Track market-moving stories before they get noisy

Caterpillar (CAT -8.18%) reported third-quarter sales of $20.7 billion, up 17%, and GAAP profit per share of $7.13, up from $4.88. Shares fell about 8% in regular trading Thursday. Volume and price both rose, led by power equipment for data centers, so the core business ran well. Two caveats: a $128 million tariff recovery sits inside operating profit, and the release gives no full-year outlook.

Key Numbers

Sales and revenues: $20.7 billion, up from $17.6 billion a year earlierOperating profit margin: 20.4%, versus 17.3%Power generation sales: $3.4 billion, up 30%Operating cash flow, first nine months: $10.6 billion, versus $8.1 billion$655.00-$58.38 (-8.18%)

NYSE · As of 1:28 PM ET 10/29/26

What It Means

Operating profit grew more than twice as fast as sales. Price added almost straight to profit, and selling and administrative costs were slightly lower while volume rose, so fixed costs were spread over more sales. Manufacturing costs, including freight and tariffs, took back part of the gain in Construction and Resource Industries.

The margin gain is partly not repeatable. The $128 million of tariff recoveries is in both GAAP and adjusted results, since the company adjusts only for restructuring. Tariff recoveries are not profit to count on next quarter.

Resource Industries is the soft spot. Its margin slipped slightly even as sales grew, and the release says sales to mining, heavy construction and quarry customers rose mainly because of dealer inventory changes. That means machines sold to dealers, not necessarily to end users.

What to Watch Next

Watch whether Caterpillar puts numbers on its full-year outlook, which this release does not. Also check whether Resource Industries sales begin tracking end-user demand.

Alexi Ueltzen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.

Carnival, Royal Caribbean and Norwegian Cruise Line Holdings posted strong earnings for their most recent quarters despite rising fuel prices. How the leading cruise companies navigate fuel costs boils down to starkly different strategies.

Oil prices have skyrocketed since the U.S.-Israel war with Iran began on Feb. 28. Brent crude oil reached a six-month high on Friday, settling at $116.72 per barrel. With no clear end in sight for the conflict in the Middle East, the pressure affecting cruise ships' lifeblood seems poised to last into the holiday travel season and beyond.

Both Royal Caribbean and Norwegian practice "hedging," or a strategy of using derivatives to reduce exposure to future fuel-price swings, to account for sharp price changes.

Carnival CEO Josh Weinstein, on the other hand, told CNBC in an interview last month that cutting fuel consumption is the best way to avert the effects of expensive fuel.

"At the end of the day, fuel is an input cost for us. The best thing that we can do to control that cost is to use less," Weinstein said at the time.  

Jefferies analyst David Katz told CNBC in an interview that companies that hedge do so primarily to manage the cost of fuel, but also to manage Wall Street expectations and prevent hectic stock trading based on fuel price fluctuations.

"When you're public, the Street will trade your stock around based on the price of fuel," Katz said. "The Street's argument is that volatility puts pressure on your multiple."

"While it is mathematically most likely true that over the long term it is more expensive," he explained. "The benefit of having less fuel volatility in the model and less trading volatility is [it's] good for your multiple."

Despite the potential positives of the strategy, Carnival has maintained the stance it has held since 2019: Cutting fuel consumption works better than hedging.

And Carnival's third-quarter earnings report last month suggests the strategy may be paying off.

Carnival's 'maniacal' cuttingCarnival beat analysts' expectations on both the top and bottom lines for its most recent quarter and reported an all-time high net income of $1.9 billion. 

Weinstein told CNBC in an interview on "Squawk on the Street" following the release that the company has been "maniacal" about cutting its fuel consumption, saying it's slashed its unit fuel consumption rate by 26% since 2019.

"We estimate we've saved about $700 million in 2026 based on that consumption savings rate going down since 2019," he said.

Carnival spent $615 million, or about 7.3% of its revenue, on fuel in the third quarter, according to its most recent earnings release. That's an increase from the $425 million, or 6.7% of revenue, that the company spent on fuel in the fourth quarter of 2025, before fuel prices spiked.

Carnival projects its fuel costs will rise to $640 million in the fourth quarter, according to its earnings release.

Careful hedgingRoyal Caribbean similarly beat analyst expectations for earnings per share for its third quarter, reported Tuesday. However, it narrowly missed on revenue.

CEO Jason Liberty attributed the company's beat in part to its hedging strategy during an interview on CNBC's "Squawk on the Street" Tuesday morning. 

"We're a little bit over 60% hedged here for 2026, and so that's helping insulate us from some of the impacts on the rising fuel costs," he said. 

"It's obviously still impacting us," Liberty said. "[High fuel prices] evaporated a good chunk of our Q3 earnings beat into the full-year guide. But we're continuing to hedge, and we watch."

Royal Caribbean spent about $347 million on fuel in the third quarter, or about 6.2% of its revenue, according to its earnings release. That compares with $293 million, or 6.8% of revenue, spent on fuel in the fourth quarter of 2025, which ended on Dec. 31.

The company projects fuel costs will continue to rise to $379 million in the fourth quarter.

Liberty pointed out that high fuel prices have not dampened demand from consumers for vacations.

"It's not that we don't see points of challenges, but really what we've seen is that even in those points of challenges, the consumer comes roaring back," he said.

Royal Caribbean reported strong bookings for the third quarter and said reservations for 2027 are already up by a high-teens percentage.

Norwegian's continued betNorwegian Cruise Line Holdings beat on both the top and bottom lines for its third-quarter earnings, reported on Thursday, with revenue of $2.9 billion and adjusted earnings per share of $1.12.

The company has hedged approximately 48% of its fuel consumption for 2026, according to the earnings release.

Norwegian spent about $196 million on fuel in the third quarter, or about 6.6% of its revenue, according to its most recent earnings release. That's a lower share of revenue than the 7.4% — totaling $167 million — spent on fuel in the fourth quarter of 2025, which ended on Dec. 31.

The company projects fuel consumption to rise slightly in the fourth quarter, up to 255,000 metric tons from 239,000 metric tons consumed in the third quarter.

The company is in the midst of a turnaround effort. And despite facing added challenges from the macro environment, CFO Mark Kempa said he is reassured by this quarter's results on an earnings call on Thursday.

"These results reinforce our confidence in the appeal of our products and the opportunity to translate stronger revenue performance and disciplined cost management into improved profitability," Kempa said.

MILWAUKEE, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Ademi LLP is investigating whether the proposed $1.14-per-share acquisition of GoPro, Inc. ((NASDAQ: GPRO) by Starman Optical provides fair value to GoPro's public shareholders and whether GoPro’s Board adequately protected shareholder interests in negotiating and approving the transaction. The $1.14 per share value is subject to potential adjustment based on GoPro’s net working capital at closing and GoPro shareholders will maintain ownership of approximately 10% of the outstanding shares.

Are You a GoPro (GPRO) Shareholder?
If you own GoPro shares, Ademi LLP would like to hear from you about the proposed acquisition and your rights as a shareholder.

CLICK HERE TO JOIN THE GPRO INVESTIGATION
You may also contact Guri Ademi at [email protected] or toll-free at 866-264-3995.
There is no cost or obligation to you.

What Is Ademi LLP Investigating?

The $1.14-per-share acquisition price and whether it adequately reflects GoPro’s value and future prospects;

Substantial change-of-control benefits available to GoPro insiders in connection with the transaction;

Restrictions on competing transactions, including a significant termination penalty that may discourage another potential buyer from making a superior proposal; and

The conduct of GoPro's Board of Directors in negotiating and approving the transaction and whether the Board fulfilled its duties to public shareholders.

What Should GPRO Shareholders Do?
Contact Ademi LLP to discuss your rights and our investigation. There is no cost or obligation to you.

Guri AdemiAdemi LLP
Toll Free: (866) 264-3995
Email: [email protected]

About Ademi LLP
Ademi LLP represents investors in shareholder litigation involving mergers, acquisitions, buyouts, and individual shareholder rights.

Attorney advertising. Prior results do not guarantee similar outcomes.

SOURCE Ademi LLP

Key Takeaways Linde's Q3 adjusted EPS rose 9% to $4.59, beating estimates, while revenues climbed 9% to $9.40 billion.LIN's Americas sales rose 11%, driven by higher pricing and volume growth, boosting operating profit 12%.Linde raised its 2026 adjusted EPS outlook to $17.82-$17.92, backed by growth and a $10.8 billion backlog.
Linde plc (LIN - Free Report) reported third-quarter 2026 adjusted earnings of $4.59 per share, up 9% from $4.21 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $4.52 per share by 1.55%.

Sales increased 9% year over year to $9.40 billion from $8.62 billion, beating the Zacks Consensus Estimate of $9.18 billion by 2.45%.

Higher pricing, volume growth and favorable currency movements supported the results. Electronics remained the strongest end market, while the company's project backlog stood at $10.8 billion.

LIN's Underlying Sales Growth Reflects Broad DemandUnderlying sales increased 5% year over year, reflecting 3% higher pricing and 2% volume growth. Currency translation, acquisitions and divestitures, cost pass-through and Engineering each contributed 1% to reported sales growth.

Electronics led end-market performance with 15% sales growth, followed by chemicals and energy at 12% and manufacturing at 7%. Metals and mining sales increased 3%, while food and beverage advanced 3% and healthcare grew 2%. The volume gains reflected demand across industrial and consumer-related markets.

Linde's Americas Sales Rise on Pricing StrengthAmericas sales increased 11% year over year to $3.60 billion. Underlying sales advanced 9%, supported by 6% higher pricing and 3% volume growth. Electronics, metals and mining, and chemicals and energy were the primary volume drivers.

Operating profit rose 12% to $1.26 billion. The operating margin expanded 50 basis points to 35.1%, benefiting from higher pricing and productivity initiatives, partly offset by cost inflation. Favorable currency movements, particularly involving the Mexican peso and Brazilian real, also supported sales.

LIN's APAC Growth Benefits From Project Start-UpsAPAC sales increased 12% year over year to $1.95 billion. Underlying sales rose 8%, reflecting 5% volume growth and 3% higher pricing. Project start-ups, equipment sales and demand from electronics and chemicals and energy supported volumes.

Operating profit climbed 9% to $534 million. However, the operating margin contracted 70 basis points to 27.4%. Excluding cost pass-through effects, the decline was 40 basis points, primarily reflecting lower-margin equipment sales and helium-related dislocation costs.

Linde's EMEA Sales Advance on Pricing and VolumesEMEA sales increased 7% year over year to $2.33 billion. Underlying sales improved 3%, supported by 2% higher pricing and 1% volume growth. Healthcare and food and beverage were the main contributors to higher volumes.

Operating profit increased 5% to $817 million, while the margin declined 80 basis points to 35.1%. Excluding cost pass-through effects, the margin remained flat year over year. Continued pricing and productivity initiatives supported regional profitability.

LIN's Engineering Business Posts Higher ProfitLinde Engineering sales increased 12% to $582 million, while operating profit advanced 6% to $107 million. The operating margin declined to 18.4% from 19.5% a year earlier, reflecting project execution and timing.

Quarterly order intake totaled $499 million, compared with $269 million in the prior-year period. The sale-of-plant backlog reached $2.94 billion. Global Other sales rose 2% to $944 million, although operating profit fell 32% to $42 million, primarily due to weaker performance at Lincare.

Linde's Profitability Reflects Cost PressuresAdjusted operating profit rose 8% year over year to $2.76 billion. The adjusted operating margin declined 30 basis points to 29.4%, but remained flat after excluding cost pass-through effects. Adjusted net income increased 7% to $2.12 billion.

On a reported basis, operating profit declined to $2.15 billion from $2.37 billion. The company recognized $425 million in cost reduction program and other charges, including severance, restructuring-related expenses and noncash charges primarily associated with its U.S. homecare business.

LIN's Cash Flow Strengthens Shareholder ReturnsOperating cash flow increased 8% to $3.17 billion. Capital expenditures rose 9% to $1.39 billion, including $750 million in project spending. Free cash flow improved to $1.78 billion from $1.67 billion. Linde returned $1.69 billion to shareholders through dividends and net share repurchases.

The company ended September 2026 with cash and cash equivalents of $3.95 billion. Total debt stood at $26.70 billion, comprising $4.65 billion in short-term borrowings, $1.46 billion in current long-term debt and $20.59 billion in long-term debt.

Linde Raises Full-Year Earnings OutlookFor the fourth quarter, Linde expects adjusted earnings of $4.40-$4.50 per share, representing growth of 5-7% year over year. Management anticipates no year-over-year currency impact, while the guidance midpoint assumes no improvement in economic conditions.

Full-year 2026 adjusted earnings are now projected at $17.82-$17.92 per share, compared with the previous guidance of $17.70-$17.90. The updated range indicates growth of 8-9%, including a 2% currency tailwind. Capital expenditures are expected between $5.5 billion and $6 billion, supporting maintenance and projects associated with the company's $7.9 billion contractual sale-of-gas backlog.

LIN currently has a Zacks Rank #4 (Sell).

Stocks to ConsiderHere are some better-ranked stocks that you may want to consider, as they have the right combination of elements to post an earnings beat this reporting cycle.

Flotek Industries (FTK - Free Report) specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. It currently has an Earnings ESP of +18.18% and a Zacks Rank #1.

Flotek Industries is scheduled to release third-quarter 2026 earnings on Nov. 3. The Zacks Consensus Estimate for earnings is pegged at 22 cents per share, indicating an improvement of 10% from the prior-year reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman Corporation (HUN - Free Report) manufactures diversified organic chemical products and markets the products to a wide range of industrial and consumer customers. The company currently has an Earnings ESP of +36.14% and a Zacks Rank #3. 

Huntsman is scheduled to release third-quarter 2026 earnings on Nov. 2. The Zacks Consensus Estimate for HUN’s earnings is pegged at 7 cents per share, indicating a 333.3% increase from the prior-year reported figure.

Air Products and Chemicals (APD - Free Report) is involved in producing and marketing industrial gases for a wide range of industries. It currently has an Earnings ESP of +0.44% and a Zacks Rank #3.

Air Products and Chemicals is scheduled to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at $3.60 per share, indicating an improvement of 6.2% from the prior-year reported figure.

Key Takeaways T-Mobile's Q3 earnings rose 33.6% year over year to $3.22 per share, beating estimates by 12.59%.Service revenues grew 6.2%, while postpaid ARPA rose 4.2% to $155.73, supporting higher profitability.TMUS raised 2026 EBITDA and free cash flow outlooks, while increasing its postpaid ARPA growth target to 3.5%.
T-Mobile US, Inc. (TMUS - Free Report) reported third-quarter 2026 earnings of $3.22 per share, which beat the Zacks Consensus Estimate of $2.86 by 12.59%. Earnings increased 33.6% year over year. Total revenues of $23.58 billion surpassed the consensus mark of $23.31 billion by 1.17% and rose 7.4% year over year.

The strong performance reflected continued service revenue growth, higher postpaid average revenue per account (ARPA) and solid customer additions. Postpaid ARPA increased 4.2% year over year to $155.73, highlighting improved customer monetization and growing adoption of premium rate plans.

TMUS Benefits From Strong Service Revenue GrowthT-Mobile generated total service revenues of $19.38 billion in the third quarter, up 6.2% from the year-ago period. Postpaid service revenues climbed 9.3% year over year to $16.27 billion, supported by higher average postpaid accounts following the UScellular and Metronet acquisitions and improved ARPA.

Equipment revenues increased 13.4% year over year to $3.93 billion, driven by higher average revenue per device sold, a richer mix of premium smartphones and increased manufacturer pricing. Higher device liquidation revenues also contributed to growth, partially offset by lower device sales volumes.

T-Mobile Expands Postpaid Accounts Amid Higher ChurnTMUS reported postpaid net account additions of 274,000 during the quarter compared with 396,000 a year ago. Total postpaid accounts increased to 34.97 million from 33.98 million in the prior-year quarter, reflecting continued customer base expansion despite slower net additions.

Postpaid account churn increased to 1.09% from 0.97% a year earlier, primarily due to a higher proportion of broadband-only accounts and the temporary impact of rate plan modernization. Meanwhile, ARPA benefited from higher fee revenues, increased customers per account and broader adoption of tax- and fee-exclusive plans.

TMUS Faces Higher Operating ExpensesT-Mobile's total operating expenses increased 2.8% year over year to $17.92 billion. Cost of services rose 4.7% to $3.01 billion, primarily reflecting higher wholesale network access costs, customer installation fee amortization and increased network maintenance expenses.

Cost of equipment sales increased 12.2% to $5.44 billion, reflecting higher device costs and a greater proportion of premium smartphones. Selling, general and administrative expenses remained relatively flat at $6.02 billion. Despite these pressures, operating income increased 25% year over year to $5.66 billion, supported by higher revenues and improved operating leverage.

T-Mobile Delivers Strong Profitability and Cash FlowCore adjusted EBITDA increased 10.8% year over year to $9.62 billion, primarily driven by higher service revenues and equipment revenues, partially offset by increased equipment and service costs. Net income rose 27.3% to $3.46 billion, benefiting from improved operating performance.

Net cash provided by operating activities declined 1.6% year over year to $7.34 billion, reflecting higher working capital outflows. However, adjusted free cash flow increased 5.3% to $5.07 billion as cash capital expenditures declined 14% to $2.27 billion. During the quarter, T-Mobile returned approximately $3.5 billion to shareholders through $2.4 billion in share repurchases and $1.1 billion in dividends.

TMUS Strengthens Its Balance Sheet PositionT-Mobile ended the third quarter with total assets of $213.10 billion and cash and cash equivalents of $5.62 billion. Long-term debt declined to $77.32 billion from $79.65 billion at the end of 2025, reflecting debt reduction alongside continued investments in network infrastructure and spectrum.

Net debt, excluding tower obligations, stood at $80.3 billion at quarter-end. The net debt to trailing 12-month core adjusted EBITDA ratio improved to 2.2 times from 2.5 times in the year-ago quarter. Management continues to prioritize network investments, spectrum opportunities and shareholder returns in its capital allocation strategy.

T-Mobile Raises Profitability Outlook for 2026Management now expects approximately one million postpaid net account additions for 2026. Core adjusted EBITDA guidance was narrowed and raised at the midpoint to $37.35-$37.45 billion from the previous range of $37.1-$37.5 billion, reflecting sustained service revenue growth and operating efficiency.

T-Mobile also raised its outlook for net cash provided by operating activities to $28.7-$28.8 billion from $28.4-$28.8 billion. Adjusted free cash flow guidance increased to $18.7-$18.8 billion from $18.4-$18.8 billion. Capital expenditure expectations remained unchanged at approximately $10 billion, while management increased its full-year postpaid ARPA growth expectation to approximately 3.5% from 2.5-3%.

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

Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2026 earnings on Nov. 3. The Zacks Consensus Estimate for earnings is pegged at $1.08 per share, suggesting growth of 44% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 22.75%. The company delivered an average earnings surprise of 8.88% in the last four reported quarters.

Motorola Solutions, Inc. (MSI - Free Report) is set to release third-quarter 2026 earnings Nov. 4. The Zacks Consensus Estimate for earnings is pegged at $4.41 per share, implying growth of 8.62% from the year-ago reported figure.

Motorola has a long-term earnings growth expectation of 10.55%. The company delivered an average earnings surprise of 7.17% in the last four reported quarters.

HubSpot, Inc. (HUBS - Free Report) is scheduled to release third-quarter 2026 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at $3.28 per share, suggesting growth of 23.31% from the year-ago reported figure.

HubSpot has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 6.13% in the last four reported quarters.

Despite weak commodity prices marring the near term outlook of the Zacks Manufacturing - Farm Equipment industry, it will benefit from increased agricultural equipment demand to meet the food requirements of a growing population. Deere & Company (DE - Free Report) , Kubota (KUBTY - Free Report) and CNH Industrial (CNH - Free Report) are well-positioned to capitalize on these opportunities through expanded product portfolios and technological advancements.

Farmers are increasingly adopting automation, precision agriculture and digital solutions to improve productivity, optimize costs and maximize returns, prompting these companies to accelerate investments in smart farming technologies.

About the Industry
The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. These equipment include tractors, combines, cotton pickers and harvesting equipment; tillage, seeding and application equipment, consisting of sprayers, nutrient management and soil preparation machinery; and hay and forage equipment, comprising self-propelled forage harvesters and attachments, balers and mowers. Some companies in the industry produce turf and utility equipment, consisting of riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers. Some participants manufacture irrigation equipment. Deere, CNH Industrial and Kubota are presently the top three global manufacturers of agricultural equipment (in that order).

Trends Shaping the Future of the Manufacturing - Farm Equipment Industry
Farm Pressures Weigh on Demand, Future Growth Intact: Corn and soybean prices have weakened recently, as the rapidly advancing U.S. harvest and expectations for record crops weighed on prices. Wheat prices have declined more sharply, hitting a four-month low amid ample global supply expectations and easing concerns over Black Sea grain shipments. The U.S. Department of Agriculture (USDA) forecasts a 2.6% year-over-year dip in net farm income to $158.4 billion for 2026. Production expenses are expected to rise 4.5% to $492.8 billion in 2026. This includes an increase in livestock/poultry purchases, fertilizer, lime, soil conditioner expenses and fuel and oil expenses. Lower farm profitability could pressure farmers’ purchasing power and lead to delayed equipment purchases, creating near-term headwinds for manufacturers. However, long-term demand prospects remain supported by rising global food consumption, population growth and increasing farm sizes. Labor shortages and rising wage costs are also encouraging farmers to adopt mechanization and invest in equipment that improves productivity and operational efficiency.

Pricing, Cost-Cutting Actions to Boost Margins: Farm equipment manufacturers continue to face margin pressures from elevated labor, freight, fuel and raw material costs, along with ongoing supply-chain challenges. Changes in U.S. trade policies and retaliatory measures from other countries have increased costs for imported components and created additional uncertainty across the agriculture and construction equipment markets. Geopolitical developments, including disruptions related to the Iran conflict, have further strained supply chains and added to cost inflation. To counter these pressures, industry participants are implementing pricing strategies, optimizing sourcing networks, improving manufacturing efficiency and pursuing cost-reduction initiatives. These actions, along with better supply-chain management and operational discipline, are expected to support profitability despite a challenging cost environment.

Technologically Advanced Machinery Continues to Gain Popularity: Manufacturers are investing in technologically advanced machinery equipped with connectivity, autonomous capabilities and data-driven tools to address evolving customer needs. Precision agriculture solutions enable farmers to optimize input usage, improve yields and enhance sustainability while lowering overall costs. As labor availability remains a challenge and the need for higher agricultural productivity increases, demand for smart farming technologies and automated equipment is expected to remain a key growth driver for the industry.

Zacks Industry Rank Indicates Dull Prospects
The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #210, which places it at the bottom 15% of 247 Zacks industries.

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

Despite the bleak near-term prospects of the industry, we will present a few Manufacturing - Farm Equipment stocks that can be retained in one’s portfolio. It is worth taking a look at the industry’s stock-market performance and valuation picture before that.

Industry Outperforms Sector and S&P 500
The Zacks Manufacturing - Farm Equipment industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have gained 32% in the past 12 months compared with the S&P 500’s growth of 13.2%. The Industrial Products sector has gained 8% in the said time frame.

One-Year Price Performance

Industry's Current Valuation
On the basis of the trailing EV/EBITDA ratio, which is a commonly used multiple for valuing farm equipment stocks, we see that the industry is currently trading at 32.84X compared with the S&P 500’s 17.88X. The Industrial Products sector’s trailing 12-month EV/EBITDA is 18.66X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Over the last five years, the industry traded as high as 36.04X and as low as 14.16X, the median being 20.33X.

3 Manufacturing - Farm Equipment Stocks to Keep an Eye on
Kubota: The company reported an 18% increase in revenues for the Farm & Industrial Machinery segment for the six-month period ended June 30, 2026. Domestic revenues rose 13% while overseas revenues increased 19%. North America's construction equipment market remained strong on infrastructure spending and private construction demand, though residential tractor demand softened. Management expects segment revenues to grow in 2026, supported by robust North American construction equipment demand, recovery in Europe and Thailand, and continued strength in India. Kubota recently acquired a site for a new plant in India to expand production capacity for tractors to capitalize on the growing demand in the country. Kubota recently announced that it will launch the new Agri Robo Tractor MR Series in April 2027 in Japan. These are the first domestically manufactured tractors capable of unmanned autonomous operation under remote monitoring.

The Zacks Consensus Estimate for Osaka, Japan-based Kubota’s earnings for fiscal 2026 has moved up 0.8% over the past 60 days and is pegged at $7.72 per share. The estimate suggests year-over-year growth of 41.1%. The company has a trailing four-quarter earnings surprise of 41.7%, on average. It has an estimated long-term earnings growth rate of 10% and currently carries a Zacks Rank #2 (Buy).

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

Price & Consensus: KUBTY

Deere: The company will continue to benefit from its strong focus on launching technologically advanced products and feature-rich solutions that strengthen its competitive positioning. Expansion in precision agriculture remains a key growth catalyst, while replacement demand driven by the need to upgrade aging equipment should continue to support revenues. Deere’s exposure to the construction equipment market also positions it well to benefit from infrastructure spending, healthy rental activity and robust demand from projects such as data centers. Optimizing its cost structure through efficiency initiatives and footprint adjustments, while leveraging pricing actions and its Smart Industrial strategy to offset input cost pressures over time, is also a smart move. Deere acquired construction technology company Tenna, adding mixed-fleet operations and asset tracking capabilities that can integrate with its broader digital ecosystem. The company’s earlier purchase of intellectual property for tree planting equipment from Risutec also supports its precision forestry portfolio and aligns with longer-term sustainability and automation priorities.

The Zacks Consensus Estimate for the Moline, IL-based company’s fiscal 2026 earnings has remained unchanged over the past 60 days at $18.11. DE has a trailing four-quarter earnings surprise of 11.1%, on average. The company currently has an estimated long-term earnings growth rate of 15.1% and carries a Zacks Rank #3 (Hold).

Price & Consensus: DE

CNH Industrial: The company delivered year-over-year revenue growth in the second quarter of 2026 while advancing its strategic priorities, including quality, sourcing, operational efficiency and dealer network consolidation. Although farmer economics remain under pressure, the company highlighted encouraging equipment-cycle trends, such as normalized dealer inventories, an aging fleet and a healthier balance between new and used equipment pricing. CNH continues to support its dealers and customers while investing in equipment and technology to strengthen its competitive position through the next cycle. It is expanding its Precision Technology portfolio through investments in automation, autonomy, digital tools, alternative fuels and electrification. The company is also enhancing its FieldOps platform and integrating Raven technology into newer machines for seamless connectivity. New product launches, feature upgrades and portfolio enhancements, along with ongoing operational efficiency initiatives, are expected to aid growth.

The Zacks Consensus Estimate for CNH Industrial’s fiscal 2026 earnings has remained unchanged over the past 60 days at 45 cents per share.  CNH has a trailing four-quarter earnings surprise of around 13%, on average. CNH Industrial carries a Zacks Rank of 3.

Price & Consensus: CNH
 

Microsoft and Alphabet both came up short on capital spending last quarter, and the AI cloud stocks that depend on that expansion are paying the price today. Whether the shortfall signals a slowdown or just a delay could determine how…

Two of the biggest buyers of AI computing power spent less on capital projects last quarter than Wall Street expected, and the AI cloud stocks that supply that expansion are falling. Fastly (NASDAQ:FSLY) stock is at $25.43, down 6%, in midday trading.

Among its AI cloud peers, Oracle (NYSE:ORCL | ORCL Price Prediction) stock is at $140.57, down 3%. Nebius Group (NASDAQ:NBIS) stock is at $177.56, also down 3%.

Microsoft and Alphabet Spend Less Than Wall Street Expected
On October 28, Microsoft (NASDAQ:MSFT) reported $45.2 billion in capital expenditures and finance leases for Q1 FY2027. The total came in below Wall Street analysts’ consensus of $50.7 billion and short of Microsoft’s $50 billion target. Microsoft chief financial officer Amy Hood said some third-party capacity deliveries the company expected in the quarter were delayed, and she expects capital spending of more than $50 billion next quarter and approximately $170 billion for the calendar year.

A similar shortfall came from Alphabet (NASDAQ:GOOGL), which reported $51.36 billion in capital expenditures against Wall Street analysts’ consensus of $55.09 billion. Alphabet stock is at $287.67, down 11%, per Stocktwits. Microsoft stock is at $523.30, down 1%.

That matters because Microsoft buys computing capacity from outside AI cloud providers, including Nebius and CoreWeave. Slower deliveries and lower spending raise questions about how quickly those providers’ revenue ramps, though Hood didn’t tie the delays to any named supplier. The power, cooling and networking names behind the data centers are part of the same expansion story (we rounded up seven of them in a free report on the AI infrastructure stocks that aren’t chipmakers). Her read on demand stayed firm: “Customer demand continues to exceed available supply.”

Oracle Gives Back Part of Its Investor Day Rally While Momentum Names Slide
On October 28, Oracle stock rallied 11% to close at $144.54 after the company’s investor day. At that event, Oracle forecast $30 billion in free cash flow by fiscal 2029 and capped new financing through fiscal 2030 at $20 billion, split between $10 billion in equity and $10 billion in debt. Management also reaffirmed Oracle’s $225 billion revenue target for fiscal 2030 and pointed to $664 billion in remaining performance obligations, or signed contracts not yet billed.

Those targets followed negative free cash flow of $23.7 billion at Oracle in fiscal 2026, and the funding cap helped ease debt concerns that had hung over the stock. The decline gives back part of that rally as the rest of the AI cloud group sells off. Oracle stock is still down 27% year to date, even after that jump.

Momentum names had far more to give back. Fastly stock is up 150% this year, a run that came alongside six straight quarters of earnings beats, including its Q4 2025 results. As an edge cloud and security platform, the company earns usage-based revenue from internet traffic, and its slide moves in step with the group even though management has said AI traffic is growing 6.5x faster than human traffic. The company lifted its full-year 2026 revenue guidance to $732 million to $746 million on August 5.

Nebius stock is up 112% this year, and its pure-play GPU cloud model ties it more directly to hyperscaler spending than Fastly or Oracle. Three customers made up 24%, 21% and 14% of Nebius’s revenue in Q2 2026. CoreWeave stock is at $64, up 0.1%, essentially flat and apart from the group even though it’s a major Microsoft supplier. That stability follows a rough year, with CoreWeave stock down 11% year to date.

What Microsoft Capacity Delays Mean for Oracle, Fastly and Nebius
The next test for Microsoft is whether its delayed third-party capacity arrives in the second half of its fiscal year, as Hood expects. A smooth transition could restart the ramp for Nebius and CoreWeave, while another slip could stretch their revenue schedules further. Upcoming spending updates from other cloud giants could either confirm that worry or ease it.

For Oracle, the open question is whether the company stays within its new funding cap while it keeps building data centers. Fastly faces a different test, since its growth rests on AI traffic and security demand more than on hyperscaler budgets. Bullish investors can point to Hood’s view that demand still exceeds supply, while the bears can cite heavy spending and customer concentration across the group. A cautious approach may make sense while the timing of Microsoft’s delayed capacity remains unresolved.

Contact [email protected] for any questions or corrections.

Key Takeaways XYZ's Square and Cash App ecosystems gain from rising payment volumes, lending growth and product expansion.Block's AI investments, banking infrastructure expansion and Square-Cash App integration support growth.Visa's growing payment volumes, cross-border spending and VAS support growth despite cost pressures.
The digital payments industry continues to evolve, driven by the growing adoption of cashless transactions, expanding e-commerce activity and increasing demand for integrated financial services. While these trends create growth opportunities for payment providers, intensifying competition, evolving consumer spending patterns and regulatory pressures are shaping their long-term prospects.

Visa Inc. (V - Free Report) and Block, Inc. (XYZ - Free Report) are two prominent participants in the digital payments ecosystem, but their business models differ considerably. Visa operates a global payment network, benefiting from transaction volumes, cross-border spending and value-added services. In contrast, Block focuses on merchant payment solutions and consumer financial services through its Square and Cash App ecosystems. Their distinct revenue models, growth strategies and profitability profiles make them relevant candidates for comparison as investors assess the sustainability of digital payments growth.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better bet now.

The Case for VisaVisa's expanding global payments network, rising transaction volumes and growing cross-border spending remain central to its growth prospects. In the fourth quarter of fiscal 2026, payments volume increased 9% year over year, while processed transactions rose 10%. Cross-border volume, excluding intra-Europe transactions, climbed 14%, supported by a 13% increase in travel-related spending and 17% growth in e-commerce. Continued expansion in digital payments acceptance, tokenization and commercial spending provides opportunities to sustain transaction-driven revenue growth.

V’s value-added services (VAS), which include fraud prevention, cybersecurity, advisory and issuer-processing solutions, provide another growth avenue beyond transaction processing. Its commercial and money-movement solutions also create opportunities to expand beyond traditional consumer card payments. Visa Direct processed more than 15 billion transactions during the year, representing approximately $1.5 trillion in payment volume. The expansion of Visa Direct, alongside Pismo's banking and issuer-processing capabilities, strengthens V's presence in business payments and financial infrastructure. It beat earnings in each of the past four quarters with an average surprise of 3.1%.

V is also extending its capabilities into stablecoins and AI-enabled commerce. Its stablecoin settlement business surpassed $25 billion in annualized volume, while Visa Intelligent Commerce is being developed to support secure transactions initiated by AI agents. Recent initiatives include a pilot with BILL and Billtrust for automated business invoice payments and new commercial fraud prevention tools. These developments could diversify Visa's transaction flows and expand its role in emerging payment technologies.

Another important growth avenue lies in geographic expansion and deeper relationships with financial institutions. V also received regulatory approval to begin preparations for domestic payment processing in mainland China. The company is also expanding digital acceptance through Tap to Phone and strengthening its network of banking and fintech partners.

V’s strong cash position enables substantial share buybacks and dividend payouts and supports inorganic growth and financial stability. With $12.9 billion in cash and cash equivalents, the company maintains a solid capital position. Visa returned $5.2 billion to its shareholders through share repurchases and dividends in the fiscal fourth quarter.

However, escalating operating expenses and higher rebates and client incentives will likely impact its growth potential. In the fourth quarter of fiscal 2026, adjusted operating expenses rose 12.2% year over year due to higher personnel and marketing expenses. Moreover, regulatory and legal pressures surrounding interchange fees and payment network practices could constrain V's pricing flexibility and profitability.

The Case for BlockBlock is pursuing growth through its two main ecosystems: Square, which serves businesses with payment processing, software and financial services, and Cash App, which provides consumer payment and financial products. In the second quarter of 2026, Square's gross payment volume (GPV) increased 13% year over year, with U.S. growth accelerating to 10%. International GPV rose 25% year over year on a constant-currency basis. Expanded field sales, independent sales organization (ISO) partnerships, self-onboarding and a broader software offering are central to Square's growth strategy, particularly among food and beverage businesses and larger sellers. Its recently launched AI-powered Square Kiosk, featuring conversational ordering and integrated payments, further strengthens its offerings for quick-service restaurants.

Cash App provides another avenue for growth through greater adoption of banking, lending and commerce products. Its gross profit increased 31% year over year in the second quarter, while consumer lending origination volume climbed 59%. Block is expanding Cash App Borrow, Afterpay and Cash App Card capabilities to encourage customers to use more services within the platform. The partnership with Workday also enables eligible employees to direct their paychecks into Cash App more easily, potentially supporting deposit inflows, customer engagement and recurring financial activity. It beat earnings in two of the past four quarters, missed once and met once, with an average surprise of 7.3%.

The integration of Square and Cash App through Neighborhoods represents another strategic initiative. The platform connects local merchants with Cash App customers through business discovery, rewards and repeat-purchase incentives. In August 2026, Neighborhoods added 30,000 sellers, expanding its network nearly tenfold from June. By connecting consumer spending with merchant services, XYZ has an opportunity to improve customer retention, generate additional payment activity and strengthen the relationship between its two ecosystems.

Block is also investing in artificial intelligence and banking infrastructure to improve efficiency and broaden its financial services capabilities. Its AI initiatives, including Managerbot, Moneybot and Buzz, are designed to automate business workflows and accelerate product development. Meanwhile, Square Financial Services is expanding deposit-taking and payment-acquiring capabilities, which could reduce external funding requirements and improve processing economics over time. XYZ raised its 2026 gross profit outlook to $12.51 billion, representing 21% annual growth, and expects a 28% adjusted operating income margin. These initiatives support its efforts to combine product expansion with greater operating efficiency, although lending-related credit risks and competitive pressures remain important considerations.

The company exited the second quarter of 2026 with cash and cash equivalents of $6.4 billion. It returned $700.9 million to its shareholders by repurchasing approximately 11.6 million shares of common stock in the first half of 2026. Its long-term debt-to-capital of 20.6% is lower than V’s 34.9%.

How Do Estimates Compare for V & XYZ?The Zacks Consensus Estimate indicates stronger earnings growth prospects for XYZ compared with V. The consensus estimate for V’s fiscal 2027 earnings indicates a 13% increase from a year ago, while the same for revenues suggests 10.4% growth.

On the other hand, the Zacks Consensus Estimate for XYZ's 2026 EPS indicates a 70.9% year-over-year improvement, and the same for revenues signals a 7.9% rise. The consensus estimate for XYZ’s 2027 earnings indicates another 28.9% growth.

Price Performance ComparisonIn the year-to-date period, V’s shares have gained 14.2%, while XYZ has risen 15.5%. The S&P 500 increased 12% during this time.

Price Performance – V, XYZ & S&P 500
Image Source: Zacks Investment Research

Valuation: V vs. XYZOn a price-to-sales basis, Visa sits at 14X forward revenues, significantly above Block’s multiple of 1.59X. XYZ's significantly lower P/S multiple suggests a more modest valuation, potentially offering greater upside if its growth initiatives translate into sustained profitability. Also, Block currently carries a Value Score of B, while Visa carries a Value Score of D.

Image Source: Zacks Investment Research

Price TargetVisa currently trades below its average analyst price target of $430.89, implying a 7.2% potential upside from current levels. Block also trades below its average analyst price target of $97.98, implying an attractive 30.9% potential upside from current levels.

ConclusionBoth Visa and Block are well-positioned to benefit from the expanding digital payments market. Visa’s extensive global network, growing value-added services and strong financial position support its long-term growth prospects. However, rising expenses and regulatory pressures remain concerns.

Block appears to offer greater upside potential, supported by its expanding Square and Cash App ecosystems, accelerating earnings growth prospects and strategic investments in AI and financial services. Its more attractive valuation and higher implied upside based on analyst price targets further strengthen its investment appeal, making XYZ the better pick at present, even though both companies currently carry a Zacks Rank #3 (Hold).

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

Key Takeaways eBay's Q3 2026 non-GAAP EPS rose 11.9% to $1.51, while revenues gained 13.7% to $3.21B; both beat estimates.eBay's GMV rose 15.2% to $23.17B, led by a 27% U.S. gain, while first-party ad revenues jumped 16% to $575M.eBay's non-GAAP operating margin fell 70 basis points to 26.3%, while Q4 revenues are seen at $3.19B-$3.24B.
eBay Inc. (EBAY - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.51 per share, increasing 11.9% year over year. The bottom line topped the Zacks Consensus Estimate by 5.59%.

Net revenues of $3.21 billion rose 13.7% year over year, beating the Zacks Consensus Estimate by 2.85%. Broad-based strength in focus categories and consumer-to-consumer activity lifted gross merchandise volume (GMV) 15.2% to $23.17 billion.

EBAY's Advertising Revenues Maintain MomentumFirst-party advertising products generated $575 million in revenues, up 16% year over year on both reported and foreign exchange-neutral bases. Promoted Listings and first-party display ads remain central to eBay's efforts to monetize marketplace traffic.

Total advertising revenues reached $607 million, up from $525 million in the year-ago quarter. Third-party advertising increased to $28 million from $22 million, while off-platform ad revenues declined to $4 million from $7 million. Advertising penetration was 2.7% of GMV, excluding Depop.

eBay Posts Regional GMV and Buyer Gains in Q3U.S. GMV increased 27% year over year to $12.55 billion. International GMV rose 4% to $10.62 billion. On an FX-neutral basis, consolidated GMV grew 16%, with U.S. volumes leading the expansion.

Active buyers climbed 10% to 147 million, including the acquired Depop business. Excluding Depop and Tise, active buyers totaled 136 million. The company's take rate, or revenues as a percentage of GMV, eased to 13.8% from 14% a year earlier.

EBAY Expands Recommerce, Live and DepopFocus Categories GMV increased 24% year over year on an FX-neutral basis, driven by collectibles, eBay Motors, fashion and refurbished items. The combined strategic priorities of focus categories, consumer-to-consumer commerce and recommerce accounted for 72% of GMV, excluding Depop, and grew approximately 20% on an FX-neutral basis.

eBay Live delivered another record quarter, with GMV growth well into triple digits across seven markets. Depop, acquired on July 30, 2026, more than doubled U.S. GMV, monthly active users and sold items year over year on a pro forma basis. eBay also expanded its AI-powered Magical Listing tools across six major markets.

eBay Margins Narrow as Expenses RiseGAAP operating expenses increased 17% year over year to $1.70 billion from $1.46 billion. Sales and marketing spending rose to $747 million from $606 million as eBay invested in Depop and strategic priorities. Product development expenses increased to $517 million from $455 million.

Non-GAAP operating income rose 10.9% to $843 million from $760 million, but the non-GAAP operating margin fell 70 basis points to 26.3%. The GAAP operating margin declined to 19.2% from 20.3%.

Non-GAAP net income rose 8.2% to $685 million, while diluted shares fell to 453 million from 467 million. GAAP earnings declined to $1.11 per share from $1.27 as the effective tax rate moved to 17.1% from negative 4.3%.

EBAY’s Balance Sheet & Cash FlowAs of Sept. 30, 2026, cash and cash equivalents and non-equity investments totaled $3.3 billion, down sequentially from $4.9 billion as of June 30, 2026.

Long-term debt declined marginally to $5.13 billion at the end of the third quarter from $5.14 billion in the prior quarter.

eBay repurchased $689 million in shares and paid $138 million in dividends, returning $827 million to its stockholders. About $1.3 billion remained under its buyback authorization at quarter-end. Cash and non-equity investments fell sequentially to $3.35 billion from $4.85 billion, while total debt was $6.73 billion.

In the reported quarter, cash flow from continuing operations was $875 million, down from $900 million in the prior-year quarter. Free cash flow declined to $749 million from $803 million, as purchases of property and equipment rose to $126 million from $97 million.

eBay Projects Continued Growth for Q4 and 2026For the fourth quarter of 2026, eBay expects revenues of $3.19-$3.24 billion and GMV of $23.70-$24.10 billion. Non-GAAP earnings are projected at $1.48-$1.53 per share, with non-GAAP operating income between $820 million and $850 million.

Depop is expected to contribute roughly four percentage points to FX-neutral GMV growth. Management expects GMV to outpace revenue growth partly because of Depop's mix and U.K. managed-shipping accounting.

For full-year 2026, projected revenues are $12.62-$12.67 billion and GMV is $91.50-$91.90 billion. Non-GAAP earnings are forecast at $6.25-$6.30 per share, with non-GAAP operating income projected at $3.46-$3.49 billion. Management targets roughly $2 billion of share repurchases for the year.

EBAY’s Zacks Rank & Other Stocks to ConsiderCurrently, eBay carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Retail-Wholesale sector are Arcos Dorados (ARCO - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and FIGS, Inc. (FIGS - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arcos Dorados’ shares have declined 5.7% year to date. ARCO is set to report its third-quarter 2026 results on Nov. 12.

Best Buy’s shares have gained 44.9% year to date. BBY is slated to report its third-quarter fiscal 2027 results on Nov. 24.

FIGS’ shares have surged 81.9% year to date. FIGS is slated to report its third-quarter 2026 results on Nov. 5.

Andy Alder and Arjun Mather were Stanford roommates who both studied computer science before spending a decade at Palantir. Alder led product design for a team of 800 people building software for U.S. defense and intelligence agencies, while Mather served as a senior vice president in the company's commercial practice.

Palladium has fallen below 1000, entering territory we identified as a key potential support area more than a week ago. Platinum, meanwhile, has fallen below 1500 after buyers failed to turn an earlier recovery attempt into a convincing reversal.

Two markets, two important support areas and two rather uncomfortable situations for the bulls.

But here’s where things get interesting.

Breaking below support during a trading session isn’t necessarily the same as confirming a lasting breakdown. Sometimes sellers manage to defend their advantage through the close, opening the door to another decline. Other times, buyers fight back and turn an apparent bearish victory into a failed breakdown.

So, have the bears just cleared the way toward their next downside objectives? Or will these key psychological levels trigger a stronger defensive response?

Today’s price action gives us plenty to examine, and the closing prices could provide the next important clues.

The attempt to close Monday’s bearish gap at 1555-1562 failed, and the subsequent retreat brought prices dangerously close to the July low and Wednesday’s bullish opening gap. That already warned that the developing bullish reversal scenario was losing credibility.

And Thursday’s sellers wasted little time taking advantage.

Their attack swept through Wednesday’s bullish gap at 1537-1546, pushed platinum below the July low around 1539, and then carried prices beneath the psychological 1500 barrier.

But the bears didn’t stop there.

The decline also breached the lower boundary of the red declining channel, taking platinum down to 1478.75. That’s a significant deterioration in the technical picture.

The potential island-style reversal we discussed yesterday had never received convincing confirmation, and now another downside objective is coming into focus.

If sellers maintain their advantage and platinum finishes the session below both 1500 and the channel’s lower boundary, the daily 127.2% Fibonacci extension around 1446.41 could become the next important destination.

But what if buyers fight back?

A recovery above 1500 and the channel boundary before the daily close would invalidate today’s breakdown beneath that support combination and weaken the immediate bearish argument.

That would be encouraging, but buyers would still need to recover considerable technical ground before a convincing bullish reversal could develop.

For now, the message is clear: the bulls had a chance to stabilize, but they failed to protect it, and today’s close will help determine whether the bears can turn that failure into another meaningful decline.

Daily Takeaways: Platinum has fallen below the July low of 1500 and the lower boundary of the red declining channel intraday. A daily close below the channel and 1500 would strengthen the bearish case, with 1446.41 as the next conditional target. Recovering both barriers before the close would invalidate the immediate breakdown and improve the chances of stabilization.

Palladium (PA.F) – We Marked the 1000 Zone. The Bears Have Arrived. Palladium trades near $1,002 after a sharp decline within a descending channel, testing support around $1,000, with the next marked level at $969. Sometimes the most interesting market developments begin with a level identified well before the price actually reaches it.

On October 22, we wrote:

“(…) Price has reached the lower boundary of the weekly red declining channel, while the weekly 78.6% retracement near 1010, psychological 1000 level and daily 161.8% extension at 996.80 create a deeper potential support cluster around 997-1010. (…)”

We returned to that same support combination in yesterday’s Free Lab Note.

And today?

Palladium didn’t just reach our projected support area. It fell below it.

Thursday’s sellers pushed prices to 990.75, moving beneath the psychological 1000 barrier and the daily 161.8% Fibonacci extension near 996.80. That’s an important continuation of the bearish scenario we’ve been tracking across several sessions.

But reaching a support zone, or even temporarily breaking beneath it, doesn’t automatically tell us what happens next, which is why today’s close deserves particular attention.

If buyers recover 1000 before the session ends, the intraday breakdown beneath that psychological barrier would be invalidated. Such a development could encourage a corrective rebound, potentially bringing the previously broken lower boundary of the red declining channel back into focus.

That wouldn’t automatically reverse the broader bearish trend, but it would demonstrate that buyers are finally putting up a meaningful defense.

What if they fail?

A daily close below 1000 would confirm the breakdown beneath that barrier and strengthen the case for another decline. In that case, the next key potential destination would be the green declining support line around 970, based on the March and June lows. That’s a considerably more uncomfortable prospect for buyers.

Of course, the daily indicators remain deeply oversold, with RSI around 21 and Stochastic near 10. A defensive reaction around current prices wouldn’t be surprising, but we’ve already seen several rebound attempts fail before buyers could recover meaningful resistance.

For now, the bears have delivered another important stage of our earlier roadmap. The next question is whether palladium can defend 1000 before the closing bell or whether the market is preparing another move south.

Daily Takeaways: Palladium has reached and moved below the previously identified 997-1010 support cluster, with today’s low at 990.75. A recovery above 1000 before the daily close would invalidate the intraday breakdown and favor a potential rebound toward the broken red channel boundary. A daily close below 1000 would strengthen the bearish continuation scenario and bring the green support line around 970 into focus.

What About the Other Four Markets? Palladium and platinum selling pressure isn’t the only key development today.

The U.S. dollar is struggling to overcome a familiar resistance level, leaving buyers with another difficult decision. Gold is testing whether a recently recovered technical boundary can hold up amid renewed selling pressure. Silver has established another local low and is approaching a downside objective we’ve been tracking in recent analyses. Copper has delivered an intriguing twist: after successfully overcoming several resistance barriers, buyers have run into trouble near an important Fibonacci level.

Could these setbacks turn into another wave of bearish continuation? Or will today’s close give buyers a reason to challenge that view?

In today’s complete Anna’s Trading Lab Premium, we examine these four additional markets, connect their latest developments with our previous scenarios, and identify the critical levels that could shape the next move.

Final Thought – The Level Matters. The Reaction Matters More. Watching a market finally reach a support area we’ve been discussing for days is particularly revealing. The arrival matters, but the real test begins when buyers and sellers decide what happens next.

Will buyers defend the level? Will sellers confirm the breakdown? And will the resulting price action give us enough evidence to reconsider our expectations?

Those questions turn a technical projection into a useful market roadmap.

Why?

Because reaching an important price level is only part of the story…. what happens there can tell us much more about where the market may be heading.

Anna

Key Takeaways Bristol Myers' Q3 revenues rose 7% to $13.07 billion, beating estimates, while adjusted EPS fell 17%.Growth Portfolio sales climbed 12% to $7.66 billion, while Eliquis revenue surged 25% to $4.69 billion.BMY raised 2026 revenue guidance but cut EPS outlook as higher IPRD charges weighed on profits.
Bristol-Myers Squibb Company (BMY - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.21. However, earnings declined 17% from $1.63 in the year-ago quarter due to higher acquired in-process research and development (IPRD) charges and lower gross margins.

Total revenues of $13.07 billion surpassed the Zacks Consensus Estimate of $12.56 billion. Revenues increased 7% year over year, driven by strong Growth Portfolio performance and higher Eliquis sales.

The stock is trading up in response to the better-than-expected quarterly results.

BMY’s shares have gained 17.3% year to date compared with the industry's growth of 8.4%.

Image Source: Zacks Investment Research

BMY's Growth Portfolio Maintains Momentum in Q3Revenues from BMY's Growth Portfolio increased 12% year over year to $7.66 billion, driven by Opdivo Qvantig, Breyanzi, Reblozyl, Camzyos and Opdualag. Growth was also 12% when adjusted for foreign exchange impacts.

Sales of the immuno-oncology drug Opdivo declined 6% year over year to $2.37 billion. However, sales beat the Zacks Consensus Estimate of $2.36 billion but missed our model estimate of $2.40 billion.

Opdivo Qvantig generated revenues of $334 million compared with $67 million in the year-ago quarter.

Sales of rheumatoid arthritis drug Orencia increased 2% to $983 million. Melanoma drug Yervoy contributed $793 million, up 7% year over year, beating the Zacks Consensus Estimate of $756 million and our model estimate of $767 million.

Reblozyl sales rose 22% to $750 million, beating the Zacks Consensus Estimate of $739 million and our model estimate of $734 million.

Breyanzi sales surged 46% to $526 million, exceeding the Zacks Consensus Estimate of $493 million and our model estimate of $489 million.

Opdualag sales increased 23% to $367 million, beating the Zacks Consensus Estimate of $359 million and our model estimate of $363 million.

Camzyos sales jumped 42% to $420 million but missed the Zacks Consensus Estimate of $444 million and our model estimate of $447 million.

Zeposia sales increased 5% to $168 million. Sotyktu generated $100 million, while Krazati and Cobenfy contributed $58 million and $57 million, respectively.

BMY’s Legacy Portfolio Records Modest GrowthRevenues from the Legacy Portfolio increased 1% year over year to $5.42 billion. Strong Eliquis sales offset continued generic competition affecting older drugs, including Revlimid, Pomalyst and Sprycel.

Eliquis sales rose 25% to $4.69 billion, beating the Zacks Consensus Estimate of $4.59 billion and our model estimate of $4.44 billion. U.S. sales increased 39%, while international revenues declined 7%.

Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.

Multiple myeloma drug Revlimid revenues plunged 47% to $303 million but exceeded the Zacks Consensus Estimate of $221 million and our model estimate of $196.8 million.

Pomalyst/Imnovid sales declined 81% to $130 million. Sprycel revenues fell 38% to $73 million, while Abraxane sales decreased 13% to $65 million.

BMY's Margins Contract Despite Lower Operating CostsAdjusted gross margin declined to 68.4% from 72.9% in the year-ago quarter, primarily due to an unfavorable product mix and a one-time contract termination charge.

Adjusted research and development expenses decreased 3% to $2.36 billion. Adjusted selling, general and administrative expenses declined 5% to $1.70 billion.

However, acquired in-process research and development charges increased 146% to $1.56 billion, reflecting licensing agreements and ongoing collaborations. These charges, along with licensing income, had a net negative EPS impact of 58 cents.

BMY Raises Revenue Outlook, Cuts EPS ViewBristol Myers raised its 2026 revenue guidance to $49.75-$50.25 billion from the previous projection of $49-$50 billion, reflecting continued momentum across its portfolio.

However, management lowered its adjusted EPS guidance to $6.35-$6.55 from $6.75-$7.00. The revised outlook includes a negative 60-cent impact from acquired IPRD charges and licensing income, compared with the previously assumed 2-cent impact.

The company maintained its adjusted gross margin forecast of 69-70% and operating expense guidance of approximately $16.5 billion. It also reaffirmed its projection for worldwide Eliquis revenue growth of 20-25%.

BMY's Pipeline Advances With Key Regulatory MilestonesIn August, the FDA approved Zenbexus in combination with daratumumab and dexamethasone for the treatment of adult patients with multiple myeloma who have received at least one prior line of therapy, including a proteasome inhibitor and an immunomodulatory agent.

The FDA also expanded Camzyos' label in September for the treatment of symptomatic obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms in adults and pediatric patients weighing 30 kg (66 lbs) or more.

Additionally, positive phase III results were reported for iza-bren in breast and lung cancer, RYZ101 in neuroendocrine tumors and admilparant in idiopathic pulmonary fibrosis.

BMY and partner BioNTech SE (BNTX - Free Report) also announced positive data from the phase II ROSETTA Lung-107 study evaluating pumitamig in combination with docetaxel in patients with metastatic NSCLC whose disease progressed on or after first-line immunotherapy plus chemotherapy.

Data showed encouraging anti-tumor activity, with responses observed in both squamous and non-squamous NSCLC and across PD-L1 expression levels, together with a manageable safety profile consistent with prior global datasets for pumitamig.

Our Take on Bristol Myers' Q3 PerformanceBMY delivered better-than-expected third-quarter earnings and revenues, supported by robust Growth Portfolio performance and strong Eliquis demand. Continued momentum across Qvantig, Breyanzi, Reblozyl and Opdualag helped offset generic erosion in older products.

The higher revenue outlook reflects sustained commercial strength. However, declining adjusted margins and substantial acquired IPRD charges weighed on profitability and prompted a reduction in earnings guidance.

Recent regulatory approvals and positive late-stage pipeline results strengthen the company's portfolio of potential growth drivers, even as generic competition remains a significant headwind.

BMY’s Zacks Rank

Fiverr International (FVRR - Free Report) reported $90.9 million in revenue for the quarter ended September 2026, representing a year-over-year decline of 15.8%. EPS of $0.43 for the same period compares to $0.77 a year ago.

The reported revenue represents a surprise of +7.6% over the Zacks Consensus Estimate of $84.48 million. With the consensus EPS estimate being $0.36, the EPS surprise was +19.44%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Fiverr performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Annual Active Buyers: 2.45 million versus the two-analyst average estimate of 2.39 million.Marketplace Take Rate: 28.2% versus 27.9% estimated by two analysts on average.Revenue- Marketplace: $55.41 million versus $53.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -24.7% change.Revenue- Services: $35.49 million compared to the $30.54 million average estimate based on two analysts. The reported number represents a change of +3.4% year over year.View all Key Company Metrics for Fiverr here>>>

Shares of Fiverr have returned -6.3% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Shares of Micron, SK Hynix and SanDisk fell on Thursday as Alphabet’s weaker-than-expected results weighed on technology stocks, while a sharp decline in Samsung Electronics shares added pressure to the memory chip sector.

Micron MU was down about 3.5%, SK Hynix slipped around 1%, and SanDisk fell approximately 2.71%, reversing some of the optimism that had lifted memory stocks a day earlier following SK Hynix’s upbeat earnings and outlook.

Alphabet shares dropped about 12% after the Google parent reported third-quarter revenue and earnings below expectations, renewing concerns about the rising cost of artificial intelligence infrastructure and the sustainability of spending across the sector.

Although Google Cloud revenue more than doubled, investors were concerned about slowing growth in its core search advertising business, which expanded 12%, and negative free cash flow of more than $9 billion.

That compared with analysts’ expectations for a deficit of $2.70 billion.

Investors were also assessing fresh inflation data following the Federal Reserve’s decision to leave interest rates unchanged, adding to uncertainty across technology and semiconductor stocks.

The Philadelphia Semiconductor Index slipped by over 0.6%.

Visit Site

Micron is sliding as Alphabet and Samsung worries hit AI chip demand expectations.

51% of retail investor accounts lose money when trading CFDs with this provider.

Samsung Electronics shares plunged more than 4% in Seoul on Thursday despite reporting a record quarterly operating profit of $80 billion, as investors focused on revenue and semiconductor earnings that fell short of expectations.

The company reported revenue of 195.3 trillion won ($124 billion), slightly below analysts’ estimates of 195.79 trillion won.

Semiconductor operating profit came in at 106.5 trillion won, compared with Bloomberg’s estimate of 108.45 trillion won.

Cash flow from operating activities also declined to 98.6 trillion won in the third quarter from 105.1 trillion won in the previous quarter.

The decline came amid concerns over the scale of investment in AI infrastructure and the risks facing the memory chip industry if demand weakens.

South Korea’s central bank recently warned that the country’s dependence on semiconductor exports could leave its economy more vulnerable to a downturn in AI demand.

Investors had also been looking for Samsung to benefit from strong results reported by rival SK Hynix.

“SK Hynix did quite a lot more than expected yesterday. It went beyond market expectations, but Samsung Electronics hasn’t really changed its earlier guidance,” said Lee Min-hee, an analyst at BNK Investment & Securities.

The pullback followed a rally in memory stocks on Wednesday after SK Hynix reported better-than-expected earnings and outlined plans to return about $75 billion to shareholders this year.

The South Korean chipmaker also projected that the shortage of memory components would persist through 2030, reinforcing expectations that demand could remain strong for an extended period.

Rosenblatt Securities analyst Kevin Cassidy told MarketWatch that SK Hynix’s report showed memory demand increasing as part of an “upcycle”, providing a major boost to profits.

“The market's concern in memory has been the cyclical nature of the memory market,” Cassidy said.

However, the current period of strength “has lasted longer than any other upcycle in history,” he added.

The outlook had helped fuel optimism that rising demand for memory components used in AI infrastructure could support pricing and earnings across the sector.

SanDisk shares also came under pressure ahead of the company’s fiscal first-quarter 2027 earnings report, scheduled for release after the market close on Thursday.

The stock had surged in the previous session following SK Hynix’s record quarterly results, which confirmed that NAND prices rose at a mid-20% rate quarter-on-quarter.

The gains gave way to caution ahead of SanDisk’s own results.

Options markets are pricing in a potential share-price move of nearly 10% in either direction following the earnings announcement, reflecting elevated expectations and uncertainty about the company’s outlook.

The pullback was compounded by Cantor Fitzgerald’s decision to lower its price target on SanDisk, citing concerns about the pace of revenue growth while maintaining an Overweight rating.

Analysts broadly remain bullish, with consensus estimates calling for earnings of about $46 per share on revenue near $10.7 billion, representing a substantial year-on-year increase.

However, expectations are high after SanDisk beat estimates in each of its previous four quarters.

Any disappointment in guidance for NAND pricing or second-quarter revenue could trigger a sharp market reaction.

With SanDisk due to report after the close and options implying a move of nearly 10%, the stock is likely to be a busy one on trading apps tonight.

Micron (MU -4.45%), one of the world's largest producers of DRAM and NAND memory chips, is usually considered a cyclical stock. Its sales and profits soar when memory chip supplies are tight, but decline when those shortages become gluts.

Investors often try to buy Micron's stock at the top of that cycle and sell it at the bottom, but those cycles are notoriously difficult to predict. But it's also tough to be a long-term investor.

Image source: Getty Images.

Over the past decade, Micron's stock has rallied 5,410%. But along the way, it suffered peak-to-trough declines of 73% from 2014 to 2016, 55% in 2018, 43% in 2020, 51% in 2021, and 36% in 2024. It took a lot of patience to hold the stock through those downturns.

However, you could have smoothed out those returns with dollar-cost averaging by nibbling on the stock each month rather than investing a lump sum. If you had invested $100 per month in Micron ten years ago and reinvested your dividends, your $12,000 principal would be worth more than $132,000 today. That's an impressive gain, but a bolder lump sum investment of $12,000 in the stock ten years ago would have grown to more than $660,000.

Investors might be reluctant to buy Micron's stock after those multibagger gains, but it's currently firing on all cylinders as the AI market expands. Let's see what could happen if you invest $100 in Micron per month through the end of 2030.

MU Micron Technology$939.50-$43.73 (-4.45%)

NASDAQ · As of 1:24 PM ET 10/29/26

What will happen to Micron over the next few years?
In the past, Micron's growth was tightly tethered to cyclical markets like PCs, smartphones, and cars. Micron and its peers produced more chips to support those markets as they expanded, but they often ended up with excess inventory when those growth cycles ended.

But over the past two years, the AI market's growth created a massive demand for high-bandwidth memory (HBM) chips, which are paired with Nvidia's (NVDA -0.93%) data center GPUs in AI clusters, and NAND-powered solid-state drives (SSDs) for storing that data.

Manufacturing HBM chips requires three times the wafer capacity as a standard DRAM chip, so Micron curbed the production of its DRAM chips to produce more HBM chips. Its closest competitors -- Samsung and SK Hynix (SKHY -1.85%) -- implemented that same strategy.

That's why memory chip supplies will remain tight, and prices will remain high, as long as the AI market keeps expanding. The bulls believe this "supercycle" -- which is directly tethered to Nvidia and other top AI chipmakers -- will last much longer than its previous growth cycles.

From fiscal 2026 (which ended in September) to fiscal 2029, analysts expect Micron's revenue and EPS to grow at CAGRs of 34% and 42%, respectively. Those are incredible growth rates for a stock that trades at just six times this year's earnings, but it's cheap because analysts expect its top- and bottom-line growth to decelerate in fiscal 2027 and fiscal 2028.

What will a $100 monthly investment in Micron turn into by 2030?
If you start investing $100 per month into Micron through the end of 2030, you'd have invested $5,000 in the stock over 50 months. It's difficult to predict where Micron and its peers will be by 2030, given the cyclical nature of the market. Still, analysts usually use bear and bull case scenarios for the semiconductor market to see where a chip stock might be headed.

In a bear-case scenario, rising interest rates will force companies to throttle their AI spending, or China will ramp up production of domestic memory chips (to counter export restrictions) and boost global supply. If the shortage turns into a glut and the broader market contracts at a negative 5% CAGR through 2030, your $5,000 investment might shrink to about $4,500.

In a bull-case scenario, the AI market could keep growing and choking the global supply of HBM chips. If that happens and the chip market grows at a 20% CAGR through 2030, the value of your stake could easily exceed $7,500. That wouldn't be as impressive as Micron's 1,660% gain from the past four years -- but it could still outperform many of its industry peers.

If I had to pick one stock to invest $5,000 in right now, I would look for the cheapest stock with the most growth upside.

That stock would be Micron Technology (MU -4.45%). And Micron stock has plummeted about 16% over the past month, making an already great buy even better.

At its current discount, Micron is a stock to buy, lose the password, and let it cook for the next 10 years.

Image source: Getty Images.

Micron's growth
There are two simple reasons to buy Micron stock and hold it for the long term: its growth and its value.

Micron's growth has been staggering, as one of the three predominant providers of high bandwidth memory chips, which are essential for artificial intelligence computing. With so much infrastructure under construction to meet the demand for AI computing, memory for accessing information is essential. The demand for these chips is so high that it has created a supercycle, where supply can't keep up.

Micron has long been sold out of its high bandwidth memory chips for 2026 and has contracted commitments for 75% of its shipments already for fiscal 2027.

MU Micron Technology$939.50-$43.73 (-4.45%)

NASDAQ · As of 1:24 PM ET 10/29/26

"In terms of 2027 and 2028 in our commentary, we are seeing stronger demand drivers than we've seen before," Micron President and COO Manish Bhatia said on the fourth-quarter earnings call. He added that 2027 is "shaping up with stronger demand than maybe we had seen before," and the strengthening demand allows Micron to "shift our conversations on allocation with our customers out to 2028."

Micron is also signing more long-term strategic customer agreements (SCAs) to ensure revenue keeps pouring in over the next five years and beyond. The company added 10 more SCAs in Q4, and that was after 16 were signed in Q3. Those 26 agreements and counting will account for 35% of revenue by 2030.

These SCAs will allow Micron to continue generating strong earnings even after the supercycle ends in 2029 or beyond. They will also be beneficial as new competitors emerge, particularly in China, that could potentially erode its market share there over time.

Micron's value
News of the threat from Chinese memory chip companies was one of the reasons Micron stock has dropped over the past month.

It was likely that, along with some profit-taking, Micron stock had been on a ridiculous run. Even with the recent sell-off, it is still up 216% year-to-date and 312% over the past 12 months. Over the past three years, Micron stock has a staggering 142% average annualized return.

But it is not overvalued like so many other AI stocks. In fact, it is cheap with a price-to-earnings (P/E) ratio of 11, a forward P/E of just 5, and a five-year P/E-to-growth (PEG) ratio of just 0.17. These figures show the massive earnings power still ahead for Micron.

It just looks like a huge opportunity to buy the dip on Micron right now.

Key Takeaways ISRG's third-quarter 2026 revenues rose 22% to just over $3 billion, outpacing 15% procedure growth.Da Vinci placements jumped 28% to 546 systems, while recurring revenues accounted for 84% of total sales.Planned pricing changes could cut I&A revenue per procedure by 3-5%, offset by innovation and product mix.
Intuitive Surgical’s (ISRG - Free Report) third-quarter 2026 revenues increased 22% year over year to just over $3 billion, outpacing 15% growth in total da Vinci and Ion procedures. Sales growth substantially exceeding procedure growth underscores the company’s ability to capitalize on its expanding installed base, increased system placements and growing adoption of newer technologies. Recurring revenues accounted for 84% of total sales, highlighting the importance of instruments and accessories (I&A), system servicing and the broader installed-base ecosystem to revenue generation.

System placements were a major sales driver during the third quarter. Da Vinci placements increased 28% to 546 systems. Net da Vinci placements rose 40%, expanding the installed base significantly. Systems revenues grew 30% to $769 million, and service revenues increased 22% to $482 million.

Meanwhile, I&A revenues advanced 18% to $1.8 billion. The richer mix of da Vinci 5, single-port (SP) systems and Ion, along with higher integration and upgrade volumes, supported revenue growth beyond underlying procedure expansion. Higher SP utilization and da Vinci 5-specific instruments also lifted I&A revenue per procedure to approximately $1,860 from $1,800 a year earlier.

However, sustaining this gap may become more challenging as pricing initiatives take effect. Intuitive Surgical expects planned instrument pricing changes and China’s policy-driven price reductions to lower da Vinci I&A revenue per procedure by approximately 3% to 5% on a mix-constant basis, once fully implemented. The impact will build progressively through 2027.

Higher SP penetration, da Vinci 5 adoption, Force Feedback instruments and additional technology could partially offset the pressure. Management also expects cost-reduction programs to help absorb the modest gross-margin impact. Revenue growth may continue to outpace procedure growth, supported by expanding system placements, a favorable product mix and innovation-driven monetization despite pricing pressures.

Peer UpdatesBoston Scientific’s (BSX - Free Report) third-quarter 2026 organic sales grew 1.5% year over year to $5.14 billion, with growth constrained by a cybersecurity incident that reduced sales growth by approximately 300 basis points, as per management estimates. Growth was supported by Neuromodulation (up 13%), including strong demand for Nalu peripheral nerve stimulation technology.

Interventional Cardiology sales increased 19%, driven by imaging and drug-eluting technologies. AGENT drug-coated balloons also continued gaining traction. However, EP sales fell 5% amid competition, while WATCHMAN declined 6%. Although sales are likely to continue its growth at current pace, cyber-related order normalization, EP competition and China pricing pressure could weigh on the metric.

GE HealthCare Technologies’ (GEHC - Free Report) third-quarter 2026 revenues increased 6.2% organically to approximately $5.5 billion, with growth across all segments. Product revenues rose 6.7%, while service revenues grew 8.1%, demonstrating strength in both equipment and services. Advanced Imaging Solutions benefited from CT, cardiovascular interventional solutions and surgical innovations, while Pharmaceutical Diagnostics grew 13.8% on demand for contrast media and radiopharmaceuticals.

New products, including AI-enabled imaging platforms and Flyrcado, supported demand, along with contributions from strategic pricing and premium product positioning. Strong demand across all segments is expected to support sales growth going forward. However, rising memory-chip prices, higher oil costs and pricing pressures could weigh on growth and profitability.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 21.6% so far this year compared with a 0.9% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.53, above the industry average. But, it is significantly lower than its five-year median of 66.94. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 25.9% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

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

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Occidental Petroleum (OXY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Occidental Petroleum currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if OXY is a promising momentum pick, let's examine some Momentum Style elements to see if this oil and gas exploration and production company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For OXY, shares are up 2.87% over the past week while the Zacks Oil and Gas - Integrated - United States industry is up 0.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.63% compares favorably with the industry's 3.21% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Occidental Petroleum have risen 16.82%, and are up 54.9% in the last year. On the other hand, the S&P 500 has only moved 4.52% and 13.57%, respectively.

Investors should also take note of OXY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now OXY is averaging 8,636,162 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OXY.

Over the past two months, 6 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost OXY's consensus estimate, increasing from $6.09 to $6.81 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that OXY is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Occidental Petroleum on your short list.

Key Takeaways Lilly's Q3 adjusted EPS of $7.48 beat estimates by 39%, while revenues climbed 39% to $24.40 billion.Mounjaro sales surged 65%, and Zepbound grew 49%, while newer drugs added to quarterly revenue growth.Lilly raised 2026 revenue guidance to $91-$92 billion, sending shares up around 4% in pre-market.
Eli Lilly and Company (LLY - Free Report) reported third-quarter 2026 adjusted earnings per share (“EPS”) of $7.48, which beat the Zacks Consensus Estimate of $5.38 per share by 39.0%. Earnings rose 7% year over year.

Revenues of $24.40 billion rose 39% year over year, driven by robust volume growth of Lilly's popular GLP-1 drugs, Mounjaro and Zepbound. Newer products also contributed to growth. One-time benefits, including $410 million of Jardiance milestones and favorable U.S. rebate/discount estimate adjustments, also benefited sales in the third quarter. Total revenues beat the Zacks Consensus Estimate of $22.11 billion by 10.4%.

While U.S. revenues rose 34% to $15.1 billion, ex-U.S. revenues increased 47% to $9.3 billion.

Volumes rose 53%, while net realized prices declined 15%.

Mounjaro, Zepbound and Foundayo Boost Lilly's Q3 SalesMounjaro recorded sales of $10.72 billion during the quarter, up 65% year over year. The reported sales figure beat the Zacks Consensus Estimate of $10.11 billion.

U.S. Mounjaro revenues increased 41% to $5.0 billion on strong demand. International revenues jumped 93% to $5.7 billion, driven by volume growth, partly offset by lower realized prices following the drug's inclusion on China's National Reimbursement Drug List.

Zepbound recorded third-quarter sales of $5.35 billion, up 49% year over year. The reported figure beat the Zacks Consensus Estimate of $5.10 billion. The obesity drug's performance was driven by strong demand in the United States, partially offset by lower realized prices,

Lilly’s newly launched oral GLP-1 drug Foundayo generated $184 million in third-quarter revenues, compared with $98 million in the previous quarter.

Rival Novo Nordisk (NVO - Free Report) had gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. Novo Nordisk is scheduled to announce third-quarter results on Nov. 4.

Lilly's Newer Drugs Deliver Robust Q3 GrowthAmong newer drugs, Jaypirca recorded $228 million in sales, up 59% year over year. Omvoh generated revenues of $114 million, up 76%, while Ebglyss sales rose 59% to $202 million.

Sales of Alzheimer's drug Kisunla increased 175% to $193 million. New breast cancer drug Inluriyo recorded sales of $73 million, compared with $75 million in the previous quarter.

LLY's Key Drugs Deliver Mixed ResultsTrulicity generated revenues of $904 million, down 14% year over year. Sales beat the Zacks Consensus Estimate of $816 million.

Jardiance sales surged 65% to $1.58 billion and significantly beat the Zacks Consensus Estimate of $866 million. International revenues included $410 million in sales-based milestones associated with Lilly's collaboration with Boehringer Ingelheim.

Taltz brought in sales of $856 million, down 5% year over year. The figure missed the Zacks Consensus Estimate of $918 million.

Verzenio generated revenues of $1.51 billion, up 3% year over year, but missed the Zacks Consensus Estimate of $1.54 billion.

Emgality generated revenues of $186 million, up 6%, beating the consensus estimate of $175 million. Olumiant revenues declined 2% to $263 million, missing the consensus estimate of $274 million.

Lilly Raises Its 2026 Revenue OutlookLilly raised its full-year 2026 revenue guidance to $91 billion-$92 billion from the previous projection of $85 billion-$87 billion, reflecting strong underlying business performance.

The company now expects adjusted earnings between $35.00 and $36.00 per share, compared with its prior expectation of $35.50-$36.50.

Underlying business growth added $4.07 to the midpoint of its earnings expectations. However, this benefit was more than offset by $4.57 per share of acquired in-process research and development charges associated with the multiple business development deals and partnerships signed in the third quarter, including the acquisition of AtaiBeckley.

Our Take on LLY’s Q3 ResultsLilly delivered another impressive quarter, with earnings and revenues comfortably exceeding estimates. Mounjaro and Zepbound remained the primary growth engines, with both drugs outperforming consensus expectations.

Newer medicines across oncology, immunology and neuroscience also contributed to growth. Lilly’s key new products (Ebglyss, Foundayo, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound) contributed $17.1 billion to revenues in the third quarter. Within key products, Lilly’s Immunology, Oncology and Neuroscience medicines collectively grew 100% year over year in the third quarter.

Lilly, once again, raised its sales expectations for the year.

In response to the better-than-expected quarterly earnings and the increased revenue outlook for 2026, Lilly’s shares rose around 4% in pre-market trading.

Lilly’s stock has risen 20.8% so far this year compared with an increase of 18.1% for the industry.

Image Source: Zacks Investment Research

Lilly’s blockbuster GLP-1 drugs, Mounjaro and Zepbound, remain its key growth drivers, benefiting from surging global demand and accounting for around 65% of total revenues. The company is also diversifying its revenue base through newer drugs like Omvoh, Jaypirca, Ebglyss, Kisunla and Inluriyo, alongside strategic acquisitions across multiple therapeutic areas, although sales of some established products are expected to remain sluggish.

Encouraging uptake of its newly launched oral GLP-1 drug, Foundayo, could further strengthen Lilly’s position in the obesity market. Its robust next-generation GLP-1 pipeline, particularly the late-stage candidate retatrutide, offers significant long-term growth potential and could further reinforce its leadership in the obesity and diabetes markets.

LLY’s Zacks Rank & A Stock to ConsiderEli Lilly currently has a Zacks Rank #3 (Hold).  

A better-ranked biotech is Viking Therapeutics (VKTX - Free Report) , which has a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Viking’s shares have declined 27.9% so far this year. The Zacks Consensus Estimate for 2026 loss has narrowed from $4.47 per share to $4.46 per share over the past 30 days, while that for 2027 loss is stable at $4.08 per share over the same time frame.

Eli Lilly stock hit a record high Thursday thanks to a stronger-than-expected earnings report fueled by sales of weight loss drugs Mounjuaro and Zepbound.

The company’s stock jumped 6% to hit a whopping $1.3 trillion valuation after it raised its full-year earnings forecast.

Sales of both Mounjaro and Zepbound beat expections by over 5%, solidifying Eli Lilly’s lead in the booming obesity-drug market.

Sales of both Mounjaro and Zepbound beat expections by over 5%, solidifying Eli Lilly’s lead in the booming obesity-drug market. Getty Images Over half a million patients are using the injections through Medicare, Lilly said. At a reduced, $50-a-month-price tag for them, investors were worried about potential profit losses, but Lilly’s annual forecasted revenue still went up 1% to $92 billion. 

The report underscored just how big of a lead the company has in the multibillion-dollar GLP-1 market. Lilly competitor Novo Nordisk, which makes WeGovy, is valued at about $171 billion, according to Reuters.

Lilly’s recent acquisitions of psychedelic drugmaker AtaiBeckley and clinical biotech vaccine company Cuervo put dents in the profit outlook, according to Reuters. The company reduced forecasted profit shares by 50 cents.

Lilly’s recent acquisitions of psychedelic drugmaker AtaiBeckley and clinical biotech vaccine company Cuervo put dents in the profit outlook, according to Reuters. USA TODAY Network via Reuters Connect But the annual forecast bump was enough to convince investors the company is on the right track, said Greg Halter, director of research at Carnegie Investment Counsel.

“They’re ​spending money so that they can make money down the road,” said Halter, who owns over 16,000 Eli Lilly shares.

Investors are closely tracking the company’s new oral weight-loss drug Foundayo to see if it can compete with Novo’s oral Wegovy, which is leading in prescriptions. Oral Wegovy saw users shed about 14% of body weight over 64 weeks, while Foundayo ​patients saw a roughly 11% drop in 72 weeks, according to separate studies. 

Lilly’s pill saw 15% fewer sales than expected last quarter.

But voiced confidence it will do better in the across the Pond – Foundayo was launched in the UK earlier this year and is set for other European countries by the end of the year.

Investors with an interest in Aerospace - Defense stocks have likely encountered both Embraer (EMBJ) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now?

ServiceNow (NOW -26.36%)grew third-quarter subscription revenue 21% to about $4 billion, then guided for slower growth next quarter in its 12-month contracted backlog, known as cRPO. Shares fell about 23% in regular trading Thursday morning. Growth is still solid, but the leading indicator is cooling, and deal-related costs are cutting GAAP earnings nearly in half.

Key NumbersSubscription revenue: about $3.99 billion, up 21% year over yearcRPO growth: 21% excluding currency swings, guided to 18.5% for Q4GAAP diluted EPS: $0.27, down from $0.48Free cash flow: $822 million, up from $592 million$110.56-$39.57 (-26.36%)

NYSE · As of 1:20 PM ET 10/29/26

What It MeanscRPO counts contracted revenue due within 12 months, so it leads reported revenue. ServiceNow's fourth-quarter backlog guide trails its own 21.5% currency-neutral subscription revenue guide. When backlog grows slower than revenue, revenue growth usually follows it down. The raised target for AI annual contract value hasn't yet shown up as faster backlog growth.

Adjusted EPS still rose to $1.00, since it leaves out stock-based pay, severance, and acquisition amortization (a non-cash charge on acquired assets), all of which grew. It can't exclude higher interest costs on new debt and lower interest income from cash spent on deals. Even adjusted subscription gross margin slipped, which may reflect costlier acquired revenue or heavier computing needs. The release gives no organic growth figure (growth excluding acquisitions), so readers can't see how much the deals supplied.

Operating cash flow rose only about 3%, and most of the free cash flow gain came from cutting capital spending sharply. That supports the raised full-year free cash flow margin target, but a spending cut doesn't speed up growth.

What to Watch NextWatch whether fourth-quarter cRPO growth holds at the guided rate. Also watch whether ServiceNow starts disclosing organic growth, which would show the core business without the deals.

Sharice Wells has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.

Key Takeaways Reliance's Q3 adjusted EPS jumped 120.3% to $8.02, beating estimates by 18.6%, while sales surged 42.8%.RS reported record shipments of 1.87 million tons, with carbon steel prices up 29.5% year over year.Reliance projects Q4 adjusted EPS of $7.4-$7.6, with border wall contributions of about 70 cents per share.
Reliance, Inc. (RS - Free Report) reported third-quarter 2026 adjusted earnings of $8.02 per share, up 120.3% year over year. The figure surpassed the Zacks Consensus Estimate of $6.76 by 18.6%, aided by stronger metal pricing, higher shipments and contributions from the U.S. border wall project.

Net sales climbed 42.8% year over year to $5.21 billion, beating the consensus estimate of $4,679.8 million by 11.4%. Quarterly tons sold reached a record 1.87 million, up 15.6% year over year, while the average selling price per ton increased 8.2% sequentially to $2,815.

The average selling price per ton increased more than management's forecast of flat to 2% growth. Stronger-than-anticipated carbon steel pricing supported the rise, despite a 1.7% product mix-related drag from the border wall project. Carbon steel shipments increased 18.4% year over year, while carbon steel selling prices rose 29.5%.

Reliance's End MarketsDemand in non-residential construction, including infrastructure, improved year over year, supported by strong activity in data centers, energy infrastructure and public infrastructure projects. The company expects demand to remain solid in the fourth quarter, subject to normal seasonality and potential supply constraints.

Broader manufacturing demand strengthened from the prior-year quarter, driven by healthy activity in industrial machinery, shipbuilding, military and construction machinery markets. Reliance anticipates demand to remain healthy in the fourth quarter, despite the customary seasonal slowdown.

Aerospace demand improved year over year. Reliance expects commercial aerospace demand to improve modestly in the fourth quarter, supported by gradual production build-rate increases and growing backlogs. Demand in defense and space-related markets is expected to remain robust.

Automotive toll-processing demand also improved from the year-ago quarter. The company expects demand to remain at healthy levels in the fourth quarter, supported by its flexible toll-processing operations, which can adapt to changing automotive market requirements.

Semiconductor-related demand increased meaningfully year over year, aided by growing data center activity. Reliance expects demand for its semiconductor products to improve further in the fourth quarter.

RS' Cash Flow and Capital ReturnsReliance ended September with $246 million in cash and cash equivalents and total debt of approximately $1.65 billion. Operating cash flow was $212 million, down from $261.8 million a year earlier, amid increased working-capital investment driven by shipment volumes and higher metals prices. Free cash flow totaled $133 million.

The company repurchased $44.7 million of shares during the quarter and paid $63.8 million in dividends. Its board increased the share repurchase authorization to $2.5 billion and declared a quarterly dividend of $1.25 per share, payable Dec. 4, 2026.

Reliance's Q4 Outlook Calls for Further GrowthReliance expects fourth-quarter 2026 adjusted earnings of $7.4-$7.6 per share, including LIFO expense of $112.5 million, or $1.64 per share. The forecast incorporates approximately 70 cents per share from the border wall project.

Including the project, fourth-quarter tons sold are projected to rise 13.5-15.5% year over year. Excluding it, volumes are expected to decline 5.5-7.5% sequentially on seasonality. The company expects average selling prices to increase 1-3% sequentially, while trade uncertainty, geopolitical conflicts and supply constraints remain risks.

RS’ Stock Price PerformanceRS’ shares have gained 54.9% in the past year compared with the industry’s growth of 15%.

Image Source: Zacks Investment Research

RS’ Zacks Rank & Key PicksRS currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Methanex Corporation (MEOH - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .

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

The Zacks Consensus Estimate for MEOH’s 2026 earnings is pegged at $9.68 per share, indicating a 376.85% year-over-year surge. MEOHshares have gained 87.6% over the past year.

The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.

The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.

Data center spending could hit $3.2 trillion in the next three years, according to an August 2026 report by Morgan Stanley. Amazon CEO Andy Jassy said Amazon Web Services -- the leading cloud services provider -- won't have enough capacity to meet demand this year, and he expects the shortage to continue in 2027.

That shortage benefits the companies that supply chips and rent out compute capacity. Broadcom (AVGO -1.94%), Iren (IREN -7.54%), and Taiwan Semiconductor Manufacturing (TSM -1.85%) all trade at attractive valuations relative to their growth potential and can outperform the market through 2030.

Image source: Getty Images.

1. Broadcom: AI revenue to double next year Broadcom designs custom AI accelerators called XPUs and also sells networking equipment that speeds up data communication between chips in a data center. In its fiscal third quarter, total revenue rose 86% year over year to nearly $30 billion, while AI semiconductor revenue jumped 221% to $16.7 billion.

Anthropic is on track to become Broadcom's largest XPU customer in 2027, and OpenAI's Jalapeño chip and Alphabet's Google's TPU v8i are both already shipping. Company guidance calls for AI revenue to reach $58 billion in fiscal 2026, $115 billion in fiscal 2027, and $230 billion in fiscal 2028.

AVGO Broadcom$344.97-$6.84 (-1.94%)

NASDAQ · As of 1:18 PM ET 10/29/26

The risk is that Broadcom's customers may need help financing chip purchases, including Anthropic and OpenAI, through a platform with Apollo and Blackstone. If a customer were to pull back on its orders or be unable to raise the money, AI revenue could miss guidance.

The stock trades at a forward price-to-earnings (P/E) ratio of about 28, as of Oct. 26. Analysts expect $11.66 in earnings per share this fiscal year, rising to about $30 in fiscal 2028, consistent with management's target. That works out to a forward P/E of about 11 -- a low valuation that can set up market-beating gains if Broadcom can meet its guidance.

2. Iren: A full-stack data center builder and operator Iren is phasing out its Bitcoin mining operations to rent out capacity to hyperscalers and AI companies. Its advantage is that it owns land, power, data centers, graphics processing units (GPUs), and cloud software. It has everything it needs to become a hyperscaler, offering cloud services and cutting-edge compute for AI workloads.

That matters because new data centers take years to bring online, even as AI usage skyrockets. On its August earnings call, management noted that weekly token usage across large language models rose nearly 17 times in eight months.

IREN Iren$26.67-$2.18 (-7.54%)

NASDAQ · As of 1:20 PM ET 10/29/26

The risk is the price tag. Iren plans to spend up to $30 billion on its build-out next year, while it reported just $707 million in trailing-12-month revenue and a net loss of over $700 million. However, customer prepayments are funding 45% to 55% of GPU costs, and Iren is expected to end 2026 with $4 billion in annual recurring revenue (ARR) after delivering its first batch of contracted capacity to Microsoft last quarter.

Iren's land and power assets could become increasingly valuable in a compute-constrained world. Wall Street's fiscal 2029 consensus estimate calls for earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach $9.9 billion. Iren's $10 billion market cap looks cheap relative to that estimate.

3. Taiwan Semiconductor: The foundry behind the boom Taiwan Semiconductor Manufacturing (TSMC) is the leading chipmaker, controlling over 70% of the foundry market, according to Counterpoint. It makes chips for other companies, and CEO C.C. Wei says that it works with all the AI companies. Third-quarter revenue hit $46.7 billion, up 41% year over year.

Demand for advanced 7-nanometer chips and smaller chips accounted for 79% of the company's wafer revenue in Q3 2026. TSMC dominates the foundry market because it can supply enough chips to meet demand across multiple markets, including smartphones. High-performance computing (HPC), including AI data centers, makes up 68% of the company's total revenue.

TSM Taiwan Semiconductor Manufacturing$431.40-$8.11 (-1.85%)

NYSE · As of 1:17 PM ET 10/29/26

TSMC forecasts AI accelerator revenue to compound in the mid-to-high-50s percentage range through 2029, and on the latest Q3 2026 earnings call, Wei said it will "probably" be higher. To meet demand, TSMC is investing $60 billion to $64 billion this year, partly to fund expanded manufacturing capacity across nearly 20 facilities worldwide.

Although the chip industry has grown significantly for several decades, it can experience ups and downs like the broader economy. Anything that slows chip demand and the data center build-out would send TSMC stock lower.

Still, the stock's valuation looks attractive. The shares trade at a forward P/E of 24, with analysts expecting earnings to grow at an annualized rate of 43%. That can support market-beating gains through 2030.

Key Takeaways 3M emerges as the stronger pick over ITW, backed by robust growth prospects & lower valuation.MMM's 2026 EPS is likely to grow 12.7% compared with ITW's 8.9%, while its shares have gained 18% in 6 months.ITW faces weakness in Construction and Specialty Products, rising debt and a higher forward P/E of 22.61X.
3M Company (MMM - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) are both familiar names operating in the diversified industrials sector. While 3M operates in the industrial, electrical, transportation, consumer and home care markets, Illinois Tool provides electronic equipment, engineered adhesives, industrial sealants, food equipment, as well as construction products in the United States and internationally.

With considerable exposure in industrial and consumer markets, both companies invest heavily in research and development to generate innovative products, drive growth and gain market share. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.

The Case for 3M3M has been witnessing strong momentum in the Safety and Industrial segment, driven by strength in electrical, industrial specialties and personal safety markets. Stable demand across automotive aftermarket and fire safety markets is driving the segment’s performance. Also, new product launches and an increase in demand for industrial adhesives and tapes bode well for it.

Within the segment, sales in both personal safety and industrial adhesives & tapes markets increased 7.8%, while electrical market sales climbed 13.4% year over year in third-quarter 2026. Industrial specialties and automotive aftermarket also posted growth of 5.1% and 5.5% in the quarter, respectively. The Safety and Industrial segment’s organic sales increased 7% year over year in the third quarter.

Strong momentum across advanced materials, commercial branding and automotive & aerospace markets, supported by solid demand for products and broader sales coverage, is driving the Transportation & Electronics segment’s performance. In the third quarter, the segment’s organic sales increased 0.5% year over year. Backed by strength across its businesses, 3M provided a positive outlook. For 2026, it expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis.

3M is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of 2026, the company rewarded its shareholders with $1.22 billion in dividends and $3.2 billion in buybacks. Exiting the third quarter, the company had $1.5 billion remaining under the share repurchase program. In February 2026, it hiked its quarterly dividend by 6.8%.

Despite the positives, weakness in the packaging, expression and home improvement markets, led by U.S. retailer inventory levels, remains a concern. This is reflected in the Consumer segment’s results, which declined 0.4% in the third quarter.

The Case for Illinois ToolIllinois Tool is benefiting from positive momentum across most of its segments. Strength across infrastructure, semiconductor, energy and aerospace and defense markets is driving the Welding segment’s performance. The segment’s organic revenues increased 6.9% year over year in third-quarter 2026.

Solid momentum in electronic assembly and semiconductor-related businesses, supported by expanded production capacity and differentiated product offerings, is benefiting the Test & Measurement and Electronics segment. Strength across automotive aftermarket, polymers and fluids businesses is driving the Polymers & Fluids segment. In the third quarter, organic revenues from Test & Measurement and Electronics and Polymers & Fluids segments increased 15.8% and 8.2%, respectively.

Weakness across residential markets in both North America and Europe is ailing the Construction Products segment's performance. However, growth in demand across residential markets in Australia and New Zealand remains a positive. Lower equipment sales and softness across appliance and marking coding businesses are hurting the Specialty Products segment’s results. In the third quarter, organic revenues from Construction Products and Specialty Products segments declined 0.8% and 1.2%, respectively.

Illinois Tool remains committed to rewarding its shareholders substantially through dividend payments and share buybacks. In the first nine months of 2026, the company paid about $1.4 billion in dividends and repurchased shares worth $1.3 billion.  In August 2026, the company hiked its dividend by 7% to $1.72 per share.

The company's high debt level remains a concern. Exiting third-quarter 2026, its total debt increased to $9.37 billion from $8.97 billion at the end of 2025. Long-term debt increased to $7.15 billion, while short-term debt totaled $2.22 billion, primarily reflecting higher commercial paper borrowings. Considering its high debt level, the company’s cash and cash equivalents of $809 million do not look impressive.

How Does the Zacks Consensus Estimate Compare for MMM & ITW?
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MMM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 4.8% and 12.7%, respectively. The EPS estimates for both 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ITW’s 2026 sales and EPS implies year-over-year growth of 4.8% and 9.2%, respectively. While Illinois Tool’s EPS estimate for 2026 has increased over the past 60 days, the same for 2027 has declined.

Price Performance and Valuation Profile
Image Source: Zacks Investment Research

In the past six months, 3M shares have risen 18%, while Illinois Tool stock has gained 7%.

Image Source: Zacks Investment Research

3M is trading at a forward 12-month price-to-earnings ratio of 17.84X, while ITW’s forward earnings multiple sits higher at 22.61X.

MMM or ITW: Which is a Better Pick?3M’s strength in the safety, industrial, transportation and aerospace markets, along with its focus on product innovation, is likely to drive its long-term performance. The company’s strong fundamentals showcase its potential to deliver sustained value to investors over time and boost their confidence in its growth trajectory.

In contrast, Illinois Tool’s strength in the Test & Measurement and Electronics, Polymers & Fluids and Welding segments has been dented by the weakness in its Construction and Specialty Products segments. Also, ITW’s expensive valuation and downward earnings estimate revisions warrant a cautious approach for existing investors.

Given these factors, MMM seems a better pick for investors than ITW currently. While 3M carries a Zacks Rank #2 (Buy), Illinois Tool currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.