantial progress by advancing several key initiatives across the business. These include the introduction of an enhanced compensation plan designed to strengthen the company’s focus on developing and expanding its network of Executive Directors, which management identifies as the single greatest driver of sustainable business growth.

The new structure was informed by the success of the EDGE program and is intended to encourage stronger leadership development across the field. By prioritizing the development of Executive Directors, the company aims to build stronger leadership capabilities and support healthier field performance. The impact of the EDGE program is reflected in the company’s field leadership progress, with the percentage of active earning coaches at the Executive Director level or above remaining above the 10% benchmark for a healthy and scalable organization.

The company ended the second quarter of 2026 with approximately 11,700 active earning coaches, down 48.7% year over year, reflecting the continued impact of rapid GLP-1 medication adoption across the traditional weight loss category. In response, MED is reshaping its coach leadership structure by deprioritizing less productive coaches and developing a network of high-performing Executive Director organizations.

Despite the decline in coach numbers, average revenue per active earning coach increased 41% to $6,529, indicating improving coach productivity both year over year and sequentially.

Overall, if the new compensation plan successfully builds a stronger base of Executive Directors and sustains the recent improvement in coach productivity, it could support coach growth over time and, in turn, help Medifast drive revenue growth.

The Zacks Rundown for MEDThe company's shares have gained 9.6% in the past six months against the industry’s decline of 2.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.48, lower than the industry’s average of 0.83. MED currently carries a Zacks Rank #3 (Hold).

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The Zacks Consensus Estimate for MED’s current fiscal year earnings implies a year-over-year decline of 140.2%, whereas the same for next fiscal year earnings implies 4.1% growth year over year.

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Stocks to ConsiderSome better-ranked stocks have been discussed below:

Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average.

The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1.

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Bunzl plc (BZLFY - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. BZLFY currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for BZLFY’ current fiscal-year sales and earnings implies growth of 6.9% and 4.2%, respectively, from the year-ago actuals.

Key Takeaways KEYS revenues rose 36% to $1.85B, while non-GAAP EPS surged 79% to $3.07 in fiscal Q3.Keysight's wireline orders more than doubled as AI infrastructure and high-speed transitions drove demand.KEYS projects fiscal Q4 revenues of $1.93B-$1.95B and non-GAAP EPS of $3.34-$3.40. Keysight Technologies, Inc. (KEYS - Free Report) is benefiting from accelerating investments across artificial intelligence (AI) infrastructure, next-generation communications, semiconductors and defense markets, as exemplified by solid third-quarter fiscal 2026 results. The company’s growth momentum is likely to continue, backed by an expanding portfolio and improving operating leverage.

Keysight’s revenues were $1.85 billion, up 36% year over year, while non-GAAP earnings surged 79% to $3.07 per share. Orders increased to $2.09 billion from $1.34 billion in the year-ago quarter, marking the second consecutive quarter with orders above $2 billion.

AI Infrastructure: Key Growth CatalystThe rapid expansion of AI infrastructure is one of the key growth drivers for Keysight. Rising investments in AI data centers are increasing the complexity of computing and networking architectures, creating demand for Keysight’s design, emulation and testing solutions.

Wireline orders more than doubled year over year in the fiscal third quarter, benefiting from AI infrastructure scaling, higher-speed technology transitions, silicon photonics and system-level emulation. Keysight is participating across the AI development lifecycle, spanning pre-silicon design, chip and component validation, data-center rack and cluster emulation and manufacturing testing.

Increasing adoption of 800-gig and 1.6-terabit optical transceivers is another positive. Moreover, Keysight’s deeper engagement with hyperscalers and semiconductor companies should expand its addressable opportunity as AI architectures become increasingly complex. Management believes AI adoption remains in its early stages, indicating a potentially long runway for the company.

6G Investments Lend SupportKeysight is well-positioned to benefit from the transition toward 6G. With the initial 6G standard targeted for March 2029, customers are gradually moving from exploratory research toward funded development programs.

Emerging technologies such as AI-powered radio access networks, integrated sensing and communication and non-terrestrial networks are expanding Keysight’s growth opportunities. Its broad portfolio of radio-channel, network, device and satellite emulation solutions should help customers test new 6G architectures and applications. Management expects the 6G opportunity to be larger than the 5G cycle.

Semiconductor and Industrial Demand Adds MomentumKeysight’s Electronic Industrial Solutions Group is another important growth engine. Segment revenues jumped 21% year over year to a record $501 million in the fiscal third quarter, driven by growth across semiconductor, general electronics, automotive and energy markets.

Semiconductor demand is benefiting from capacity expansion related to advanced process nodes, high-bandwidth memory and silicon photonics. AI-related computing growth is also increasing test requirements for increasingly complex electronic components.

Software-defined vehicles, automotive cybersecurity, EV charging, energy storage and infrastructure validation are creating additional opportunities for Keysight’s test and measurement solutions.

Price PerformanceKeysight has gained 89.6% over the past year compared with the sector’s growth of 29.2%. It has, however, lagged peers like Aehr Test Systems, Inc. (AEHR - Free Report) and Advantest Corporation (ATEYY - Free Report) . While Advantest has gained 190.6%, AEHR is up a stellar 485.4% over this period. 

One-Year KEYS Stock Price Performance

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Robust Outlook Bodes Well for KEYSThe strong demand environment prompted Keysight to provide an upbeat fiscal fourth-quarter outlook. Revenues are projected between $1.93 billion and $1.95 billion, implying approximately 37% year-over-year growth at the midpoint. Non-GAAP earnings are expected between $3.34 and $3.40 per share. For fiscal 2026, management expects revenues and earnings to increase approximately 32% and 60%, respectively.

Keysight has a long-term earnings growth expectation of 19.4%. It delivered a trailing four-quarter average earnings surprise of 15.1%. Keysight currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With a favorable Zacks Rank and healthy fundamentals, KEYS appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.

Key Takeaways Kratos Defense's backlog reached $2.08B, while Q2 bookings totaled $492.2M and the pipeline hit $15B.Kratos Defense plans 3,000 small jet engines in 2027 and about 40 Valkyrie aircraft annually from 2028.Heavy investments may pressure cash flow as KTOS manages supply constraints, hiring and production ramps. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is entering an important stage of its growth story as rising defense demand begins translating into higher production volumes.

The bigger opportunity is Kratos Defense’s expanding backlog and pipeline. Consolidated backlog increased to $2.08 billion, while bookings reached $492.2 million in the second quarter. Over the last 12 months, bookings totaled $1.99 billion, resulting in a 1.3x book-to-bill ratio. Its bid and proposal pipeline also increased to $15 billion, providing a substantial opportunity set beyond current contracted revenues.

Kratos Defense is now investing ahead of expected demand. The company plans to ramp production to 3,000 small jet engines in 2027 and approximately 40 Valkyrie aircraft annually beginning in 2028. It is also expanding facilities for hypersonics, advanced manufacturing, microwave electronics, engines, space and unmanned systems.

These investments are pressuring near-term cash generation, with Kratos Defense forecasting $125-$135 million of 2026 capital expenditures and $250-$275 million of total investments. However, management expects higher production volumes to create operating leverage as fixed infrastructure is utilized more efficiently.

The main risk is execution: Kratos Defense must manage significant investments, supply-chain constraints, parts shortages, hiring and production ramps. Still, the second-quarter results indicate that the company is increasingly transitioning from a defense technology developer into a scaled production platform, creating a potentially attractive multi-year growth opportunity.

Defense Companies Benefiting From Similar TrendsOther defense companies positioned to benefit from rising spending on autonomous systems, missile defense, propulsion, hypersonics and next-generation military technologies include:

Lockheed Martin (LMT - Free Report) remains one of the largest U.S. defense contractors, with significant exposure to missile defense, advanced aircraft, hypersonic systems and space programs.

RTX Corporation (RTX - Free Report) has strong exposure to missile systems, propulsion, radar and air-defense technologies, areas that remain important as military modernization priorities evolve.

KTOS Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share indicates an increase of 50.91% year over year.

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KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price-to-sales (P/S) is 5.15X, a discount to the industry’s average of 8.64X.

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KTOS Stock’s Price PerformanceIn the past month, the company’s shares have risen 17.3% compared with the industry’s 2.8% growth.

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KTOS’ Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways LNG raised 2026 adjusted EBITDA guidance to $7.9-$8.4 billion as operating trends improved.LNG volumes rose 22.2% year over year, helping lift adjusted EBITDA 27.4% to $1.8 billion.LNG's expansion pipeline adds growth potential, while capital needs and valuation raise execution risks. Cheniere Energy, Inc. (LNG - Free Report) shares have gained 16.1% in the past three months, leaving investors to weigh improving operating trends against a richer valuation. Higher LNG volumes, stronger margins and raised 2026 guidance support the fundamental case.

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The expansion pipeline adds another potential growth leg, but capital spending, regulatory dependencies and rising global LNG supply limit room for execution mistakes.

Cheniere's Rally Meets Stronger 2026 FundamentalsCheniere raised its 2026 consolidated adjusted EBITDA guidance to $7.9-$8.4 billion from $7.25-$7.75 billion. Distributable cash flow guidance increased to $5.3-$5.8 billion from $4.75-$5.25 billion.

Management tied the revision to improved reliability, accelerated Stage 3 train start-ups, higher marketing margins and optimization gains. Those developments help frame the optimism surrounding the shares without establishing a direct cause for the three-month advance.

LNG Volume Growth Supports Cheniere's Operating MomentumSecond-quarter LNG volumes loaded reached 672 trillion British thermal units, up 22.2% year over year, while 184 cargoes were exported versus 154 a year earlier. Cheniere also posted quarterly production records at both Corpus Christi and Sabine Pass.

Higher volumes and stronger margins lifted consolidated adjusted EBITDA to $1.8 billion from $1.42 billion, an increase of 27.4%. The combination of higher throughput and margin improvement gives the recent operating momentum a firmer earnings base.

Cheniere's Brownfield Projects Add a Growth RunwayCorpus Christi Stage 3 was 98.4% complete at June 30, with the first six midscale trains operational and Train 7 in construction and commissioning. Train 7 was expected to reach substantial completion in the second half of 2026.

Midscale Trains 8 and 9 were 48.3% complete and remain targeted for the second half of 2028. At Sabine Pass, Phase 1 is designed to add more than 6 million tons per annum through Train 7 and a boil-off gas reliquefaction unit, extending Cheniere's brownfield growth runway.

LNG Valuation Leaves Less Room for Execution SlipsThe rally has pushed Cheniere to 2.57X forward 12-month sales, above its five-year median of 2.08X.

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That premium leaves less room for construction delays, weaker project economics or softer contracting conditions.

Expansion is also capital intensive. Cheniere invested about $1.1 billion of growth capital in the second quarter, while key expansion projects still depend on regulatory approvals and acceptable commercial arrangements. Industry competition is increasing as Venture Global, Inc. (VG - Free Report) advances CP2 LNG and NextDecade Corporation (NEXT - Free Report) builds five Rio Grande LNG trains with about 30 million tons per annum of expected capacity.

Cheniere's Momentum Score Backs a Balanced ViewCheniere's operating progress and expansion visibility remain constructive, but the current valuation and execution requirements argue against treating the recent rally as a one-way signal. The setup supports a balanced assessment of further upside.

The stock currently carries a Zacks Rank #3 (Hold), along with a VGM Score of B. Its Momentum Score of A is consistent with favorable recent price trends, while the Value Score of C and Growth Score of C point to a less clear-cut case on valuation and growth characteristics. Together, those readings support a measured stance after the three-month advance. You can see the complete list of today’s Zacks #1 Rank stocks here.

It has been about a month since the last earnings report for Otis Worldwide (OTIS - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

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

OTIS Q2 Earnings Beat Estimates, Revenues Up on Strong Service GrowthOtis Worldwide reported mixed second-quarter 2026 results, wherein earnings beat the Zacks Consensus Estimate but declined year over year. Meanwhile, net sales surpassed the consensus mark and increased from the prior year's reported figure.

Despite continued strength in the Service business, the company reduced full-year adjusted EPS, adjusted operating profit and free cash flow guidance

Otis' second-quarter performance reflected continued momentum in its Service business, driven by strong modernization and repair activity, accelerating maintenance trends and robust backlog growth. However, higher investments in Service initiatives and continued weakness in the New Equipment business weighed on profitability.

Inside OTIS' Q2 HeadlinesOTIS reported adjusted earnings per share (EPS) of $1.01, beating the Zacks Consensus Estimate of $1.00 by 1%. In the year-ago quarter, it reported adjusted EPS of $1.05.

Net sales of $3.86 billion surpassed the consensus mark of $3.72 billion by 3.7% and increased 7.3% from $3.60 billion reported in the year-ago quarter. Organic sales increased 6% year over year, led by continued strength in the Service segment. Modernization orders increased 9% at constant currency, while modernization backlog expanded 24% year over year, highlighting healthy demand across the business.

Adjusted operating margin contracted 180 basis points (bps) year over year to 15.2%, reflecting unfavorable segment performance and ongoing investments in strategic Service growth initiatives, partly offset by a favorable business mix.

Segment Details of OTISService: Net sales from the segment increased 11% year over year to $2.58 billion. Organic sales rose 9%, driven by broad-based strength across maintenance, repair and modernization activities. Our model estimated organic sales for the segment to grow 5.4%.

Organic maintenance and repair sales increased 6%, while organic modernization sales jumped 24% from the prior-year quarter.

Segment operating profit increased to $599 million from $578 million a year ago. However, segment operating margin contracted 170 bps year over year to 23.2% as higher labor costs, ongoing investments in strategic Service initiatives, productivity headwinds, material costs and unfavorable mix more than offset higher volume and favorable pricing.

New Equipment: Net sales from the segment were $1.28 billion, flat year over year. Organic sales decreased 1%, reflecting a high-teens decline in China and a mid-single-digit decline in EMEA, partly offset by approximately 10% organic growth in the Americas and low single-digit growth in Asia Pacific. Our model predicted organic sales for the New Equipment segment to decrease 3.3%.

New Equipment orders declined 5% at constant currency, while backlog increased 3% at actual currency and 4% at constant currency.

Segment operating profit declined to $40 million from $68 million in the year-ago quarter. Segment operating margin contracted 220 bps year over year to 3.1%, primarily due to lower volume, unfavorable pricing and adverse mix.

Financial Position of OtisNet cash provided by operating activities totaled $267 million during the second quarter compared with $215 million in the prior-year period.

Free cash flow improved to $223 million from $179 million a year ago, while adjusted free cash flow increased to $290 million from $243 million. During the quarter, the company repurchased approximately $400 million of shares, underscoring its continued focus on returning capital to shareholders.

OTIS Revises 2026 GuidanceOtis reaffirmed its 2026 net sales outlook of $15.1-$15.3 billion, implying approximately 4.6-6% year-over-year growth. Organic sales growth is also still expected in the low to mid-single-digit range.

Organic New Equipment sales are now expected to range from down low single digits to flat, compared with the previous outlook of flat to low single digits. Organic Service sales guidance remained unchanged at mid to high-single-digit growth.

The company lowered its adjusted operating profit outlook to approximately $2.4 billion from the previous expectation of approximately $2.5 billion. Adjusted EPS is now expected in the range of $4.01-$4.05, down from the prior outlook of $4.20-$4.24.

Otis also reduced its adjusted free cash flow guidance to $1.50-$1.55 billion from the previous $1.60-$1.65 billion.

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

The consensus estimate has shifted -5.09% due to these changes.

VGM ScoresAt this time, Otis Worldwide has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Otis Worldwide has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Key Takeaways Dollar Tree is set to report Q2 results with expected revenue and earnings growth from a year ago.DLTR's sales may benefit from category strength, market share gains and store portfolio optimization.Tariffs, freight costs and higher operating expenses remain key pressures ahead of the Q2 results. Dollar Tree, Inc. (DLTR - Free Report) is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.85 billion, indicating growth of 6.3% from the prior-year quarter’s reported figure.

The consensus estimate for earnings is pegged at $1.11 per share, suggesting an increase of 44.2% from the year-ago period’s reported figure. The consensus mark has been unchanged in the past 30 days.

DLTR has a trailing four-quarter earnings surprise of 32.1%, on average. In the last reported quarter, the Chesapeake, VA-based company’s earnings surpassed the Zacks Consensus Estimate by 13.7%.

Trends to Watch Before Dollar Tree’s Q2 ReleaseDLTR’s fiscal second-quarter performance is expected to have benefited from growth across categories and market share gains. Dollar Tree’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings appears encouraging. Such factors have been driving the company's comps for a while now.

The company is expected to have witnessed a strong performance, driven by sales growth across categories and market share gains. Dollar Tree has made significant progress over the years in optimizing its store portfolio through store openings, renovations, re-banners and closings. The expanded multi-price assortment, continued strength from higher-income customers, and a healthy balance between traffic and ticket continue to support comps growth.

Strong performance from store conversions, openings, improved distribution center flow and the early traction of the Uber Eats partnership should have provided incremental support to second-quarter fiscal 2026 revenues.

For the second quarter of fiscal 2026, the company projects net sales from continuing operations between $4.8 billion and $4.9 billion, supported by expected comparable-store sales growth of 2.5-3.5%. Adjusted earnings per share are anticipated to be $1-$1.15.

Our model projects year-over-year sales growth of 6.2% and adjusted earnings per share of $1.10 for the second-quarter fiscal 2026.

However, Dollar Tree’s second-quarter fiscal 2026 results are expected to reflect the environment of uncertainty that management emphasized on the latest earnings call. Despite strong discretionary and consumable spending, management has taken a cautious stance, given the volatile macroeconomic backdrop and rising financial pressures on lower-income consumers, who continue to face elevated living costs across categories.

Dollar Tree has been witnessing pressure on SG&A expenses in recent quarters due to higher operating costs and strategic business investments. Another major factor weighing on the company’s performance is likely to have been the timing of tariff impacts. Tariff-related pressures have been leading to higher costs and remain concerning.

On the margin front, our model predicts the gross margin to be flat year over year at 34.4% in the fiscal second quarter. Benefits from improved markdowns and merchandising execution are likely to have been offset by tariffs and higher freight costs.

Dollar Tree’s Zacks Model FindingsOur proven model does not predict an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Dollar Tree currently has an Earnings ESP of 0.00% and a Zacks Rank of 2.

DLTR’s Stock Price & Valuation PictureFrom a valuation perspective, Dollar Tree shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.36X, below the five-year median of 17.74X and the Retail-Discount Stores industry’s average of 30.2X, the company’s shares offer compelling value for investors seeking exposure to the sector.

Image Source: Zacks Investment Research

Recent market movements show that Dollar Tree’s shares have rallied 35.2% in the past three months against the industry’s 2.4% decline.

Image Source: Zacks Investment Research

Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:

Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.

Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for FIVE’s quarterly revenues is pegged at $1.2 billion, which indicates a 17.9% rise from the figure reported in the prior-year quarter.

The consensus mark for Five Below’s quarterly earnings has been unchanged in the past 30 days at $1.28 per share. The consensus estimate indicates an increase of 58% from the year-ago quarter’s actual. FIVE has an average trailing four-quarter earnings surprise of 70.1%.

Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +0.41% and a Zacks Rank of 3. ULTA is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.97 billion, which indicates 6.5% growth from the prior-year quarter’s actual.

The consensus estimate for earnings has moved up 0.3% in the past seven days to $6.19 per share, which implies 7.1% growth from the year-ago quarter's actual. ULTA has an average trailing four-quarter earnings surprise of 10%.

A month has gone by since the last earnings report for RPM International (RPM - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.

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

RPM International Q4 Earnings & Sales Beat, Both Up Y/YRPM International reported strong fourth-quarter fiscal 2026 results, with adjusted earnings and net sales topping the Zacks Consensus Estimate and increasing on a year-over-year basis.

The quarterly results were driven by increased demand for engineered solutions for high-performance buildings and infrastructure projects, acquisitions, positive pricing and favorable foreign currency translation. These tailwinds were partly offset by soft demand in do-it-yourself markets.

Inside RPM International’s HeadlinesThe company’s adjusted earnings per share of $1.89 topped the Zacks Consensus Estimate of $1.84 by 2.7%. In the prior-year quarter, RPM reported adjusted earnings of $1.72 per share.

Net sales of $2.23 billion also surpassed the consensus mark of $2.19 billion by 2.1% and increased 7.2% year over year. Net sales rose 2.5% organically during the quarter year over year. Acquisitions net of divestitures and favorable foreign currency translation aided sales by 3.5% and 1.2%, respectively.

Geographically, sales climbed 11.1% in Europe, which represented 15% of the fiscal fourth quarter’s total sales, compared with the prior-year quarter, primarily driven by acquisitions. North American sales, accounting for 77% of total sales, increased 5.1% year over year due to strength in turnkey and system solutions for high-performance buildings.

Sales in Latin America, representing 4% of total sales, rose 18.9% year over year. Sales in Africa, the Middle East and other foreign markets increased 14.5% year over year, while Asia-Pacific sales surged 39.4% year over year. Emerging-market growth benefited from demand for engineered solutions for high-performance buildings and infrastructure projects.

RPM’s Operational DiscussionSelling, general and administrative expenses were $635.3 million compared with $592.8 million in the prior-year quarter. As a percentage of net sales, the metric remained unchanged at 28.5%.

Adjusted EBIT increased 7.7% year over year to a record $338.6 million. Adjusted EBIT margin expanded 10 bps to 15.2%. Higher volumes improved fixed-cost utilization, while operational-efficiency initiatives helped offset increased healthcare and insurance expenses and inflation.

Segmental Details of RPM InternationalConstruction Products Group: In the reported quarter, the segment’s net sales increased 8.8% year over year to $904.2 million, owing to 5.7% organic sales growth, a 1.6% contribution from acquisitions net of divestitures and a 1.5% favorable foreign currency translation impact.

Adjusted EBIT of $175.1 million increased 14.6% year over year, and adjusted EBIT margin expanded 100 bps to 19.4%. Results benefited from broad-based strength led by concrete admixtures, roofing restoration systems and labor-saving wall systems for high-performance buildings, including data centers.

Performance Coatings Group: The segment’s net sales grew 5% year over year to $562.8 million. Sales increased 2.2% organically, while acquisitions and favorable foreign currency translation added 1.5% and 1.3%, respectively.

Adjusted EBIT rose 10.6% year over year to $84.9 million, and adjusted EBIT margin increased 80 bps to 15.1%. Strength in fireproofing systems, infrastructure projects and food coatings and ingredients was partly offset by a $3.2-million bad-debt expense related to a customer bankruptcy.

Consumer Group: Net sales in the segment increased 7% year over year to $764.8 million. Organic sales declined 0.8%, while acquisitions and favorable foreign currency translation contributed 7.2% and 0.6%, respectively.

The segment’s adjusted EBIT increased 2.6% year over year to $123.3 million. Adjusted EBIT margin contracted 70 bps to 16.1%. Acquisitions, pricing and operational improvements more than offset lower volumes, inflation and reduced fixed-cost absorption.

RPM’s Fiscal 2026 HighlightsFor fiscal 2026, RPM reported adjusted earnings of $5.53 per share, up 4.3% year over year from $5.30. Net sales of $7.86 billion increased 6.7% year over year from $7.37 billion.

Adjusted EBIT increased 4.4% year over year to a record $1.02 billion. Growth was supported by higher sales, improved fixed-cost leverage and benefits from operational-improvement initiatives.

RPM International’s Balance SheetAt the fiscal 2026-end, RPM International had total liquidity of $1.09 billion compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $315.2 million compared with $302.1 million at the fiscal 2025-end.

Total debt at the fiscal 2026-end was $2.53 billion, down from $2.65 billion at the fiscal 2025-end, as the company used a portion of its strong operating cash flow to reduce debt.

Cash provided by operating activities amounted to $898.7 million in fiscal 2026, up from $768.2 million in the prior year.

In fiscal 2026, capital expenditures were $223.5 million compared with $229.9 million in fiscal 2025. The company returned $349.2 million to stockholders through cash dividends and share repurchases, up 7.3% year over year from $325.6 million.

RPM’s Fiscal 2027 OutlookFor the first quarter of fiscal 2027, RPM expects consolidated sales to increase in the mid-single-digit range year over year. Sales across the Construction Products, Performance Coatings and Consumer groups are also projected to grow in the mid-single-digit range year over year.

Consolidated adjusted EBITDA is expected to increase in the mid-single-digit range year over year. For fiscal 2027, management expects sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10% year over year.

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

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

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

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

Bloom Energy (BE -2.21%) stock is more than 40% off its 2026 highs reached in June. That doesn't mean shareholders have had a bad year, though. Bloom shares are still up by about 125% year to date as of this writing.

That juxtaposition makes it even more timely to examine why shares sank 13.5% this week as of Friday morning, according to data provided by S&P Global Market Intelligence. Let's look at whether the drop gives investors who felt they missed out a great chance to own shares now.

Image source: Getty Images.

Bloom introduced a new deployment system for its fuel cell systems this week. The company said its new Power Connect system can reduce the time required for on-site power installations by more than 40%. That will help data center operators bring new capacity online sooner, generating revenue and driving higher returns on investment.

One might think such a development would boost the stock, rather than the double-digit drop seen this week. But investors have already bid the stock higher, anticipating growing future business. Bloom Energy expects to generate about $4 billion in revenue this year, doubling last year's sales. But the company is already valued at close to $60 billion, implying strong growth beyond 2026.

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Some investors are locking in gains rather than waiting for the company to grow into its valuation. But long-term investors can think differently. Bloom Energy is boosting capacity, envisioning a growing order backlog. That makes the recent pullback a reasonable opportunity to invest in a name that has become a popular choice for data center operators needing reliable power.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.

Key Takeaways MOS launches Enzara to accelerate crop residue decomposition and enable plant ready field conditions sooner.Enzara's enzyme technology works at low temperatures, unlike microbial-based solutions.MOS' Enzara can cut residue and fuel use while mixing with fertilizers and herbicides to avoid another pass. The Mosaic Company’s (MOS - Free Report) Mosaic Biosciences unit recently launched Renuvis Enzara, a new residue management solution designed to accelerate crop residue decomposition and help growers with plant-ready field conditions sooner.

The product addresses challenges associated with increasing residue levels resulting from higher-yielding hybrids, no-till practices and continuous corn production. Heavy residue can add tillage passes, reduce planting capacity and contribute to uneven emergence and inconsistent seed depth.

Enzara uses endoglucanase enzyme technology to target the structural fibers holding crop residue together. Unlike microbial-based solutions that require time to colonize, the enzyme begins working even under cold conditions, including temperatures as low as 32 degrees Fahrenheit. By creating more entry points for naturally occurring soil microbes, the product is designed to manage more residue.

The solution can also complement current residue management practices by reducing residue, lowering fuel consumption and can be applied in fall or spring and is compatible with fertilizer and herbicide tank mixes, eliminating the need for an additional application pass. The launch expands Mosaic Biosciences' product portfolio and highlights the company's focus on technology-driven solutions that can improve farm productivity and operational efficiency.

MOS’ shares have lost 28.3% over the past year compared with the industry’s 45.1% decline.

Image Source: Zacks Investment Research

MOS’ Zacks Rank & Key PicksMOS currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the Basic Materials space are Neo Performance Materials Inc. (NOPMF - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avient Corporation (AVNT - Free Report) .

While NOPMF currently sports a Zacks Rank #1 (Strong Buy), CRS and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NOPMF’s 2026 earnings is pinned at $1.4 per share, indicating a 185.71% year-over-year increase. NOPMF’sshares have gained 94.3% over the past year.

The Zacks Consensus Estimate for CRS’ fiscal 2027 earnings is pegged at $12.92 per share, indicating a rise of 20.07% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.39%.

The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 16.5% over the past year.

The Zacks Building Products - Air Conditioner & Heating industry continues to benefit from several favorable trends in 2026. Rapid data center development is driving demand for specialized and energy-efficient cooling systems, while electrification and tighter efficiency standards are supporting heat pumps and other advanced HVAC solutions. Rising adoption of smart controls and connected systems, along with steady service and aftermarket demand, provides further support.

On the downside, weakness in single-family construction and cautious consumer spending continue to limit residential HVAC demand, increasing dependence on replacement activity. Tariffs, commodity and freight inflation also create cost pressures, while investments in new manufacturing capacity can weigh on margins through start-up costs and lower initial utilization. Despite these challenges, companies such as Comfort Systems USA (FIX - Free Report) , Carrier Global Corporation (CARR - Free Report) and SPX Technologies, Inc. (SPXC - Free Report)  are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.

Industry Description The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.

4 Trends Shaping the Future of the Air Conditioner & Heating Industry Data Center Boom Fuels Commercial HVAC Demand: Rapid investment in AI, cloud computing and hyperscale data centers is emerging as a major growth driver for the U.S. Air Conditioner and Heating industry. These facilities require large, reliable and energy-efficient cooling systems to manage increasingly dense computing workloads. Demand is expanding across air- and water-cooled chillers, custom air handlers, cooling towers, dry and adiabatic cooling systems and related equipment. Strong project pipelines are also encouraging manufacturers to expand production capacity and improve throughput. Importantly, hyperscale and colocation projects generally provide greater forward visibility because cooling equipment must be secured well before facilities become operational, supporting a favorable multiyear demand outlook.

Electrification, Efficiency Upgrades and Smart HVAC Drive Growth: Electrification, tighter efficiency standards and smart-building adoption are supporting U.S. HVAC industry growth in 2026. Demand for electric heat pumps, high-SEER air conditioners and low-GWP refrigerant systems is rising as customers seek lower energy use and compliance with stricter regulations. Federal and state incentives are helping offset upgrade costs, while aging equipment supports resilient replacement demand.

Meanwhile, HVAC systems are becoming more connected through intelligent controls, smart thermostats, humidification systems and actuated valves, improving efficiency, performance and operational visibility. This shift toward higher-value, connected equipment is also expanding service and aftermarket opportunities across residential and commercial markets.

Housing Weakness Limits Residential HVAC Recovery: Residential HVAC demand remains under pressure from persistent weakness in the U.S. housing market. New single-family construction continues to face challenges, while cautious consumer spending is restraining discretionary repair and remodeling activity. A meaningful recovery in residential construction is not expected in 2026, limiting demand for HVAC systems tied to new homes. Although earlier channel destocking is fading, underlying demand remains subdued and increasingly reliant on replacement activity rather than new installations. These conditions could keep residential HVAC volumes under pressure and make the segment more vulnerable to housing affordability constraints, elevated borrowing costs and continued consumer caution.

Tariffs, Inflation and Capacity Costs Pressure Margins: Cost pressures remain a key challenge for the U.S. Air Conditioner and Heating industry in 2026. Tariffs are raising costs for certain materials and components, while commodity, freight and other inflationary pressures add uncertainty to the price-cost equation. Pricing actions can offset some of these pressures, but tariff-related price increases do not necessarily translate into higher margins.

At the same time, manufacturers are rapidly expanding capacity to meet strong commercial and data center demand. New facilities and production lines can initially generate start-up costs, lower utilization and operating inefficiencies. Higher utilization, sourcing improvements and productivity gains will therefore be important for margin improvement.

Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2026, the industry’s earnings estimates for 2026 and 2027 have increased to $5.11 per share (from $4.91) and $5.95 per share (from $5.70), respectively.

We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.

Industry Outperforms Sector, Lags S&P 500 The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector but lagged the Zacks S&P 500 Composite over the past year.

In the same time frame, the industry has gained 16.7% compared with the broader sector’s 6.5% rise. Meanwhile, the Zacks S&P 500 Composite has gained 23.4% during the period.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 23.87X compared with the S&P 500’s 20.55X and the sector’s 19.99X.

Over the past five years, the industry has traded as high as 30.77X, as low as 15.87X and at a median of 23.97X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

3 Air Conditioner and Heating Stocks to Buy Now Below, we have discussed three stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.

Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems is benefiting from strong demand across technology and other industrial markets, supported by continued data center construction and rising needs for complex mechanical and electrical infrastructure. Direct relationships with hyperscalers provide visibility into future projects, while sustained customer demand supports further expansion of its modular operations.  The company is also broadening its modular customer base through opportunities with frontier labs and colocation providers.  Strong institutional demand, disciplined project selection and skilled tradespeople further support execution. Meanwhile, the growing installed base of data centers creates a longer-term opportunity to expand recurring service and maintenance work.

 Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 142.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $45.86 from $43.05 over the past 30 days. The estimated figure indicates 58.8% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 34.6%. Again, Comfort Systems’ trailing 12-month return on equity of 53.6% is better than its peer group average of 16.9%. It has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here. .

Price and Consensus: FIX

SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies is benefiting from robust demand for data center cooling solutions, supported by hyperscaler, colocation and neocloud customers. Capacity expansions, improved production flow, lean initiatives and higher throughput are strengthening its ability to meet this demand.  The Neptronic acquisition adds another growth avenue by broadening SPX’s HVAC portfolio with intelligent controls, electric heating, humidification and actuated valves, while expanding its addressable markets.  Strong customer relationships and global distribution channels provide cross-selling opportunities. Meanwhile, healthy project activity, innovation and synergy initiatives in Detection & Measurement, along with an active acquisition pipeline, should support further growth.

SPX Technologies currently carries a Zacks Rank #2. The stock has gained 7.4% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $8.41 from $8.06 over the past 30 days. The estimated figure indicates 24.4% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 8.6%. Again, SPXC’s trailing 12-month return on equity is 16.5%.

Price and Consensus: SPXC

Carrier: Headquartered in Palm Beach Gardens, FL, Carrier provides intelligent climate and energy solutions worldwide. Carrier has been benefiting from robust commercial HVAC demand, particularly from data centers, supported by growing hyperscaler and colocation investments and capacity expansion. Growing adoption of liquid cooling provides another opportunity as AI infrastructure becomes more power intensive. The recovery in residential and light commercial HVAC, supported by replacement demand and improving channel conditions, adds momentum. In Europe, heat-pump adoption, supportive subsidies, high natural-gas prices and new product launches remain favorable. Carrier is also benefiting from expanding aftermarket opportunities, while the 75F acquisition strengthens its intelligent-building, AI-enabled controls and systems-integration capabilities, broadening its addressable markets.

Carrier currently carries a Zacks Rank #2 (Buy). The stock has lost 11.2% over the past year. Carrier has seen an upward estimate revision for 2026 EPS to $2.85 from $2.79 over the past 30 days. The estimated figure indicates 10% year-over-year growth in 2026. Carrier surpassed earnings estimates in three of the trailing four quarters and missed on the other, with the average surprise being 8.5%.

Price and Consensus: CARR

Key Takeaways Home Warranty revenues rose 3% to $113.8 million, while pretax income increased 9% to $24.2 million. The segment's pretax margin grew 21.3%, supported by favorable claims experience and lower claim frequency. Renewal-based warranty policies offer recurring revenues that cushions FAF when real estate activity weakens. First American Financial Corporation’s (FAF - Free Report) Home Warranty business can support long-term growth by providing recurring revenues, strong profitability and greater earnings diversification beyond its cyclical title-insurance operations.

Home Warranty generates relatively recurring revenues from customers seeking protection against unexpected home-system and appliance repair costs. This provides FAF with a more stable earnings stream than its transaction-sensitive title business. In the second quarter of 2026, Home Warranty generated $113.8 million of revenues, up 3% year over year, while pretax income increased 9% to $24.2 million. The pretax margin improved to 21.3% from 20.2%, reflecting solid profitability.

The segment’s claims experience also remains favorable. Its claim loss rate declined to 40% from 41% in the second quarter of 2026, primarily due to lower claim frequency, although higher claim severity partly offset the improvement. Continued control over claim frequency and severity should be important for maintaining margins.

Home Warranty also strengthens FAF’s business diversification by expanding its exposure to the broader homeownership and home-maintenance ecosystem, rather than relying primarily on real-estate transactions. When housing activity or mortgage originations weaken, the segment can help cushion FAF’s earnings because its revenues are not directly dependent on title order volumes.

Furthermore, renewal-based warranty policies can provide a more predictable source of revenue between real-estate transaction cycles. This recurring earnings stream can complement FAF’s title-insurance operations and improve the overall resilience of its business model.
Overall, Home Warranty could become an increasingly important stabilizing earnings engine for FAF. Its recurring revenues, strong margins and favorable claims trends can help offset volatility in the title business and support sustainable long-term profitability, provided FAF continues to manage claim costs effectively.

What About Other Players?    Fidelity National Financial, Inc. (FNF - Free Report) operates its Home Warranty business through Fidelity National Home Warranty, which protects against unexpected repair or replacement costs for major home appliances and systems. Home Warranty is included within FNF’s Title segment, alongside title insurance, escrow and other title-related services. The business also complements FNF’s core real-estate operations by providing an additional service to homeowners and real-estate customers.

Old Republic International Corporation (ORI - Free Report) operates its Home Warranty business through Old Republic Home Warranty, a subsidiary that has been part of ORI since 1982. The business provides home warranty plans that cover the repair or replacement of major home systems and appliances when they fail because of normal wear and use, including heating, air conditioning, plumbing, electrical systems and kitchen appliances. The business serves both homeowners and real-estate professionals, making its warranties particularly relevant during home-buying and selling transactions. It also offers optional coverage that allows customers to tailor plans to their specific needs.

FAF’s Price PerformanceShares of FAF have gained 8.3% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

FAF’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.3, lower than the industry average of 1.41. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for FAFThe Zacks Consensus Estimate for FAF’s third-quarter and fourth-quarter 2026 EPS has moved up 6.8% and 2.8%, respectively, in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved up 5.5% and 3.6%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

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The most useful thing said about cybersecurity this week came from Abhijit Dubey, the global CEO of NTT DATA, who told CNBC that “the frontier AI effectively has changed the cybersecurity equation” because attacks are now exponentially more sophisticated, the surface area has grown, and everything is happening at machine speed. His conclusion follows directly: “when you have attacks that are operating on machine speed, you cannot have defense. That is human speed.”

Dubey announced an expanded partnership with Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) covering both AI for security and security for AI.

The interesting question for investors is which US-listed vendors are positioned for the shift he describes. The money is quietly moving toward whoever can govern autonomous agents, and away from whoever built a business selling vulnerability detection and patching. That reframes the sector from a cost center to a prerequisite for AI adoption.

Why Detection And Patching Is the Losing Side Dubey put the legacy problem this way: “Most cybersecurity postures and enterprises effectively are vulnerability detection oriented” at a moment when attackers are exploitation-driven. Nikesh Arora made the same point on PANW’s June earnings call, saying that frontier models can weaponize a vulnerability “in mere minutes,” whereas it used to take months.

Jay Chaudhry at Zscaler told investors that “you will never be done patching” and that hiding applications and eliminating lateral movement matters more than trying to close every hole. That is the same argument, phrased architecturally.

Vendors whose growth came from selling scanners, dashboards, and remediation queues find themselves in an awkward spot. Their pitch assumes a human has time to look at the alert. The vendors positioned for what comes next sell in-line enforcement, identity, and platform-level context.

Palo Alto Networks Is the Named Partner for a Reason PANW’s most recent quarter had revenue of $3 billion, up 31% year over year, and Next-Generation Security ARR reaching $8.13 billion, up 60%, disclosed in the company’s Q3 FY26 8-K. Arora described a Prisma AIRS deal with a global consulting customer running more than 2 trillion tokens per month on the platform.

PANW trades at a forward P/E of 91x with the stock up 89.77% year to date through August 20. That is not a cheap valuation, and platformization stories have disappointed on margin before.

What PANW has that most rivals do not is IDERA, its identity platform stitched together with the CyberArk acquisition, aimed at what Arora called the “primary attack vector of the future”: agentic identities. That is the layer Dubey said matters.

The risk is straightforward. Stock-based compensation was 17% of revenue in the quarter, and integrating CyberArk without hurting growth remains a priority.

Identity Is What the Market Has Not Priced Todd McKinnon at Okta framed the customer problem cleanly in May, saying “91% of enterprises deploy AI agents, but only 22% have a way to identify them.” That gap is the entire investable idea.

Okta (NASDAQ:OKTA) trades at a forward P/E of 38x, a meaningful discount to PANW because growth is slower, with FY27 revenue guided to 9-10%. McKinnon said Okta’s pipeline for AI agent products was “bigger than anything we’ve ever seen”, and neutrality across hyperscalers is real leverage for a customer choosing an identity control plane.

CrowdStrike (NASDAQ:CRWD) has taken the endpoint franchise into agent governance through AIDR, with ARR reportedly growing “more than 250% sequentially” off a small base. George Kurtz argued that AIDR could exceed EDR in size because every agent needs a host and an identity. The identity layer has a shorter path to becoming non-optional than the platform layer, because agent identity is essential to governance.

Caveats Worth Weighing Zscaler (NASDAQ:ZS) is the interesting counter-case, down 22.22% year to date despite ARR reaching $3.5 billion. Its Symmetry Systems acquisition bets on the access-graph problem rather than issuing agent identity itself, which is defensible.

Fortinet (NASDAQ:FTNT) benefits from a firewall refresh cycle with product revenue up 52% last quarter. That is a real cash-generating business, but closer to infrastructure than to agent governance.

Platform consolidation has been sold to investors before, and margin expansion has been uneven. This cycle differs because Dubey’s framing removes the buyer’s option to wait. His line makes the point: “You have to do it securely from the beginning.” A customer who wants the AI cannot defer the security purchase, which is the first time in a while that has been true.

Contact [email protected] for any questions or corrections.

Semiconductor maker Marvell Technology Inc. (MRVL, Financials) is heading into its Aug. 27 earnings announcement with investors anticipating another significant increase. The options market is pricing in about a 12.4% move up or down after the fiscal second quarter results.

At the firm's current share price of $251.01, that predicts a move of around $31, bringing the stock near $282 on the upside or $220 on the downside. No wonder given Marvell's tremendous run. That's some volatility.

Shares have surged over 196% this year on high demand for specialized AI chips and optical networking equipment, and its strengthened collaboration with Alphabet Inc. (GOOGL, Financials).

Wall Street forecasts Marvell will post earnings of $0.93 per share, up around 39% from a year ago Revenue is predicted to increase by 35% to $2.71 billion. Investors will be watching data-center growth and guidance especially intently.

The fear is expectations have increased just about as fast as the stock. Marvell's AI business forecast will matter after such a big runup and even good results could disappoint.

Now the earnings report is a test of whether fundamentals can match the valuation investors have already placed on the company.

Check the Warning Signs for

MRVL

now!

Flowers Foods, Inc. (FLO) Q2 2026 Earnings Call August 21, 2026 8:30 AM EDT

Company Participants

J. Rieck - Executive VP of Finance & Investor Relations
A. McMullian - CEO & Chairman of Board
Diego Scaglione - Chief Financial Officer

Conference Call Participants

Stephen Robert Powers - Deutsche Bank AG, Research Division
Scott Marks - Jefferies LLC, Research Division
James Salera - Stephens Inc., Research Division
Mitchell Pinheiro - Sturdivant & Co., Inc., Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Flowers Foods Second Quarter 2026 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, J.T. Rieck, Executive Vice President of Finance and Investor Relations. Please go ahead.

J. Rieck
Executive VP of Finance & Investor Relations

Good morning. I hope everyone had the opportunity to review our earnings release, listen to our prepared remarks and view the slide presentation that were all posted earlier on our Investor Relations website. After today's Q&A session, we will also post an audio replay of this call. Please note that in this Q&A session, we may make forward-looking statements about the company's performance.

Although we believe these statements to be reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. In addition to what you hear in these remarks, important factors relating to Flowers Foods business are fully detailed in our SEC filings. We also provide non-GAAP financial measures for which disclosure and reconciliations are provided in the earnings release and at the end of the slide presentation on our website. Joining me today are Ryals McMullian, Chairman and CEO; and Anthony Scaglione, our CFO.

Ryals, I'll turn it over to you.

A. McMullian

Why BJ’s Wholesale Club Stock Could Be Ready for a ReboundBJ's Wholesale Club NYSE: BJ reported second-quarter fiscal 2026 results that exceeded its expectations, supported by sales growth, membership gains, accelerating traffic and stronger-than-planned fuel profits. The warehouse retailer maintained its full-year comparable-sales outlook while raising its adjusted earnings-per-share forecast.

Net sales rose 15.9% year over year to $6.1 billion, while total comparable club sales increased 11.9%. Excluding gasoline, merchandise comparable sales grew 3.1%, driven by a roughly even contribution from traffic and basket size, according to Chief Financial Officer Laura Felice. Inflation was close to 1% during the period.

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Target Shows Strengths, But Analysts Want to See MoreChairman and Chief Executive Officer Bob Eddy said the company recorded its 18th consecutive quarter of traffic growth and its 15th consecutive quarter of market-share gains. On a two-year stacked basis, merchandise comparable sales increased 5.4%.

Category Results and Fuel Strength The perishables, grocery and sundries division posted a 2.8% comparable-sales increase, led by grocery. Eddy cited strength in beverages and active nutrition, which he attributed in part to assortment changes made through the company’s category management process.

Surprising Beneficiaries of High Gas Prices: BJs and CostcoGeneral merchandise and services comparable sales increased 5.3%, with consumer electronics continuing to lead the division and home also contributing. Eddy said the company has been renovating its assortment in home categories including housewares, textiles and refrigeration. Seasonal merchandise was also positive during the quarter, he said.

Fuel was a significant contributor to results. Comparable fuel gallons increased 10.5%, while industry data indicated that overall comparable fuel gallons declined about 5% during the period, Felice said. Eddy said elevated gasoline prices and the company’s value proposition at the pump helped attract members, while favorable movement from peak gasoline prices helped fuel profit dollars exceed plan.

Bill Werner, executive vice president of strategy and development, said BJ’s has used gasoline offers as part of its membership-acquisition efforts. He noted that the company has expanded its gas-station base by 50% since its initial public offering and has more than 2 million members participating in its co-branded credit-card program, which provides per-gallon discounts.

Membership and Digital Engagement Membership fee income increased 9.9% to $136 million as BJ’s reached 8.5 million members. Eddy said the company added more than 1 million members over the past two years and more than 3 million since its IPO.

During the question-and-answer session, Eddy said higher-tier memberships represented about 43% of the membership base, an all-time high for the company. He also said BJ’s experienced strong acquisition and renewal trends and saw membership growth of 2% to 3% in comparable clubs during the quarter.

However, Felice said the company continues to expect membership fee income growth to moderate through the year as the effect of last year’s membership-fee increase normalizes. Eddy said the company expects the growth rate to exit the year at about 6%.

Digitally enabled comparable sales increased 30% during the quarter, bringing two-year stacked growth to 64%. Eddy said members who use the company’s digital services—including buy online, pickup in club, same-day delivery, ExpressPay and digital coupons—tend to spend more, visit more frequently and renew at higher rates over time.

The company’s AI-powered shopping assistant, Bev, has conducted more than 100,000 member conversations, Eddy said. The assistant helps members find products, check club hours and navigate membership-related questions.

Margins, Cash Flow and Capital Allocation Gross profit increased 10.3% to $1.11 billion. Merchandise gross margin declined approximately 20 basis points from a year earlier as BJ’s continued to invest in pricing, partially offset by tariff refunds and other sourcing initiatives.

Eddy said the company expects to continue funding member price investments through a mix of sources, including supplier discussions, assortment changes, retail-media opportunities and fuel outperformance. He said BJ’s is focused on growing margin dollars rather than targeting a particular margin rate.

Selling, general and administrative expense totaled $851 million and improved as a percentage of net sales. The increase in dollar terms was primarily tied to labor, occupancy and depreciation costs associated with new clubs and gas stations, Felice said. The company also recorded an approximately $11 million gain from a sale-leaseback transaction involving its new ambient distribution center in Ohio.

Adjusted EBITDA rose 14.3% to $347 million, while adjusted EPS increased 19.3% to $1.36. Adjusted free cash flow was $266 million, compared with $87 million in the prior-year quarter. BJ’s ended the period with net leverage of 0.5 turns, repurchased $124 million of shares during the quarter and had about $422 million remaining under its repurchase authorization.

Expansion Plans and Outlook BJ’s opened three Texas clubs during the second quarter—in Waxahachie, Fort Worth and Grand Prairie—bringing its Texas total to four, and added a gas station in Edison, New Jersey. The company plans seven additional club openings and one relocation over the remainder of the year and continues to target 25 to 30 new clubs every two years.

Werner said Texas membership is tracking more than 30% ahead of plan, while all four Texas gas stations rank in the top 30% of the chain by gallon volume. Two rank in the top 10%, he said. The company also announced a future club in Tyler, Texas.

BJ’s said it expects newly opened clubs to build membership and sales over their first several years, with locations generally maturing toward their potential within three to five years. Eddy said the company is considering opportunities to expand its new-club pace beyond its current target, though its pipeline for the next roughly two years is largely established.

For fiscal 2026, BJ’s maintained its outlook for comparable club sales growth, excluding gasoline, of 2% to 3%. The company raised its adjusted EPS outlook to a range of $4.60 to $4.80, with Felice citing second-quarter gas-business outperformance as the primary reason for the increase.

About BJ's Wholesale Club (NYSE:BJ)BJ's Wholesale Club, headquartered in Westborough, Massachusetts, is a membership-based warehouse retailer offering a wide range of products and services primarily to small businesses and individual consumers. The company operates large-format clubs that provide value-priced groceries, health and beauty products, electronics, home goods, furniture, seasonal items and automotive supplies. In addition to its in-club offerings, BJ's features fuel stations at many locations and operates an e-commerce platform for online ordering and home delivery.

Founded in 1984 as a division of Zayre Corp., BJ's Wholesale Club quickly expanded throughout the Northeastern United States.

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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Archer Aviation (NYSE: ACHR | ACHR Price Prediction) announced on August 10 it would acquire Boeing’s Wisk Aero, Insitu, and SkyGrid businesses in exchange for a strategic Boeing equity stake. Insitu alone generates more than $200 million in annual revenue, an order of magnitude jump from Archer’s $5 million in Q2 2026 revenue.

Our 24/7 Wall St. price target for Archer is $11.63, implying 93.48% upside from the current $6.07 quote. That earns a buy with medium confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $6.07 24/7 Wall St. Price Target $11.63 Upside 93.48% Recommendation BUY Confidence Level 50% Boeing Deal Reframes an Otherwise Ugly Quarter Archer shares are down 14.23% year to date and 30.57% over the past year, but the stock is up 21.47% in the last month since mid-July.

Q2 was mixed: revenue of $5 million beat the $1.96 million consensus by 154.62%, GAAP EPS of -$0.34 missed the -$0.2506 estimate. Net loss widened to $263.20 million, and liquidity closed at $1.56 billion. The Boeing announcement is driving sentiment.

Why Bulls See a Breakout Ahead The bull case rests on Archer transforming from a pre-revenue eVTOL developer into an end-to-end physical AI platform for aerospace and defense. CEO Adam Goldstein called the Boeing deal an “important inflection point” and told analysts Insitu is a “profitable business generating more than 200 million of revenue a year” that should contribute positive free cash flow after closing.

Halo Thunder, developed with Anduril, addresses what management pegs as a $100 billion-plus total addressable market, aligned with the Pentagon’s $53.6 billion FY2027 autonomous systems budget. If the base case plays out, our bull-scenario price rises to $14.60 within twelve months.

What Could Go Wrong Archer burned $177.10 million in adjusted EBITDA losses in Q2, with Q3 guided to another $170 million to $200 million loss. Capex jumped 268% year over year to $69.70 million, and liquidity slipped from roughly $1.80 billion in Q1.

The Boeing transaction remains subject to regulatory approval, and integrating three businesses carries execution risk. Management has committed to keeping cash burn “relatively flat from where it stands today” post-close, with Insitu’s cash flow offsetting Midnight investment. Bear-case price: $9.30.

How Archer Compares to Joby and AeroVironment Joby Aviation (NYSE: JOBY) is the direct eVTOL comparable. Joby carries a $7.41 billion market cap versus Archer’s $4.64 billion, despite guiding to only $115 to $125 million in 2026 revenue, most from its Blade subsidiary. On a market-cap-to-forward-revenue basis, Joby trades richer than Archer would even after Insitu closes, making our $11.63 target reasonable rather than aggressive.

AeroVironment (NASDAQ: AVAV) is the right defense-drone benchmark for what Insitu could become inside Archer. AeroVironment guided fiscal 2027 revenue to $2.13 billion to $2.23 billion with non-GAAP EPS of $3.02 to $3.34, backed by record bookings of $2.7 billion. That is the profitability arc bulls want Archer to walk. AeroVironment’s $8.04 billion market cap suggests real upside if Archer can prove Insitu scales similarly.

Our Take at Current Levels Our 24/7 Wall St. price target is $11.63 with a buy rating and 50% confidence. Insitu instantly converts Archer from a story stock into a company with a real revenue base and defense exposure aligned to a rising Pentagon drone budget.

The setup rewards investors who can tolerate a 3.21 beta and view a year-end Boeing deal close as the base case. Risk skews the other way if regulatory approval slips into 2027 or if Q3 cash burn exceeds the $200 million high end of guidance.

Year 24/7 Wall St. Price Target 2026 $11.63 2027 $19.56 2028 $26.68 2029 $32.28 2030 $36.38 These projections assume Archer closes the Boeing deal on schedule, achieves FAA type certification for Midnight, and scales Halo Thunder deliveries through 2029. Significant upside or downside could result from Pentagon procurement decisions on autonomous VTOL platforms or delays in commercial eIPP operations.

Contact [email protected] for any questions or corrections.

SoundHound AI (SOUN +3.87%) just released its earnings for the second quarter of 2026. Although it reported considerable revenue growth and increased its revenue guidance, the stock is now close to 52-week lows. Consequently, it trades at more than 70% below its all-time high.

Moreover, profitability seems to remain out of reach, and although its valuation is at multi-year lows, it is still a relatively expensive stock. Knowing these facts, is SoundHound AI stock now a buy, or should investors continue to stay on the sidelines?

Image source: The Motley Fool.

SoundHound AI continues to prosper SoundHound AI continues to benefit from high demand for its conversational AI tools. Businesses as diverse as restaurants and automobile companies have applied its technology to make their operations more efficient.

Investors should also note its new platform called the Orchestrated Agent System (OASYS). The OASYS builds AI agents that can speak with customers, handle transactions, and resolve issues with service. Additionally, its AI can improve as it learns from customer interactions.

Thanks to this technology, SoundHound AI's systems now handle over 10 billion conversations annually. Furthermore, it now holds over 400 patents related to its technology, helping it compete with the largest tech enterprises in terms of speed and accuracy.

However, investors need to remember that its size is a tiny fraction of said big tech enterprises. For example, SoundHound has a market cap of around $3 billion, but that is less than one-one-thousandth of Google parent Alphabet's market cap.

Alphabet has pledged to spend between $195 billion and $205 billion on capital expenditures this year, raising some doubts about its finances. Nonetheless, that still leaves Alphabet in better financial shape than SoundHound, and that may leave investors wondering about SoundHound's long-term competitiveness.

SoundHound AI by the numbers Indeed, its financial condition gives investors reason for both optimism and worry. It posted massive growth in the first half of 2026, with its revenue of $106 million up 48% from the year-ago period. Unfortunately, SoundHound lost $68 million in that same timeframe, and its free cash flow of negative $61 million in the first six months of 2026 confirms its continued dependence on outside funding.

Since it holds about $203 million in liquidity, it can absorb losses for a few more quarters. Nonetheless, it has increased its share count by 122% since a SPAC took SoundHound AI public in April 2022. These actions dilute shareholder value, making it more difficult to profit from the tech stock.

Today's Change

(

3.87

%) $

0.27

Current Price

$

7.24

Investors are also down slightly since the SPAC purchase. Although the stock has risen significantly in the past, it seems to give back its gains fairly quickly.

Additionally, its valuation may not be low enough to entice investors. Amid ongoing losses, it does not have a P/E ratio, though its price-to-sales (P/S) ratio is 15. While that is far above the S&P 500 average of 3.8, its sales multiple is not unusually high for a fast-growing tech stock in a relatively new industry.

Still, considering its heavyweight competitors and ongoing losses, it is unclear whether investors will willingly pay that price in the long term.

Stay on the sidelines Given its current condition, investors may be best off staying on the sidelines.

Admittedly, SoundHound AI's offerings continue to gain traction with key customers, and its revenue grows rapidly as a result. However, if an industry heavyweight like Alphabet decides to compete more aggressively with SoundHound, one has to wonder whether SoundHound could respond given its financial condition. Moreover, with the continuing losses, SoundHound may further have to dilute its shares, making it more difficult for investors to earn positive returns.

Given those uncertainties, investors with the risk tolerance to buy this stock should probably hold out for a lower valuation before taking a chance on SoundHound.

Gossamer Bio, Inc. (Nasdaq: GOSS) (the “Company” or “Gossamer”), a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), today announced that it has entered into a securities purchase agreement with certain new and existing institutional investors for a private placement financing expected to provide aggregate gross proceeds of up to approximately $250 million, before deducting placement agent fees and estimated offering expenses. The private placement consists of an initial closing, a committed second closing contingent upon FDA acceptance of the seralutinib new drug application (NDA) in PAH (the NDA Acceptance Milestone) and warrants exercisable upon FDA approval of seralutinib in PAH (the FDA Approval Milestone). The financing follows the Company’s recent reacquisition of worldwide rights to seralutinib and is in advance of the planned NDA submission in September 2026.

The private placement includes $150 million of committed capital, consisting of approximately $25 million to be funded at the initial closing and an additional approximately $125 million to be funded at a second closing upon FDA acceptance of the seralutinib NDA in PAH. The investors’ obligations to fund the second closing remain subject to the NDA Acceptance Milestone occurring in 2026 and the satisfaction of other customary closing conditions. If the NDA Acceptance Milestone occurs in 2026, the Company expects to receive the full $150 million of committed capital in 2026.

The private placement includes participation from new and existing institutional investors, including EcoR1 Capital, 683 Capital Partners, LP, RA Capital Management, Coastlands Capital, Samsara BioCapital and Rock Springs Capital, among others.

“This financing is expected to provide the capital needed to advance seralutinib through potential FDA approval in PAH,” said Faheem Hasnain, Chairman, Co-Founder and Chief Executive Officer of Gossamer Bio. “The committed funding structure aligns capital availability with key regulatory milestones and is expected to support the planned submission and review of our NDA. We appreciate the support of this group of leading healthcare investors as we work to bring a potentially important new treatment option to patients with PAH.”

Private Placement Terms

Pursuant to the terms of the securities purchase agreement, the private placement consists of the following three components, in each case subject to the satisfaction of customary closing conditions and the beneficial ownership limitations applicable to each investor:

Initial Closing. At the initial closing, the Company will issue and sell pre-funded warrants for aggregate gross proceeds of approximately $25 million at a purchase price of $0.1399 per pre-funded warrant, representing a common stock-equivalent price of $0.14 minus the $0.0001 per share exercise price of each pre-funded warrant. The initial closing is expected to occur on or about August 24, 2026.

Second Closing. Upon the NDA Acceptance Milestone, and subject to the NDA Acceptance Milestone occurring in 2026 and the satisfaction of other customary closing conditions, the participating investors will be obligated to purchase pre-funded warrants at a second closing for additional aggregate gross proceeds of approximately $125 million. The purchase price per pre-funded warrant will equal the lesser of $0.1399 and the five-day volume-weighted average price of the Company’s common stock preceding the second closing, in each case minus the $0.0001 per-share exercise price of each pre-funded warrant.

FDA Approval Warrants. At the second closing, the participating investors will also receive, for no additional consideration, warrants exercisable upon the FDA Approval Milestone. If exercised in full for cash at an exercise price of $0.187 per share, the FDA approval warrants (the FDA Approval Warrants) would provide the Company with additional aggregate gross proceeds of up to approximately $100 million. The FDA Approval Warrants will expire on the earliest of (i) the 30th day following the date the Company provides notice of the FDA Approval Milestone having been achieved and (ii) five years following the issuance date of the FDA Approval Warrants.

Additional details regarding the private placement, the securities purchase agreement, the pre-funded warrants, FDA Approval Warrants and non-voting convertible preferred stock can be found in the Current Report on Form 8-K to be filed by the Company with the Securities and Exchange Commission (SEC) today.

Preferred Stock and Stockholder Approval

Prior to obtaining stockholder approval, the pre-funded warrants and FDA Approval Warrants will be exercisable for shares of the Company’s non-voting convertible preferred stock, designated Series A-1, Series A-2 and Series A-3, as applicable. Following stockholder approval, each series of non-voting convertible preferred stock will be automatically converted (subject to certain exceptions) into common stock at the applicable per share price described above. The exercise of the warrants and conversion of the non-voting convertible preferred stock will in each case be subject to the beneficial ownership limitations elected by the applicable investor.

The Company will seek the stockholder approval necessary under applicable Nasdaq listing rules for the issuance of common stock upon exercise of the warrants and conversion of the non-voting convertible preferred stock at a special meeting of stockholders, which it has agreed to hold following the initial closing. In connection with the private placement, the Company and the Company’s directors and executive officers have entered into lock-up agreements.

Use of Proceeds

The Company intends to use the net proceeds, together with its existing cash, cash equivalents and marketable securities, to advance the clinical development and potential commercialization of seralutinib in PAH and PH-ILD, and for other general corporate purposes and working capital. The Company expects that the net proceeds from the initial closing and the committed capital from the second closing, together with its existing cash resources, will fund its operations into 2028.

Placement Agents

Leerink Partners and Cantor are acting as joint placement agents in connection with the private placement.

Registration Rights and Unregistered Securities

The Company has agreed to file one or more registration statements with the Securities and Exchange Commission (SEC) covering the resale of the shares of common stock issuable pursuant to the private placement, including upon exercise of the warrants and conversion of the preferred stock.

The securities described above are being sold in a private placement in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act), and Regulation D promulgated thereunder, and have not been registered under the Securities Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

About Gossamer Bio

Gossamer Bio is a biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. Its goal is to be an industry leader in, and to enhance the lives of patients living with, pulmonary hypertension.

Forward-Looking Statements

Gossamer cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: the expected timing, completion and terms of the private placement; the amount and timing of gross proceeds, including the potential to achieve the NDA Acceptance Milestone and consummate the second closing and the Company’s expectation that the committed capital would be funded in 2026; the potential achievement of the FDA Approval Milestone; the receipt of stockholder approval at the proposed special meeting; the intended use of proceeds and the expected timeframe for funding the Company’s operating plan into 2028; and the development potential and market opportunity of seralutinib in PAH, PH-ILD and other indications. The inclusion of forward-looking statements should not be regarded as a representation by Gossamer that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Gossamer’s business, including, without limitation: the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed financing; the financing may not be completed on the terms described or at all, and the milestones triggering the second closing and/or exercise of the FDA Approval Warrants may not be achieved; the risk that Gossamer’s planned NDA submission is based in part on its views following its recent meeting with the FDA and the official minutes therefrom and later feedback from the FDA, which may be inconsistent with such meeting or Gossamer’s views from such meeting; later developments with the FDA may be inconsistent with the feedback from prior meetings; the FDA may determine that our planned NDA does not qualify for filing; the results of the Company’s clinical trials, including the Phase 3 PROSERA and Phase 2 TORREY studies, may not be deemed sufficient by the FDA to serve as the basis for regulatory approval of seralutinib, including the risk that the FDA determines that the overall benefit-risk assessment of seralutinib is not favorable; any path forward may require additional capital and other resources, which may not be available on reasonable terms, if at all, or may limit the commercial opportunity for seralutinib; the Company’s future performance is dependent entirely on the success of seralutinib; potential delays in the commencement, enrollment and completion of clinical trials; disruption to our operations from unexpected events, including clinical trial delays; the Company’s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; the results of preclinical studies and early clinical trials with seralutinib are not necessarily predictive of future results; regulatory developments in the United States and foreign countries; adverse side effects or inadequate efficacy of seralutinib that may limit its development, regulatory approval and/or commercialization, or may result in clinical holds, recalls or product liability claims; Gossamer’s ability to obtain and maintain intellectual property protection for seralutinib; Gossamer may use its capital resources sooner than it expects; and other risks described in the Company’s prior press releases and the Company’s filings with the SEC, including under the heading “Risk Factors” in the Company’s annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Gossamer undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260821107693/en/

Key Takeaways Modine's fiscal Q1 sales rose 28% and adjusted EPS jumped 44%, but adjusted EBITDA margin fell to 12.2%.Data Centers revenue surged 90%, while component shortages helped drive margin down to 14.8%.Modine targets $650-$680 million in fiscal 2027 adjusted EBITDA and 100-200 bps of margin expansion. Modine Manufacturing (MOD - Free Report) is delivering strong revenue growth, particularly from its booming data center business. But can the company translate that growth into meaningful margin expansion? Its last quarter results suggest there is still work to do.

Modine’s first-quarter fiscal 2027 revenue rose 28% year over year to $874.1 million, while adjusted EPS jumped 44% to $1.53. Yet gross margin declined 340 basis points (bps) to 20.8%, while adjusted EBITDA margin fell 270 bps to 12.2%.

Data Centers: Growth Outpacing ProfitabilityThe biggest drag was the Data Centers business. Although segment revenue surged 90%, its adjusted EBITDA margin dropped to 14.8% from 22.1% a year earlier. Component shortages limited production and created labor inefficiencies and under-absorbed overhead. These issues reduced the segment’s margin by roughly 450-550 bps.

Modine views these pressures as temporary and expects Data Center margins to recover to 19-20% in the fiscal second quarter as component availability improves and production becomes more efficient. The company is also expanding supplier capacity and preparing its facilities to handle the strong demand reflected in its growing backlog.

Commercial HVAC: Buyouts Fuel Growth, Dilute MarginsCommercial HVAC sales rose 22% to $261.6 million, helped by higher coil sales to data center customers and $19.7 million of incremental revenue from acquired businesses. Organic sales grew a more modest 6%.

But adjusted EBITDA margin slipped to 15.9% from 18.1%, pressured by acquisition-related business mix, manufacturing consolidation inefficiencies and a greater share of lower-margin coil sales.

Management expects the segment's margin to improve sequentially through fiscal 2027. But for now, HVAC is telling a similar story to Data Centers: strong demand, growth outpacing profitability.

Performance Technologies: Weak Demand Meets Rising CostsPerformance Technologies is battling both sales and margin headwinds. Revenue declined 3% to $277.8 million, as weak automotive and commercial vehicle demand outweighed higher sales to power-generation customers, with organic sales down 4%.

Adjusted EBITDA fell 3% to $36.2 million and margin edged down 10 bps to 13%, as higher material and tariff costs outpaced contractual cost recoveries— though a $2 million reduction in SG&A partly offset the impact.

Unlike Data Centers and HVAC, this segment's challenge isn't converting growth into margin— it's stabilizing a shrinking base while inflation works against it.

Modine's Playbook for Closing the Margin GapTo address these pressures across the portfolio, Modine is consolidating product lines and manufacturing operations in Commercial HVAC while taking pricing actions to offset higher material and tariff costs. More broadly, the company's 80/20 strategy is simplifying operations and directing resources toward higher-return products and customers.

These initiatives are important because the company targets $650-$680 million in adjusted EBITDA for fiscal 2027, representing roughly 38-44% growth, along with at least 100-200 bps of margin expansion. It expects profitability to improve sequentially as data center volumes increase and cost-recovery measures take effect.

For investors, the next few quarters will therefore be critical. Modine has already demonstrated that it can generate impressive growth. The bigger test is whether supply-chain constraints ease quickly enough and whether HVAC and 80/20 initiatives gain enough traction for that growth to flow through to the bottom line across all three segments. Margins, not sales, will be the number to watch over Modine's next quarters.

How MOD Stacks Up Against the CompetitionVertiv Holdings (VRT - Free Report) : Its net sales rose 24.1% year over year to $3.27 billion in the last reported quarter, with organic growth of 18% supplemented by acquisitions and foreign exchange. Vertiv's profitability has kept pace with its top line. Its adjusted operating margin expanded 410 bps to 22.6%. Vertiv attributed the improvement to operational execution, productivity gains and favorable price-cost dynamics, even as tariffs and continued capacity and R&D investment worked against it.

Eaton Corp (ETN - Free Report) : its second-quarter 2026 revenue reached $8.53 billion, driven by 14% organic growth and a 7% contribution from acquisitions, with data centers being a major growth engine alongside broad-based demand across other markets. Eaton’s total segment margin came in at 23.1%, 10 bps above the high end of guidance, but still 80 bps below the prior-year quarter, as acquisition-related effects and higher amortization weighed on profitability. For full-year 2026, Eaton guided segment margins to 24.1-24.5%.

The Zacks Rundown on MOD StockOver the past six months, MOD shares are down 14%, while Eaton and Vertiv gained 15% and 8%, respectively.

6-Month Price Performance Comparison Image Source: Zacks Investment Research

Modine still trades at a discount to its peers— around 22x forward 12-month earnings, versus roughly 28x for Eaton and 32x for Vertiv.

MOD’s F12M Vs. Eaton & Vertiv Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Modine’s fiscal 2027 and 2028 EPS implies year-over-year growth of 52% and 41%, respectively.

Image Source: Zacks Investment Research

MOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wall Street expects Space Exploration Technologies Corp. (NASDAQ) to grow its revenue at a pace that would leave even Nvidia Corp. (NASDAQ) in the dust — and Elon Musk says analysts still aren’t thinking big enough.

Ticker Take founder Jon Erlichman shared a chart comparing analysts’ five-year revenue growth estimates for some of the world’s largest companies. SpaceX topped the list with projected revenue growth of 2,090%. It stood far ahead of Nvidia’s 288%, Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) 140%, Microsoft Corp‘s (NASDAQ:MSFT) 136%, Amazon.com Inc‘s (NASDAQ:AMZN) 81% and Apple Inc‘s (NASDAQ:AAPL) 54%.

That means Wall Street already expects SpaceX’s revenue to grow at more than seven times Nvidia’s pace over the next five years. It’s a remarkable comparison considering Nvidia has become the defining winner of the artificial intelligence boom; while SpaceX is still widely viewed as a rocket company despite its rapidly expanding businesses.

Are Analysts Still Too Conservative on SpaceX?Responding to the chart on X, Musk wrote, “I think both SpaceX and Tesla will exceed these estimates.”

While the comment covered both companies, SpaceX’s projection stands out. Analysts are already modeling an extraordinary 2,090% revenue increase over the next five years—compared with 119% for Tesla Inc (NASDAQ:TSLA) and 288% for Nvidia.

In other words, Musk isn’t just saying SpaceX will outperform expectations; he’s arguing that even one of Wall Street’s most optimistic growth forecasts still doesn’t go far enough.

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Analyst optimism stems from Starlink’s subscriber growth and the company’s push into AI infrastructure — businesses that drive future revenue alongside rocket launch operations.

Reuters has also reported that SpaceX expects to reach a $100 billion annualized revenue run rate by the end of 2026.

The next question is whether SpaceX can deliver.

If Starlink continues to scale and AI becomes a meaningful revenue contributor, today’s seemingly extraordinary forecasts may eventually look conservative. That possibility—not just the comparison with Nvidia—is what makes Musk’s brief response worth paying attention to.

Musk’s Track Record of Overpromising Looms Over SpaceX It’s a familiar story: Musk once predicted Twitter would generate more than $26 billion in revenue and nearly quintuple its customer base by 2028, but the company fell far short, with ad revenue plunging.

The failed projections have raised concerns about Musk’s similarly ambitious promises for SpaceX.

Those concerns have intensified after SpaceX’s first public-company earnings showed a $541 million quarterly net loss and $4.3 billion loss in the first quarter, alongside massive capital spending.

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Photo courtesy: Samuel Boivin / Shutterstock.com

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

Alphabet (GOOG +0.59%) (GOOGL +0.69%) CEO Sundar Pichai shared a notable statistic at the company's June 2026 investor presentation: AI Overviews now has 2.5 billion monthly users. That kind of reach makes Google Search one of the most powerful monetization channels for artificial intelligence (AI).

"Our AI investments are redefining what's possible across every part of our business," Pichai said on the company's second-quarter earnings call.

The massive reach helps explain why Alphabet generated $81 billion in ad revenue in the second quarter, up 14% year over year. The company's ability to turn Search into massive cash flow -- and reinvest it into chips and data centers -- is why Alphabet remains a compelling way to ride AI's growth.

Alphabet CEO Sundar Pichai. Image source: Alphabet.

AI has supercharged Google's advertising revenue The strong growth in ads shows that high engagement with AI Overviews is improving advertiser returns. The company revealed that users who engage with AI features search more often, helping to drive record query volumes. The growth in search queries generates more behavioral data to improve user experiences and ad quality, which fuels the revenue engine.

The momentum in advertising is pushing Alphabet to accelerate the deployment of Gemini -- the AI that powers Overviews -- deeper into its advertising business. That spells more growth.

The company is also continuing to push the boundaries of what's possible with Search. "We are continuing to incorporate more frontier capabilities into Search with agents, personal intelligence, and notebooks," Pichai said during the Q2 earnings call.

These are meaningful signals for investors, since advertising still accounts for about two-thirds of Alphabet's total revenue.

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A solid stock for the long term The scale of Alphabet's advertising revenue is providing enormous resources for AI infrastructure, which isn't cheap. Alphabet's capital expenditures totaled $136 billion over the trailing 12 months, and management expects another notable increase in 2027. That pace of spending will pressure near-term free cash flow.

The stock is currently trading 16% below its prior high, as market participants weigh the cost of AI on near-term profitability. But those same investments are also strengthening Search and potentially widening Alphabet's moat.

Importantly, Google's cash from operations has climbed to $185 billion on a trailing-12-month basis, supported by growing advertising revenue, improving Google Cloud margins, and lower costs to generate AI Mode responses in Search.

Alphabet is demonstrating that its AI investments are translating into strong revenue growth while also improving compute efficiency, which could be beneficial for long-term free cash flow growth. This is all possible because it has a massive user base to monetize. This puts Google in a strong position to deliver long-term returns to shareholders.

Modine Manufacturing Co. (NYSE:MOD) shares are rising Friday. An investigative report from Hunterbrook Media identified Google as the previously unnamed customer behind Modine’s $4 billion cooling agreement. Here’s what you should know.

Modine Manufacturing shares are climbing with conviction. Why is MOD stock up today? Report Names Google as Modine’s Mystery $4 Billion CustomerHunterbrook Media said it obtained material it believes came from an internal Modine planning database, surfacing publicly on GitHub roughly a month ago in what looked like the middle of a broader shift of company records over to Alphabet Inc.’s (NASDAQ:GOOG) cloud infrastructure.

Per the report, the leaked files tie Google to a supply arrangement Modine disclosed in May without naming the customer, one that commits Modine to setting aside capacity for over $4 billion worth of Airedale chillers through 2029. The reporting also points to a second layer of Google business in the pipeline, roughly $4.5 billion in opportunities at various stages, of which about $433 million has already converted into bookings.

The database reportedly extends past Google too, pointing to close to $3 billion Modine considers locked in or highly probable from Amazon.com Inc.’s (NASDAQ:AMZN) cloud unit, Crusoe and more than a dozen other data center clients, on top of further early-stage business. Hunterbrook estimated Modine’s overall pipeline at close to $23 billion, with Amazon’s cloud division alone accounting for over half that sum.

Given the scale of what it was reporting, Hunterbrook Media also disclosed that, at the time of publication, its affiliated fund, Hunterbrook Capital, holds a long position in Modine shares and a short position in a basket of comparable companies, cautioning that its position could change.

Database Suggests Modine’s Pipeline Could Exceed its Own GuidanceBeyond the size of the pipeline itself, the report also examined what those numbers could mean for Modine’s upcoming results. Running the numbers through Modine’s own conversion odds, Hunterbrook arrived at an implied $540 million in revenue for the fiscal quarter closing in September, roughly a fifth higher than what Modine has guided to.

Stretched across fiscal 2027, that same math works out to $2.3 billion, a figure that would more than double last year’s results and land above the upper edge of Modine’s 60% to 80% growth target.

That same pipeline also comes with real execution risk. The database also reportedly shows Modine working through supplier shortages and engineering constraints as it scales up production, while pursuing new business further up the cooling stack, including an effort to qualify equipment against Nvidia’s (NASDAQ:NVDA) liquid-cooling specifications.

MOD Shares Are ClimbingMOD Price Action: Modine shares were up 2.42% at $195.35 at the time of publication on Friday, according to Benzinga Pro.

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Image: Shutterstock

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