Track market-moving stories before they get noisy

NKE trades near its 52-week low as Greater China weakness, margin pressure, soft digital demand and premium valuation cloud its recovery outlook.

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Our NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) 24/7 Wall St. price target for the next 12 months is $252.14, implying 27.62% upside from the current price of $197.58. NVIDIA has slipped hard in the recent AI-compute selloff, but the fundamentals under the hood have not cracked. Our recommendation is buy, with a high confidence level of 90%.

Metric Value Current Price $197.58 24/7 Wall St. Price Target $252.14 Upside 27.62% Recommendation BUY Confidence Level 90% How NVIDIA Got Caught in a Sector-Wide Reset NVIDIA is down 11.84% over the past month, retreating from a mid-May peak near $225.32. Even after the pullback, shares are still up 6.07% year-to-date and 29.05% over the past year, with the stock currently sitting between a 52-week low of $157.13 and a high of $236.26. The July 1 semiconductor session was ugly, with KLA down 12.3%, Micron down 8%, and AMD down 5.73% as institutions rotated out of chips.

Q1 FY2027 revenue hit $81.615 billion, up 85.23% year-over-year, with non-GAAP EPS of $1.87 beating consensus by 5.42%, the fourth straight beat. Data Center revenue reached $75.246 billion (up 92% YoY), and management guided Q2 to $91 billion, again excluding any China Data Center compute.

The Case for $262 and Higher Our bull case points to $262.02 over the next year. The driver is Blackwell 300 ramping into insatiable hyperscaler demand, with 54 research firms carrying a Buy consensus and an average target of $303.84.

Strategic wins keep piling up: the Vera Rubin A5X instances on Google Cloud, a Marvell NVLink Fusion tie-up, the OpenAI 10GW deployment, and a multi-generational Meta agreement spanning millions of Blackwell and Rubin GPUs. Networking revenue tripled to $14.8 billion (up 199% YoY), showing that InfiniBand, NVLink, and Spectrum-X are becoming their own business.

Capital return has finally arrived, with the dividend lifted from $0.01 to $0.25 per share and a new $80 billion buyback approved.

The Risks Worth Watching Our bear case lands at $218.92, roughly 10.8% above today. Zero China Data Center revenue is baked into guidance, and $119 billion in supply commitments creates real downside if hyperscaler capex ever cools.

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Michael Burry is short NVDA, and insiders including CEO Jensen Huang and CFO Colette Kress sold shares on June 17 at $207.41, with Director Mark Stevens disposing of over 2 million shares in June.

The executive sales were coordinated on a single day at an identical price, consistent with pre-scheduled 10b5-1 plans rather than a panic exit. Free cash flow of $48.554 billion in a single quarter tells you demand is real.

I’d Buy It Here Our 24/7 Wall St. Price Target is $252.14, our recommendation is buy, and our confidence is 90%. The tipping factor is the collision between an 85% revenue growth rate and a 12% one-month drawdown. I’d be a buyer here if hyperscaler capex commentary holds firm into the next earnings report. I’d stay on the sidelines if China export policy tightens further or Q2 guidance disappoints.

Looking further out, here is where our model projects NVIDIA could trade, assuming Blackwell and Rubin adoption continue on their current arc.

Year 24/7 Wall St. Price Target 2026 $252 2027 $291 2028 $328 2029 $365 2030 $401 These projections assume NVIDIA continues executing on the Vera Rubin roadmap and agentic AI adoption scales as forecast. Meaningful upside or downside could come from China policy shifts, custom ASIC competition from Broadcom and AMD, or a step-change in hyperscaler capex.

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Contact [email protected] for any questions or corrections.

The first major humanoid robotics company just went public. Agility Robotics completed its public debut through a merger with SPAC Churchill Capital Corp XI, and the supply-chain names that feed the robotics buildout are already moving. The clearest tell: Ouster (NASDAQ:OUST) has run 149.86% year-to-date, with a 13.43% gain on June 30 alone. The names below sit directly in the path of the capital now chasing Physical AI.

1. Vishay Precision Group (VPG): The Surprise Humanoid Pick Most readers have never heard of Vishay Precision Group (NYSE:VPG). It is a Malvern, Pennsylvania, designer of sensors, sensor-based measurement systems, special resistors, and strain gauges. Strain gauges are the unglamorous components that enable humanoid robots to sense force, torque, and pressure at every joint. When humanoid developers move from prototype to production, they need a precision sensor supplier that can ship at scale. VPG is one of the few American names already in that conversation.

Q1 FY26 made the connection explicit. Revenue came in at $84.35M, up 17.6% year over year and beating consensus by 9.43%, with orders of $102.1M, a book-to-bill of 1.21, and a Sensors segment book-to-bill of 1.36. The kicker: $1.0M in humanoid robotics orders booked in Q1, and engineering discussions are underway with a fourth humanoid developer. Shares are up 269.06% year to date and 401.91% over the past year.

2. NVIDIA (NVDA): The Physical AI Platform NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) has expanded well beyond AI compute. Its robotics stack now includes Isaac GR00T N foundation models, Isaac simulation, Cosmos, DRIVE Hyperion, and Halos OS for AI vehicles, with Hyundai, Kia, Uber, BYD, Geely, Isuzu, and Nissan signed up for L4-ready integration. Every humanoid developer that goes public, Agility included, validates the platform NVIDIA sells into the entire ecosystem.

The scale of growth in the first quarter of fiscal year 2027 became impossible to ignore. Revenue reached $81.61 billion, an increase of 85.2% from the previous year, which exceeded expectations by 3.16%. Data Center revenue climbed 92% to hit $75.25 billion, while Networking revenue surged 199% to $14.8 billion. With non-GAAP gross margins landing at 75.0% and second-quarter guidance pointing toward $91 billion, CEO Jensen Huang described the current moment as the largest infrastructure expansion in human history.

The catch: NVIDIA shares are only up 4.67% year to date, lagging the smaller supply-chain names by a wide margin. That gap is exactly what the next stock is closing.

3. Ouster (OUST): The Sensor Pure-Play Ouster is a San Francisco designer and manufacturer of digital lidar sensors for the industrial automation, intelligent infrastructure, robotics, and automotive markets. With the Stereolabs acquisition closed, the company now combines lidar, cameras, AI compute, and perception software in a single stack. That is the exact bill of materials a humanoid robot or a robotaxi platform needs to ship. CEO Angus Pacala framed Ouster as “the foundational sensing and perception platform for Physical AI.”

The first quarter of fiscal year 2026 provided the hard numbers behind the recent market surge. Total revenue climbed to $48.58 million, marking a 49% increase over the previous year, while product revenue grew by 55% to hit $48.23 million. The company shipped more than 12,600 sensors during the quarter and saw its GAAP gross margin reach 43%, an improvement of 200 basis points from the year before. Looking ahead, management set second-quarter guidance in the range of $49.5 million to $52.5 million.

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4. Teradyne (TER): The Wafer-to-Robot Bridge Teradyne (NASDAQ:TER) sits in two robotics seats at once. It tests the AI chips going into every robot, and it owns Universal Robots, one of the world’s largest collaborative robot makers. CEO Greg Smith calls the strategy “wafer to AI data center.” When Agility Robotics, or any humanoid maker, scales production, Teradyne shows up on both the silicon and cobot sides.

The first quarter results for fiscal year 2026 were impressive across every category. Revenue reached $1.28 billion, an 87% increase from the prior year, which beat analyst expectations by 5.56%, while non-GAAP earnings per share of $2.56 topped estimates by 21.15%. Approximately 70% of total revenue is now directly tied to AI, and the non-GAAP operating margin expanded significantly to 37.5% from 20.5% a year ago. Looking forward, the company provided second-quarter guidance of $1.15 billion to $1.25 billion in revenue, with non-GAAP earnings per share expected between $1.86 and $2.15.

The market has already reacted to these gains. The stock is up 139.5% year-to-date and 413.97% over the past year, hitting an all-time high of $460.53 on June 25, 2026. This momentum has recently drawn positive upgrades from analysts at Cantor Fitzgerald and Bank of America.

5. Symbotic (SYM): The Punchline Symbotic (NASDAQ:SYM) is the pure-play warehouse robotics name in the United States. The company is a pioneer in robotic automation and artificial intelligence, focused on transforming supply chain logistics, with major retailers and wholesalers as core customers. Walmart is the anchor. SoftBank is the partner. The opportunity is the entire warehouse layer of e-commerce, and Symbotic is the only listed name pointed straight at it.

The second quarter of fiscal year 2026 clearly quantified the company’s growing backlog. Revenue hit $676.48 million, a 23.1% increase over the previous year, while adjusted EBITDA more than doubled to $77.75 million, and gross margins improved to 22.2% from 20.2%. The number of active systems in deployment climbed to 70 from 46, operational systems rose to 52 from 37, and the contracted backlog stood at approximately $22.7 billion. For the third quarter, management provided guidance of $700 million to $720 million in revenue and $80 million to $85 million in adjusted EBITDA.

While the other four companies on this list have seen significant gains, this stock remains down 29.18% year-to-date, even after an 8% rally on June 30. It presents an interesting case of a warehouse robotics pure-play that, despite a massive $22.7 billion backlog and current lack of profitability, trades well below its 200-day moving average.

The Bottom Line The public market debut of Agility Robotics acts as the catalyst that finally pulled robotics supply-chain stocks off the bench. Vishay Precision Group and Ouster are already seeing significant momentum. NVIDIA and Teradyne continue to sell the foundational platforms that power these machines. Symbotic has lagged behind the rest of the group for now. The robotics IPO window is officially open, and the names associated with this theme are repricing in real time.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

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When a former Dividend Aristocrat slashes its payout, the market’s memory is long. But four years on, AT&T (NYSE:T | T Price Prediction) has built a cash flow machine that, in my view, makes its current distribution one of the safer high yields in the large-cap universe. With shares trading at a sub-8x forward earnings multiple and a yield approaching 5%, the question for retirees is simple: can this $1.11 payout hold?

The Dividend at a Glance Metric Value Annual Dividend $1.11 per share Dividend Yield 4.95% Consecutive Years of Increases 0 (since 2022 reset) Quarterly Rate Stability 16+ consecutive quarters at $0.2775 Aristocrat/King Status No (lost in 2022) Cash Flow Covers the Dividend Nearly 2.4 Times Over AT&T generated $19.4 billion in free cash flow during FY 2025 against just $8.18 billion in common dividends. With trailing EPS of $2.97 against the $1.11 payout, only about 37% of profits go out the door.

Metric Value Assessment Earnings Payout Ratio 37% Healthy FCF Payout Ratio 42% Healthy Operating Cash Flow Coverage 4.9x Strong Management has guided $18 billion-plus in free cash flow for 2026, leaving ample cushion even with $8 billion in planned buybacks.

Debt Is Heavy, but Leverage Is Manageable Metric Value Assessment Total Debt $138.4B Elevated Debt-to-Equity 1.10x Moderate Net Debt-to-EBITDA 2.71x Manageable Cash on Hand $12B Solid buffer Leverage will tick up to roughly 3.2x after the EchoStar spectrum deal closes, then drift back toward 2.5x within three years. That trajectory protects the dividend.

The Track Record: Still Haunted by 2022 AT&T cut its quarterly payout from $0.52 to $0.2775 in early 2022 after the WarnerMedia spin to Discovery, ending a 35-plus year streak of increases. The current rate has held flat for 16 straight quarters. No growth, but no further cuts.

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What Stankey Is Telling Shareholders CEO John Stankey on the Q1 2026 call: “We returned $4.3 billion to shareholders in the first quarter through dividends and share repurchases. We continue to expect to repurchase stock this year and to maintain a consistent pace of buybacks through 2028 as we execute against our plans to return $45 billion plus to shareholders over this time period.”

That language tells me the $1.11 floor is secure, with buybacks serving as the flex variable.

The Verdict: This Dividend Is Safe Dividend Safety Rating: Safe. A 42% FCF payout ratio, a 0.395 beta, and predictable wireless subscription cash flows give this distribution a wide margin of safety. I’d be comfortable owning AT&T for income if you believe the fiber buildout pays off and net leverage drifts back below 2.7x by 2027. I’d be cautious if integration costs from Lumen and EchoStar push capex higher than guided and FCF dips below $17 billion. On balance, the math works. For retirees seeking a near-5% yield from a defensive cash generator, this one clears the bar.

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Visa debuted a solution designed to help financial institutions spot cyberthreats and prevent fraud, according to a Thursday (July 2) press release.

The Visa Threat Intelligence Platform (VTIP) employs the same cybersecurity capabilities Visa uses to protect its network, the release said.

“Fraud is widely recognized as a downstream outcome of earlier cyber incidents, often beginning with data compromise, credential theft or system exploitation well before a transaction is initiated,” the release said. “Cyberattacks that expose payment credentials can originate anywhere across the payments ecosystem, from merchants and issuers to acquirers, processors and service providers. In some cases, compromised credentials are trafficked and later misused, which can result in financial loss and operational disruption.”

Visa blocks around 90 million cyberattacks and 11 million phishing emails per month, and VTIP brings the same intelligence behind these defenses to customers in the financial sector, according to the release.

It includes capabilities such as Threat Intelligence, which provides “malware-based indicators of compromise” designed for the financial sector; Vulnerability Intelligence, which focuses on exploits and exposures relevant to each organization; Brand Intelligence, which identifies and prevents impersonation and brand abuse; Digital Identity Intelligence, which helps keep executives and employees from being personally targeted; and Financial Intelligence, which unearths compromised payment credentials from the dark web and “enriches them with VisaNet insights” to provide intelligence for fraud and risk teams, per the release.

“By unifying cyber and fraud intelligence, VTIP helps financial institutions better anticipate upstream threats, prioritize response and reduce the likelihood that cyber incidents escalate into fraud losses,” the release said.

James Mirfin, senior vice president, head of risk and security intelligence solutions at Visa, told PYMNTS in April about how fraud has evolved.

“Fraud has become a business, an economy,” he said, adding that technology has transformed criminal activity from ad hoc schemes to coordinated, professionalized operations.

In addition, advanced technology has given cybercriminals new weapons, even as it helps fraud-prevention teams do their jobs.

Artificial intelligence agents, deepfakes and voice cloning are tools that allow for larger and more convincing scams. Criminals can now automate activities that once needed human labor, allowing attacks to persist and at a wider volume.

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

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

Johnson & Johnson currently has an average brokerage recommendation (ABR) of 1.79, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.79 approximates between Strong Buy and Buy.

Of the 26 recommendations that derive the current ABR, 14 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 53.9% and 11.5% of all recommendations.

Brokerage Recommendation Trends for JNJ

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

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

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

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

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

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

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

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

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

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

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

Is JNJ a Good Investment?Looking at the earnings estimate revisions for Johnson & Johnson, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $11.57.

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

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

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Johnson & Johnson.

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

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

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

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

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

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

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

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

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

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

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

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

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

Stock to Watch: Target (TGT - Free Report) Founded in 1902, Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. Its assortment spans the company’s core merchandise categories, including Apparel & Accessories, Beauty, Food & Beverage, Hardlines, Home Furnishings & Décor, and Household Essentials. Target enables guests to purchase products seamlessly in stores or through its digital channels, and it leverages stores as fulfillment hubs. In addition to merchandise sales, Target generates revenues from other sources, most notably advertising revenues and credit card profit-sharing income. Other capabilities include Roundel, Target Plus and membership fees, including paid Target Circle 360. Target’s Shipt subsidiary facilitates delivery services, including same-day delivery to guests.

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

Momentum investors should take note of this Retail-Wholesale stock. TGT has a Momentum Style Score of A, and shares are up 4.4% over the past four weeks.

15 analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.33 to $8.35 per share. TGT also boasts an average earnings surprise of +8.2%.

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

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Key Takeaways General Motors' Q2 vehicle sales fell 4% year over year as EV demand and inventory issues weighed.GM's Cadillac logged record Q2 EV sales, while Chevrolet set a second-quarter SUV sales record. GM remained the industry leader in fleet sales, supported by strong commercial truck demand. General Motors Company (GM - Free Report) reported second-quarter sales of 714,896 vehicles, down 4% year over year, as demand was affected by a smaller electric-vehicle market, discontinued models and inventory constraints. EV sales fell 33% from the same period last year.

All four of General Motors’ brands posted lower sales in the quarter. Cadillac recorded the steepest decline of 19.2% year over year, followed by Buick at 7.5%, Chevrolet at 3.9% and GMC at 0.3%. A sharp decline in year-over-year sales of XT4 and XT6 impacted Cadillac sales. Cadillac, however, posted its highest-ever second-quarter EV sales, fueled by strong demand for the OPTIQ and VISTIQ models. The V-Series also achieved record sales for both the second quarter and the first half of the year.

Per Duncan Aldred, GM North America president, the company's business remains strong, with customer demand continuing to be resilient, particularly for its truck and SUV lineup.

Sales of Chevrolet Silverado pickups dropped 7.7% year over year during the quarter, including a 25.9% decline for the electric version. Despite this, GM expects to increase its share of the full-size truck market. Meanwhile, GMC Sierra pickup sales rose 5%, supported by double-digit growth in its electric and light-duty 1500 models despite challenging year-over-year comparisons.

Chevrolet posted record second-quarter SUV sales, driven by a 28% year-over-year increase in Trailblazer sales and a 20% gain for the Traverse. Corvette sales climbed 24% year over year during the quarter.

General Motors remained the industry leader in fleet sales during both the second quarter and the first half, supported by robust demand for its trucks from commercial customers.

GM Zacks Rank & Other Key PicksGeneral Motors currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the auto space are Cummins Inc. (CMI - Free Report) , China Yuchai International Limited (CYD - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMI’s 2026 sales and earnings implies year-over-year growth of 10.6% and 23.3%, respectively. The EPS estimate for 2026 and 2027 has improved 35 cents and $1.04, respectively, over the past 30 days.

The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 52.2% and 51%, respectively. The EPS estimate for 2026 has improved 15 cents over the past 30 days.

The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.

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Goldman Sachs to match federal seed contribution of $1,000 for eligible accounts, underscoring the importance of early savings and long-term investing to financial security

NEW YORK--(BUSINESS WIRE)--Goldman Sachs announced today that it will contribute to "Trump Accounts" for eligible children of its employees, joining a public-private initiative to instill the fundamental economic principles of savings and investing in America’s next generation.

“Starting early and staying invested for the long term is one of the most reliable ways American families build lasting financial security,” said David Solomon, Chairman and CEO of Goldman Sachs. “We have long been committed to the importance of savings and investment as a pathway to a more resilient financial future, and we’re proud to continue our support of this partnership and invest in the future of America.”

Trump Accounts are tax-deferred federal investment vehicles for children that will launch on July 4, following years of dialogues between elected officials and business leaders across industries. Those born between 2025 and 2028 will receive a one-time, $1,000 federal seed contribution upon enrollment, and Goldman Sachs will provide a matching $1,000 contribution to its U.S. employees with eligible children.

About Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

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The market expects PepsiCo (PEP - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 9, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis food and beverage company is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +3.3%.

Revenues are expected to be $23.85 billion, up 5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.12% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for PepsiCo?For PepsiCo, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.39%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that PepsiCo will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that PepsiCo would post earnings of $1.54 per share when it actually produced earnings of $1.61, delivering a surprise of +4.55%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

PepsiCo doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Intel is expanding AI PCs and networking offerings with new Core Ultra, Arc G-Series and Ethernet products.Intel is expanding AI deployments through collaborations with companies including Google, Dell and Cisco.Intel is advancing its foundry roadmap while higher earnings estimates reflect improving business momentum. Intel Corporation (INTC - Free Report) has gained 480.5% in a year compared with the industry’s growth 39.4%. It has outperformed compared to the Zacks Computer & Technology sector and the S&P 500.

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The company has outperformed its peers, Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . AMD has gained 290.4%, while Qualcomm has increased 11.8% during this period.

Solid Traction in Expanding AI Ecosystem is Driving GrowthIntel continues to strengthen its position in the emerging AI PC market. It is steadily expanding its portfolio of Core Ultra Series processors, Arc G-Series products and hybrid AI solutions. The company launched the Arc G-Series processors. The leading-edge processors built on Intel Core Ultra Series 3 architecture are designed to deliver higher gaming performance, improved power efficiency and longer battery life. Such innovative launches will likely boost prospects in the growing AI gaming PC market.

The company also introduced Ethernet E835 Controllers and Network Adapters for cloud, enterprise, AI and telecom infrastructure. As enterprises aim to boost network infrastructure to match high bandwidth requirements, Intel is broadening its portfolio offerings to capitalize on the emerging trend. Its strong focus on innovation boosts its competitive edge against other industry leaders such as AMD and Qualcomm.

Intel continues to deepen relationships with leading technology companies across multiple domains such as cloud computing, enterprise infrastructure, telecommunications and consumer electronics manufacturers. Collaborations with partners including Google, Dell Technologies, Nokia, Cisco, Lenovo, Supermicro and MSI are driving adoption of Intel processors.

Recently, TPIsoftware has adopted Intel Xeon 6 processors with Performance Cores and Intel Arc Pro B60 GPUs as the computing foundation for its enterprise-grade sovereign AI solutions. This underscores Intel’s expanding role in secure on-premises generative AI deployments. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration. Growing collaboration with industry leaders and a broadening customer base bode well for sustainable growth.

Steady Foundry Roadmap Execution is a PositiveIntel continues to make steady progress on its IDM (Integrated Device Manufacturing) 2.0 strategy and advanced manufacturing roadmap. Intel 18A entered production phase last year. The latest Intel Foundry update indicates Intel 18A-P entering risk production while maintaining compatibility with Intel 18A. The 18A-P is designed to deliver higher performance, lower power consumption and improved thermal characteristics.

Estimate Revision Trend of INTCEarnings estimates for Intel for 2026 and 2027 have increased over the past 60 days.

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Key Valuation Metric for IntelFrom a valuation standpoint, Intel appears to be relatively cheaper than the industry and below its mean. Going by the price/book ratio, the company's shares currently trade at 5.11 book value, lower than 25.71 of the industry average.

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End NoteIntel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. Innovative product launches cater to growing AI networking spaces, bodes well for sustainable growth. Demand for XEON 6 processors remains strong. Collaboration with major industry leaders is driving innovation. It is strategically investing to expand its manufacturing capacity to accelerate its IDM 2.0 strategy. This will likely bring long-term benefits. Upward estimate revision shows investors’ growing confidence in the stock’s growth potential. Hence, with a Zacks rank #1 (Strong Buy), Intel appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Intel (NASDAQ:INTC | INTC Price Prediction) is the ticker dominating financial headlines after a stunning 455.89% one-year rally powered by CEO Lip-Bu Tan’s turnaround pitch and a fresh AI positioning story. But here’s what you should actually be watching.

The Intel Rally Has Left Fundamentals Behind Intel now trades at $127.02, well above the $67.32 level at its Q1 FY26 earnings report. That quarter, the company posted a GAAP net loss of $3.728 billion, weighed down by a $4.07 billion restructuring charge tied to the Mobileye goodwill impairment. Free cash flow ran -$3.867 billion. Intel Foundry is still bleeding $2.3 billion to $3.2 billion in operating losses per quarter, with no defensible path to profitability on the current timetable.

The valuation is a stretch by any reasonable measure. Forward P/E sits at roughly 159x, EV/EBITDA at 63x, and trailing EPS is -$0.60. The Wall Street consensus price target of $98.50 sits meaningfully below the current quote, and the analyst mix leans defensive with 31 Hold, 2 Sell, and 3 Strong Sell ratings. Recent non-GAAP beats have been flattered by one-time items, including a $5.45 billion Altera gain and a $5.70 billion CHIPS Act disbursement. Insiders got the memo: CFO David Zinsner sold 18,353 shares at $109.82 on June 1, and EVP Nagasubramaniyan Chandrasekaran sold 21,024 shares at $118.279 on May 29. That is opportunistic profit-taking at peak valuation.

Microsoft Is the Rotation Trade the Crowd Is Ignoring Microsoft (NASDAQ:MSFT) trades at $384.28, down 21.28% over the last year on a trailing P/E of just 22x and a forward P/E of 19x. The market is discounting Microsoft over near-term capex noise while the underlying franchise strengthens every quarter. Three points make the case.

1. Real AI revenue at scale. On the Q3 FY26 report, CEO Satya Nadella stated: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Azure and cloud services grew 40%, and Intelligent Cloud revenue reached $34.68 billion, up 30% YoY. Intel is still explaining how x86 CPUs might participate in agentic workloads. Microsoft is booking the invoices.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

2. A backlog that removes the guesswork. Commercial remaining performance obligations climbed to $627 billion, nearly doubling year-over-year. That is contracted future revenue, already inked. Q3 operating income of $38.40 billion was produced at a 46.3% operating margin, and operating cash flow hit $46.68 billion. Intel is torching free cash flow; Microsoft is compounding it.

3. A retirement-appropriate compounder. Microsoft delivers 34% return on equity, a 39.3% net profit margin, and a dividend of $3.56 per share. Analyst sentiment is decisive: 12 Strong Buy and 40 Buy ratings against zero Sell ratings, with a target of $561.11. This is the fortress balance sheet a retirement portfolio is supposed to own.

The Intel story asks retirees to underwrite a low-margin hardware turnaround at 159x forward earnings while executives sell into the rally. Microsoft asks them to own the dominant enterprise cloud and AI franchise at 19x, with $627 billion of contracted revenue already on the books.

For investors weighing the two names, the setup favors Microsoft’s contracted cash flows over Intel’s turnaround premium while the market discounts the capex cycle.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

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Mastercard (NYSE:MA | MA Price Prediction) and American Express (NYSE:AXP) both closed the books on Q1 2026 with headline beats, but the businesses underneath tell very different stories. One collects a toll on global commerce. The other funds the plastic in wealthy wallets. With credit card delinquencies sitting at 2.92% and still normalizing, the contrast in risk exposure matters.

Network Fees Carry Mastercard. Premium Cards Carry Amex. Mastercard delivered $8.40 billion in revenue, up 15.8% year over year, with EPS of $4.60. The real tell was value-added services and solutions growing 22%, well ahead of the 12% payment network revenue line. CEO Michael Miebach noted: “Mastercard is diversified, future-ready, and delivering.” Cross-border volume climbed 13%, and gross dollar volume touched $2.7 trillion. No lending. No credit provisions. Just fees.

American Express posted EPS of $4.28 on revenue of $18.907 billion, with billed business hitting $428.0 billion. Card Member spending accelerated to 9% FX-adjusted, the highest quarterly growth in three years. CEO Stephen Squeri credited the Graphite Business Cash Unlimited Card launch and the NFL global payments partnership. Every dollar of that spend rides on a loan book.

Business Driver Mastercard American Express Model Open-loop network, fee-based Closed-loop, issuer plus lender Operating Margin 60.8% 21.2% Credit Exposure None Net write-off rate 2.0% Pure Toll Booth vs. Premium Membership Machine The strategic split shows in what each management team is building. Mastercard is bolting on Mastercard Agent Pay and the planned BVNK acquisition for stablecoin rails. These are software layers on top of a network that scales without adding capital. Amex is pouring investment into Centurion Lounges in Las Vegas and New Delhi, the Resy and Tock dining integration, and the upcoming Platinum refresh. Squeri flagged higher variable customer engagement costs as a real headwind.

Valuation reflects the gap. Mastercard trades at a forward P/E of 26. Amex sits at 19. You are paying up for margin insulation, defensible when consumer credit is still normalizing.

What Decides the Next Six Months For Mastercard, value-added services need to stay above 20% growth and BVNK must close cleanly. For Amex, the Platinum refresh needs to convert, and net write-offs need to hold near 2.0%. Squeri reaffirmed 9 to 10% revenue growth and EPS of $17.30 to $17.90 for 2026, though sensitive to any downshift in affluent spending.

Why I Lean Toward Mastercard Right Now I favor Mastercard here. The capital-light network framework means margins compound without balance-sheet drag, and MA has trailed AXP down 8.19% YTD versus a 5.43% YTD decline, creating an entry point in the more insulated business. If you want cyclical upside and a fatter dividend, Amex still fits. I would change my view if delinquencies drop back under 2.5%, because that is when AXP’s lending engine shines. Until then, the tollbooth wins.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Mastercard didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most compelling AI infrastructure plays in the market, even as retail chatter has turned sour.

The company just posted record quarterly revenue of $15.8 billion, raised full-year guidance, and told investors it now expects to book $9 billion in AI infrastructure orders from hyperscalers in FY26. Yet Reddit sentiment sits firmly bearish. Our proprietary model sides with management.

The 24/7 Wall St. price target for Cisco is $133.66, implying 13.79% upside from the current $117.46. Our recommendation is buy, with confidence at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $117.46 24/7 Wall St. Price Target $133.66 Upside 13.79% Recommendation BUY Confidence Level 90% The Stock Has Nearly Doubled Since April Cisco is up 54.12% year to date and 73.17% over the past year, though shares have cooled 3.05% over the last week and trade about 10% off the 52-week high of $130.37.

The catalyst was the May 13 earnings release, where CSCO delivered its fourth consecutive EPS beat at $1.06 and revenue growth of 11.96% year over year. The stock jumped 13.41% on earnings day. Networking revenue surged 25%, and total product orders climbed 35%. Management raised FY26 revenue guidance to $62.8 billion to $63 billion and EPS to $4.27 to $4.29.

The Case for $140+ The bull case rests on AI infrastructure durability. CFO Mark Patterson told analysts “it’s reasonable to expect we will recognize at least $6 billion of revenue in FY ’27” from hyperscale AI alone. Acacia optics orders topped $1 billion in Q3, and Cisco booked five new Silicon One design wins with hyperscalers.

CEO Chuck Robbins said “Cisco is well-positioned as the critical infrastructure for the AI era.” Enterprise data center switching orders jumped over 40%, and public sector orders rose 27%. Our bull scenario points to $140.03, a 19.22% return.

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The Risks Worth Watching The trailing P/E of 38 is rich for a company whose long-term model is 4% to 6% growth in totality. Non-GAAP gross margins compressed 260 basis points on AI hardware mix, and Cisco is absorbing up to $1 billion in restructuring charges. Hyperscaler concentration is real: strip out webscale and order growth was 19%, of which 4 to 5 percentage points came from price increases rather than unit growth.

Insider activity has skewed net selling across 44 recent transactions. That said, bulls would note Patterson said “gross margins have stabilized” and the restructuring reinvests into silicon and optics, where Cisco is winning. Our bear case lands at $111.02.

Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $133.66 reflects a buy with 90% confidence. The scale tips on AI order momentum: a jump to $9 billion of hyperscaler orders from an initial $5 billion plan represents a real backlog with a $6 billion FY27 revenue floor.

The bullish thesis holds if hyperscaler capex sustains through 2027 and Silicon One keeps taking share. The bearish scenario plays out if enterprise pull-forward reverses in FY27 or memory costs re-inflate.

Year 24/7 Wall St. Price Target 2026 $133.66 2027 $145.00 2028 $158.00 2029 $170.00 2030 $180.89 These projections assume Cisco continues executing on its AI infrastructure roadmap and campus refresh cycle. Significant upside or downside could result from hyperscaler capex trends and Silicon One share gains.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Cisco Systems didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways IBM lagged its industry over three months amid concerns tied to AI-led COBOL modernization.Anthropic's Claude Code could pressure IBM's legacy modernization services and consulting demand.Hybrid cloud, watsonx, HashiCorp and rising estimates may support IBM's long-term growth. International Business Machines Corporation (IBM - Free Report) has jumped 15.4% over the past three months, underperforming the industry’s growth of 127.3%, largely due to macroeconomic challenges and a sudden development in the artificial intelligence (AI) domain that threatens its core legacy businesses. The stock has, however, outperformed peers like Microsoft Corporation (MSFT - Free Report) and Amazon.com, Inc. (AMZN - Free Report) . While Microsoft gained 2.9%, Amazon has rallied 15.2% over this period.

Three-Month IBM Stock Price Performance

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What Plagues IBM?IBM's recent weakness largely stemmed from AI startup Anthropic's announcement that its Claude Code tool is capable of modernizing legacy COBOL applications — a programming language that underpins a significant portion of IBM's mainframe ecosystem. The tool promises to automate labor-intensive tasks such as code analysis, documentation, refactoring and security assessment, potentially reducing enterprises' reliance on legacy modernization specialists like IBM.

IBM has long been the dominant player in the mainframe market, generating recurring revenues not only from its hardware business but also from consulting and modernization services for mission-critical COBOL-based applications. The complexity of these legacy environments has historically created a strong competitive moat, as enterprises have been reluctant to replace or rewrite COBOL systems due to the high costs, operational risks and limited availability of skilled developers.

However, AI-powered code modernization tools could begin to narrow this advantage. COBOL continues to power critical workloads across financial institutions, airlines, retailers and government agencies worldwide. If Claude Code significantly lowers the cost, time and complexity associated with understanding, refactoring and migrating legacy applications, enterprises may increasingly pursue modernization initiatives with fewer specialized consulting resources.

Such a shift could weigh on IBM's Consulting business by reducing demand for labor-intensive legacy modernization projects and putting pressure on pricing in an area that has historically generated attractive margins. While the long-term impact remains uncertain, Anthropic's announcement has introduced a potential competitive overhang for one of IBM's established revenue streams, prompting investors to reassess the company's AI-era growth prospects.

Competitive Pressures Add to IBM WoesIBM is facing competition from Amazon Web Services and Microsoft Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. Weaknesses in its traditional business and foreign exchange volatility remain significant concerns.

IBM’s frequent acquisitions have also escalated integration risks. Buyouts have negatively impacted the company’s balance sheet, resulting in high levels of goodwill and net intangible assets. Moreover, a highly leveraged balance sheet has been troubling IBM over time.

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The TailwindsDespite the setbacks, IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long run. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability.

With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management, translating into a healthy demand for IBM hybrid cloud solutions.

The buyout of HashiCorp has significantly augmented IBM’s capabilities to assist enterprises in managing complex cloud environments. HashiCorp’s tool sets complement IBM RedHat’s portfolio, bringing additional functionalities for cloud infrastructure management and bolstering its hybrid multi-cloud approach. IBM’s watsonx platform is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive.

Estimate Revision TrendIBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for IBM for 2026 have moved up 4.6% to $12.40 over the past year, while the same for 2027 has increased 7.4% to $13.43. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.

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End NoteIBM has invested heavily in its own AI capabilities, including watsonx, and could incorporate generative AI into its consulting workflows to improve efficiency rather than lose relevance. A strong emphasis on quantum computing and hybrid cloud is driving value for customers. With improving earnings estimates, the stock is witnessing a positive investor perception.

However, IBM’s growth is dented by high operating costs and stiff competition that reduce its profitability. The company faces a potent threat from Anthropic and needs to fine-tune its business model to remain competitive. With a Zacks Rank #3 (Hold), IBM appears to be treading a middle-of-the-road path, and new investors may be better off trading with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Oil below $70 may create opportunities for refiners as crude costs ease from elevated levels.PSX may benefit from lower oil prices and a diversified model spanning midstream and chemicals.PARR's varied crude sources and Canadian heavy oil exposure may support its cost advantage. The oil-energy sector continues to be at the top of the major events capturing investors' attention. The market recently witnessed a significant fall in oil prices, thanks to encouraging comments from Qatar about progress in indirect negotiations between the United States and Iran that were concentrated mostly on the Strait of Hormuz, which is responsible for significant volumes of global oil supply. This pullback from elevated crude prices has been reshaping the energy landscape and creating opportunities for many companies in the sector.

It is noteworthy that two leading refiners, Phillips 66 (PSX - Free Report) and Par Pacific (PARR - Free Report) , have jumped 37.1% and 86.9%, respectively, over the past year. Can the recent developments aid the operations of the two energy players and help them sustain their momentum?

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Bet on 2 Refining Stocks Right Away: PSX, PARRWest Texas Intermediate (“WTI”) oil is currently trading below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66, currently carrying a Zacks Rank #2 (Buy), is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.

Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that the midstream business, by its very definition, is resilient since it generates stable cash flows as the assets are being utilized for the long term, and is less vulnerable to commodity price volatility. Hence, having a diversified business model, the large-cap stock is insulated from commodity price volatility to a great extent. Given the strength and resilience of its business model, Phillips 66 has significant room to continue its upward trajectory.

While the lower oil price is a positive for refiners like Par Pacific, several other factors are aiding the company’s refining business that investors should keep in mind.

Instead of relying on a single source of crude, PARR has been depending on crude from a variety of sources, comprising U.S. inland oil fields, imported oil delivered by ship and Canadian heavy crude.

Notably, a significant portion of crude oil sources is waterborne, while 22% consists of Canadian heavy oil. While exposed to multiple sources, Par Pacific has the option to switch if the price of one crude oil type rises.

Additionally, having exposure to Canadian heavy oil, which is cheaper than lighter crude, the #2 Ranked Par Pacific is likely to have been enjoying a cost advantage. In other words, the refining player has been capable of using lower-priced fuel to produce high-value end products, giving it an edge over other refiners and helping it continue its upward trajectory. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Should you invest in a rapidly growing mid-tier producer or the world’s largest miner? Deciding between AngloGold Ashanti (AU +4.71%) and Newmont Corp (NEM +4.08%) requires a look at their 2026 performance and growth.

AngloGold Ashanti is a global player focused on geographic diversification, while Newmont is the world’s largest gold producer with significant scale. Investors often compare them to decide whether to prioritize the high growth potential of a mid-sized major or the stability of an industry leader.

The case for AngloGold AshantiAngloGold Ashanti is a global miner with operations spanning Africa, Australia, and the Americas. The company produces gold as its primary commodity, along with silver as a by-product of its mining process.

In FY 2025, revenue reached $9.7 billion, representing growth of approximately 71% compared to the prior year. Net income for the period was close to $2.6 billion, up 160% from just over $1 billion in FY 2024.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.3x, meaning total debt was about 30% of shareholder equity. The current ratio was approximately 2.9x, indicating its ability to cover short-term liabilities with its current assets. Free cash flow, defined as cash from operations minus capital expenditures, was $2.9 billion.

The case for Newmont CorpBeyond gold, Newmont produces copper, silver, lead, and zinc across its global operations. It operates major joint ventures, including a partnership with Barrick Gold Corp (B +3.62%) in Nevada. As the world’s largest gold producer, the company’s strategy relies on maintaining high production levels across nine countries.

In FY 2025, Newmont reported revenue of approximately $22.7 billion, representing a 21% increase over the previous fiscal year. Net income reached nearly $7.1 billion, supporting a strong net margin of roughly 32.1%.

As of the December 2025 balance sheet, Newmont's debt-to-equity ratio was approximately 0.2x. Free cash flow was close to $7.3 billion for the year.

Risk profile comparisonAngloGold Ashanti faces significant risks from fluctuating gold prices and geopolitical instability in the various jurisdictions where it operates. Because the company does not hedge its production, a sharp decline in commodity prices would directly impact its revenue and net margin. Operational challenges in mining across four different continents also add to its risk profile.

Newmont is currently embroiled in a legal dispute with Barrick Gold over the Nevada Gold Mines joint venture. The company also faces political risks in Peru and environmental scrutiny regarding its Cadia site in Australia. Finally, like its peers, Newmont remains highly sensitive to the cyclical nature of commodity prices.

Valuation comparisonAngloGold Ashanti currently trades at a lower valuation than Newmont, based on its price relative to sales and future earnings estimates.

MetricAngloGold AshantiNewmontSector BenchmarkForward P/E10.2x9.4x26.0xP/S ratio3.7x4.1xThe Forward P/E ratio compares a company's stock price to its expected profits over the next year. The P/S ratio measures the stock price against total annual sales.

Sector benchmark uses the SPDR XLB sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Gold had an incredible two-plus-year run from about $2,000 an ounce to more than $5,250 an ounce at the start of March. Gold miners like AngloGold Ashanti and Newmont are a great way to play commodity demand because mining stocks tend to correlate with their primary commodity about 85% of the time, offer simpler taxation than commodities, and have the bonus of being dividend-paying.

Even though gold prices have slid back into the low $4,000 range, they’re still at a level where both miners can make plenty of money. The all-in sustaining cost (AISC) — basically the cost of production — was $1,751 for AngloGold, while the AISC for Newmont is $1,680 per ounce in 2026, according to management. That makes most of the gains pure profit, though Newmont points out that for every $100 rise in the price of gold, their AISC rises by $6 due to royalty agreements and other expenses.

In short, each business should have another banner year in 2026. AngloGold Ashanti’s revenue is seen hitting $13.2 billion, a 37% jump from last year, while Newmont’s revenue is seen rising 25% to $28.3 billion. Because of the dynamic of rising gold prices and relatively stable production costs, net income will accelerate even faster for both.

So which gold miner stock should be the pick? I like AngloGold Ashanti because it should pay out a much better dividend than its competitor. AU has a forward dividend yield of 5.7% (it paid $4.60 out over the past year) while NEM forward dividend yield is 1.1% (it paid out $1.02 the past four quarters).

Gold is still shining bright; AngloGold Ashanti is the better way to play the hot commodity.

Key Takeaways Data 360 is becoming a key growth driver for Salesforce as enterprises invest more in AI and connected data.CRM's combined AI and data ARR surged 200% YoY to $3.4 billion in the first quarter of fiscal 2027.Informatica fortifies Salesforce's Data 360 with better integration, governance and management capabilities. Salesforce, Inc. (CRM - Free Report) is strengthening its artificial intelligence (AI) strategy by expanding Data 360, its unified data platform that helps businesses connect customer information across applications. As enterprises invest more in AI, high-quality and connected data has become essential, making Data 360 an increasingly important growth driver for Salesforce in fiscal 2027.

The platform is benefiting from the company’s broader AI initiatives, especially Agentforce. During the first quarter of fiscal 2027, Salesforce reported that combined AI and data annual recurring revenues (ARR), including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion. This reflects a whopping 200% year-over-year surge. The company also noted that 50% of Agentforce and Data 360 bookings came from existing customers expanding their spending, highlighting strong cross-selling opportunities within its installed customer base.

The recently completed Informatica acquisition further strengthens Salesforce’s Data 360 by improving data integration, governance and management capabilities. Management expects the combination to help customers move AI projects from pilot stages to enterprise-wide deployment, creating additional revenue opportunities. The company also stated that Informatica contributed to first-quarter revenue outperformance and that integration synergies are already emerging.

Salesforce’s financial performance reflects this momentum. First-quarter fiscal 2027 revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations (cRPO) climbed about 14% to $33.6 billion. Management also raised the lower end of its fiscal 2027 revenue guidance to $45.9-$46.2 billion from $45.8-$46.2 billion projected earlier.

With enterprises increasingly linking AI success to trusted data, Data 360 is becoming a key differentiator for Salesforce. Continued adoption, combined with deeper customer expansion and AI demand, could support stronger revenue growth throughout fiscal 2027 and beyond. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.09 billion, indicating a year-over-year increase of approximately 11%.

How Do Rivals Fare Against CRM in AI Enterprise Space?Two major competitors of Salesforce in the AI-powered enterprise software market are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) . Both are aggressively investing in AI to capture enterprise spending.

Microsoft is leveraging its strong position in cloud computing and business software through Dynamics 365 and its partnership with OpenAI. In the third quarter of fiscal 2026, Microsoft’s Azure and other cloud services revenues grew 40% year over year, while its AI business surpassed an annual revenue run rate of $37 billion, surging 123% year over year.

The company continues to embed AI copilots across its software portfolio, helping customers automate sales, service and workflow processes. Microsoft’s massive installed base of Office and Azure customers provides a strong channel for AI adoption, making it a formidable competitor to Salesforce’s Agentforce platform.

Oracle is also strengthening its AI capabilities through Oracle Cloud Infrastructure (OCI) and Fusion applications. In the fourth quarter of fiscal 2026, Oracle’s total cloud revenues increased 47% year over year to $9.9 billion. OCI revenues surged 93% to $5.8 billion, reflecting strong demand for AI workloads and enterprise applications.

Oracle is integrating AI agents across its ERP (Enterprise Resource Planning), customer experience and database products, allowing customers to automate business functions. Its growing cloud business and deep enterprise relationships position Oracle as a key challenger as companies increase spending on AI-driven software solutions.

Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 38.4% year to date, while the Zacks Internet – Software industry has fallen 12.8%.

Salesforce YTD Price Return Performance
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From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.11, significantly below the industry’s average of 25.65.

Salesforce Forward 12-Month P/E Ratio
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The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

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

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

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

It also includes access to the Zacks Style Scores.

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

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

The Style Scores are broken down into four categories:

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

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

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

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

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

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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

That's where the Style Scores come in.

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

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

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Commerce Bancshares (CBSH - Free Report) Incorporated in 1966, Commerce Bancshares Inc. is one of the largest bank holding companies in Missouri, with its principal offices located in Kansas City and St. Louis. It has significant operations in the states of Missouri, Kansas, Illinois, Oklahoma, Texas and Colorado.

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

Momentum investors should take note of this Finance stock. CBSH has a Momentum Style Score of A, and shares are up 14.4% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $4.14 per share. CBSH boasts an average earnings surprise of +3.3%.

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

Key Takeaways NextEra's PPAs add contracted revenues and support renewable growth as clean power demand rises.PPAs with Google Cloud and Meta expand demand for wind, solar and battery storage projects.A 33-GW signed project backlog gives NextEra strong earnings visibility and supports new development. NextEra Energy (NEE - Free Report) offers an attractive long-term investment opportunity, driven by its leadership in renewable energy and an expanding portfolio of long-term power purchase agreements (PPAs). Rising demand for reliable, carbon-free electricity from data centers, technology companies and industrial customers supports continued growth, while its regulated utility business provides stable cash flows and a resilient earnings base.

Strategic partnerships are strengthening NextEra's growth outlook. Agreements with Google Cloud and Meta are expanding demand for the company's wind, solar and battery storage projects while adding long-duration contracted revenues. These PPAs enhance earnings visibility, reduce exposure to power price volatility and diversify the customer base through high-quality counterparties.

NextEra’s subsidiary has entered into an MOU with Xcel Energy to accelerate the development of new power generation for large electricity consumers, including data centers. The agreement strengthens their long-standing partnership and supports faster capacity expansion to meet rising power demand.

With disciplined capital investment, a robust renewable development pipeline and a growing backlog of contracted assets, NextEra is well positioned to deliver sustainable earnings growth.

 NextEra's expanding portfolio of PPAs provides the foundation for its renewable growth by securing stable, contracted revenues and supporting new project development. These agreements underpin a 33-gigawatt (“GW”) backlog of signed projects, giving the company strong earnings visibility. Supported by this contracted pipeline, NextEra’s unit Energy Resources plans to significantly expand its renewable generation and storage portfolio, reinforcing long-term earnings growth as demand for clean electricity continues to rise.

Long-Term PPAs Boost Prospects of the UtilitiesLong-term PPAs benefit utilities by providing stable, contracted revenues, improving cash flow visibility and reducing exposure to power price volatility. This supports infrastructure investments, strengthens earnings stability and enables continued expansion of reliable, clean energy generation.

Other than NextEra Energy, Dominion Energy (D - Free Report) and Duke Energy (DUK - Free Report) are well positioned to benefit from long-term PPAs. These agreements provide stable, predictable revenues, support renewable energy investments, reduce market risk and improve earnings visibility, enabling both utilities to meet growing demand for reliable, low-carbon electricity while supporting long-term growth.

NextEra’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.68%, respectively.

Image Source: Zacks Investment Research

NextEra Price PerformanceShares of NextEra have gained 6.2% in the past six-month period compared with the Zacks Utility - Electric Power industry’s rally of 8.5%.

Price Performance (Six months)
Image Source: Zacks Investment Research

NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NextEra’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.

Image Source: Zacks Investment Research

NEE’s RankNextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long in the making, General Mills' NYSE: GIS stock price bottom was reached in early 2026, and a price recovery lies ahead. Driven by portfolio repositioning and cost-cutting efforts, the multiyear downtrend in the stock price has put this market at a deep value, below 10x trailing earnings, setting it up not only for growth-supported share price appreciation but also for price-multiple expansion. In this scenario, GIS shares could revert to historical highs and potentially trend higher—with the company maintaining its high-yielding dividend in the meantime.

General Mills Today

GIS

General Mills

$37.25 -0.52 (-1.39%)

As of 12:39 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$31.75▼

$54.01Dividend Yield6.55%

P/E Ratio9.11

Price Target$39.00

The company is a solid dividend payer, yielding 6.5% with shares trading near 2026 lows. The 6.5% yield raises a red flag, as high yields often precede a distribution cut or suspension, but the risks are limited for GIS investors. Not only is dividend coverage sufficient, but it is also improving; cash flow is expected to strengthen over time, and share buybacks are working their magic.

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General Mills is an excellent example of how share buybacks work in shareholders' favor, as they are reducing the share count sufficiently to offset the impact of distribution increases. General Mills' net dividend payout for fiscal Q4 2026 is down year-over-year due to a lower share count, with share buybacks expected to continue in the upcoming year. In this scenario, General Mills can sustain annualized per-share distribution increases, benefiting investors, while reducing its capital outlay, benefiting the business.

General Mills Outperforms in Fiscal Year 2026 as Shift Gains TractionGeneral Mills had a steady quarter in fiscal Q4, with revenue growth up by 1.2%, underpinned by one-offs including an extra week compared to last year’s quarter, foreign exchange (FX) conversion, and divestitures. The critical detail is that organic business, ongoing core operations, was flat on a year-over-year (YOY) basis with price and mix offsetting volume declines and mixed results across segments. North American Retail, the primary category, contracted by 4%, compounded by a 1% decline in Food Services, offset by a 4% gain in Pet and a 16% gain internationally.

Margin news was good. While one-offs impaired GAAP results, they were primarily non-cash. The salient detail is that segment margins improved across the board, leaving the adjusted system-wide margin up year over year and earnings per share well ahead of expectations. The 95 cents in adjusted earnings per share (EPS) grew by 27% YOY, outpacing MarketBeat’s consensus by more than 1,500 basis points.

Guidance was also decent. While the company forecasts a marginal revenue contraction, it is tied to a tough comp linked to the extra week in fiscal year 2026. Organic sales are expected to be flattish to slightly down, with adjusted EPS of $3.10 at the midpoint. The $3.10 midpoint is down YOY, but aligned with the consensus, with most analysts expecting worse. The critical detail is that earnings and cash flow are sufficient to sustain capital returns and balance sheet health while the company invests in its next phase. That includes a lean into product value and innovations to help boost top-line performance.

Analysts Trends Key to General Mills Stock Price TrajectoryAnalyst trends were central to the contraction in General Mills' stock price, as they included sentiment downgrades and price target reductions, which drove the stock to the low end of its expected range.

The story as of mid-2026 is that sentiment trends are set up to bottom and reverse, given the fiscal Q4 strength and an outlook for systemic improvements.

It may take time, but investors can expect to see ratings and price targets begin firming as the year progresses, strengthening the bottom in place. As it stands, GIS is in rebound mode, moving up from near the low-end target of $30, with upside forecast at the consensus.

Institutional trends help to limit downside risk in Q3 2026. The group owns more than 75% of the stock and has been accumulating on a trailing 12-month basis, running a bullish balance in every quarter. The likely outcome is that this group continues to underpin support as the year progresses, targeting moments of price weakness as opportunistic entry points.

The company’s biggest risk is top-line weakness and the resulting loss of earnings leverage tied to volume declines. However, to combat this, the company launched a $3 billion cost-saving initiative expected to yield up to $750 million in savings by fiscal year-end.

Plans also focus on underperforming brands, such as Blue Buffalo Wilderness, which has struggled due to its marketing, grain-free base, and health concerns which resulted in several class-action lawsuits by consumers.

Should You Invest $1,000 in General Mills Right Now?Before you consider General Mills, you'll want to hear this.

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Key Takeaways Block's Square now adds ChatGPT app and Claude plugin for AI-powered seller discovery and ordering. Eligible Square F&B sellers are opted in with no extra setup, new tools, or added marketplace commissions.Square's AI push builds on growing GPV and gross profit as it expands long-term seller discovery. Block’s (XYZ - Free Report) Square is expanding its AI commerce strategy with a new ChatGPT app and Claude plugin. The initiative is designed to help sellers appear when customers ask AI assistants where to eat, shop or book services, while enabling users to place orders directly through those AI experiences.

The initial rollout covers U.S. food and beverage sellers using Square Online Ordering. Eligible merchants are opted in without extra technical setup, new tools or added Square marketplace commissions. Square syncs menu data, operating hours, business information and ordering details in real time through the existing Square Dashboard.

The timing is important because AI is quickly becoming a discovery channel for everyday purchases. Square cited data showing that more than 42% of consumers already use AI tools for shopping tasks, while agentic shoppers could drive nearly $385 billion in U.S. e-commerce spending by 2030.

The move fits Square’s wider strategy. Block’s Square is built to simplify commerce, automate operations and connect neighborhood sellers, including leveraging Cash App’s network of 59 million monthly actives. In the first quarter of 2026, Square Gross Payment Volume (GPV) rose 13% year over year to $61.2 billion, with international GPV up 35%, highlighting healthy demand across markets.

Block is also backing the product push with stronger financial momentum. In first-quarter 2026, the company’s gross profit grew 27% year over year to $2.91 billion, while Square’s gross profit rose 9% to $982 million. Block expects 2026 gross profit of $12.33 billion, representing 19% growth. While the outlook reflects execution across the broader business, the new AI integrations also underscore Square's long-term strategy to expand seller discovery.

How Are Its Competitors Expanding Through AI?PayPal Holdings (PYPL - Free Report) competes with Block through digital wallets, checkout solutions and merchant payments. Its agentic-commerce capabilities connect merchants to AI shopping via Agent Ready, Store Sync and OpenAI/ChatGPT checkout integrations, helping sellers become discoverable and purchasable within AI agents. In 2025, PayPal processed $1.79 trillion in total payment volume (TPV), up 7%.

Shopify (SHOP - Free Report) competes with Block in merchant commerce software, POS, and payments. Its AI integrations include Sidekick, Shopify Catalog with live inventory/pricing sync, Universal Commerce Protocol and ChatGPT Instant Checkout, enabling merchants to sell through AI conversations while keeping order attribution in Shopify. In 2025, Shopify’s revenues reached $11.6 billion, up 30%.

XYZ’s Price Performance, Valuation & EstimatesShares of Block have risen 11.4% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month P/E, XYZ stock is trading at 25.53X, which is at a discount to the Zacks Internet Software industry’s 26.22X.

Image Source: Zacks Investment Research

Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised a cent northward to $3.90 over the past week. It indicates a 64.56% increase year over year.

Image Source: Zacks Investment Research

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

Americans are still spending, but they are getting more cautious and looking for deals. A recent University of Michigan survey showed that Americans expect inflation to be 4.6% over the next year, down slightly from an expectation of 4.8% in May. 

On the first day of Amazon's Prime Day event, U.S. online spending rose 5.3% year over year to $8.3 billion across retailers, according to Adobe Analytics, a part of Adobe, which expected the four-day event to drive $26.3 billion in U.S. online spending. Meanwhile, Costco Wholesale's (COST +2.55%) May sales rose 14.5% year over year to $20.95 billion. This shows that value-oriented platforms can still win when shoppers are under pressure.

Image source: Getty Images.

However, certain areas of the consumer economy are under strain. Beyond Meat's first-quarter revenue fell 15.3% year over year to $58.2 million, with the company citing weak demand and reduced distribution in certain channels. Conagra Brands also showed that certain food categories are not immune. In the third quarter of its fiscal 2026 (ending Feb. 22, 2026), the company's sales and adjusted earnings per share dropped 1.9% and 23.5%, respectively.

But what about a company like Space Exploration Technologies (SPCX 0.85%)? After all, you can't buy its products at the store or in an online marketplace. But its Starlink provides internet service to consumers. Starlink had 10.3 million subscribers across 164 markets at the end of the first quarter of 2026, supported by more than 9,600 broadband and mobile satellites in low earth orbit.

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SpaceX's Starlink network serves individuals, governments, and businesses and is expanding to aviation and maritime, according to Reuters. Subsequently, Starlink demand is more closely tied to connectivity needs than to ordinary discretionary spending, so I don't think the consumer spending trends are an influence here.

Other risks Instead of consumer weakness, investors should focus on other risks. SpaceX generated $18.7 billion in revenue in 2025, but it also posted a $4.9 billion net loss. The company also trades at around 110 trailing 12-month sales on June 30, a premium valuation that leaves little room for mistakes.

Starlink's monthly average revenue per user (ARPU) fell to $66 in the first quarter of 2026, down from $86 in the previous year. Starlink needs to expand its customer base without sacrificing too much pricing power or margins.

SpaceX is also exposed to significant execution risk with its next-generation Starship reusable rocket system. The success of Starship will determine whether the company can launch larger Starlink satellites and rapidly expand network capacity, while lowering launch costs. SpaceX is also spending heavily on artificial intelligence infrastructure.

This all points to the fact that a weaker consumer is not the most immediate challenge to SpaceX's investment thesis. Instead, investors should assess the company's rich valuation, Starlink pricing pressures, Starship execution risk, and AI spending before investing in this stock.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Amazon, Beyond Meat, and Costco Wholesale. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

NEW YORK, July 02, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) 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 First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/FSLR.

First Solar Case Details

The complaint 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, the Complaint alleges that:

Defendants had overstated First Solar’s capacity to manage the impact of U.S. tariff policy on the Company’s business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar’s projected performance in the 2026 fiscal year; as a result, Defendants’ public statements were materially false and misleading at all relevant times.
What's Next for First Solar 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/FSLR. 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 First Solar 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 First Solar 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 First Solar 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.

It has been about a month since the last earnings report for Dollar General (DG - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.

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

Dollar General Beats Q1 Earnings Estimates, Raises FY26 ViewDollar General reported first-quarter fiscal 2026 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Both net sales and earnings increased year over year, reflecting solid execution of its strategic initiatives, positive customer traffic trends and operating margin expansion, which more than offset the impact of severe winter weather and higher fuel costs.

The company witnessed a rise across all major merchandise categories, supported by same-store sales growth and contributions from new stores. Better-than-expected first-quarter bottom-line performance prompted management to lift its fiscal 2026 earnings view.

More on DG’s Q1 PerformanceDollar General posted quarterly earnings of $2.00 per share, which surpassed the Zacks Consensus Estimate of $1.89. The bottom line increased 12.4% from $1.78 reported in the year-ago quarter.

Net sales of $10,787 million rose 3.4% year over year. Revenues narrowly missed the Zacks Consensus Estimate of $10,822 million. The increase was driven by positive contributions from new stores and growth in same-store sales, partially offset by store closures.

Same-store sales improved 2%, reflecting a 1.4% rise in customer traffic and a 0.5% increase in average transaction amount. The quarter marked positive comparable-sales growth across all major categories, including consumables, seasonal, home products and apparel.

DG’s Key Metrics & Margin InsightsDollar General’s consumables category generated sales of $8,892.5 million, up 3% from the prior-year quarter. Seasonal sales increased 6% to $1,084.3 million, while home products sales rose 3.1% to $523 million. Apparel sales advanced 6.7% to $287.2 million.

Gross margin expanded 65 basis points to 31.6%, benefiting from higher inventory markups, lower shrink and reduced inventory damages, partly offset by increased markdowns and transportation costs.

SG&A expenses, as a percentage of sales, deleveraged 25 basis points to 25.7%. The increase mainly stemmed from higher depreciation and amortization expenses, utilities and property taxes, partly offset by lower incentive compensation.

Dollar General’s operating profit increased 10.8% to $638.5 million. Operating margin expanded 40 basis points to 5.9%.

DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1,353.1 million, long-term obligations of $4,563.1 million and total shareholders’ equity of $8,843.3 million.

Net cash provided by operating activities was $716.2 million in the first quarter. Capital expenditures totaled $352 million, including $203 million for improvements, upgrades, remodels and relocations of existing stores, $73 million for new-store facilities, $62 million for distribution and transportation-related projects and $12 million for information systems and technology-related projects.

DG’s Store UpdatesDuring the quarter, Dollar General opened 190 new stores in the United States and five new stores in Mexico. It remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, while relocating six stores.

Management reiterated plans to execute nearly 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and 10 new stores in Mexico, nearly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels and about 20 store relocations.

What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 earnings per share guidance to $7.20-$7.45 from the prior view of $7.10-$7.35. The company continues to expect net sales growth of 3.7-4.2% and same-store sales growth of 2.2-2.7% for fiscal 2026. Capital expenditures are still projected in the $1.4-$1.5 billion range.

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

VGM ScoresCurrently, Dollar General has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

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

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

Performance of an Industry PlayerDollar General is part of the Zacks Retail - Discount Stores industry. Over the past month, Target (TGT - Free Report) , a stock from the same industry, has gained 4.4%. The company reported its results for the quarter ended April 2026 more than a month ago.

Target reported revenues of $25.44 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $1.71 for the same period compares with $1.30 a year ago.

For the current quarter, Target is expected to post earnings of $2.21 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Target. Also, the stock has a VGM Score of A.