LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises HCA Healthcare, Inc., (“HCA" or the "Company") (NYSE: HCA) investors that the firm has initiated an investigation into possible securities fraud, and may file a class action on behalf of investors.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: [email protected], to discuss their legal rights, or join the case via https://portnoylaw.com/hca-healthcare-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On July 14, 2026, HCA Healthcare published a press release outlining its preliminary operational and financial performance for the second quarter of 2026. Within the release, the enterprise significantly downgraded its full-year 2026 earnings outlook, attributing the reduction to an adverse shift in its payer breakdown. This trend was spurred by a surge in uninsured patient visits—largely stemming from individuals losing coverage through health insurance marketplaces—which erased roughly $400 million in quarterly revenue. Consequently, HCA revised its full-year earnings forecast downward to a range of $28.70 to $30.50 per share, while tightening its revenue guidance to between $77 billion and $79.5 billion (compared to its previous projection of $76.5 billion to $80 billion). Adjusted EBITDA expectations were also scaled back to $15.4 billion–$16.1 billion, down from the prior target of $15.55 billion–$16.45 billion.
Following these disclosures, HCA Healthcare’s equity value dropped by $27.14 per share, or 6.95%, settling at $363.60 at the close of trading on July 14, 2026.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
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Key Takeaways Dycom's backlog reached $11.9 billion, up 46.5%, with a strong 2.2x book-to-bill ratio.Fiber projects and Power Solutions are expanding DY's role across the data center infrastructure ecosystem.Dycom raised fiscal 2027 revenue guidance to $7.38-$7.65 billion as AI infrastructure demand accelerates. Dycom Industries, Inc. (DY - Free Report) appears increasingly well-positioned to benefit from the convergence of Artificial Intelligence (AI), data center expansion and fiber infrastructure spending. The rapid growth of AI workloads is intensifying demand for data center capacity, while hyperscalers and other customers continue investing in the networks needed to connect these facilities with businesses and homes.
Dycom's latest results highlight the strength of this opportunity. Fiscal 2027 first-quarter contract revenues jumped 56.1% year over year to $1.96 billion, while organic growth was 24.7%. Total backlog reached a record $11.9 billion, up 46.5%, with a 2.2x book-to-bill ratio. Customers are also extending contract durations to secure Dycom's skilled workforce, providing greater visibility into future growth.
The Communications segment remains a key beneficiary of fiber-to-the-home, long-haul and middle-mile infrastructure projects. Meanwhile, Building Systems is expanding its role in the data center ecosystem. Power Solutions delivered strong first-quarter performance, and DY’s pending $275 million acquisition of National Technology Integrators is expected to add structured cabling, security and advanced audiovisual capabilities.
The strategy could create a more comprehensive offering spanning data center racks, electrical systems, fiber networks and connections to businesses and homes. Management's raised fiscal 2027 revenue outlook of $7.38-$7.65 billion further reflects confidence in the demand environment.
With AI and data center investment accelerating alongside fiber deployments, Dycom's expanding capabilities, record backlog and strategic M&A could position it to capture a larger share of America's digital infrastructure buildout.
Dycom, Quanta and Sterling: Is AI Fueling a Backlog Bonanza?Dycom is well-positioned to benefit from surging demand for AI-driven data centers, power infrastructure and fiber connectivity, alongside other market peers like Quanta Services, Inc. (PWR - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .
Quanta offers broader exposure to the power grid and energy infrastructure needed to support data center growth, while its diversified platform benefits from rising electricity demand. Sterling, meanwhile, is positioned to capitalize on data center site development and digital infrastructure construction, with backlog growth providing visibility into future projects.
Dycom stands out for its record $11.9 billion backlog and 2.2x book-to-bill ratio, supported by robust fiber-to-the-home, long-haul and middle-mile demand. Its expansion into data center electrical work through Power Solutions and the pending National Technology Integrators acquisition strengthens its end-to-end digital infrastructure capabilities. While all three companies have strong secular tailwinds, DY’s combination of fiber exposure, expanding data center capabilities and record backlog gives it a compelling growth profile as AI infrastructure investment accelerates.
DY Stock’s Price Performance & Valuation TrendShares of this specialty contracting firm have gained 15% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
DY stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 23.45, as shown in the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors DycomDycom’s earnings estimates for fiscal 2027 and fiscal 2028 have trended upward over the past 60 days to $16.35 per share and $19.95 per share, respectively. The estimated figures for fiscal 2027 and fiscal 2028 imply year-over-year growth of 36.6% and 22%, respectively.
Image Source: Zacks Investment Research
Dycom stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways OZK posted Q2 EPS of $1.49, beating estimates, but shares fell nearly 1.3%.OZK's fee income rose 21%, while NII declined 1.2% year over year.Higher provisions, rising expenses and weaker credit quality remained key headwinds. Bank OZK (OZK - Free Report) reported second-quarter 2026 earnings per share (EPS) of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58.
Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds. Given the concern, OZK shares lost nearly 1.3% during yesterday's trading session.
Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million.
OZK’s Revenues & Expenses RiseNet revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million.
NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million.
The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%.
Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million.
Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million.
Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability.
OZK’s Loan Balances Decline & Deposits RiseAs of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively.
OZK’s Credit Quality WeakensNet charge-offs to average total loans grew to 0.69% from 0.10% in the year-ago quarter. Provision for credit losses was $45.6 million, rising 29.5% year over year. We projected provisions of $52.3 million.
The ratio of non-performing loans to total loans was 0.92% as of June 30, 2026, up from 0.18% a year ago. The non-performing assets-to-total assets ratio increased to 1.42% from 0.53%.
Profitability Ratios Decline for Bank OZKAt the end of the second quarter, return on average assets was 1.60%, down from 1.81% in the year-earlier quarter. Return on average common equity also declined to 11.14% from 12.98%.
Bank OZK’s Capital DeploymentDuring the second quarter, the company authorized a new $200 million share repurchase program through July 1, 2027, replacing the previous $200 million authorization announced in June 2025.
Bank OZK also increased its quarterly common stock dividend by 9.3% year over year to 47 cents per share, marking its 64th consecutive quarterly dividend increase.
Our Take on Bank OZKBank OZK continues to benefit from strong growth in non-interest income, record deposit balances and ongoing diversification of its loan portfolio, particularly through the expansion of its Corporate & Institutional Banking business. Management also remains optimistic about achieving stronger loan growth over the long term as diversification efforts continue. However, elevated operating expenses, higher provisions, declining NII and deteriorating asset quality remain key headwinds.
Bank OZK Price, Consensus and EPS SurpriseThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other BanksFirst Horizon Corporation (FHN - Free Report) posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter.
FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
Citizens Financial Group (CFG - Free Report) reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter.
CFG’s results benefited from a rise in NII and non-interest income. Growth in loan and deposit balances and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds.
Key Takeaways Post Holdings is rebuilding its pet food portfolio as weak dry dog food demand weighs on results.POST expects the Nutrish relaunch to support improving category trends by the fourth quarter of fiscal 2026.POST is refining pricing on key brands to stabilize volumes and strengthen pet food performance. Post Holdings, Inc. (POST - Free Report) is rebuilding its pet food business through the Nutrish relaunch alongside targeted pricing actions across selected brands. The company indicated that category demand has been weaker than anticipated, with dry dog food experiencing particular softness. As dry dog food accounts for approximately 60% of its portfolio, weakness in that category has weighed on pet food performance.
The Nutrish relaunch is expected to take most of the third quarter of fiscal 2026 to be fully reflected across the market, particularly in the food channel. The relaunch features updated positioning, packaging and price points as part of the brand's refresh. Management reported encouraging sequential improvement at a major retailer where the rollout is complete, indicating a positive early response. The company expects Nutrish's performance to improve to roughly flat or slight year-over-year growth by the fourth quarter of fiscal 2026.
Post Holdings noted that price increases on roughly one-third of the 9Lives brand resulted in higher-than-expected price elasticity and the loss of placement at a couple of retailers. The company believes the issue can be addressed using the same approach applied to Gravy Train, combining short-term price rollbacks with longer-term price-pack architecture adjustments. The company noted that Gravy Train is now growing about 40% in pounds at one of its largest retailers following those changes.
Overall, Post Holdings is rebuilding its pet food portfolio through disciplined brand repositioning and pricing adjustments. The company expects these initiatives to strengthen brand performance and support improving category trends as the Nutrish relaunch reaches broader distribution.
The Zacks Rundown for POSTShares of this Zacks Rank #4 (Sell) company have lost 10% in the past six months compared with the industry’s 3.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, POST trades at a forward price-to-earnings ratio of 10.66, lower than the industry’s average of 14.55.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for POST’s current and next fiscal year earnings implies a year-over-year increase of 4.7% and 11.8%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
United Natural Foods Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It presently has 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 UNFI’s current fiscal-year sales indicates a decline of 2.1%, and the same for earnings indicates growth of 254.9% from the prior-year reported levels. UNFI delivered a trailing four-quarter earnings surprise of nearly 30%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 25.9% and 140.2%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 635%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30% and 73.3%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 129.2%, on average.
1:00pm: And then there's Alphabet Alphabet Inc (NASDAQ:GOOG) (Alphabet Inc (NASDAQ:GOOG)) reports second-quarter results after Wednesday's close, with Wall Street bracing for a print that could either validate the company's AI spending spree or intensify investor unease about it.
Bank of America is firmly in the bullish camp, reiterating its Buy rating and raising earnings estimates ahead of the print. The bank projects revenue of $102.1 billion and EPS of $8.38, both well above Street consensus of $101 billion and $2.90.
Much of that EPS gap traces to an estimated $80 billion boost to operating income from the revaluation of Alphabet's stake in Anthropic, whose valuation climbed from $380 billion in the first quarter to $965 billion in the second.
Capital spending remains the swing factor. Alphabet already guided full-year 2026 capex to $180 billion to $190 billion, and Bank of America thinks that range could climb another 5%, to $190 billion to $200 billion, given accelerating AI demand and rising memory costs.
12:05pm: Tesla's question mark Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) reports second-quarter results after the bell Wednesday, and the numbers investors already have in hand tell a split story: a blowout on deliveries, a question mark on spending.
The bigger debate on the call is likely to center on what Tesla is doing with its money, and its robots. The company set aside a $25 billion capital budget for 2026 to fund AI infrastructure and Optimus development, a spending pace analysts expect to push free cash flow to roughly negative $3.25 billion for the quarter.
Shares were flat Wednesday heading into the release.
11:00am: Supermicro surges Super Micro Computer Inc (NASDAQ:SMCI) (Super Micro Computer Inc (NASDAQ:SMCI)) shares opened about 20% higher on Tuesday after the company released preliminary fourth quarter fiscal 2026 results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance.
The AI server maker said revenue for the quarter ended June 30 is expected to be near the lower end of its previously issued guidance range of $11.0 billion to $12.5 billion. Wall Street analysts had been expecting revenue of about $11.73 billion.
The company also reported receiving more than $60 billion in new orders during the quarter, lifting its backlog to a record level at the end of fiscal 2026. Supermicro said the orders are expected to be delivered over future quarters.
10am: Dow opens higher, Nasdaq hit by semis selling There has been another uneven open on Wall Street, with investors selling out of technology stocks ahead of key earnings from Alphabet and Tesla after the close.
The Dow Jones has opened up 225 points, or 0.4%, while the Nasdaq fell 0.2%, with the S&P 500 oscillating around the flatline.
Industrial and defensive names led the Dow gains, with Honeywell, Verizon, 3M and Chevron the top risers.
Meanwhile, the Nasdaq's fall resulted from declines in semiconductor and AI-linked stocks, with AppLovin, SanDisk, Workday, Palantir and Lam Research leading falls as investors take profits after the rally yesterday.
An exception is Super Micro Computer, which jumped over 20% after the company released preliminary results showing significantly stronger-than-expected gross margins and a record order backlog, despite revenue tracking near the low end of its guidance.
8.10am: Tech stocks to see Wall Street open lower Wall Street stocks looked set for a weaker open on Wednesday as investors lock in profits in technology stocks ahead of crucial earnings from Google owner Alphabet and Tesla, while escalating tensions in the Middle East push oil prices to six-week highs.
Dow Jones futures were down 0.2%, while the S&P 500 was called 0.4% lower and the hardest hit is expected to be the Nasdaq, where futures have dropped 1%, with chipmakers leading the pre-market declines after a sharp rebound in the previous session.
The cautious mood follows a strong rally the day before, when the Dow Jones rose 380 points, or 0.7%, to 52,443, the S&P 500 gained 0.9% to 7,546, and the Nasdaq climbed 1.3% to 29,316, helped by a powerful recovery in semiconductor stocks after weeks of heavy selling.
Earnings from Alphabet and Tesla are due after the bell, with analysts seeing these as key tests for the artificial intelligence trade.
Markets will be watching Alphabet for updates on AI-related capital spending and monetisation, while Tesla's results are expected to provide fresh detail on autonomous driving, robotics and vehicle demand.
Results from Texas Instruments, IBM and ServiceNow will also be closely watched in the evening, while Philip Morris, GE Vernova and AT&T report before the opening bell.
Chip stocks were under pressure in pre-market trading as investors took profits following a 5.5% jump in the sector the previous session.
Semiconductor stocks have been under heavy pressure in recent weeks as hedge funds aggressively unwound crowded AI trades, driving the sector around 25% below its early June peak.
Tuesday's rebound came as "the Momo guys [momentum traders] ran out of stock to sell, so the pressure was off," said market strategist Kenny Polcari at Slatestone Wealth, suggesting the wave of forced selling may have largely run its course.
Meanwhile, Brent crude traded above $94 a barrel after another night of US strikes on Iranian targets and renewed threats to shipping routes in the Middle East from Yemen.
The stronger oil price has revived concerns that inflation could prove more persistent, complicating the Federal Reserve's policy outlook just as investors had begun to scale back expectations of further interest-rate increases.
"10 straight days of US strikes and continued attacks on military targets have kept a geopolitical premium firmly embedded in oil prices and that will become more of an issue next month and the months after," said Polcari.
There is little in the way of economic data due on Wednesday, putting more of the onus on corporate earnings and developments in the Middle East.
Super Micro (SMCI) has seen a significant increase in its stock price, rising 25% after announcing its Q4 guidance. The mixed preannouncement has been positive
Marley Kayden discusses Super Micro's (SMCI) preliminary fourth quarter results and the company's optimistic outlook on doubling gross margins. She explains Super Micro's commentary which cites strong customer demand and favorable product mix@ProsperTradingAcademy's Scott Bauer walks us through an example options trade for the AI server stock.
Key Takeaways Super Micro Computer raised Q4 gross margin guidance to 15-17% after reporting more than $60B in new orders.SMCI's record backlog and early AI server launches support demand across future quarters.Super Micro Computer said AI GPU platforms generated more than 80% of Q3 fiscal 2026 revenues. Super Micro Computer’s (SMCI - Free Report) shares climbed 16% in the pre-market hours on July 22 after the company released a preliminary business update for the fourth quarter of fiscal 2026, reporting more than $60 billion in new orders during the quarter. The company said these orders are expected to be delivered over future quarters and that its backlog reached a record level at the end of fiscal 2026.
The company now expects a gross margin of 15% to 17% for the fourth quarter, up from its previous guidance of 8.2% to 8.4%, primarily due to a favorable customer and product mix. Super Micro Computer also estimated that fourth-quarter revenues will be near the low end of its previously issued guidance of $11 billion to $12.5 billion.
Super Micro Computer is one of the first companies to bring new AI servers to market, including systems built on NVIDIA’s GB300 NVL72, HGX B300 and RTX6000Pro platforms, as well as AMD MI350/355 systems. This early availability gives Super Micro Computer a big edge in a fast-moving AI market. Customers who need powerful computing systems quickly for AI training and inference are more likely to choose Super Micro Computer.
The company is also preparing for next-generation NVIDIA, AMD, Intel and ARM AGI CPU platforms. Being first with new technologies helps it win large orders and build stronger customer relationships. This “time-to-market” advantage sets Super Micro Computer apart from traditional server makers like Dell and HPE, who typically move slowly. The company is already delivering these systems in high volumes worldwide.
Super Micro Computer’s DCBBS simplifies how data centers are built. It combines servers, racks, power systems, cooling and networking into a complete package. This helps customers save up to 30% in total costs and build data centers faster, sometimes in weeks instead of months. The offering includes the company’s latest liquid cooling technology (DLC-2), which reduces power and water use. DCBBS also includes software and support so that customers don’t have to manage multiple vendors.
Super Micro Computer’s deep penetration in handling AI workloads is likely to continue driving its top-line growth. SMCI derives a major portion of its revenue from AI-focused systems. These include servers built to handle GPU-heavy workloads needed for training and running AI models. AI GPU-related platforms contributed more than 80% of third-quarter fiscal 2026 revenues. This shows that the company has become a top vendor for AI infrastructure.
How Competitors Fare Against SMCIBig players like Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) are competing with SMCI in this space.
Dell Technologies is a major supplier of servers and storage systems, with a broad customer base across enterprises and cloud providers. Its scale, established distribution and service offerings give it an edge in winning large contracts. However, Dell Technologies has not grown as quickly as SMCI in AI-specific systems; its ability to bundle hardware with services makes it a strong rival.
Hewlett Packard Enterprise is also expanding aggressively into AI and high-performance computing. Its GreenLake platform provides customers with flexible, cloud-like consumption models, which can be attractive to enterprises. Hewlett Packard Enterprise’s focus on hybrid cloud and AI workloads positions it as a direct competitor in areas where SMCI is seeking growth through its DCBBS strategy.
Hewlett Packard Enterprise offers a range of servers, including HPE ProLiant, HPE Synergy, HPE BladeSystem and HPE Moonshot servers. Dell Technologies has built the Dell AI Factory in collaboration with NVIDIA. Dell Technologies also collaborated with Red Hat Enterprise Linux AI for Dell PowerEdge servers.
SMCI’s Price Performance, Valuation and EstimatesShares of Super Micro Computer have lost 12.9% year to date compared with the Zacks Computer – Storage Devices industry’s growth of 242.3%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, SMCI is trading at a discount at a forward 12-Month P/S multiple of 0.3X compared with the industry’s P/S multiple of 3.81X.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 24.27% and 25.9%, respectively. Earnings estimates for fiscal 2026 have been revised downward in the past seven days.
Image Source: Zacks Investment Research
Super Micro Computer currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All eyes are on Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) on Wednesday as the company disclosed preliminary fiscal Q4 2026 results with more than $60 billion in new orders received during the quarter and a record backlog. Furthermore, Super Micro guided gross margin to 15% to 17%.
That margin range is double the prior 8%-plus guidance, attributed to a favorable customer and product mix. Super Micro Computer guided revenue to near the low end of the $11 billion to $12.5 billion range, with LSEG consensus at near $11.67 billion. The company’s full results are slated to arrive on August 11, but the market is enthusiastically bidding up SMCI stock today.
Why It Matters and How the Street Is Responding The margin surprise is structurally important after governance scrutiny and dilution tied to Super Micro Computer’s June $7 billion financing raised to fund roughly $39 billion in AI-server orders. The $60 billion order figure anchors the AI-infrastructure buildout directly to Super Micro’s backlog.
Barclays raised its Super Micro Computer stock price target to $38 from $34, maintaining Equal Weight. Meanwhile, Rosenblatt lifted its SMCI target to $45 from $40 with a Buy rating, citing Super Micro’s “industry-leading” time-to-market advantage.
Super Micro Computer stock is up by a whopping 24% to $31.66 in Wednesday midday trading. Super Micro’s peers are also on the move: Dell Technologies (NYSE:DELL) stock is up 9% to $442.30, and Hewlett Packard Enterprise (NYSE:HPE) stock is up 5% to $48.84. The iShares U.S. Technology ETF (NYSEARCA:IYW) is flat at $244.02, so this doesn’t mark a full-on rally across tech stocks.
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This preliminary update precedes audited results, and Super Micro stock carries governance and dilution overhang. Investors can watch the August 11 print for confirmation of margin recovery and order-book conversion before sizing positions.
Record Backlog and Implications for SMCI Investors Super Micro Computer builds AI-optimized servers and full rack-scale systems, much of it designed around GPUs from NVIDIA (NASDAQ:NVDA), along with chips from Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD).
The company’s pitch has long centered on speed, getting the newest accelerators into deployable, often liquid-cooled systems faster than rivals can. That’s the “industry-leading” time-to-market edge Rosenblatt highlighted, and a record order book suggests hyperscalers and enterprises are still lining up for that capacity.
The backlog matters only if Super Micro Computer can convert it into recognized revenue at the newly guided 15% to 17% gross margin, rather than the thin 8%-plus range that had worried the Street. The guidance hints that the customer and product mix may finally be working in the company’s favor. Even so, patient investors may choose to wait for the August 11 results to confirm or deny that shift before assuming it’s durable.
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The rebound in the AI infrastructure trade offered reprieve for Wall Street, says @CharlesSchwab's Nathan Peterson. Wednesday's key headlines on Super Micro (SMCI) and Alphabet (GOOGL) earnings are now in full focus as investors wait for more inflation on the AI trade.
Super Micro's preliminary financial results provided Wall Street with even more confidence that there will continue to be incredibly strong demand for AI powered servers.
@Theotrade's Don Kaufman turns to Big Tech and high beta names for his stock picks in today's Big 3. He leans bearish on Alibaba (BABA) after the stock's recent AI-led rally, sees SpaceX (SPCX) as a long-term opportunity for investors, and warns against Super Micro (SMCI) due to controversies surrounding the company.
Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) has become the AI infrastructure story Wall Street loves to hate. The stock sits at $24.29 as of July 20, 2026, down 17.39% year-to-date and 54.16% over the past year, even as the company guided fiscal 2026 revenue to $38.9 billion to $40.4 billion.
CEO Charles Liang says “Supermicro’s transformation into a total datacenter infrastructure provider is accelerating.” Can shares double to $50 by July 2027?
Why SMCI Shares Are Stuck Despite Triple-Digit Revenue Growth Shares are down 14.59% in the past week and 12.96% in the past month, with a beta of 1.94 amplifying every wobble in AI sentiment. The overhang is capital structure and legal noise, with demand still intact.
On July 19, one report flagged the stock trading 12% beneath June’s offer as funding concerns mount, tied to a raise of up to $7 billion to back nearly $39 billion in AI-server orders, with potential 28% share count dilution.
Add the ITC probe into Samsung memory chips Supermicro uses and the board’s independent review tied to export-control matters, and the stock trades as if growth is not real.
Wall Street Sees 54% Upside. My Model Says That’s Not Enough. The analyst consensus target sits at $37.38, based on 2 Strong Buy, 3 Buy, 11 Hold, 2 Sell, and 1 Strong Sell ratings. Our base case lands at $29.04, or 19.59% upside, with a 90% confidence score. The bull case runs to $40.91 and the bear case to $24.92.
With earnings growth contributing 3.26% YoY to the model and only 26% of analysts bullish, the setup is a classic underowned contrarian. Consensus is anchored to the last two years of scandal, not the next two of Blackwell Ultra shipments.
The Path to $50 Per Share Reaching $50 from $24.29 requires a gain of 105.8%. With forward EPS of $2.48, a price of $50 implies a forward P/E of 20x. Our base case of $29.04 already implies 11x, meaning the target needs roughly 10x of additional multiple expansion.
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Q3 FY2026 delivered revenue of $10.24 billion, up 122.68% YoY, with non-GAAP EPS of $0.84 comfortably beating expectations and GAAP gross margin recovering to 9.9% from 6.3%.
Catalysts are stacking: the NVIDIA Vera Rubin NVL4 DCBBS blueprint, the ten new Rear Door Heat Exchanger liquid cooling models, and Liang’s confirmation of “more than $13B in Blackwell Ultra orders”. If EPS scales into the order book, a 20x multiple looks normal. The risk: dilution from the $7B raise resets per-share math before earnings catch up.
Where SMCI Trades Today vs Its Earnings Power At $24.29 against forward EPS of $2.48, SMCI trades at roughly 10x forward earnings. That is a hardware-cycle multiple for a company growing revenue triple digits.
The stock sits 40% below its 52-week high of $62.36 and only modestly above the low of $19.48. Long-term holders still sit on a 1,171.29% ten-year return. The current setup rhymes with prior AI-cycle drawdowns that eventually re-rated hard.
Is $50 Realistic? My Verdict Getting to $50 by July 2027 requires a 105.8% gain and a re-rate to 20x forward earnings.
Three things need to go right: the export-control review closes without material findings, the $7B raise executes without excess dilution, and Blackwell Ultra revenue converts the order book into shipped, margin-accretive product. A drawn-out ITC ruling against Samsung suppliers derails it. We’ve outlined the blueprint for how Super Micro Computer could reach $50 in 2027.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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MGM Buyout: The House Doesn't Always WinStifel Financial NYSE: SF reported what executives described as the strongest first half in the company’s history, with second-quarter revenue and earnings rising from a year earlier as wealth management, investment banking and net interest income all contributed to growth.
Chairman and CEO Ron Kruszewski said the firm is delivering on the plan it outlined at the start of 2026: growing revenue, expanding its loan book, increasing treasury deposits, improving operating leverage and deploying excess capital. “Six months into the year, we’re doing what we said we would do,” Kruszewski said on the company’s earnings call.
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MarketBeat Week in Review – 03/16 - 03/20Second-quarter net revenue totaled $1.45 billion, up 13% from a year earlier. Non-GAAP earnings per share were $1.42, up 25%. Kruszewski said both metrics represented the company’s second-highest second-quarter results ever. For the first half, Stifel generated record net revenue of $2.9 billion, up 15% from its prior record, and earnings per share of $2.87, up 28% from its prior record. Return on tangible common equity was approximately 24% for both the quarter and the first half, while tangible book value per share increased 15% from the prior year.
Wealth Management Revenue Hits Record Chief Financial Officer Jim Marischen said Global Wealth Management generated record net revenue of $957 million, up 13% year over year. Results were driven by transactional revenue, growth in net interest income and higher asset management revenue.
Stifel Financial: A Wealth Manager’s Stock for Wealth InvestorsTotal client assets stood at $580 billion, while fee-based assets were $240 billion, up 12% and 16%, respectively, as Stifel benefited from stronger equity markets and net new asset growth. Excluding the impact of assets associated with the sale of SIA, total client assets and fee-based assets increased more than 14% and 19%, respectively, Marischen said.
Stifel also continued to grow its balance sheet, increasing its loan book by $2.6 billion during the quarter. Marischen said that included an incremental $2 billion in fund banking loans. The company remains on pace to meet its full-year guidance of up to $4 billion of loan growth.
Based on loan growth and a stable net interest margin, Marischen said Stifel expects third-quarter net interest income in the range of $290 million to $300 million. Over the past year, combined wealth management and treasury deposits increased by approximately $3.3 billion, including a more than $1 billion increase in sweep deposits and a $3.8 billion increase in treasury deposits, partially offset by a decline in Stifel Smart Rate balances.
Investment Banking Drives Institutional Growth Stifel’s Institutional Group posted revenue of $481 million, up 15% from a year earlier and the segment’s second-strongest second quarter in company history. First-half institutional revenue rose 21%, driven by a more than 43% increase in investment banking revenue.
Firmwide investment banking revenue totaled $332 million in the second quarter, up 42% year over year. Advisory revenue increased 24% to $157 million, with strength in financials, industrials and technology. Capital raising revenue rose 121% to $102 million, supported by issuer engagement in healthcare, industrials, energy and financials. Fixed income underwriting revenue increased 18% to $64 million, driven by public finance activity and higher corporate issuance.
Marischen said Stifel remains the No. 1 negotiated issue manager in public finance by deal count, with a 14% market share year to date. He said investment banking and advisory pipelines remain “very strong,” with active strategic dialogue and a reopened new issue market. Financial sponsor activity remains below historical levels, which executives said could provide upside if it recovers.
Transactional revenue declined 19% year over year, primarily due to lower fixed income revenue. Marischen noted that the prior-year period benefited from a roughly $30 million gain in the company’s aircraft business. Excluding that gain, results would have been relatively comparable to a year ago. Equity transactional revenue fell 4%, reflecting the impact of Stifel’s European restructuring.
Expenses, Capital Deployment and Buybacks Stifel continued to emphasize expense discipline. Marischen said the company lowered its compensation ratio to 57%, down 50 basis points sequentially from the first quarter and below consensus expectations. He attributed the improvement to the strong operating environment, the European reorganization and the sale of SIA. Assuming market conditions hold up, he said Stifel expects additional compensation flexibility in the second half and could land in the midpoint to lower half of its full-year compensation ratio guidance range of 56.5% to 57.5%.
Non-compensation expenses totaled $309 million, up 11% year over year, with the increase tied largely to business growth, including higher investment banking gross-ups, credit provisions, advertising and data processing. The operating non-compensation ratio was 19.6%, within the company’s full-year guidance range of 18% to 20%.
Stifel also deployed capital through business reinvestment, share repurchases and dividends. Kruszewski said those actions totaled more than $500 million in the second quarter. The company repurchased 2.4 million shares during the quarter and had 7.8 million shares remaining under its current authorization at quarter-end.
Marischen said Stifel ended the quarter with a Tier 1 leverage ratio of 11.2% and a Tier 1 risk-based capital ratio of 17.3%, reflecting deliberate capital deployment into loan growth. Based on a 10% Tier 1 leverage target, the company had nearly $480 million of excess capital after funding loan growth and repurchases.
AI Viewed as Productivity Tool, Not Replacement Kruszewski spent part of the call addressing artificial intelligence, saying he does not view AI as a replacement for financial advisors or other professionals. Instead, he described it as a productivity accelerator that can help bankers evaluate more opportunities, research analysts uncover more insights and advisors spend more time with clients.
“Markets sometimes confuse access to information with judgment,” Kruszewski said. “AI is making information more abundant. That only increases the value of judgment, trust, and relationships.”
He said advisor recruiting remains highly competitive despite market concerns that AI could diminish the value of financial advice. Stifel was ranked No. 1 in employee advisor satisfaction by J.D. Power for the fourth consecutive year, a recognition Kruszewski said reflected the firm’s focus on supporting advisors.
Executives Point to Constructive Second Half Looking ahead, Kruszewski said the broader market remains constructive, though volatility and geopolitical uncertainty remain risks. He said the economy is healthy, client dialogue is high and capital markets activity continues to broaden.
In response to analyst questions, Kruszewski said he remains optimistic about investment banking momentum across Stifel’s diversified platform, including healthcare, industrials, technology and energy. He added that bank M&A activity remains muted relative to longer-term expectations, but active dialogue continues.
On acquisitions, Kruszewski said Stifel remains disciplined and evaluates opportunities based on return on invested capital. Given current valuations in financial services, he said one of the most attractive uses of capital remains investing in Stifel’s own business and repurchasing shares when management sees a disconnect between the company’s outlook and its stock price.
“We’re building a stronger, more valuable Stifel,” Kruszewski said. “While we’re proud of what we’ve accomplished in the first half of the year, we’re even more excited about where we’re headed.”
About Stifel Financial (NYSE:SF)Stifel Financial Corp. is a diversified financial services holding company headquartered in St. Louis, Missouri. Founded in 1890, the firm has grown into a full‐service brokerage and investment banking organization serving individual investors, corporations and institutions. Through its principal subsidiary, Stifel, Nicolaus & Company, Incorporated, the company delivers a broad array of financial products and services backed by research‐driven insights.
The firm's main business activities are organized into two core segments: Private Client Group and Institutional Group.
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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The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Key Takeaways Marathon Petroleum benefits from scale, integrated logistics and premium fuel investments.HF Sinclair is favored for crude flexibility, refinery upgrades and valuation advantage.DINO trades at a lower forward price-to-sales ratio and has strategic margin expansion projects. Marathon Petroleum Corporation (MPC - Free Report) and HF Sinclair Corporation (DINO - Free Report) are two prominent independent U.S. refiners, but they differ significantly in scale, operational reach and growth strategies. Marathon Petroleum leverages one of the nation's largest refining systems, an extensive logistics network and strategic investments in higher-value fuel production to drive resilient earnings and margin expansion. HF Sinclair, meanwhile, focuses on optimizing its regional refining footprint through crude flexibility, targeted capacity enhancements and cost-efficiency initiatives. Both companies stand to benefit from favorable refining fundamentals, including steady transportation fuel demand and supportive crack spreads, while navigating industry headwinds such as commodity price volatility, regulatory pressures and maintenance-related disruptions. Comparing their refining strengths, growth initiatives and operational risks provides valuable insight into which stock is better positioned to deliver sustainable long-term shareholder value.
The Case for Marathon Petroleum StockMarathon Petroleum's refining business remains anchored by one of the largest and most sophisticated refining systems in the United States, with nearly 3 million barrels per day of refining capacity spread across the Gulf Coast, Mid-Continent and West Coast. Its integrated network of refineries, pipelines, terminals and barges enables efficient movement of crude oil and intermediate products, allowing the company to maximize utilization and capture higher-margin opportunities across regions. In the first quarter of 2026, the refining segment demonstrated strong operational execution with 89% refinery utilization and an industry-leading 99% margin capture despite completing nearly 40% of its annual turnaround program. These capabilities, combined with disciplined commercial execution and a diversified crude sourcing strategy centered on the United States and Canada, provide resilience against global supply disruptions and support consistent refining profitability.
Marathon Petroleum is well positioned to further strengthen its refining franchise as it is investing in high-return projects that enhance product flexibility and increase exposure to premium transportation fuels. The expansion of jet fuel production capacity at the Garyville refinery, ongoing yield improvement initiatives at El Paso and additional jet fuel flexibility at Robinson position the company to benefit from rising global aviation demand. Its growing international LPG trading business and expanding export capabilities further diversify revenue streams, while integration with MPLX's logistics infrastructure enhances feedstock access, market reach and operational efficiency. These initiatives should improve refining margins and reinforce the company's competitive position over the long term.
However, Marathon Petroleum's refining business remains exposed to volatile crude oil prices, fluctuating crack spreads and changing fuel demand, while refinery turnarounds and unplanned outages can temporarily weigh on throughput and earnings. The company also faces rising regulatory compliance costs tied to emissions and fuel standards, particularly in California. Intense competition, evolving crude differentials and geopolitical uncertainties may further pressure refining margins. To maintain its competitive edge, Marathon Petroleum must continue executing efficiently, sustaining high refinery utilization, controlling costs and generating strong returns from its ongoing capital investments.
The Case for HF Sinclair StockHF Sinclair's refining business is supported by a diversified network of seven complex refineries with a combined crude processing capacity of 678,000 barrels per stream day across key U.S. markets. Its ability to process discounted heavy and sour crude oils into higher-value products such as gasoline, diesel and jet fuel enhances margin potential. An extensive midstream network of pipelines, terminals and storage assets further strengthens feedstock flexibility and distribution efficiency, while geographic proximity to major crude supply hubs such as Cushing, the Permian Basin and Canadian sources provides reliable access to cost-advantaged crude.
The company, at the same time, is taking several strategic initiatives to enhance its refining profitability. Management continues to focus on increasing throughput, enhancing crude optimization and reducing operating costs through targeted capital projects. The El Dorado vacuum furnace project is expected to improve reliability and allow an additional 10,000 barrels per day of heavy crude processing, while the Puget Sound refinery upgrade provides greater flexibility to shift production between diesel and jet fuel depending on market conditions. Strong refining margins, favorable summer fuel demand and the absence of major turnarounds after the third quarter position the company to capture improved market conditions.
Despite these strengths, HF Sinclair's refining business remains exposed to several challenges. Profitability is highly dependent on volatile crude oil prices, crack spreads and refined product demand, making earnings susceptible to unfavorable market swings. Planned refinery turnarounds and unexpected maintenance activities can temporarily reduce throughput and increase operating costs. The business also faces competitive pressure from larger Gulf Coast refiners with lower production costs, while geopolitical conflicts, supply chain disruptions and crude market volatility can affect feedstock availability and pricing. Additionally, increasingly stringent environmental regulations and renewable fuel compliance requirements could raise operating expenses and capital investment needs over time.
Price Performance ComparisonIn the past six months, MPC and DINO have posted nearly identical stock performances, with shares surging 82.4% and 83.5%, respectively.
Image Source: Zacks Investment Research
Valuation ComparisonFrom a valuation perspective — in terms of forward price-to-sales ratio — HF Sinclair is trading at a discount of 0.55X compared with Marathon Petroleum’s 0.68X.
Image Source: Zacks Investment Research
EPS EstimatesAccording to the Zacks Consensus Estimate, MPC’s earnings are set to rise 234.8% year over year in 2026.
Image Source: Zacks Investment Research
The same for DINO’s 2026 EPS indicates a year-over-year increase of 113.6%.
Image Source: Zacks Investment Research
Summing UpBoth Marathon Petroleum and HF Sinclair are well-positioned to benefit from favorable refining fundamentals, supported by resilient fuel demand, healthy crack spreads and ongoing operational improvements.
Marathon Petroleum stands out for its industry-leading scale, integrated logistics network and high refinery utilization. Moreover, its investments in premium fuel production and exports should support long-term growth, supporting its Zacks Rank #3 (Hold).
HF Sinclair, however, appears better positioned overall, driven by its sharper focus on margin expansion through crude flexibility, targeted refinery upgrades, disciplined cost optimization and improving throughput. Its ability to process discounted heavy crude, combined with attractive valuation, strategic capital projects and strong earnings leverage to favorable market conditions, provides a compelling risk-reward profile, justifying its Zacks Rank #2 (Buy).
While Marathon offers stability and scale, HF Sinclair's combination of operational catalysts, efficiency initiatives and valuation advantage makes it a more attractive refining investment at current levels.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Norfolk Southern (NSC - Free Report) , which belongs to the Zacks Transportation - Rail industry, could be a great candidate to consider.
When looking at the last two reports, this railroad has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.70%, on average, in the last two quarters.
For the most recent quarter, Norfolk Southern was expected to post earnings of $2.51 per share, but it reported $2.65 per share instead, representing a surprise of 5.58%. For the previous quarter, the consensus estimate was $2.78 per share, while it actually produced $3.22 per share, a surprise of 15.83%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Norfolk Southern lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Norfolk Southern currently has an Earnings ESP of +0.21%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 23, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Quantum computing offers the promise of being the next big technological breakthrough after artificial intelligence (AI). The technology has drawn the interest of the U.S. government, which has been investing in the sector. Meanwhile, investors can buy the stocks of several public companies that are attempting to develop fault-tolerant quantum computers using a variety of different techniques.
Five of the best-known pure plays in the space are IonQ (IONQ -1.18%), Quantinuum (QNT -6.44%), Rigetti Computing (RGTI +0.13%), Infleqtion (INFQ +3.94%), and D-Wave Quantum (QBTS -1.57%). Let's consider which of these quantum stocks looks like the best buy.
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All quantum computers are built around qubits, which are extremely sensitive to even the slightest external interference. As a result, their computations have high error rates. The error-reduction and error-correction problems are among the chief challenges faced by every company trying to make quantum computing practical.
The two companies at the forefront of accuracy, though, are IonQ and Quantinuum. Both companies use trapped-ion technology: Each qubit in their computers is made out of an individual charged atom (aka, an ion). This method results in qubits that are more stable than qubits created using other techniques. The result is that IonQ has achieved 99.99% 2-qubit gate fidelity (a standard metric for quantum computing accuracy), while Quantinuum sits at 99.92%.
The companies differ primarily in how they hold their qubits in place. IonQ uses a combination of lasers and microwave antennas built into its chips, while Quantinuum employs only lasers, arguing that microwave antennas slow computational speed too much.
Quantinuum is known for its comprehensive software stack, while IonQ has been developing an entire quantum ecosystem, having made acquisitions in quantum sensing, networking, and satellite transmission. It is even in the process of acquiring quantum chip foundry SkyWater Technology, a deal that will enable it to manufacture its own chips in-house and become vertically integrated.
Rigetti Computing
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Rigetti is pursuing one of the more common approaches to quantum computing: superconducting qubits. These are electronic circuits that can be made in conventional semiconductor fabs. While they must be brought to temperatures near absolute zero in order to operate, which requires expensive dilution refrigerators, they are controlled by microwave pulses, and the qubits don't need bulky lasers to hold them in place.
The big advantage is that this technique provides much faster speeds than trapped-ion and other approaches. The disadvantage is that Rigetti lags in accuracy, with 2-qubit fidelity currently around 99.1% for its new Cepheus-1-108Q system. While that may sound close to the level that IonQ has reached, in the world of computing, it is considered way behind.
Image source: Getty Images.
Infleqtion Infleqtion has carved out a niche in quantum sensing and precision timing tools, giving it a solid revenue base as it pursues the development of a fault-tolerant quantum system using neutral-atom technology. Similar to trapped-ion technology, it creates each qubit out of an individual atom. But because it uses atoms that are not charged, they don't repel each other. This allows neutral-atom systems to operate with higher qubit densities.
Right now, Infleqtion's technology sits between trapped-ion and superconductor techniques. Its technology is faster than the trapped-ion approach but much slower than superconducting qubits. Meanwhile, the 99.73% 2-gate fidelity it recorded in 2024 is much better than Rigetti's but still meaningfully trails its trapped-ion peers.
D-Wave Quantum
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D-Wave Quantum has established itself as a leader in quantum annealing, which offers a niche solution for solving optimization problems. Because the technology is more mature and less complex, the company has already started to commercialize its systems, which can be particularly useful for certain industries like finance and logistics, where finding the most efficient solutions to complex problems (or even a solution that's close to the best) can provide a company with competitive advantages.
Meanwhile, following its acquisition of Quantum Circuits, D-Wave is looking to apply what it learned in developing quantum annealing to superconducting qubit architecture. It plans to use Fluxonium qubits, which can remain in their quantum states longer, and a dual-rail gate-model processor with built-in error detection. It believes that by combining these technologies, it can create a system with the accuracy of a trapped-ion system and the speed of superconducting qubits.
The verdict Ultimately, for those who want to invest in this still-speculative technology, taking a basket approach could prove to be a wise course, as no one knows yet which of the many qubit technologies will reach fault tolerance and commercial viability first. However, if I could only invest in one quantum stock, it would be IonQ. It has the accuracy lead today, and I think its ecosystem and vertically integrated approach should give it an advantage.
Key Takeaways Webster Financial posted Q2 adjusted EPS of $1.60, missing estimates despite year-over-year growth.WBS grew loans, deposits and non-interest income, while expenses rose and net interest margin narrowed.Webster Financial's Santander acquisition cleared more approvals and is expected to close in 2H 2026. Webster Financial Corporation (WBS - Free Report) posted adjusted earnings per share (EPS) of $1.60 for the second quarter of 2026, marginally missing the Zacks Consensus Estimate of $1.61. However, the reported figure compared favorably with the EPS of $1.52 reported a year ago.
Results were affected by an increase in non-interest expenses and contraction in net interest margin. Nonetheless, net interest income (NII) and non-interest income rose. Higher loan and deposit balances and a decline in provision were encouraging, too.
Results excluded transaction expenses. After considering these, net income applicable to common shareholders (GAAP basis) was $249.4 million, down 0.9% from the prior-year quarter.
WBS’ Q2 Revenues & Expenses Increase Y/YTotal revenues came in at $740 million, missing the consensus mark of $749.32 million by 1.3%. The metric rose 3.4% year over year.
NII increased 1.9% year over year to $632.7 million. The net interest margin was 3.26%, down 18 basis points.
Non-interest income was $107.2 million, up 13.3% from the year-ago quarter’s reported figure of $94.7 million. The increase was primarily driven by other miscellaneous income and higher loan and lease-related fees.
Non-interest expenses were $385 million, up 11.4% from the year-ago quarter. In the second quarter of 2026, the figure included $8.7 million in transaction expenses. The rise was primarily caused by higher compensation and benefit costs.
The efficiency ratio was 47.74% compared with 45.40% in the prior-year quarter. An increase in the efficiency ratio indicates a decline in profitability.
WBS’ Balance Sheet ExpandsPeriod-end loans and leases grew 1.1% sequentially to $57.9 billion. Commercial loans and leases increased $450.6 million, commercial real estate loans rose $224 million and residential mortgages were relatively stable. Consumer loans declined $54.9 million.
Total deposits increased 1.8% from the prior quarter to $70.3 billion. The rise was primarily driven by brokered certificates of deposit and interest-bearing checking balances, partially offset by lower money market and health savings account deposits.
The loan-to-deposit ratio was 82.3%, up from 80.9% in the year-ago quarter. Total borrowings were $4.5 billion, down 3.2% year over year.
Webster Financial’s Credit Quality: Mixed BagTotal non-performing assets were $430.2 million as of June 30, 2026, down 19.9% from the year-ago quarter. Allowance for loan losses was 1.25% of total loans, down from 1.35% reported in the second quarter of 2025.
The ratio of net charge-offs to annualized average loans was 0.30%, up from 0.27% in the year-ago period.
The provision for credit losses was $31.5 million, down 32.3% year over year. Past-due loans and leases totaled $117.3 million, up from $54.8 million a year ago, primarily due to commercial real estate loans.
WBS’ Capital Ratios ImproveAs of June 30, 2026, the Tier 1 risk-based capital ratio was 12.17%, up from 11.86% as of June 30, 2025. The total risk-based capital ratio was 14.13%, up from the prior-year quarter’s 14.05%.
The common equity Tier 1 ratio was 11.69%, up from 11.35% in the year-ago quarter. The tangible common equity ratio was 7.60% compared with 7.46% a year earlier.
Tangible book value per common share rose to $38.81 from $35.13 in the prior-year quarter.
Webster Financial’s Profitability Ratios DeclineReturn on average assets was 1.19%, down from 1.29% in the prior-year quarter. At the end of the second quarter, the return on average common stockholders’ equity was 10.73%, down from 11.31% in the prior-year quarter.
Return on average tangible common stockholders’ equity was 16.67%, down from 17.96% a year ago.
WBS’ Santander Deal ProgressesWebster Financial’s proposed acquisition by Banco Santander received approval from WBS’ stockholders, the Office of the Comptroller of the Currency and the European Central Bank. The transaction remains subject to customary closing conditions, including approval from the Federal Reserve Board, and is expected to close in the second half of 2026.
Under the agreement, Webster Financial’s shareholders will receive $48.75 in cash and 2.0548 Banco Santander ordinary shares, delivered as American Depository Receipts, for each WBS share. In light of the proposed transaction, Webster Financial will no longer provide a forward-looking financial outlook.
Our Take on Webster FinancialWebster Financial’s second-quarter results reflected continued balance-sheet growth, higher NII and solid growth in non-interest income. Lower provision expenses and a substantial decline in non-performing assets were positives.
However, higher operating expenses, margin compression and an increase in past-due loans remain areas to monitor. Further, the modest earnings and revenue misses may dampen investor sentiment. With the Santander transaction advancing through the regulatory process, deal completion remains the key near-term focus for WBS.
Webster Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Bank StocksWaFd Inc.’s (WAFD - Free Report) third-quarter fiscal 2026 (ended June 30) adjusted earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. However, the bottom line jumped 11% year over year.
WAFD’s results were hurt by a substantial rise in provisions and higher expenses. Further, lower loan and deposit balances acted as a spoilsport. These were partially offset by higher net interest income and non-interest income.
Citizens Financial Group (CFG - Free Report) reported second-quarter 2026 earnings per share of $1.30, which surpassed the Zacks Consensus Estimate of $1.25. The metric rose 41% from the year-ago quarter.
CFG’s results benefited from a rise in net interest income (NII) and non-interest income. Growth in loan and deposit balances and an improvement in credit quality were also encouraging. However, a rise in expenses and a weaker capital position were major headwinds.
4 Buy-and-Hold-Forever Stocks Available at a BargainAlaska Air Group NYSE: ALK reported a second-quarter loss but told analysts that improving revenue trends, completed integration work and easing fuel costs position the company for a stronger second half of 2026.
Ryan St. John, vice president of finance, planning and investor relations, said Air Group reported a second-quarter GAAP net loss of $76 million. Excluding special items, the company posted an adjusted net loss of $102 million.
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Boeing Gets $50B in March Orders—Is BA Stock a Buy Now?Ben said the company “beat our initial guidance for the second quarter” but was “not satisfied” with a loss during what is typically one of the airline’s strongest quarters. He attributed much of the pressure to fuel, saying prices were up nearly 70% year over year. He added that Alaska returned to profitability in June with a double-digit pretax margin despite the elevated fuel environment.
“Absent the fuel spike, this would have been a solidly profitable quarter,” Ben said, adding that the company saw strengthening unit revenue, improving unit costs and continued demand through the quarter.
Revenue Strengthened Through the Quarter Despite Bad Headlines, Boeing Still Wins Billion Dollar ContractsAndrew said second-quarter revenue rose to $4.1 billion, up 10% year over year, while capacity grew 1%. Unit revenue increased 8.6%, including what the company described as a three-point drag from historic Hawaii rainstorms.
Andrew said unit revenue accelerated each month of the quarter, rising 5.5% in April, 8.8% in May and 11% in June. Total June revenue was up 13.2%, contributing to the company’s return to profitability for that month.
The company pointed to several factors behind the revenue improvement, including the move to a single reservation system, the launch of European service, Asia service, adoption of Atmos Rewards and strong operational performance.
Managed corporate revenue also improved. Andrew said Portland and San Diego managed corporate share increased by five points and four points, respectively. Portland exceeded 50% share of managed corporate revenue, which Andrew called a historic milestone. In Seattle, managed corporate passenger volume exceeded system trends with 9% growth, supported by new service to major international markets including London, Tokyo and Incheon.
Loyalty, Premium and International Growth Highlighted Alaska executives said loyalty and premium revenue were important contributors to the quarter. Andrew said co-brand remuneration reached $663 million, up 19% year over year. Active Atmos members increased 15%, while attrition fell more than 30%.
In Hawaii, the company said loyalty growth outpaced system performance, with a 73% year-over-year increase in new cardholders and a 34% increase in members in the Huaka'i by Hawaiian community.
Premium revenue rose 15% in the quarter and now represents 35% of total revenue, Andrew said. He added that more than half of every revenue dollar now comes from outside the main cabin.
Ben said the company’s first long-haul international routes from Seattle are “off to a strong start.” He said new Rome, London and Reykjavik routes are each carrying 50% or more Atmos members, which he described as an early sign of loyalty demand for the expansion.
Andrew said the international launch has been encouraging, noting that the company recently turned on its ability to sell in the United Kingdom and sees additional opportunity to grow international premium cabin share.
Integration Milestone Completed Ben described the quarter as “one of the most consequential and strategically important quarters” in the company’s history. Alaska completed its migration to a single passenger service system and established what he called the industry’s first dual-brand passenger service system platform.
The company said it maintained strong operations during the transition. Ben said Alaska led the industry in on-time performance year to date and improved five points year over year in the second quarter.
Guest satisfaction improved after the reservation cutover, Ben said, rising seven points from the prior quarter. Hawaii improved 10 points. He also said Starlink Wi-Fi is improving the onboard experience, with guest satisfaction on Starlink-equipped flights 20% higher than on non-equipped flights. About one-third of the fleet is now equipped, with the remainder expected by 2027.
Ben said cabin retrofits across the company’s 737 fleet are complete, adding 1.3 million incremental first and premium class seats. Demand is absorbing the additional capacity, he said, as reflected in the increase in premium revenue.
Cargo Expansion and Fleet Changes Alaska also highlighted cargo as a strategic growth area. Ben said the company restructured its Amazon flying under a more profitable contract and is adding four Boeing 737-800 freighters for deployment across Hawaii and Alaska.
During the question-and-answer session, Shane Tackett, president of Alaska Airlines and CFO, said the aircraft will be owned by Alaska and operated under its own brand, not under a CMI or ACMI arrangement. Two are expected to be used in Alaska and two in Hawaii.
Ben also said the company plans to retire the 717 fleet beginning in 2028 and transition Neighbor Island flying to Boeing 737s, citing improved reliability, economics and cargo capability.
Outlook: Stronger Second Half Expected Shane said second-quarter unit costs excluding fuel rose 6.5% year over year. He said that result included transitory items such as elevated crew training costs tied to the 787 fleet ramp, employee recognition expense related to the passenger service system milestone and comparisons against aircraft sale gains in 2025. Excluding those items, core cost growth was in the low- to mid-single digits.
The company ended the quarter with $3.8 billion in total liquidity after raising $1 billion through a $500 million senior unsecured note offering and a $500 million term loan. Shane said the financing was intended to keep liquidity near the top of the company’s target range as it navigates fuel volatility.
Alaska guided third-quarter capacity growth of about 2% to 3%, with all growth coming from intercontinental flying. Full-year capacity growth is expected to be around 2%, at the low end of the original 2% to 3% guidance range.
Shane said economic fuel cost averaged $4.43 per gallon in the second quarter, slightly better than the company’s $4.50 guidance. For the third quarter, Alaska expects fuel price per gallon of $3.75 and earnings between breakeven and $1 per share.
The company said demand remains durable, with bookings into the summer peak and early fall pacing well. Andrew said unit revenue is running in the mid-teens year over year and that the company expects third-quarter system unit revenue to increase in the low double digits.
Executives said they plan to provide an update on full-year earnings guidance at an Investor Day scheduled for Sept. 29 in Seattle.
About Alaska Air Group (NYSE:ALK)Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.
The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.
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Key Takeaways Alaska Air's Q2 loss beat estimates as fuel expense surged 86%, adding about $600 million in costs.Unit revenue rose 8.6%, supported by higher yields, premium demand, corporate sales and loyalty growth.Alaska Air expects Q3 earnings from breakeven to $1 per share as fuel costs ease from Q2 levels. Alaska Air Group, Inc. (ALK - Free Report) reported a second-quarter 2026 adjusted loss of 92 cents per share, narrower than the Zacks Consensus Estimate of a 97-cent loss, with an average surprise of 5.2%. The company had posted adjusted earnings of $1.78 per share a year earlier.
Operating revenues increased 9.7% year over year to $4.07 billion but missed the consensus mark of $4.10 billion by 0.7%. Revenue per available seat mile rose 8.6%, while an 85% increase in economic fuel cost weighed heavily on profitability.
ALK's Unit Revenue Growth Supports the Top LinePassenger revenues increased 9% year over year to $3.64 billion. Loyalty program other revenues climbed 23% to $258 million, while cargo and other revenues advanced 17% to $163 million, reflecting strength across the company’s diversified revenue streams.
Premium revenues grew 15%, managed corporate revenues rose 30% and loyalty cash remuneration increased 19%. However, historic rainstorms in Hawai‘i disrupted spring-break travel and reduced system unit revenues by approximately 3 percentage points during the quarter.
Alaska Air Sees Yield Gains Despite Softer TrafficConsolidated traffic, measured in revenue passenger miles, declined 0.8% while capacity increased 1%. The load factor fell 1.6 percentage points to 82.3% as passenger volumes decreased 1.2% to 15.1 million.
Yield increased 9.6% to 18.21 cents, and passenger revenue per available seat mile rose 7.5% to 14.99 cents. Total revenue per available seat mile reached 16.72 cents, up from 15.39 cents a year earlier, as stronger pricing offset weaker traffic trends.
ALK Faces a Sharp Increase in Fuel ExpenseTotal operating expenses surged 24% to $4.23 billion. Aircraft fuel expense increased 86% to $1.31 billion as economic fuel cost rose to $4.43 per gallon from $2.39. The increase added approximately $600 million of fuel expense during the quarter.
Wages and benefits rose 6% to $1.24 billion, while landing fees and other rentals increased 10%. Other operating expenses climbed 22%. These increases more than offset lower special-item costs and a slight decline in third-party regional carrier expenses.
Alaska Air Keeps Core Costs Below Prior GuidanceCost per available seat mile excluding fuel, freighter costs, performance-based pay and special items increased 6.5% to 11.40 cents. This was better than the company’s prior expectation for high-single-digit growth.
Around 2.5 percentage points of the increase came from transitory factors. These included an employee recognition award tied to completing a single passenger service system, the absence of prior-year aircraft sale gains and crew training costs for the international widebody expansion.
ALK's Profitability Weakens Under Fuel PressureThe adjusted pretax loss was $176 million against adjusted pretax income of $295 million a year ago. Adjusted pretax margin fell to negative 4.3% from positive 8%. Adjusted net loss totaled $102 million versus adjusted net income of $215 million.
On a reported basis, Alaska Air recorded an operating loss of $168 million against an operating income of $277 million. GAAP net loss was $76 million, or 68 cents per share, against net income of $172 million, or $1.42 per share, in the prior-year quarter.
Alaska Air Strengthens Liquidity as Leverage RisesOperating cash flow totaled $185 million during the second quarter and $606 million for the first six months of 2026. The company ended June with $3.8 billion in available liquidity after completing $1 billion of financing during the quarter.
Cash and cash equivalents stood at $1.06 billion, while marketable securities totaled $1.60 billion. Long-term debt and finance leases increased to $5.78 billion from $4.83 billion as of 2025-end. Adjusted net debt to EBITDAR rose to 4.8 times from 2.9 times, while debt to capitalization increased to 65%.
ALK Expects a Third-Quarter Earnings InflectionFor the third quarter of 2026, Alaska Air expects adjusted earnings between breakeven and $1 per share. The Zacks Consensus Estimate is currently pegged at $1.41 per share. Capacity is projected to rise 2%-3%, with nearly all growth coming from long-haul international flights out of Seattle.
Unit revenue is forecast to increase in the low double digits, while non-fuel unit costs are expected to rise in the low to mid-single digits. The outlook assumes an economic fuel cost of $3.75 per gallon, below the second quarter’s level, as refining margins moderate.
Currently, Alaska Air carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.
Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.
United Airlines Holdings, Inc. (UAL - Free Report) ) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
Key Takeaways Hartford is expected to report revenue growth in Q2, but EPS is projected to decline year over year.HIG may benefit from higher premiums, fee income and investment income across key business segments.Hartford faces pressure from higher costs, weaker combined ratios and fewer policies in force. The Hartford Insurance Group, Inc. (HIG - Free Report) is set to report second-quarter 2026 results on July 23, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.13 per share on revenues of $5.2 billion.
The second-quarter earnings estimate has witnessed no upward estimate revisions against one downward movement over the past seven days. Meanwhile, the bottom-line projection indicates a year-over-year decline of 8.2%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 6%.
Image Source: Zacks Investment Research
For the current year, the Zacks Consensus Estimate for Hartford’s revenues is pegged at $21 billion, implying a rise of 4.8% year over year. However, the consensus mark for current-year EPS is pegged at $12.74, implying a fall of around 5.1% on a year-over-year basis.
HIG beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 16.5%.
Q2 Earnings Whispers for HIGOur proven model does not predict an earnings beat for Hartford Insurance this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
HIG has an Earnings ESP of -3.95% and currently carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping HIG’s Q2 Results?The Zacks Consensus Estimate for net premiums earned for the second quarter indicates 4.5% growth year over year. Also, the consensus estimate indicates an 8.2% increase in fee income in the quarter under review.
The consensus estimate for Business Insurance’s net investment income is $507.7 million, indicating 13.1% growth from the year-ago quarter’s figure. The Zacks Consensus Estimate for net investment income in the Personal Insurance business is pegged at $66.3 million, which indicates a 9.2% increase from the prior-year quarter’s reported figure.
The consensus mark for the Employee Benefits business’ revenues is pegged at $1.8 billion, indicating a 3.8% rise from the prior-year quarter's figure.
However, the bottom line is expected to have been pressured by higher insurance operating costs and other expenses. The Zacks Consensus Estimate for Hartford’s Personal Insurance combined ratio for the quarter under review is pegged at 96.5%, indicating deterioration from the prior-year reported figure of 94.1%. Also, the same for the Business Insurance combined ratio is pegged at 91.9%, up from 87% a year ago.
The Zacks Consensus Estimate for Hartford’s homeowners’ policies in force for the quarter under review indicates a decline of 0.6% year over year. Also, the consensus estimate indicates a 10.8% year-over-year decline in automobile policies in force.
Stocks That Warrant a LookWhile an earnings beat looks uncertain for HIG, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) has an Earnings ESP of +1.39% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s earnings for the to-be-reported quarter is pegged at $1.15 per share, indicating 29.2% year-over-year growth. The consensus estimate for revenues is pegged at $459.6 million. SKWD beat earnings estimates in each of the past four quarters, with the average surprise being 17%.
American Express Company (AXP - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank #3.
The Zacks Consensus Estimate for American Express’ bottom line for the to-be-reported quarter is pegged at $4.41 per share, indicating 8.1% year-over-year growth. It beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 4%. The consensus estimate for AXP’s revenues is pegged at $19.6 billion.
Aon plc (AON - Free Report) has an Earnings ESP of +0.24% and carries a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Aon’s bottom line for the to-be-reported quarter is pegged at $3.77 per share, indicating 8% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 3.1%. The consensus estimate for AON’s revenues is pegged at $4.3 billion.
[url="]Robbins LLP[/url] reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Peabody Energy Corpo
New York, New York--(Newsfile Corp. - July 22, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Peabody Energy Corporation (NYSE: BTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Peabody Energy securities between October 14, 2024 and May 4, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/BTU.
Peabody Energy Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose:
The true state of Centurion mine's commissioning challenges, including unanticipated electrical and mechanical problems, roof control deterioration, and floor softening that made the March 2026 longwall production deadline unachievable.That Defendants' repeated assurances that Centurion was "on time and on budget" and "ahead of schedule" were materially false and misleading.That the mine's production shortfalls would materially impact Peabody's full-year 2026 financial results, including an $80 million EBITDA impact in the first quarter alone.On March 30, 2026 and May 5, 2026, Peabody disclosed the true scope of Centurion's problems, slashing its full-year sales outlook from 3.5 million to 2.5 million tons and increasing cost guidance to $123-$133 per ton.
Following this news, BTU fell approximately 9.7% on March 30, 2026, and an additional 5.7% on May 5, 2026, declining from $39.50 to $25.00 per share, a cumulative decline of approximately 37%.
What's Next for Peabody Energy Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/BTU. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Peabody Energy you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Peabody Energy Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Peabody Energy Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com.
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303066
Source: Bronstein, Gewirtz & Grossman, LLC
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NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Peabody Energy Corporation (NASDAQ: BTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Peabody Energy securities between October 14, 2024 and May 4, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/BTU.
Peabody Energy Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose:
(1) The true state of Centurion mine's commissioning challenges, including unanticipated electrical and mechanical problems, roof control deterioration, and floor softening that made the March 2026 longwall production deadline unachievable.
(2) That Defendants' repeated assurances that Centurion was "on time and on budget" and "ahead of schedule" were materially false and misleading.
(3) That the mine's production shortfalls would materially impact Peabody's full-year 2026 financial results, including an $80 million EBITDA impact in the first quarter alone.
On March 30, 2026 and May 5, 2026, Peabody disclosed the true scope of Centurion's problems, slashing its full-year sales outlook from 3.5 million to 2.5 million tons and increasing cost guidance to $123–$133 per ton.
Following this news, BTU fell approximately 9.7% on March 30, 2026, and an additional 5.7% on May 5, 2026, declining from $39.50 to $25.00 per share, a cumulative decline of approximately 37%.
What's Next for Peabody Energy Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/BTU. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Peabody Energy you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Peabody Energy Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Peabody Energy Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 24, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Peabody Energy Corporation (“Peabody” or the “Company”) (NYSE: BTU) common stock between October 14, 2024 to May 4, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR PEABODY INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On March 30, 2026, Peabody issued a press release with lowered guidance concerning its Centurion mine’s first quarter 2026 output due to mining commissioning challenges.
On this news, Peabody’s stock price fell $3.82, or 9.7%, to close at $35.68 per share on March 30, 2026, thereby injuring investors.
Then, on May 5, 2026, Peabody disclosed that it had failed to complete its goal to fully ramp-up Centurion by March 2026 and that it was cutting guidance related to full year metallurgical segment volumes to reflect the increased cost and substantial volume decrease.
On this news, Peabody’s stock price fell $1.52, or 5.7%, to close at $25.00 per share on May 5, 2026, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Peabody’s overly optimistic March 2026 Centurion ramp-up date and promises regarding the Company’s inflated guidance fell short of reality when numerous issues at Centurion caused a significant delay to the mine’s ramp-up and Peabody’s first quarter metallurgical segment volumes; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Peabody common stock during the Class Period, you may move the Court no later than August 24, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider GlobalFoundries Inc. (GFS - Free Report) . This company, which is in the Zacks Electronics - Semiconductors industry, shows potential for another earnings beat.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.65%.
For the last reported quarter, GlobalFoundries came out with earnings of $0.4 per share versus the Zacks Consensus Estimate of $0.35 per share, representing a surprise of 14.29%. For the previous quarter, the company was expected to post earnings of $0.47 per share and it actually produced earnings of $0.55 per share, delivering a surprise of 17.02%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for GlobalFoundries. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
GlobalFoundries currently has an Earnings ESP of +0.33%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Conshohocken, Hamilton Lane (HLNE - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -37.25%. Currently paying a dividend of $0.60 per share, the company has a dividend yield of 2.85%. In comparison, the Financial - Investment Management industry's yield is 2.8%, while the S&P 500's yield is 1.35%.
Looking at dividend growth, the company's current annualized dividend of $2.40 is up 11.1% from last year. Over the last 5 years, Hamilton Lane has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.96%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Hamilton Lane's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
HLNE is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $6.33 per share, representing a year-over-year earnings growth rate of 7.29%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that HLNE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Mercury Systems (MRCY - Free Report) , which belongs to the Zacks Aerospace - Defense Equipment industry.
When looking at the last two reports, this maker of processing systems and software has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 239.29%, on average, in the last two quarters.
For the last reported quarter, Mercury Systems came out with earnings of $0.27 per share versus the Zacks Consensus Estimate of $0.06 per share, representing a surprise of 350.00%. For the previous quarter, the company was expected to post earnings of $0.07 per share and it actually produced earnings of $0.16 per share, delivering a surprise of 128.57%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Mercury Systems. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Mercury Systems has an Earnings ESP of +2.67% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Investors in Ulta Beauty, Inc. (ULTA - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 18, 2026 $310 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Ulta Beauty shares, but what is the fundamental picture for the company? Currently, Ulta Beauty is a Zacks Rank #3 (Hold) in the Retail – Miscellaneous industry that ranks in the Top 22% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while eight analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $6.25 per share to $6.16 in that period.
Given the way analysts feel about Ulta Beauty right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
In brief U.S. prosecutors have seized more than $25 million in cryptocurrency linked to international fraud schemes that targeted victims across the U.S. and Canada. The money was recovered through five civil forfeiture complaints filed Tuesday in Washington, D.C., tied to investment and romance scams. It adds to the more than $800 million recovered by the Scam Center Strike Force, launched in late 2025. U.S. prosecutors have seized more than $25 million in cryptocurrency tied to international scams that defrauded thousands of victims across the United States and Canada, the Justice Department said Tuesday.
The U.S. Attorney's Office for the District of Columbia, working with the Secret Service's Washington Field Office, filed five civil forfeiture complaints on Tuesday, each tied to a separate investigation into fraudulent crypto investment platforms and online romance schemes. Agents said they traced illicit proceeds through hundreds of intermediary wallet addresses, where they had been commingled with funds from other victims.
Today, @USAttyPirro and the U.S. Attorney’s Office for the District of Columbia, together with the U.S. Secret Service Washington Field Office, announced that multiple investigations conducted by their Cyber Fraud Task Force have resulted in the seizure of more than $25 million…
— U.S. Attorney DC (@USAO_DC) July 21, 2026
The largest complaint seeks some $12.1 million tied to romance scams that hit more than 200 people, followed by about $10.4 million flagged by Canadian authorities across more than 270 suspected victim transactions. The three remaining cases range from $285,000 to $2.4 million, including one in which scammers posed as recovery agents offering to retrieve funds stolen in an earlier fraud.
In each case, the launderers were mostly based in Southeast Asia, with IP addresses in China, Malaysia, and Cambodia, prosecutors said.
The Scam Center Strike ForceThe seizure stems from the Scam Center Strike Force, launched in November 2025 by U.S. Attorney Jeanine Ferris Pirro. Investigators "cut through complex laundering schemes" to reach the money, Pirro said in a statement. The five investigations remain open, with the recovered funds bringing the strike force's total haul past $800 million.
In each case, prosecutors said, the launderers were mostly based in Southeast Asia, with IP addresses in China, Malaysia, and Cambodia—part of a scam economy increasingly run from the region and flagged by Interpol as a global threat.
Much crypto investment and romance fraud is operated out of forced-labor compounds in Cambodia, Myanmar, and Laos, where trafficked workers are coerced into defrauding victims worldwide. In October, U.S. and UK authorities charged Cambodia's Prince Group and seized more than 127,000 BTC from the network—then worth about $12 billion, marking the largest civil seizure and forfeiture in the DOJ’s history.
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Okta (OKTA - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Okta currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for OKTA that show why this cloud identity management company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For OKTA, shares are up 7.73% over the past week while the Zacks Security industry is up 7.66% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 19.93% compares favorably with the industry's 17.87% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Okta have increased 85.97% over the past quarter, and have gained 48.15% in the last year. On the other hand, the S&P 500 has only moved 6.61% and 20.33%, respectively.
Investors should also pay attention to OKTA's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OKTA is currently averaging 3,020,678 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OKTA.
Over the past two months, 13 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OKTA's consensus estimate, increasing from $3.79 to $3.83 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that OKTA is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Okta on your short list.
Evercore ISI’s Mark Mahaney raised the bar on Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) ahead of Wednesday night’s Q2 2026 earnings report, telling CNBC viewers that Search needs to hold 17%+ growth and Google Cloud needs to accelerate well past 70%. That is a demanding checklist for a company with a $4.29 trillion market cap, with the stock up 83.14% in the past year.
Google Search Must Repeat Its Strongest Growth in Years Mahaney’s first hurdle is holding the line on ad-driven search. “Search revenue last quarter positively surprised 17%, strongest growth in years. We need a repeat of that, probably at least this quarter, so 17% or greater,” he said.
That reference point comes from Alphabet’s Q1 2026 report, where Google Search & Other revenue reached $60.399 billion. CEO Sundar Pichai attributed the strength to “AI experiences driving usage, queries at an all time high.” Mahaney also flagged that a little bit of softness in advertising at the end of the March quarter did not come through in the June quarter, signaling a strong ad backdrop that reads through positively to Meta as well.
YouTube ads are expected to grow about 11% year over year, roughly in line with the $9.883 billion, 11% YoY result from Q1. This is steady growth, but it’s likely not going to be meaningful enough to drive the stock’s reaction after earnings.
Evercore Says Google Cloud Must Accelerate Beyond 70% Growth The higher hurdle is Google Cloud. Google Cloud posted $20.028 billion in Q1 with 63% growth. Mahaney is asking for further acceleration from a base that has already climbed sharply through 2025 and 2026. “That cloud segment last quarter shocked people with 63%. I think the bar this quarter has got to be north, well north of 70%,“ Mahaney said.
As a comparison, Microsoft (NASDAQ:MSFT) is seeing the same challenge. Azure last posted 40% YoY growth, with Microsoft Cloud revenue of $49.10 billion. Mahaney effectively wants to see Google Cloud grow at nearly double the pace of the market leader.
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Alphabet’s $185 Billion Spending Plan Raises the Stakes The cloud number matters because Alphabet’s spending plan has ballooned. “They sort of shocked people by saying that they’re going to spend $185, $195 billion this year. And they said on the March quarter call that in the following year, capex next year is going to grow significantly,“ Mahaney said.
Alphabet saw $35.674 billion in Q1 capex alone, more than doubling YoY. To justify it, investors want visibility. The cloud backlog stood at $400 billion last quarter. Mahaney thinks this can work for Alphabet stock as long as they show strong growth numbers: “The stock can still work in that environment, but you better have a very strong Google Cloud number, and you better have a very strong backlog number.”
Key Takeaways Evercore’s Mahaney will be looking for Alphabet to post Search growth of at least 17%, Google Cloud growth well above 70%, and another increase in cloud backlog.
Those numbers will help determine whether Alphabet’s massive AI spending is producing enough demand to justify the cost. If growth falls short of these high expectations, the stock could decline even after reporting strong results.
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, /PRNewswire/ -- WEC Energy Group Inc. (NYSE: WEC) will issue its 2026 second-quarter earnings news release before the stock market opens Wednesday, July 29. A conference call for investors and security analysts is scheduled for the same day at 1 p.m. Central time.
Detailed financial information will be available on the WEC Energy Group website by 6:30 a.m. Central time July 29.
To listen to webcast
Go to wecenergygroup.com. Under 'Webcasts,' select 'Q2 Earnings' at any point within 15 minutes of the start of the call. To listen to conference call
Conference ID: 3088105 Live: 888-330-2443. International: 240-789-2728 Replay: 800-770-2030. International: 647-362-9199 (replay available for two weeks following event)
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.8 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a fleet of renewable generation facilities in states ranging from South Dakota to Texas.
WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 31,000 stockholders of record, 7,000 employees and more than $52 billion of assets.
Key Takeaways Vertiv is expanding AI-ready cooling production in Italy to support rising high-density data center demand. Vertiv raised 2026 sales guidance to $13.5B-$14.0B with 29%-31% organic sales growth vs. 2025. VRT faces growing AI infrastructure competition from Super Micro Computer and Amphenol. Vertiv (VRT - Free Report) is benefiting from the surging global demand for AI-ready data centers, which require advanced cooling and power infrastructure to support increasingly dense and complex compute workloads. The company’s strategic investment in expanding global manufacturing capacity has been a major growth driver.
Building on this momentum, the company recently announced investments at its Tognana campus near Padua, Italy, to expand manufacturing and testing capabilities for AI-ready data center cooling systems.
The expansion is expected to double regional chiller production capacity by the end of 2026 and add a large-scale testing laboratory in early 2027 to validate chillers integrated with liquid cooling systems under high-density AI workloads. The investment strengthens Vertiv's ability to meet growing demand for AI and high-performance computing infrastructure while accelerating product development, testing and customer deployment of advanced thermal management solutions.
Vertiv’s expanding portfolio and acquisitions have been a major growth driver. The company’s acquisitions, such as PurgeRite, ThermoKey and BMarko Structures and Strategic Thermal Labs, are expected to strengthen its capabilities and market reach. In the first quarter of 2026, acquisitions contributed 4% to revenues.
Vertiv’s expanding AI data center footprint and manufacturing capacity signal further upside potential. Management raised 2026 guidance, pointing to sustained market momentum and accelerating capacity expansion. Vertiv now expects net sales of $13.5 billion to $14.0 billion, with organic net sales growth of 29% to 31% compared with 2025.
VRT Suffers From Stiff CompetitionVertiv’s AI infrastructure solutions are facing increasing competition from Super Micro Computer (SMCI - Free Report) and Amphenol (APH - Free Report) . Both Super Micro Computer and Amphenol are expanding their offerings to support high-density, AI-driven data center deployments.
Super Micro Computer’s expanding portfolio has been noteworthy. The company recently expanded its AI infrastructure portfolio through collaborations with AMD, Arm and NVIDIA, introducing new rack-scale platforms and data center blueprints designed to accelerate the deployment of large-scale agentic AI workloads.
Amphenol is benefiting from the surge in demand for AI infrastructure, which has become a transformative force for the company’s growth and market positioning. In the first quarter of 2026, IT datacom represented about 41% of sales and grew 81% organically year over year. This robust performance was driven by accelerating investments in AI data centers and the company’s ability to capture a significant share of this unique interconnect opportunity.
Vertiv’s Share Price Performance, Valuation, and EstimatesVRT’s shares have surged 88% year to date compared with the broader Zacks Computer & Technology sector’s 12.1% rise. The Zacks Computers - IT Services industry declined 24.8% in the same time frame.
VRT Stock's Performance
Image Source: Zacks Investment Research
Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 27.55X compared with the Computer and Technology sector’s 10.24X. VRT has a Value Score of D.
VRT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $6.38 per share, which has increased by a couple of pennies over the past 30 days. This indicates a 51.90% increase from the reported figure of 2025.
Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arrowhead Pharmaceuticals surged nearly 20% after strong Phase 3 results for plozasiran in severe hypertriglyceridemia, showing 79–81% triglyceride reductions and significant acute pancreatitis risk reduction. Plozasiran's quarterly dosing, robust efficacy, and favorable safety profile position ARWR to challenge Ionis's Tryngolza in the lucrative sHTG market, with regulatory filings planned before year-end. ARWR's TRIM platform is attracting major partnerships and milestone payments, with a pipeline spanning obesity, cardiovascular, and metabolic diseases, supporting long-term revenue growth potential.
Investors with an interest in Chemical - Diversified stocks have likely encountered both Innospec (IOSP - Free Report) and Air Products and Chemicals (APD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Innospec is sporting a Zacks Rank of #2 (Buy), while Air Products and Chemicals has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IOSP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
IOSP currently has a forward P/E ratio of 17.48, while APD has a forward P/E of 22.43. We also note that IOSP has a PEG ratio of 2.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. APD currently has a PEG ratio of 2.69.
Another notable valuation metric for IOSP is its P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, APD has a P/B of 3.64.
These metrics, and several others, help IOSP earn a Value grade of B, while APD has been given a Value grade of D.
IOSP sticks out from APD in both our Zacks Rank and Style Scores models, so value investors will likely feel that IOSP is the better option right now.
Key Takeaways Retirement growth is supported by strong sales, high retention and the successful OneAmerica acquisitionInvestment Management benefits from fee-based revenue growth and the Allianz Global Investors partnership.VOYA continues returning capital through buybacks and dividends, backed by strong excess capital generation. Shares of Voya Financial, Inc. (VOYA - Free Report) have gained 35.7% in the past year, outperforming the industry’s growth of 10.8%. The stock closed at $98.25 on Tuesday, near its 52-week high of $103.85, reflecting investor confidence.
Growth in the Retirement and Investment Management businesses, improved Employee Benefits segments' performance, strategic acquisitions and partnerships, record net flows and strong excess capital generation are driving the stock. The momentum is likely to continue, supported by sustained strength in its core businesses, strategic acquisitions and ongoing share repurchases.
Shares of Voya Financial have outperformed its peers, including Reinsurance Group of America, Incorporated (RGA - Free Report) , Primerica, Inc. (PRI - Free Report) and Brighthouse Financial, Inc (BHF - Free Report) , which have gained 21.4%, 15.7% and 25.7%, respectively, in the past year.
VOYA’s Attractive ValuationVoya Financial shares are trading at a price-to-book value of 1.38X, lower than the industry average of 2.33X.
Image Source: Zacks Investment Research
VOYA’s Growth ProjectionThe Zacks Consensus Estimate for Voya Financial’s 2026 earnings per share (EPS) indicates a year-over-year increase of 6.2%. The consensus estimate for revenues is pegged at $1.33 billion, implying a year-over-year decline of 2.5%. The consensus estimate for 2027 EPS and revenues indicates an increase of 19.3% and 9.1%, respectively, from the corresponding 2026 estimates.
Earnings have grown 8.8% in the past five years, better than the industry average of 5.9%. The expected long-term earnings growth rate is 11.6%.
Mixed Analyst Sentiment on VOYAThe Zacks Consensus Estimate for 2026 has moved south 2.1%, while 2027 earnings have moved north 1.7%, in the past 30 days.
Factors Acting in Favor of VOYAVOYA’s earnings are driven by its solid segmental performances across Retirement, Investment Management and Employee Benefits segments. These businesses represent higher-growth, capital-light and higher-return units, bolstering the company’s solid presence in the market.
The Retirement segment is experiencing significant growth, driven by higher revenues, favorable market impacts, higher alternative investment income, active portfolio management, positive defined contribution flows and disciplined management of spend. Management expects strong commercial momentum in retirement, driven by robust sales, more than 95% retention and new plan implementations.
Management described the OneAmerica retirement acquisition as highly successful, generating returns above 30%. It has meaningfully strengthened the scale and earnings power of the Retirement business, which now serves nearly 10 million Retirement accounts.
The Investment Management segment should benefit from higher investment capital returns, primarily driven by overall market performance, higher fee-based revenues, strong commercial momentum and disciplined management of spend. Voya Financial remains confident of sustaining more than 2% organic growth. Management also highlighted continued strength in retail income and growth strategies. VOYA is constantly taking strategic steps to ramp up growth in its Investment Management segment. Voya Financial’s long-term strategic partnership with Allianz Global Investors has added scale and diversification to Voya Investment Management.
The Employee Benefits segment of the insurer is likely to gain from improving Stop Loss underwriting and pricing, reserve releases, margin recovery, a smaller block of business, lower premium-driven expenses, favorable Group Life claims experience, higher alternative investment income and active portfolio management.
The company’s capital levels remain strong. In the first quarter of 2026, VOYA generated approximately $200 million of excess capital and returned that amount to shareholders through share repurchases and dividends. It also executed an additional $150 million of share repurchases in the second quarter, with $413 million remaining under its authorization. Supported by strong free cash flow generation, ROE above 18% and disciplined capital deployment, the company remains well positioned to enhance shareholder value.
Risks for VOYAThe company plans to invest up to $75 million of excess capital in 2026 to strengthen its wealth management platform. These investments are expected to create a near-term earnings drag and reduce Retirement segment margins by about 200 basis points.
VOYA faces intense competition from broker-dealers, financial advisors, diversified financial institutions and start-up financial services providers, which could result in increased pricing pressure on certain products and services.
Voya Financial's long-term debt rose to $1.9 billion in the first quarter of 2026, up 26% from year-end 2025, causing the financial leverage ratio to deteriorate 220 basis points year over year to 29.7%. Higher leverage could weigh on future earnings and returns.
ConclusionVoya Financial is well-positioned for strong earnings growth across all three business segments, positive net flows, favorable retention and strategic partnerships. It should continue to benefit from financial flexibility and effective capital deployment. However, high competition and rising debt remain concerns.
Given the mixed analyst sentiment, it is wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways WEN maintained its 2026 adjusted EBITDA outlook of $460-$480 million despite a $13.2 million Q1 decline.Wendy's company-operated restaurants outperformed the broader U.S. system by 310 basis points in Q1.WEN expects global systemwide sales to return to growth in the second half as Project Fresh gains traction. The Wendy's Company (WEN - Free Report) is advancing its Project Fresh turnaround strategy amid persistent traffic pressure, intense value competition and elevated restaurant costs. U.S. same-restaurant sales declined 7.8% in the first quarter of 2026, primarily because of lower traffic, severe weather and adjustments to restaurant operating hours. Wendy’s nevertheless maintained its full-year outlook and expects sequential quarterly improvement, with global systemwide sales returning to growth in the second half as its turnaround initiatives gain traction.
Project Fresh focuses on strengthening brand relevance, restaurant execution and franchisee economics. Wendy’s introduced its Biggie Deals platform at $4, $6 and $8 price points to provide consistent everyday value while reinforcing product quality. The company also upgraded its core hamburger offerings, completed a significant enhancement to its spicy chicken sandwich and strengthened its innovation process. Customer-segmentation insights and a more audience-based marketing approach are expected to improve advertising effectiveness and strengthen customer engagement as the year progresses.
Early operational indicators support the strategy’s potential. Company-operated restaurants, which have fully implemented the operating playbook, outperformed the broader U.S. system by 310 basis points during the first quarter. Restaurants with the highest customer-satisfaction scores also generated same-restaurant sales that were approximately 400-500 basis points stronger than those of the lowest-performing locations. Wendy’s is expanding training, performance-management programs, order-accuracy technology and restaurant-cleanliness initiatives to extend these operational gains across the franchise system.
The path to EBITDA stabilization, however, remains dependent on a meaningful improvement in restaurant-level performance. First-quarter adjusted EBITDA declined $13.2 million year over year to $111.3 million, reflecting weaker company-operated restaurant margins, lower franchise royalty revenues and higher spending on brand revitalization, field support and international expansion. Wendy’s maintained its full-year adjusted EBITDA outlook of $460-$480 million and expects a U.S. company-operated restaurant margin of 13%, plus or minus 50 basis points. Lower-income consumer pressure, beef inflation and labor-rate increases remain headwinds, while system optimization is expected to create a $15-$20 million adjusted revenue headwind in 2026.
Wendy’s ability to generate EBITDA progress amid weak traffic will likely depend on whether Project Fresh can sustain stronger restaurant execution, improve customer engagement and translate better service levels into a sustained improvement in same-restaurant sales. These factors can support restaurant margins, franchise royalty revenues and operating leverage, making disciplined execution central to the company’s turnaround in a challenging QSR environment.
WEN’s Competitor LandscapeStarbucks Corporation (SBUX - Free Report) provides a relevant turnaround benchmark for Wendy’s because it is using service execution, menu innovation and loyalty engagement to rebuild transactions while navigating continued investment pressure. Under its Back to Starbucks strategy, the company is strengthening staffing, scheduling, technology and coffeehouse leadership through Green Apron Service, while its Grow reporting system is reinforcing more consistent store-level execution. Starbucks is also using a redesigned Rewards program, faster menu innovation and coffeehouse upgrades to increase engagement across morning and afternoon occasions. These efforts helped drive U.S. comparable sales growth of 7.1%, led by transaction growth of more than 4%, while consolidated operating margin expanded 110 basis points to 9.4% in the second quarter of fiscal 2026.
McDonald’s Corporation (MCD - Free Report) provides a closer operating comparison because it competes directly in the burger QSR category and is using value, marketing and menu innovation to protect traffic in a pressured consumer environment. Its “3 for 3” strategy combines McValue’s under-$3 items and meal deals across dayparts with culturally relevant campaigns and full-margin beef and chicken limited-time offerings. McDonald’s is also expanding its beverage platform through McCafé refreshers and crafted sodas. This approach supported U.S. comparable sales growth of 3.9%, favorable comparable sales and guest-count performance relative to close competitors and continued market-share strength during the first quarter of 2026.
Against this backdrop, Wendy’s faces a more demanding recovery than its larger peers. Starbucks is already translating stronger service execution and loyalty engagement into transaction-led growth, while McDonald’s is using its scale, value architecture and marketing reach to protect traffic and market share. Wendy’s competitive position will depend on whether Biggie Deals and its upgraded core menu can narrow the traffic gap while broader adoption of the Project Fresh operating playbook strengthens franchisee economics.
WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 10.1% in the past three months against the industry’s 5% drop.
WEN Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.65, below the industry’s average of 3.28.
WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.
EPS Trend of WEN Stock
Image Source: Zacks Investment Research
WEN’s Zacks RankWEN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Baker Hughes has beaten earnings estimates in four straight quarters, averaging a 14.61% surprise.Q2 EPS is pegged at 51 cents and revenue at $6.49B, down 19.1% and 6.1% year over year, respectively.Higher oil prices and the Iran war are expected to have supported demand for Baker Hughes' services. Baker Hughes (BKR - Free Report) is set to report second-quarter 2026 results on July 26.
In the last reported quarter, its earnings of 58 cents per share beat the Zacks Consensus Estimate of 50 cents, driven by solid performance from the Industrial & Energy Technology business segment. The oilfield service player’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 14.61%. This is depicted in the graph below:
Estimate Trend for BKRThe Zacks Consensus Estimate for second-quarter earnings per share of 51 cents has been revised upward over the past seven days. The estimated figure indicates a 19.1% decline from the prior-year reported number.
The Zacks Consensus Estimate for revenues of $6.49 billion implies a 6.1% decrease from the year-ago recorded figure.
Factors to Consider for BKRTo have an idea of how oil prices behaved in the June quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Cushing, OK, WTI spot prices for April, May and June of this year were $100.32 per barrel, $102.13 per barrel and $84.81 per barrel, respectively, per EIA data. Commodity prices were $63.54 per barrel, $62.17 per barrel and $68.17 per barrel, respectively, in April, May and June of 2025, according to the EIA.
A constructive oil-price backdrop, driven by the Iran war, aided the exploration and production businesses in the June quarter of this year. This, in turn, is expected to have backed demand for Baker Hughes’ oilfield services.
Earnings WhispersOur proven model indicates an earnings beat for BKR 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. That is the case here, as you will see below.
Earnings ESP: BKR has an Earnings ESP of +1.84%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: BKR currently carries a Zacks Rank #3.
Other Stocks to ConsiderHere are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.
NOV Inc. (NOV - Free Report) currently has an Earnings ESP of +19.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NOV is scheduled to release second-quarter earnings on July 28. The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, implying a 44.8% decrease from the prior-year reported figure.
Enbridge Inc. (ENB - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3.
Enbridge is scheduled to release second-quarter earnings on July 31. The Zacks Consensus Estimate for ENB’s earnings is pegged at 44 cents per share, indicating a 6.4% decline from the prior-year reported figure.
Cactus, Inc. (WHD - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2.
WHD is scheduled to release second-quarter earnings on July 29. The Zacks Consensus Estimate for Cactus’ earnings is pegged at 71 cents per share, implying a 7.58% increase from the prior-year reported figure.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Old Dominion Freight Line (ODFL - Free Report) , which belongs to the Zacks Transportation - Truck industry, could be a great candidate to consider.
When looking at the last two reports, this trucking company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.70%, on average, in the last two quarters.
For the most recent quarter, Old Dominion was expected to post earnings of $1.05 per share, but it reported $1.14 per share instead, representing a surprise of 8.57%. For the previous quarter, the consensus estimate was $1.06 per share, while it actually produced $1.09 per share, a surprise of 2.83%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Old Dominion lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Old Dominion has an Earnings ESP of +1.02% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 29, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways Old Dominion is set to report Q2 results on July 29, with earnings and revenue estimates up y/y. ODFL's cost-based pricing and disciplined yield management are expected to support LTL revenue growth. Middle East tensions and supply-chain disruptions may weigh, as other-services revenue is seen down 40% Old Dominion Freight Line (ODFL - Free Report) is scheduled to report second-quarter 2026 results on July 29, before the market opens.
The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 6.29% over the past 60 days to $1.52 per share. The consensus mark indicates a 19.69% increase from second-quarter 2025 actuals. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.53 billion, indicating a 8.93% increase from the second quarter of 2025 actuals.
Old Dominion has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 3.69%.
Let’s see how things have shaped up for ODFL this earnings season.
Factors Likely to Have Influenced ODFL's Q2 PerformanceWe expect ODFL's performance in the to-be-reported quarter to have benefited from its cost-based pricing approach, which helps offset inflationary cost pressures while supporting customer retention and freight volumes.
The company’s consistent execution of its disciplined yield management strategy is expected to have boosted its LTL revenue-per-hundredweight metric. LTL revenue per hundredweight increased 2.4% in 2024 and 3.9% year over year in 2025. The metric is expected to have continued improving in 2026 as the company optimized its pricing and freight mix.
The Zacks Consensus Estimate for Old Dominion’s second-quarter 2026 LTL services revenues is pegged at $1.51 billion, indicating an 8% increase from the year-ago reported figure.
On the contrary, the ongoing geopolitical tensions in the Middle East and supply-chain disruptions are likely to have materially affected ODFL’s performance in the March-end quarter. The Zacks Consensus Estimate for total revenues from other services is pinned at $7.57 million, indicating a 40% decline from the year-ago reported figure.
What Our Model Says About ODFLOur proven model conclusively predicts an earnings beat for ODFL this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Old Dominion has an Earnings ESP of +1.93% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of ODFL’s Q1 ResultsODFL reported solid first-quarter 2026 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of $1.14 beat the Zacks Consensus Estimate of $1.05 but dipped 4.2% year over year. Revenues of $1.33 billion beat the Zacks Consensus Estimate of $1.31 billion but decreased 2.9% year over year.
Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Herc Holdings Inc. (HRI - Free Report) has an Earnings ESP of +14.47% and a Zacks Rank #3 at present. HRI is scheduled to report second-quarter 2026 results on July 28, before the market opens.
The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 7.04% over the past 60 days to 76 cents per share. The Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating a 16.75% increase from second-quarter 2025 actuals.
Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #1 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Key Takeaways Teledyne reported Q2 EPS of $6.28 and revenues of $1.66 billion, beating estimates.TDY posted year-over-year sales growth across all four business segments in the quarter.Teledyne raised its 2026 adjusted EPS outlook above its previous guidance range. Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.
Including one-time items, the company recorded GAAP earnings of $5.37 per share, up 21.6% from the prior-year period’s earnings of $4.43.
The year-over-year improvement in the bottom line can be attributed to higher net sales and operating income in the second quarter than the year-ago quarter’s reported actuals.
Operational Highlights of TDYTotal sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. This improvement was driven by higher year-over-year sales across all business segments.
TDY’s Segmental PerformanceInstrumentation: Sales in this segment increased 5.5% year over year to $387.8 million, driven by higher sales of marine instrumentation, primarily due to stronger offshore energy and defense markets.
The adjusted operating income declined 0.1% year over year to $104.8 million.
Digital Imaging: Quarterly sales in this division increased 12.7% year over year to $868.7 million. The segment benefited from higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Surveillance systems, industrial and scientific imaging systems, and X-ray products also contributed to the growth.
The adjusted operating income rose 31.2% year over year to $217.6 million.
Aerospace and Defense Electronics: Sales in this segment totaled $286.4 million, up 8.2% from the prior-year quarter. The improvement was driven by higher sales of defense electronics and aerospace electronics.
The adjusted operating income increased 8.6% year over year to $79.7 million.
Engineered Systems: Revenues in this division jumped 8.4% year over year to $119.6 million due to higher sales of engineered products and energy systems.
This segment's operating income rose 24.8% to $15.1 million.
Financial Condition of TDYTeledyne’s cash and cash equivalents totaled $340.1 million as of June 28, 2026 compared with $352.4 million as of Dec. 28, 2025.
Its long-term debt was $2.027 billion at the end of the second quarter of 2026 compared with $2.025 billion as of Dec. 28, 2025.
Cash flow from operating activities totaled $315.2 million during the first six months of 2026 compared with $226.6 million in the same period last year.
TDY generated free cash flow of $284.7 million, up from $196.3 million in the prior-year quarter.
Teledyne Raises 2026 Earnings ViewFor the third quarter of 2026, Teledyne expects adjusted earnings between $6.05 and $6.15 per share. The Zacks Consensus Estimate for TDY’s third-quarter earnings is pegged at $5.90, which is lower than the company's guided range.
For full-year 2026, Teledyne raised its adjusted earnings outlook to $24.45-$24.65 per share from the previous range of $23.85-$24.15. The Zacks Consensus Estimate for earnings is pegged at $24.10, which is lower than the company's guided range.
TDY’s Zacks RankTeledyne currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense ReleasesLockheed Martin Corporation (LMT - Free Report) is set to report second-quarter 2026 earnings on July 23, before market open.
The consensus estimate for LMT’s earnings is pegged at $7.22 per share. The consensus estimate for its sales is pegged at $19.52 billion, indicating year-over-year growth of 7.5%.
The Boeing Company (BA - Free Report) is set to report second-quarter 2026 earnings on July 28, before market open.
The Zacks Consensus Estimate for BA’s loss stands at 24 cents per share. The consensus estimate for its sales is pegged at $24.03 billion, calling for year-over-year growth of 5.7%.
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.93 per share. The consensus mark for its sales is pegged at $13.49 billion, suggesting a year-over-year rise of 3.4%.
3 Robotics Stocks Animating Markets With Ample Upside to GoTeledyne Technologies NYSE: TDY reported what Executive Chairman Robert Mehrabian called the strongest quarterly orders, sales and operating profit in the company’s history, driven by broad growth across defense and commercial markets and particular strength in its Digital Imaging segment.
On the company’s second-quarter 2026 earnings call, Mehrabian said sales increased 9.8% and non-GAAP earnings rose 20.8% from the prior year. Orders exceeded sales for the 11th consecutive quarter, and Teledyne ended June with approximately $5 billion of funded backlog.
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Teledyne Accelerates to Maximum Velocity: $700 in Sight“Our second quarter performance reflected strong execution of the backlog we've been building for almost three years,” Mehrabian said, adding that the results also reflected the breadth of Teledyne’s portfolio, including sensors and vertically integrated platforms “from space to deep sea.”
Teledyne Raises Full-Year Outlook Teledyne raised its 2026 annual revenue outlook by $120 million compared with its April forecast. Mehrabian said the company now expects full-year revenue to rise just under 7% to more than $6.53 billion.
4 Stocks Planning to Substantially Boost Buybacks After Solid Q2The company also lifted its full-year non-GAAP earnings outlook by $0.55 per share at the midpoint of the prior range, citing stronger organic growth. Steve Blackwood, executive vice president and chief financial officer, said management expects full-year 2026 GAAP earnings per share of $20.73 to $20.99 and non-GAAP earnings per share of $24.45 to $24.65.
For the third quarter, Teledyne expects GAAP earnings per share of $5.10 to $5.25 and non-GAAP earnings per share of $6.05 to $6.15.
Mehrabian said markets that had faced headwinds, including industrial inspection and healthcare, have begun to improve. The company previously expected flat to low-single-digit growth in short-cycle businesses, but now expects mid-single-digit growth across its commercial portfolio for the year. Defense orders and sales have also accelerated, with 2026 defense sales expected to grow at high-single-digit rates, including “pockets of double-digit growth.”
Digital Imaging Leads Segment Growth President and Chief Executive Officer George Bobb said Digital Imaging sales increased 12.7% in the second quarter, including 11.9% organic growth, due to balanced gains across defense and commercial businesses.
Sales of infrared detectors for space-based imaging rose more than 20%, as did revenue from infrared subsystems and cameras used in unmanned air systems, unmanned maritime surface vessels, border security and drone defense applications. Bobb also said sales increased in larger commercial end markets, including industrial and scientific vision, healthcare X-ray products, thermography cameras, maritime navigation electronics and micro electromechanical systems, or MEMS.
Digital Imaging non-GAAP operating margin rose 353 basis points to 25%. Bobb said tariff refunds helped the margin, but the benefit was nearly offset in dollar terms by higher research and development expense, inventory reserves and other accruals. In response to an analyst question, Bobb said the tariff benefit, net of other one-time items, was about $10 million in the quarter, mostly in Digital Imaging, and contributed a little more than 100 basis points to that segment’s margin improvement.
Other Segments Post Growth Instrumentation sales rose 5.5% from a year earlier. Marine instruments increased 5.7%, helped by defense-related sales of unmanned subsea vehicles for anti-submarine warfare and mine countermeasures, as well as interconnects for U.S. Virginia and Columbia submarines. Bobb said those defense-related marine areas collectively grew about 20%.
Environmental instruments sales increased 6%, aided by the first full quarter of DD-Scientific, acquired in January, as well as organic growth in gas and flame detection instrumentation. That was partly offset by lower sales of laboratory and life sciences instruments. Test and measurement systems sales increased 4.3%, with greater year-over-year orders for oscilloscopes and protocol analyzers.
Aerospace and Defense Electronics sales increased 8.2%, with broad organic growth across defense electronics and the highest growth at Qioptiq, which Teledyne acquired in early 2025. Commercial aerospace sales increased slightly despite delays in larger avionics retrofit opportunities.
Engineered Systems revenue increased 8.4%, while segment operating margin improved 166 basis points, driven primarily by commercial nuclear power and U.S. missile defense programs.
Defense, Space and Unmanned Systems Remain Key Themes During the question-and-answer portion of the call, Mehrabian said overall second-quarter book-to-bill was 1.23, led by Digital Imaging at more than 1.4. He said many defense orders were multi-year in nature, while the company’s increased revenue outlook for 2026 reflected gains across both defense and commercial products.
Asked about unmanned and space businesses, Mehrabian said both increased more than 10%. He later said Teledyne’s unmanned business, including air, ground and underwater systems, was about $500 million in 2025 and is expected to be about $575 million this year. He said roughly $400 million of the 2025 unmanned revenue was in Digital Imaging, primarily air systems with some ground exposure, while underwater represented about $100 million.
Mehrabian also said the space business is expected to be more than $400 million, “maybe $450 million,” by year-end. He cited Teledyne’s mercury cadmium telluride detectors and said the company is a primary supplier to many participants in the Golden Dome program.
On missiles and munitions, Mehrabian estimated Teledyne’s run-rate revenue at $200 million to $250 million for microwave and energetic components and subsystems, with related programs in electronic warfare and radar. He said Teledyne participates in programs including AMRAAM, PAC-3, Hellfire, Javelin and new work in hypersonics.
Cash Flow and Capital Deployment Blackwood said second-quarter cash flow from operating activities was $315.2 million, up from $226.6 million a year earlier. Free cash flow was $284.7 million, compared with $196.3 million in the prior-year quarter. Teledyne ended the quarter with $1.69 billion of net debt, consisting of about $2.03 billion of debt less $340 million of cash.
Mehrabian said leverage is at its lowest level in six years and that Teledyne has “more than ample flexibility” to deploy capital. He said about 90% of current earnings come from businesses Teledyne has acquired over the past 25 years, and the company continues to evaluate acquisitions across both defense and commercial areas. However, he said Teledyne is not willing to pay what he described as “crazy prices” in some competitive deal processes.
Looking ahead, Mehrabian said Teledyne is being cautious in its guidance because of factors including tougher fourth-quarter comparisons in Digital Imaging, supply chain concerns involving germanium and rare earth magnets, oil price volatility and possible tariff changes. Still, he said most of the company’s markets are moving in a positive direction.
About Teledyne Technologies (NYSE:TDY)Teledyne Technologies NYSE: TDY, headquartered in Thousand Oaks, California, is a diversified industrial technology company that designs, manufactures and supports sophisticated electronic systems, instruments and imaging products. Founded in 1960 by Henry Singleton and George Kozmetsky, Teledyne has grown into a multinational provider of high-performance equipment and software for commercial, scientific and government customers. Its offerings are used in markets that include aerospace and defense, marine, industrial manufacturing, environmental monitoring and scientific research.
The company operates through businesses that develop precision instrumentation, digital imaging products, engineered systems and aerospace and defense electronics.
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Investors might want to bet on Valvoline (VVV - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Valvoline basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Valvoline, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for ValvolineFor the fiscal year ending September 2026, this automotive and industrial lubricants maker is expected to earn $1.75 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Valvoline. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Valvoline to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways PulteGroup's Q2 earnings beat estimates 4.2%, but declined 18.2% year over year to $2.48 per share.New orders rose 6.4% and backlog units grew 1.7%, despite lower home deliveries and average selling prices.Home sale gross margin fell 200 bps to 25%, while first-half buybacks reached $681.2 million. PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.
The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth.
Shares of this Georgia-based homebuilding and financial services company inched up 1% during today’s pre-market trading session, following the earnings release.
Inside PulteGroup’s Q2 HeadlinesQuarterly earnings were $2.48 per share, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter.
Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.
PulteGroup’s Homebuilding HighlightsHomebuilding segment’s revenues decreased 9.7% year over year to $3.89 billion. Home sale revenues fell 10.8% to $3.81 billion, reflecting weaker delivery volumes and lower average pricing. Land sale and other revenues increased to $78.9 million from $34.6 million.
The number of homes closed declined 8.4% year over year to 6,997 units. Deliveries decreased across the Northeast, Midwest, Texas and West regions, while closings in the Southeast and Florida remained relatively stable. The ASP of homes delivered fell 2.7% to $544,000 from $559,000.
Net new orders increased 6.4% year over year to 7,536 homes. Order growth was recorded across all buyer groups, supported by an 8% increase in average community count to 1,074. The dollar value of net new orders rose 5.1% to $4.08 billion.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with the company’s broader pricing pressure.
Home sale gross margin contracted 200 basis points (bps) year over year to 25%. However, the metric improved 60 basis points sequentially from the first quarter of 2026, indicating some near-term stabilization in profitability.
Selling, general and administrative (SG&A) expenses declined to $383 million from $390 million. However, as a percentage of home sale revenues, SG&A expenses increased 100 bps to 10.1%, as the lower revenue base reduced operating leverage.
PulteGroup’s Financial Services DetailsFinancial Services revenues declined 4.2% to $96.9 million. Overall, the revenue mix reflected continued housing-market pressure as affordability constraints, volatile mortgage rates and economic uncertainty affected buyer activity.
Mortgage origination volume decreased to 4,629 loans from 4,984, while origination principal fell to $1.98 billion from $2.16 billion. The mortgage capture rate improved modestly to 85.2% from 84.8%.
PHM’s Liquidity and Buybacks Stay in FocusPulteGroup ended the quarter with $1.38 billion in cash, cash equivalents and restricted cash. Notes payable totaled $1.82 billion, resulting in a debt-to-capital ratio of 12.3% and a net debt-to-capital ratio of 3.3%.
Operating cash flow for the first six months of 2026 declined 58.1% year over year to $176.8 million, partly reflecting an $807.3 million increase in inventories. During the second quarter, PHM repurchased 3.1 million shares for $373 million. First-half repurchases totaled $681.2 million, representing 5.5 million shares.
PHM’s Zacks Rank & Peer ReleasesPulteGroup currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
The earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.
Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.
A Stock to ConsiderHere is a stock from the Zacks Construction sector, which according to our model, has the right combination of elements to post an earnings beat.
CRH plc (CRH - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank of 3.
CRH’s earnings beat estimates in two of the last four quarters, missed on one occasion and met on the remaining occasion, the average surprise being 0.7%. The company’s earnings for the second quarter of 2026 are expected to inch up 1% year over year.
The Lock-In Effect Is Real—These 3 Homebuilders Are Betting on ItPulteGroup NYSE: PHM reported higher second-quarter orders and reaffirmed its full-year delivery and margin outlook, even as revenue and earnings declined from a year earlier amid fewer closings and a lower average sales price.
On the company’s earnings call for the quarter ended June 30, 2026, President and CEO Ryan Marshall said he was “extremely pleased” with PulteGroup’s operating and financial results for both the quarter and the first half of the year. He pointed to order growth across all buyer groups, reduced incentives from the first quarter and continued progress shifting the business back toward build-to-order sales.
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Netflix, Pulte, and Mobileye Are Buying Their Own Dips—Should You?Second-quarter net new orders rose 6% year over year to 7,536 homes, while the value of orders increased 5% to $4.1 billion, according to Executive Vice President and CFO Jim Ossowski. Orders increased across first-time, move-up and active adult buyer segments, rising 5%, 4% and 12%, respectively.
Orders Rise, While Revenue and EPS Decline PulteGroup generated home sale revenue of $3.8 billion in the second quarter, down from $4.3 billion in the prior-year period. Ossowski said the decline reflected an 8% decrease in closings to 6,997 homes and a 3% decrease in average sales price to $544,000.
Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales TankOssowski said mix was a meaningful factor in the lower average selling price, as the company had fewer closings from its Northeast and West operations, which he described as PulteGroup’s two highest-priced operating geographies.
The company reported pretax income of $622 million and net income of $472 million, or $2.48 per share. That compared with net income of $608 million, or $3.03 per share, in the second quarter of 2025. Diluted shares outstanding fell by 10 million shares, or 5%, from the prior year to 191 million, and the company repurchased 3.1 million shares for $373 million during the quarter.
PulteGroup’s financial services operations generated pretax income of $37 million, compared with $43 million a year earlier. Ossowski said the year-over-year decline was primarily due to lower closing volumes in the homebuilding business. The company’s mortgage capture rate was 85%, comparable to the second quarter of 2025.
Margins Hold Near 25% as Incentives Ease Sequentially PulteGroup reported a homebuilding gross margin of 25% for the quarter, up 60 basis points from the first quarter. For the first half of the year, homebuilding gross margin was 24.7%.
Marshall said the company’s margins reflect a disciplined land underwriting process, diversification across markets and buyer groups, and a balanced approach to price and pace. He said PulteGroup’s gross margins are “in some instances” several hundred basis points higher than those of peers.
Ossowski said second-quarter incentives were 10.4%, down 50 basis points from the first quarter. He attributed the sequential margin improvement to a greater mix of closings from higher-margin Florida markets, lower-than-anticipated discounts on homes sold and closed in the quarter, and lower build costs.
House costs were just under $75 per square foot in the quarter, down 5% from a year earlier and about 1% from the first quarter. Ossowski said the company expects to lose the tailwind from lower lumber costs as the year progresses, though it still expects year-over-year house costs to be slightly lower than in 2025.
In response to analyst questions, Marshall said incentives remain elevated because of affordability challenges and a competitive market. He said the company had previously identified the first quarter as the “high watermark” for incentives, but cautioned that the company is not expecting a sharp improvement from current levels.
Build-to-Order Shift Continues Marshall said PulteGroup continued to execute its transition back to build-to-order homes, with build-to-order sales representing 45% of new orders in the second quarter. Year to date, build-to-order sign-ups rose 500 basis points as a share of total orders compared with the first six months of 2025.
Ossowski said the company’s long-term goal is for orders to be about 60% build-to-order and 40% spec. Marshall said during the question-and-answer session that PulteGroup likely reaches that 60% target sometime next year.
The company ended the quarter with 14,980 homes in production, of which 6,638, or 44%, were spec homes. PulteGroup also had about 1,400 finished spec homes, equal to 1.3 finished specs per community, down from 1.9 a year earlier. Marshall said the company has effectively reached the spec inventory level it wants, though some work remains in select communities.
Marshall said build cycles have recovered from the supply chain disruptions that followed COVID, with cycle times down to 100 working days or fewer in some markets. He said that gives PulteGroup the ability to manage starts while still meeting production goals.
Regional Trends and Buyer Mix Management described overall demand as following typical seasonal patterns during the quarter, with sales and absorption paces easing month to month. Marshall said consumer activity was affected at times by global tensions, macroeconomic uncertainty and movements in interest rates.
Ossowski said net new orders increased in every region except the West, where consumer demand has been slower to recover. Florida remained a standout, with second-quarter orders up 19% year over year. Marshall also cited strength in Midwest markets such as Columbus, Cleveland and Chicago, as well as Greenville and Coastal Carolina. He said Dallas and Houston showed year-over-year order improvement, though he said it was too early to “declare victory” in Texas.
Second-quarter net new orders were 39% first-time buyers, 36% move-up buyers and 25% active adult buyers. Ossowski said active adult orders benefited from the opening of new Explore by Del Webb communities in Tampa and Columbus. Marshall said the company now has Explore by Del Webb communities open in Southern California, Columbus and Tampa, with another planned east of Park City, Utah.
Guidance Reaffirmed, Land Investment Continues PulteGroup expects to close between 7,000 and 7,400 homes in the third quarter and reaffirmed its full-year 2026 closing guidance of 28,500 to 29,000 homes. The company expects average selling prices of $550,000 to $560,000 in both the third and fourth quarters.
Ossowski said PulteGroup expects third-quarter gross margin of 24.5% to 25.0% and reaffirmed the same range for the full year. The company also maintained full-year SG&A guidance of 9.5% to 9.7% of home sale revenue and an expected tax rate of 24.5%, excluding discrete tax events.
PulteGroup invested $1.4 billion in land acquisition and development during the quarter, bringing year-to-date land spend to $2.7 billion. Ossowski said the company remains on track to invest about $5.4 billion in land in 2026. It ended the quarter with 228,000 lots under control, 55% of which were controlled by option.
The company ended the quarter with $1.4 billion in cash and a debt-to-capital ratio of 12.3%. Ossowski said PulteGroup continues to expect operating cash flow of about $1 billion for 2026.
Marshall also addressed industry consolidation, saying PulteGroup’s first question on any acquisition is whether it would make the company “better, not just bigger.” He said the company prefers smaller tuck-in acquisitions that build local market scale and views M&A primarily as another way to acquire land.
About PulteGroup (NYSE:PHM)PulteGroup, Inc NYSE: PHM is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.
PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.
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Key Takeaways Energy Transfer leads on valuation, earnings revisions, pipeline scale and three-month gains.ET yields 6.66% and posted 16.58% average annual distribution growth over five years.Enterprise Products Partners posts a 19.53% ROE, compared with 9.77% for its peer. The companies operating in the Zacks Oil and Gas – Production Pipeline industry play a vital role in the energy ecosystem by facilitating the efficient transportation and storage of crude oil and natural gas to meet rising demand from the transportation, industrial and residential sectors. Beyond ensuring a stable and reliable energy supply, midstream infrastructure strengthens energy security, supports economic growth and provides essential feedstocks for petrochemical and fertilizer production. As global energy consumption continues to increase, midstream companies remain critical to meeting traditional energy needs while supporting the transition to cleaner technologies and lower-carbon energy solutions.
Two leading operators in the U.S. midstream sector are Enterprise Products Partners (EPD - Free Report) and Energy Transfer LP (ET - Free Report) . Their extensive pipeline networks provide a safe, efficient and cost-effective means of transporting crude oil, natural gas and refined products across long distances. This infrastructure helps ensure reliable deliveries to refineries, power plants and end users while offering a more economical and lower-risk alternative to transportation by rail or truck.
Energy Transfer operates a highly diversified midstream platform spanning crude oil, NGLs, refined products and natural gas pipelines, as well as storage and processing facilities. The company has a strong presence in the Permian Basin and operates the Dakota Access Pipeline. Energy Transfer’s interests in export terminals further enhance its scale and provide additional opportunities to generate cash flow. The company operates an extensive network of approximately 140,000 miles of pipelines.
Enterprise Products Partners offers a compelling investment case, supported by its extensive and strategically positioned pipeline network and diversified midstream asset base. Its broad infrastructure connects major supply basins with key demand centers, while a robust portfolio of growth projects supports expanding scale and improves cash flow visibility. This extensive network underpins stable, fee-based revenues and strengthens the company’s long-term resilience amid an evolving energy landscape. Enterprise Products Partners operates more than 50,000 miles of pipelines.
Growing U.S. hydrocarbon production and volumes continue to drive demand for midstream infrastructure and services. Against this backdrop, let’s take a closer look at the fundamentals of these two companies to determine which stock presents the more attractive investment opportunity at present.
ET & EPD’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for Energy Transfer’s 2026 and 2027 earnings has moved up 4.38% and 4.79%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The same for Enterprise Products Partners’ 2026 earnings has decreased 0.34% in the past 60 days and for 2027 earnings improved 0.3% in the same time period.
Image Source: Zacks Investment Research
Return on EquityReturn on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
ET’s current ROE is 9.77% compared with EPD’s 19.53%.
Image Source: Zacks Investment Research
EPD and ET’s Cash DistributionMidstream companies typically generate strong and relatively stable cash flows, supported largely by fee-based contracts and regulated tariffs that account for a significant share of their revenues. Both firms return a substantial portion of their cash flows to unitholders through regular cash distributions.
Enterprise Products Partners currently offers a cash distribution yield of 5.67% and has increased its distribution 10 times over the past five years. Its average annual distribution growth over the same period stands at 4.61%.
Energy Transfer offers a higher current cash distribution yield of 6.66% and has raised its distribution 18 times over the past five years. The partnership has achieved an average annual distribution growth rate of 16.58% during this period.
ValuationEnterprise Products Partners’ units are trading at a discount. EPD’s current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) is 11.66X, compared with the industry’s 12.15X.
Energy Transfer is trading at an EV/EBITDA of 10.28X, at a discount compared with its industry. This indicates that the firm is presently undervalued compared with its industry peers.
Image Source: Zacks Investment Research
Price PerformanceEnterprise Products Partners’ units have gained 1.9% in the past three months compared with Energy Transfer’s rally of 5.8%.
Price Performance (Three months)
Image Source: Zacks Investment Research
Summing UpEnterprise Products Partners and Energy Transfer provide efficient midstream services across their key operating regions, supported by extensive infrastructure and strong exposure to the highly productive Permian Basin. Rising U.S. hydrocarbon production is driving increased demand for transportation, processing and storage services, creating additional growth opportunities for both midstream companies.
Energy Transfer shows promise with a discounted valuation, better earnings estimate revision, stronger unit price performance and broader pipeline operations in the United States compared with Enterprise Products Partners.
Based on the above factors, it can be said that Energy Transfer, currently sporting a Zacks Rank #1 (Strong Buy), has an edge over Enterprise Products Partners, which has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
