Key Takeaways Ford is recalling 741,195 U.S. vehicles over a transmission issue that can damage the parking system.F owners will receive free software updates, with dealers inspecting and repairing damage if needed.Ford also recalled 36,046 Bronco SUVs over fender flares that could detach while driving. Ford Motor Company (F - Free Report) is recalling 741,195 vehicles in the United States due to a transmission issue that could damage the parking system and increase the risk of vehicles rolling away, per the U.S. National Highway Traffic Safety Administration (“NHTSA”).
The recall covers certain 2018-2021 Lincoln Navigator and Ford Expedition SUVs, along with select 2020-2021 Ford Explorer, Lincoln Aviator and Ford F-150 models.
Per the recall document, a valve body separator plate inside the transmission may restrict fluid flow to the park valve. Under certain gear changes, this can cause the parking pawl to engage while the vehicle is still moving, leading to unintended braking. Over time, the resulting damage may prevent the parking system from properly holding the vehicle in Park.
If the problem occurs, drivers may see a warning light on the instrument cluster. The electronic parking brake may also engage automatically if the transmission range sensor fails to detect that the vehicle has been shifted into Park. Ford had received reports of 24 property damage incidents and nine alleged injuries, two of which were classified as emotional injuries.
The company will notify affected owners by mail and ask them to visit a dealership for a free software update to the vehicle's Powertrain Control Module. Dealers will also inspect the parking system and replace damaged components if necessary. Owner notification letters are expected to be mailed between Aug. 5 and Aug. 9, 2026.
In separate news, Ford is recalling 36,046 Bronco SUVs in the United States because improperly attached fender flares could detach while driving, creating a road hazard and increasing the risk of a crash, per NHTSA.
Fender flares are the protective trim pieces surrounding the wheel arches. Dealers will inspect the affected vehicles and repair or replace the fender flares at no cost to owners.
F’s Zacks Rank & Key PicksFord currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are China Yuchai International Limited (CYD - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 52.2% and 51%, respectively. The EPS estimate for 2026 has improved 15 cents over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 33.2%, respectively. The EPS estimate for 2026 and 2027 has improved 35 cents and 29 cents, respectively, over the past 60 days.
DETROIT — General Motors' second-quarter U.S. sales fell 4.2% as year-over-year demand for its all-electric vehicles and Chevrolet Silverado pickup trucks declined.
The Detroit automaker reported that it sold 714,896 vehicles from April through June, down from 746,588 units during the second quarter of 2025. Its sales through the first half of the year were 1.3 million, down 6.8% compared with a year ago.
The second quarter sales were slightly better than a forecast last week by Cox Automotive, which expected GM's sales to decline 7.2% through the first half of the year, including a 5.1% fall during the second quarter.
"Our business is performing well, and customer demand is resilient, especially for our trucks and SUVs. The depth, breadth and appeal of our vehicle portfolio allows us to lead the market in sales, while maintaining discipline on inventory, pricing and incentives to deliver strong margins," GM North America President Duncan Aldred said in a release.
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The Detroit automaker is expected to underperform the U.S. auto industry during the second quarter, which forecasters Cox Automotive and J.D. Power expect to be roughly level compared to a year earlier. Cox forecast industry sales to be off 0.5%, while JDP expected a 0.7% increase in vehicles sold.
GM's EV sales during the second quarter were off 33% compared to last year, when demand for all-electric vehicles began to surge ahead of expectations of the Trump administration ending up to $7,500 in incentives for consumers to purchase an EV.
GM said that despite a 7.7% decline in its Silverado pickups for the quarter, including a 25.9% drop for its electric truck, the company still expects to have gained market share in the full-size truck segment during the period.
Its GMC Sierra pickup trucks did better, with a 5% increase in sales, including double-digit increases for its electric and light-duty 1500 models amid tough comparisons. GM recorded its best combined sales of Silverado and Sierra full-size pickup trucks in 20 years in 2025, leading to a sixth straight year of leading that highly profitable U.S. segment.
Each off GM's brands saw year-over-year sales declines during the second quarter, led by a 19.2% decline in Cadillac. Buick was down 7.5%, Chevrolet fell 3.9% and GMC reported a 0.3% decline.
Read more CNBC auto newsCarvana's new vehicle strategy turns dealership into 'playground,' test-drive center with sales all onlineLucid to lay off roughly 18% of U.S. workforce, COO Marc Winterhoff leavesRivian laying off hundreds of workers amid R2 launch
The GM logo is displayed at the General Motors headquarters in Detroit, Michigan, U.S., January 12, 2026. REUTERS/Rebecca Cook/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 1 (Reuters) - General Motors (GM.N), opens new tab on Wednesday reported a 4.2% drop in U.S. auto sales during the second quarter, as inflationary pressures kept some new vehicle buyers at bay.
The automaker notched quarterly sales of 714,896 units compared with 746,588 units a year earlier.
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Reporting by Nathan Gomes in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways Verizon and BT are forming a 50:50 venture focused on global enterprise connectivity.VZ's venture is expected to serve more than 3,000 customers in over 180 countries, generating $4B in revenues.Verizon will pay BT $625M, with closing expected in 2027 pending approvals. Verizon Communications (VZ - Free Report) has entered into a joint venture agreement with BT Group to expand its presence in global enterprise connectivity. The 50:50 partnership combines Verizon’s international enterprise wireline business with BT’s international operations, creating a scaled platform focused on serving multinational customers.
The new venture is expected to serve more than 3,000 enterprise customers across over 180 countries, generating approximately $4 billion in annual revenues. The extended geographic footprint is expected to improve operational efficiency, enhance service delivery and create economies of scale across network infrastructure and support operations.
The platform will help Verizon address rising demand for cloud services and AI-driven applications by offering more advanced and reliable network solutions. It will also help multinational businesses manage growing regulatory and data compliance requirements across different regions, supporting smoother cross-border operations and digital transformation.
Under the agreement, Verizon will pay BT $625 million as an equalization payment while retaining equal voting rights in the new entity. The transaction is expected to close in 2027, subject to regulatory approvals and customary closing conditions, positioning the company to capitalize on long-term growth opportunities in the evolving digital infrastructure market.
How Are Competitors Focusing on Improving Connectivity?Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T is expanding partnerships with businesses and government agencies to improve network coverage in underserved areas. The company is enhancing its cloud and edge computing capabilities to support low-latency connectivity for enterprise customers. AT&T is strengthening network security solutions to provide safer and more reliable digital communication services.
T-Mobile is improving its nationwide 5G Ultra Capacity network to deliver broader high-speed coverage. The company is using advanced spectrum assets to improve network speed and capacity in busy areas. T-Mobile is growing its home Internet business by offering wireless broadband to more households.
VZ’s Price Performance, Valuation & EstimatesVerizon’s shares have lost 2.8% over the past year compared with the industry’s decline of 23.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.29, below the industry average of 10.14.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 0.2% to $4.96 per share, while the same for 2027 have remained static at $5.25 over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. (NYSE: BLK) today announced that it will report second quarter 2026 earnings prior to the opening of the New York Stock Exchange on Wednesday, July 15th, 2026. Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts at 7:30 a.m. ET. BlackRock's earnings release and supplemental materials will be available via the investo.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in New York, BlackRock (BLK - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -10.16%. The investment firm is currently shelling out a dividend of $5.73 per share, with a dividend yield of 2.38%. This compares to the Financial - Investment Management industry's yield of 2.81% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $22.92 is up 10% from last year. Over the last 5 years, BlackRock has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.33%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. BlackRock's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, BLK expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $53.40 per share, with earnings expected to increase 11.04% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BLK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
McDonald's currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 18 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 2.8% of all recommendations.
Brokerage Recommendation Trends for MCD
Check price target & stock forecast for McDonald's here>>>
The ABR suggests buying McDonald's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in MCD?In terms of earnings estimate revisions for McDonald's, the Zacks Consensus Estimate for the current year has declined 0% over the past month to $12.93.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for McDonald's with a grain of salt.
Key Takeaways SBUX's North America operating margin fell about 170 bps YoY to 10.2% in Q2 FY26.Product, distribution and legal accrual pressures weighed on SBUX's North America margins in Q2.SBUX expects stronger sales leverage and easing coffee and tariff pressure in 2H FY26. Starbucks Corporation (SBUX - Free Report) is entering the back half of fiscal 2026 with improving sales momentum, but North America margin pressure remains an important test for the turnaround. In the fiscal second quarter, consolidated operating margin expanded 110 basis points year over year to 9.4%, marking Starbucks’ fiscal first quarter of consolidated margin expansion since the first quarter of fiscal 2024. However, margin performance in North America remained under pressure, with segment operating margin contracting approximately 170 basis points year over year to 10.2%.
The margin contraction reflected several cost and accrual-related pressures. Starbucks’ North America margins were affected by roughly 190 basis points of product and distribution cost increases as a percentage of revenues, as well as greater-than-anticipated legal accruals. About half of the product and distribution increase was tied to innovation-led product mix, while the remaining pressure was largely related to tariffs and elevated coffee prices.
The second-half setup is more balanced. Starbucks expects coffee and tariff pressures to begin easing in the back half of fiscal 2026, helped by recent trends in coffee prices. The benefit may not appear immediately because Starbucks’ coffee costs typically lag market movements due to purchasing and hedging practices. Still, a moderation in these pressures could help reduce one of the more visible drags on North America’s profitability.
For the back half of fiscal 2026, the margin recovery case depends on Starbucks converting stronger U.S. traffic into better profit flow-through. The company expects stronger sales leverage over the next two quarters, supported by continued progress on cost-savings initiatives. If those benefits materialize alongside easing coffee and tariff pressure, Starbucks could have a clearer path to offsetting North America margin headwinds.
How Starbucks’ Margin Setup Compares With PeersDutch Bros Inc. (BROS - Free Report) is navigating a similar input-cost backdrop, with higher coffee costs and food rollout expenses driving a 120-basis-point increase in beverage, food and packaging costs as a percentage of company-operated shop revenues in the first quarter of 2026. The impact was partly mitigated by operating leverage, as labor costs improved 120 basis points and adjusted SG&A improved 100 basis points as a percentage of revenues. For 2026, BROS expects adjusted EBITDA margin pressure from higher coffee and occupancy costs, partially offset by SG&A leverage.
McDonald’s Corporation (MCD - Free Report) provides a scale-driven comparison. The company reported an adjusted operating margin of 46% and more than $3.6 billion in restaurant margins in the first quarter, although U.S. company-operated margins remained under pressure. To manage cost volatility, MCD is relying on supply-chain scale, supplier partnerships and hedging strategies while also reviewing the optimal mix of company-operated and franchised restaurants.
Against this backdrop, Starbucks’ margin challenge is more closely tied to North America turnaround investments and input-cost pressure. BROS is relying on labor efficiency and SG&A leverage to cushion coffee and occupancy headwinds, while MCD benefits from scale, franchising and supply-chain discipline. For Starbucks, Green Apron Service investments, innovation-related costs and operating discipline remain important variables in determining whether Back to Starbucks can translate into stronger operating leverage.
SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 8.5% in the past year against the industry’s 8.2% decline.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 2.93, below the industry’s average of 3.32.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. The EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
SBUX’s Zacks RankSBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways RCL opened Royal Beach Club Santorini, where strong demand supports its destination-led strategy.RCL expects Cozumel in early 2028, with Perfect Day Mexico and Costa Maya due in late 2027.RCL expects Perfect Day Mexico, Royal Beach Club Cozumel and Icon-class ships to strengthen Galveston demand. Royal Caribbean Cruises Ltd. (RCL - Free Report) is expanding its private-destination portfolio as part of a broader effort to support multi-year yield growth through differentiated vacation experiences. The strategy can strengthen itinerary appeal across key cruise markets and support pricing power over time.
Following the launch of Royal Beach Club Paradise Island, RCL recently opened Royal Beach Club Santorini, a core element of its “ultimate Santorini Day” experience. Strong demand for the beach club underscores the value of proprietary destinations in enhancing the company’s vacation offering and reinforcing its competitive positioning.
The next phase of the pipeline is concentrated in the Caribbean and Mexico. Royal Beach Club Cozumel is expected to open in early 2028, while Perfect Day Mexico and Costa Maya are expected to open in late 2027 and ramp in early 2028. These projects are expected to further differentiate RCL’s itinerary portfolio and contribute to yield growth over time.
Perfect Day Mexico also gives RCL a larger opportunity in the Gulf and Texas markets. The project, together with Royal Beach Club Cozumel and Icon-class ships, is expected to strengthen the company’s position in Galveston and expand its reach across drivable markets. Texas remains underpenetrated relative to Florida, giving RCL room to build demand over time.
Royal Caribbean’s ability to extend this momentum will likely depend on whether its private destinations can support stronger guest demand and improve monetization as new assets open and ramp. If the portfolio scales successfully, destination-led differentiation could become a meaningful driver of RCL’s multi-year yield growth.
How RCL’s Destination Strategy Compares With PeersCarnival Corporation Ltd. (CCL - Free Report) is building its destination strategy around scale, capacity and itinerary differentiation. The company has enhanced Celebration Key’s capacity profile through a pier expansion, enabling the destination to accommodate up to four ships and more than 13,000 guests per day. RelaxAway, Half Moon Cay can accommodate two of CCL’s largest ships at the same time. Together, these assets allow CCL to offer two differentiated beach experiences within a single itinerary, strengthening its Caribbean value proposition.
CCL’s strategy also extends beyond individual destinations. Its Paradise Collection is expected to welcome more than 9 million guest visits next year. About 85% of CCL’s Caribbean itineraries are expected to include at least one exclusive destination, while nearly half are expected to include two or more of these destinations on the same sailing. The company is also leveraging Isla Tropicale in Roatán, Puerta Maya in Cozumel and its integrated Alaska land-and-sea platform, creating a broad destination footprint across both beach and experiential cruise markets.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is pursuing a more focused destination upgrade strategy through Great Stirrup Cay. Great Tides Waterpark is expected to enhance the island’s offering, improve the guest experience and become a demand driver moving into 2027. NCLH also expects fourth-quarter net yields to improve from the third quarter, partly supported by the waterpark opening by the end of the third quarter.
Against this backdrop, RCL’s private-destination strategy remains highly relevant but increasingly competitive. CCL is using scale and destination density to strengthen Caribbean itinerary appeal, while NCLH is upgrading Great Stirrup Cay to support demand and yield improvement. For RCL, Royal Beach Club Cozumel, Perfect Day Mexico, Costa Maya and its beach-club platform will likely be important in sustaining itinerary differentiation, pricing power and multi-year yield growth.
RCL’s Price Performance, Valuation & EstimatesShares of Royal Caribbean have gained 16.1% in the past three months compared with the industry’s 13.9% growth.
RCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings (P/E) ratio of 17.11, below the industry’s average of 17.22.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.4%. The EPS estimates for 2026 have remained unchanged in the past 30 days.
EPS Trend of RCL Stock
Image Source: Zacks Investment Research
RCL’s Zacks RankRCL stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been about a month since the last earnings report for Hewlett Packard Enterprise (HPE - Free Report) . Shares have lost about 19.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hewlett Packard Enterprise due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Hewlett Packard Enterprise Company before we dive into how investors and analysts have reacted as of late.
HPE Q2 Earnings Surpass Expectations, Revenues Rise Y/YHewlett Packard Enterprise reported better-than-expected results for second-quarter fiscal 2026. HPE’s non-GAAP earnings of 79 cents per share beat the Zacks Consensus Estimate by 46.3% and increased 107.9% year over year.
HPE posted revenues of $10.7 billion for the quarter, beating the Zacks Consensus Estimate by 8.7%. The company’s revenues increased 40.0% year over year.
HPE’s quarterly performance was supported by strong demand across the portfolio, with orders more than doubling year over year and driving a record backlog. Management also highlighted progress in Juniper integration and the Catalyst initiative, which remained ahead of schedule.
HPE’s Segment-Wise PerformanceHewlett Packard’s Networking segment generated $2.7 billion in revenues in the second quarter of fiscal 2026, up 148.2% year over year. The segment’s operating profit margin was 21.6%, down from 25.0% in the year-ago quarter.
Within Networking, Campus & Branch revenues were $1.3 billion, up 50.2% year over year. Data Center Networking revenues were $320 million, up 233.3%, and Security revenues were $273 million, up 155.1%. Routing revenues were $775 million compared with $1 million in the year-ago quarter.
The Cloud & AI segment reported $7.7 billion in revenues, up 22.9% year over year, with an operating profit margin of 12.4%, up from 6.6% in the prior-year period.
Within Cloud & AI, Server revenues were $5.5 billion, up 32.7% year over year. Storage revenues totaled $1.2 billion, up 2.4%, while Financial Services contributed $0.9 billion, up 5.6% year over year.
HPE’s Corporate Investments and Other revenues came in at $281 million, up 3.3% from the prior-year period.
HPE’s Operating ResultsHewlett Packard’s non-GAAP gross profit for the second quarter of fiscal 2026 was $3.94 billion compared with $2.24 billion in the year-ago quarter, while the non-GAAP gross margin expanded to 36.9%, up 750 basis points year over year.
The company’s non-GAAP operating profit was $1.4 billion compared with $613 million in the year-ago quarter. The non-GAAP operating margin improved to 13.3%, up 530 basis points from the year-ago quarter.
HPE’s Balance Sheet and Cash FlowHewlett Packard ended the second quarter with $5.29 billion in cash and cash equivalents compared with $4.84 billion at the end of the previous quarter.
In the second quarter, HPE generated $1.4 billion in cash from operating activities and produced $915 million in free cash flow. The company returned $343 million through dividends and share repurchases during the quarter.
HPE Updates FY26 GuidanceHewlett Packard raised its outlook following the strong quarter and improved second-half visibility. For the third quarter of fiscal 2026, HPE expects revenues in the range of $11.5-$12.1 billion.
It anticipates non-GAAP earnings per share of 88-93 cents.
For fiscal 2026, HPE raised its revenue growth outlook to 29-33% and expects non-GAAP earnings per share of $3.35-$3.45.
The company also lifted its free cash flow outlook and now expects free cash flow to be at least $3.5 billion. Separately, HPE introduced a fiscal 2027 framework calling for revenue growth of 8-12% and free cash flow of at least $4.5 billion.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 71.61% due to these changes.
VGM ScoresAt this time, Hewlett Packard Enterprise has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hewlett Packard Enterprise has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Being a great chef doesn’t automatically make someone a great manager.
That’s one reason American Express and Resy are launching a new national leadership academy designed to help restaurant owners and managers build stronger teams, improve profitability, and navigate an increasingly complicated industry.
Announced Monday, the new Restaurant Academy is being created in partnership with the National Restaurant Association Educational Foundation and will bring together 30 restaurant leaders from across the country for a four-month leadership development program beginning this fall.
The launch comes at a time when restaurant operators face pressure from nearly every direction.
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Food costs remain elevated, labor remains difficult to find in many markets, and consumers are becoming more selective about where they spend their dining dollars.
For many independent restaurants, success depends as much on managing people and finances as it does on serving great food.
[Photo: American Express, Resy]Follow the leaderWhile culinary schools teach aspiring chefs how to cook, there are far fewer opportunities for restaurant owners and managers to learn the business skills needed to run a successful operation.
Picking a good dividend stock for your portfolio can be challenging, especially when there are many attractive high-yielding options to choose from. And there's much more to consider than just the yield itself.
Below, I'll compare a couple of top dividend stocks: Pfizer (PFE 0.50%) and Verizon Communications (VZ 0.64%). While they're in different sectors, they both may be alluring options for dividend investors because they are blue chip stocks that have been known for generating plenty of dividend income over the years. Pfizer yields around 7.1% while Verizon's payout is closer to 6.7%. They also trade at less than nine times their expected future earnings (based on analyst expectations), making them attractive value buys.
But which one is the better buy? Let's take a look at which one is superior when evaluating multiple criteria.
Image source: Getty Images.
This is the crucial, first qualifying question to ask when evaluating dividend stocks. If the payout isn't safe, then nothing else really matters, because if it's in danger of being cut, the yield, track record, and dividend growth won't be of much comfort at that point.
Verizon's payout ratio based on earnings is around 67%. It's a good, healthy rate that you want to see from a quality dividend stock. Pfizer is a bit more complicated. Its payout ratio is more than 100%, but the reality is that its earnings are worse than they look due to acquisition-related expenses and non-cash items. This is where just looking at the payout ratio falls short.
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In terms of cash flow, the story looks a bit better for Pfizer as its free cash flow has been more than the cash dividends the company has paid out in two of the past three quarters. It can fluctuate, but generally, the payout looks well-supported. Over the trailing 12 months, Pfizer's free cash has been a bit lower than the dividends it has paid out, but with the company in the midst of cutting costs, that should improve.
Pfizer's dividend looks reasonably safe, but it's clear that the edge here goes to Verizon, which has generated a massive $20 billion in free cash over the past four quarters, well above the $11.5 billion it has paid in dividends.
Which dividend has been growing at a faster rate? Having plenty of room to pay dividends is one thing, but some companies hoard the cash or use it for other purposes rather than paying dividends. For dividend investors, it's important to consider which company actively rewards its shareholders and is generous with the dividend. Both of these stocks have been raising their payouts over the years, but one has been increasing them at a far higher rate than the other.
VZ Dividend data by YCharts
The edge clearly goes to Pfizer here. But it's worth noting the big spike around 2021 when Pfizer generated a boatload of revenue from its COVID vaccine and pill, and the slowing down of its dividend growth rate recently. When taking that into account, plus the restructuring it's undertaking right now, it's not as overwhelming an advantage for Pfizer anymore; its rate of increases may be much more modest in the years ahead.
Which company may be in better shape in the future? This is an important question to ask because when looking at dividend stocks, it's crucial to also consider where a business is headed. While the payout ratio and dividend growth rate may tell you about past results, that doesn't tell you anything about the future.
For Pfizer, the big risk is that the healthcare company is investing heavily in its future growth to offset losses in exclusivity. It might need to free up some cash to pursue acquisitions and invest in more growth opportunities. Investors haven't been encouraged thus far as the stock continues to trade at a low valuation; it's down close to 40% in five years.
For Verizon, its big unknown is related to SpaceX and how competitive its Starlink business may prove to be. It's a tough question to answer right now, but Verizon may face greater adversity and competition, leading to more aggressive pricing, margin pressure, and lower earnings and free cash flow.
Verizon, however, doesn't have to drastically alter its growth strategy and likely spend as heavily as Pfizer might; thus, it gets the edge based on their criteria.
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Verizon is the better-looking dividend stock right now The only metric that might make Pfizer look better than Verizon is dividend growth. But even then, when predicting future dividend growth, I think Verizon may be better positioned to increase its dividend faster, given its stronger financials.
While both of these stocks can be compelling dividend options for investors, I think Verizon is the far better and safer buy today.
Charter Communications is rated Buy, driven by an extremely low 3x P/E and improving operational trends despite the recent share price collapse. CHTR's innovative streaming-inclusive TV bundles and wireless strategy are stabilizing video subscriber losses and supporting margin improvement, even as broadband remains pressured. A potential merger with Comcast post-split is increasingly likely, with current valuations and operational momentum positioning CHTR for a substantial acquisition premium.
ExxonMobil (XOM +0.17%) and Chevron (CVX +0.58%) are the undisputed titans of the oil and gas sector. Both are integrated oil and gas giants and top dividend-paying companies, but one is significantly larger than the other.
ExxonMobil: Managing Scale and RevenueExxonMobil primarily generates revenue by exploring for, extracting, and refining oil and natural gas globally, while also manufacturing commercial petrochemicals, olefins, and specialized chemical products.
It recently reached a preliminary agreement to supply liquefied natural gas (LNG) to South Africa and secured a Supreme Court ruling in Cuban litigation, while reporting a net income margin of about 5% for the quarter ended March 31, 2026.
Chevron: Advancing Infrastructure and RevenueLike ExxonMobil, Chevron (CVX +0.58%) primarily generates revenue from the exploration, extraction, pipeline transportation, and refining of crude oil and natural gas, as well as the production of industrial bulk petrochemicals.
Chevron recently signed a power agreement with Microsoft (MSFT +3.44%) in Texas and posted an earnings before interest and tax (EBIT), or operating margin, of 7% EBIT margin for the quarter ended March 31, 2026.
Why Revenue Matters for Energy InvestorsRevenue here refers to the data provider's standardized income-statement revenue line item, and it serves as a critical foundational metric that shows individual investors the gross amount of money a business generates from its daily core operations before deducting operating costs, administrative expenses, or taxes.
Quarterly Revenue for ExxonMobil and ChevronQuarter (Period End)ExxonMobil RevenueChevron RevenueQ2 2024 (June 2024)$90.0 billion$49.6 billionQ3 2024 (Sept. 2024)$87.8 billion$48.9 billionQ4 2024 (Dec. 2024)$81.1 billion$48.3 billionQ1 2025 (March 2025)$81.1 billion$46.1 billionQ2 2025 (June 2025)$79.5 billion$44.4 billionQ3 2025 (Sept. 2025)$83.3 billion$48.2 billionQ4 2025 (Dec. 2025)$80.0 billion$45.8 billionQ1 2026 (March 2026)$83.2 billion$47.6 billionData source: Company filings. Data as of June 23, 2026.
Foolish TakeExxonMobil remains significantly larger than Chevron by revenue, typically bringing in over 70% more revenue every quarter. This top-line dominance is backed by an immense physical asset base and significantly higher daily volumes.
ExxonMobil’s FY 2025 annual production hit a 40-year high of 4.7 million barrels of oil equivalent every single day (MBOED), with production from the Permian Basin and Guyana hitting all-time highs.
Although ExxonMobil’s total revenue is significantly higher than Chevron’s, the upstream (oil and gas exploration and production) revenues for both are surprisingly close. This gap is mainly driven by ExxonMobil's massive international downstream refining footprint and higher total daily production volumes.
Chevron also delivered record production in 2025, but its net production of 3.7 MBOED was well below ExxonMobil’s.
ExxonMobil’s landmark 2024 $60 billion acquisition of Pioneer Natural Resources significantly expanded its production volumes, especially in the Permian Basin. Not to be left behind, Chevron acquired Hess for $53 billion in 2025, gaining a massive footprint mainly in Guyana and the Bakken.
So both companies have made huge growth moves to expand their volumes and top lines. Remarkably, a larger revenue base doesn’t necessarily translate into higher profits, due to the gap in downstream operations. Over the trailing 12 months, both ExxonMobil and Chevron posted operating margins of around 10%. Eventually, they’re both titans of the oil industry and solid stocks to own for the long term for investors in energy.
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Chevron (NYSE:CVX | CVX Price Prediction) just wrote another check to shareholders, and the market is still treating the company like crude prices are about to collapse. On June 10, Chevron paid out $1.78 per share, the second quarterly distribution at the new rate after a 4% increase declared Jan. 30, marking the 39th consecutive annual dividend increase. The payment lands at a moment when retail investors are bifurcated between dividend hunters and oil-volatility traders, and the data argues the dividend hunters have the better read.
The headline yield sits near 4% at recent prices, with Chevron shares closing at $164.78 on June 30. That yield exists because the stock has pulled back, not because the payout is in trouble. Here is why the nervousness driving the discount looks outdated.
The Dividend Scorecard: Grade A- Start with the streak. Chevron’s 39 consecutive years of dividend increases places it in the elite Dividend Aristocrat tier, and the company has now strung together 16 consecutive quarters of returning more than $5 billion to shareholders. That cadence held through the 2020 pandemic crash, the 2022 oil spike, and the 2025 price normalization.
The growth profile matters too. The quarterly dividend has moved from $1.63 in 2024 to $1.71 in 2025 to $1.78 in 2026. Stretch the lens further and the quarterly payout has risen from roughly $0.68 to $0.72 in 2010 to $1.78 today, which is approximately a 2.5x increase over 16 years.
Year Quarterly Dividend Annual Payout FCF Coverage 2026 YTD $1.78 n/a n/a 2025 $1.71 $12.75B 1.30x 2024 $1.63 $11.80B 1.28x 2023 $1.51 $11.34B 1.74x 2020 $1.29 $9.70B 0.18x The 2020 row is the stress test that matters. Chevron maintained the dividend with $1.7 billion of free cash flow against a $9.7 billion payout. Management chose to defend the streak rather than reset it. With 2025 free cash flow at $16.6 billion and the trailing dividend covered 1.30x, the bar for trouble is considerably higher than today’s price action implies.
Why The Nervousness Is Outdated The bear case rests on oil prices. So look at oil prices.
Brent crude exploded to $138.21 per barrel on April 7, after the Strait of Hormuz disruption, then collapsed through May and June. As of June 22, Brent traded at $76.49 while WTI sat at $78.94 on the same day. WTI is down 21% in a single month, and the market is pricing CVX as if that downward pressure will continue indefinitely.
That assumption ignores the EIA’s published outlook. The May 2026 Short-Term Energy Outlook expects Brent to average around $106 per barrel in May and June, falling to $89 in Q4 and $79 in 2027 as Middle East production normalizes. Even in the bearish forward path, Brent settles in a range where Chevron’s payout is comfortably covered.
The second piece of the bear case, that Chevron’s Q1 results showed cracks, also fails on inspection. Q1 2026 adjusted EPS came in at $1.41 versus a 97-cent estimate — a 46% beat. That is the sixth consecutive quarterly EPS beat. Free cash flow did print negative at negative $1.549 billion, but the company specifically attributed that to unfavorable timing effects worth roughly $2.9 billion, including mark-to-market derivative mismatches, LIFO inventory accounting, and working capital outflows from the March 2026 commodity price spike. Those are reversing items that should unwind in coming quarters.
The Hess Engine Is Now Running The Hess acquisition closed in 2025, and Q1 2026 is the first clean quarter showing what it does to the production base. Worldwide net oil-equivalent production surged 15% to 3,858 MBOED, with U.S. output exceeding 2 million barrels per day for the third consecutive quarter and Permian production crossing 1 million BOE per day.
CEO Mike Wirth framed the quarter this way: “Our U.S. refineries operated at record crude throughput in March, capital spending remains within guidance, and our structural cost reductions are firmly on track. This disciplined performance supports dependable cash generation, enabling us to continue returning significant capital to shareholders, while investing in advantaged long-lived assets.”
The capital-return arithmetic backs him up. Chevron returned $27.1 billion to shareholders in 2025, including $12.1 billion in buybacks plus the dividend, and added another $2.5 billion of repurchases in Q1 2026. The buyback at $168 is reducing share count at a meaningfully lower cost than at the $214.71 52-week high.
Valuation and What to Watch Next Chevron now trades at a forward P/E of 12, with a PEG ratio of 0.69 and an analyst target price of $217.14. The consensus tilts buy, with 5 strong buy, 13 buy, 6 hold, and 1 sell rating. Shares have still returned 14% over the past year and roughly 57% over the past five years.
Retail sentiment confirms the disconnect between price action and fundamentals. Reddit sentiment on CVX through early-to-mid June ran bullish across all six data points, with an average sentiment score of 72 and a range of 66 to 76. The conversation splits between dividend investors on r/stocks and options traders on r/wallstreetbets positioning around “Gulf chaos” calls, but neither cohort is questioning the payout.
The watch items from here are clean. First, Q2 free cash flow needs to swing positive as the March working capital build unwinds. Second, Brent needs to settle in the $75 to $85 range the EIA projects rather than slip toward the $55.44 December 2025 low. Third, the 40th consecutive annual increase, expected in January 2027, would lock in another rung on a streak few energy companies can claim.
At a 4% yield, with 1.30x free cash flow coverage, a record 39-year increase history, and a production base that just stepped up 15%, the dividend is doing what it has done for four decades. The nervousness around it is what looks dated.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As one of the world's leading refiners, Phillips 66 operates 13 refineries, primarily in the United States, with a total refining capacity of about 2.2 million barrels per day.
PSX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.29; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.67 to $18.21 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PSX should be on investors' short list.
Michael Burry has taken a bearish position against Caterpillar, arguing that the construction equipment maker has become one of the most overvalued beneficiaries of the artificial intelligence investment boom.
Burry disclosed on Tuesday that he shorted Caterpillar shares at $1,060.98 as part of a broader set of bearish positions that also includes Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF (SOXX).
Caterpillar CAT shares fell about 5% on Wednesday, while the broader S&P 500 traded higher.
Traditionally known for manufacturing heavy equipment used in construction and mining, Caterpillar has increasingly been viewed by investors as an AI infrastructure play because of strong demand for its power-generation products from data centers.
The company's Power and Energy business reported a 22% year-over-year increase in first-quarter sales, supported by growing electricity demand from AI data centers.
That optimism has fueled a sharp rise in the stock.
Caterpillar gained 86% during the first half of 2026 and is up 172% over the past 12 months, making it one of the best-performing stocks in the S&P 500 this year.
The rally has also pushed valuation multiples significantly higher.
According to FactSet, Caterpillar trades at about 39 times expected earnings over the next 12 months, compared with around 13 times earnings three years ago. The stock is also valued at roughly six times expected sales, well above its long-term range of one to two times sales.
"Caterpillar jumped out at me," Burry wrote in a Tuesday Substack post. "I have never shorted Caterpillar. It has always done great for me on the long side in the past."
Burry said Caterpillar's valuation was one of the primary reasons for initiating the short position.
He shared a chart showing the company's price-to-sales ratio had climbed to its highest level in at least three decades as the stock reached record highs.
The investor also expressed broader concerns about the semiconductor sector, arguing that AI-related stocks have become increasingly overextended.
He said the Philadelphia Semiconductor Index is trading about 65% above its 200-day moving average, a level he said had previously been reached only during the dot-com bubble in 2000.
"The proximate cause of today’s rally is big spending announced out of Korea. Well, I see that as the beginning of the end," Burry said. "It is only a matter of time now."
Despite Burry's bearish stance, the recent rally has highlighted how AI investment has expanded beyond technology companies into industrial firms supplying infrastructure for data centers.
Analysts remain constructiveWhile Caterpillar's valuation has risen sharply, Wall Street analysts remain broadly positive on the stock.
According to TipRanks data, 10 of the 16 analysts covering Caterpillar have a Buy rating, while the remaining six recommend Hold.
The average 12-month price target stands at $991.94, about 2% below the stock's current trading price.
The recent rally has also increased Caterpillar's weighting in the Dow Jones Industrial Average, where it has become one of the index's highest-priced components, reflecting the stock's substantial appreciation during the AI-driven market advance.
Salesforce drew a bullish upgrade from Guggenheim analyst John Difucci, who said the stock’s sharp decline has created an attractive entry point for investors.
Guggenheim Sees Valuation UpsideDifucci upgraded Salesforce to Buy from Neutral and set a $228 price forecast.
The analyst said Salesforce trades at 3.7 times recurring revenue and 11 times enterprise value to next-12-month consensus free cash flow. At the same time, the new forecast implies a 5.0x multiple on enterprise value to next-12-month recurring revenue and about 46% upside.
AI Risk Looks OverpricedDifucci said AI remains a major risk and that Salesforce could face pressure from agentic AI, but he believes the stock already prices in an overly negative outcome.
The analyst said Salesforce may struggle to grow much, but the current valuation implies a permanent 5% decline, which he views as too harsh.
Technical AnalysisEven with Wednesday’s pop, CRM is still in a longer-term downtrend: it’s trading about 22.7% below its 200-day SMA ($212.65) and remains below its 50-day SMA ($174.82) and 100-day SMA ($181.38). The bearish crossover setup reinforces that—its 20-day SMA is below the 50-day SMA, and the 50-day SMA is below the 200-day SMA.
Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the September 2, 2026 (estimated) earnings report.
EPS Estimate: $3.09 (Up from $2.91 YoY) Revenue Estimate: $11.31 Billion (Up from $10.24 Billion YoY) Valuation: P/E of 18.2x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $245.00. Recent analyst moves include:
Guggenheim: Upgraded to Buy (Forecast $228.00) (July 1) Needham: Buy (Maintains Forecast to $400.00) (June 16) Canaccord Genuity: Buy (Maintains Forecast to $225.00) (June 16) Top ETF ExposureSignificance: Because CRM carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price ActionCRM Stock Price Activity: Salesforce shares were up 4.75% at $164.10 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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From a technical perspective, Commerce Bancshares, Inc. (CBSH - Free Report) is looking like an interesting pick, as it just reached a key level of support. CBSH's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Over the past four weeks, CBSH has gained 11%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Looking at CBSH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting CBSHon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Dow Inc. (DOW - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Dow Inc. is a member of our Basic Materials group, which includes 275 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dow Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DOW's full-year earnings has moved 37652.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DOW has returned about 17% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 8.1%. This shows that Dow Inc. is outperforming its peers so far this year.
Green Plains Renewable Energy (GPRE - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 56.9%.
Over the past three months, Green Plains Renewable Energy's consensus EPS estimate for the current year has increased 359.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Dow Inc. belongs to the Chemical - Diversified industry, a group that includes 31 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, this group has gained an average of 15.4% so far this year, meaning that DOW is performing better in terms of year-to-date returns.
Green Plains Renewable Energy, however, belongs to the Chemical - Specialty industry. Currently, this 46-stock industry is ranked #93. The industry has moved +15% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Dow Inc. and Green Plains Renewable Energy as they could maintain their solid performance.
General Mills (GIS - Free Report) reported $4.61 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 1.2%. EPS of $0.95 for the same period compares to $0.74 a year ago.
The reported revenue represents a surprise of +0.13% over the Zacks Consensus Estimate of $4.6 billion. With the consensus EPS estimate being $0.82, the EPS surprise was +16.48%.
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 General Mills performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- North America Foodservice: $574.6 million versus the five-analyst average estimate of $581.13 million. The reported number represents a year-over-year change of -0.8%.Net Sales- International: $858.4 million compared to the $840.1 million average estimate based on five analysts. The reported number represents a change of +16.2% year over year.Net Sales- North America Pet: $702.4 million compared to the $717.24 million average estimate based on five analysts. The reported number represents a change of +4% year over year.Net Sales- North America Retail: $2.47 billion versus the five-analyst average estimate of $2.49 billion. The reported number represents a year-over-year change of -3.6%.Operating Profit- North America Retail: $506.4 million versus the five-analyst average estimate of $501.9 million.Operating Profit- International: $61 million versus $39.51 million estimated by five analysts on average.Operating Profit- North America Pet: $160 million versus $144.19 million estimated by five analysts on average.Operating Profit- North America Foodservice: $101.3 million compared to the $78.16 million average estimate based on five analysts.View all Key Company Metrics for General Mills here>>>
Shares of General Mills have returned +5.2% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
General Mills, Inc. (GIS) Q4 2026 Earnings Call July 1, 2026 9:00 AM EDT
Company Participants
Jeff Siemon - Vice President of Investor Relations & Treasurer
Jeffrey Harmening - Chairman & CEO
Dana McNabb - COO, Group President of North America Retail & North America Pet and Director
Kofi Bruce - Chief Financial Officer
Conference Call Participants
Max Andrew Gumport - BNP Paribas, Research Division
Peter Grom - UBS Investment Bank, Research Division
Andrew Lazar - Barclays Bank PLC, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Peter Galbo - BofA Securities, Research Division
Matthew Smith - Stifel, Nicolaus & Company, Incorporated, Research Division
Christopher Carey - Wells Fargo Securities, LLC, Research Division
Robert Dickerson - BTIG, LLC, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to General Mills Fiscal 2026 Q4 Earnings Call. [Operator Instructions]
I will now hand the conference over to Jeff Siemon, Vice President, Investor Relations and Corporate Finance. Jeff, please go ahead.
Jeff Siemon
Vice President of Investor Relations & Treasurer
Thank you, Samantha, and good morning to everyone. Thanks for joining us today for our live Q&A session on our Q4 and full year fiscal '26 results. I hope you all had time to review our press release, listen to the prepared remarks and view our presentation materials, which we made available this morning on our Investor Relations website.
It's important to note that in our Q&A session, we may make forward-looking statements that are based on management's current views and assumptions. So please refer to this morning's press release for factors that could impact forward-looking statements and for reconciliations of non-GAAP information, which may be discussed on today's call.
I'm here with Jeff Harmening, our Chairman and CEO; Dana McNabb, our COO; and Kofi Bruce, our CFO.
SummaryBecton, Dickinson and Company is undervalued, trading at 12–13x P/E despite forecasted 7%–8% annual growth and improving fundamentals.BDX's sector-wide pressures are driven by cautious hospital spending, higher rates, and capital rotation into AI, but its core operations remain robust.BDX maintains a BBB rating, conservative leverage, a 2.78% dividend with 44+ years of increases, and is executing $2B in buybacks while retiring $2.1B in debt.I assign a 'BUY' rating under $160/share, targeting 15x P/E and forecasting a 19.8% annualized return to 2028E, supported by solid capital allocation and earnings growth.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » JHVEPhoto/iStock Editorial via Getty Images
We have a very interesting stock market right now. It's always arguably a mix of appeal versus lack of appeal, but here things have been taken to a certain "point," I'd say. The companies on the market seem to
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Sony PlayStation said Wednesday it plans to end production of new video game discs – a feature of the media and entertainment landscape for three-plus decades – by January 2028.
The decision, laid out in a company blog post, follows a recent announcement from Take-Two Interactive’s Rockstar Games that its long-awaited title, “Grand Theft Auto 6,” will be digital-only.
Steady declines in physical game disc sales mirror the patterns in the home entertainment and music businesses. Vinyl records have been a bright spot, however, staging a big comeback for music labels and topping $1 billion in sales last year for the first time since 1983. Netflix wound down its DVD-by-mail business in 2023.
“This is a natural direction for Sony Interactive Entertainment to adapt to consumer trends as the general preference for digital media significantly outpaces physical discs,” the blog post said. “This transition will enable us to align more closely with how most of our community prefers to access and play games today.
“We’ll continue to prioritize our resources to drive innovation in how players can access games and provide choices as to where players prefer to purchase new games, whether that’s at retailers or PlayStation Store.”
The change has “no impact” on titles due to come out prior to January 2028, the post noted.
Overall consumer spending on video games in the U.S. ticked up 1% in 2025 from prior-year levels to hit $60.7 billion, according to data from the Entertainment Software Association, Circana and Sensor Tower. Subscription services revenue jumped 20%, while mobile games now account for nearly half the total, at $26.7 billion in revenue.
Sony said Wednesday it will stop producing physical discs for all new games released on PlayStation consoles from January 2028, marking a full shift to digital distribution as consumer purchases continue to move online.
Digital downloads accounted for about 80% of Sony’s full-game software sales in fiscal 2025, according to the company, reflecting a years-long shift toward digital game purchases.
The Japanese entertainment and technology company said new PlayStation titles released from January 2028 will be sold through the PlayStation Store and by retailers in digital formats only.
PlayStation titles released from January 2028 will be sold through the PlayStation Store and by retailers in digital formats only. REUTERS The change will not apply to games released, or already scheduled for disc release, before that date.
Separately, Sony said it would begin shutting down the PlayStation Store on its legacy PS3 and PS Vita devices, starting with select markets this year and expanding globally in 2027.
The 15- to 20-year-old consoles can no longer support the secure payment systems used by the modern PlayStation Network, the company said.
Once the stores close, users will no longer be able to purchase new content, although previously purchased games and content will remain available for download for the foreseeable future.
Digital downloads accounted for about 80% of Sony’s full-game software sales in fiscal 2025, according to the company, reflecting a years-long shift toward digital game purchases. The PlayStation 5 console, above. EPA The PS3 store will close in Mexico, Honduras and Nicaragua from August, followed by additional Latin American and Middle Eastern markets later in the year.
The PS3 and PS Vita stores will close in all remaining markets in July 2027.
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Sony says discs are done for. Kiyoshi Ota/Bloomberg via Getty Images The dustbin of history is about to get a lot shinier.
Sony said Wednesday it plans to stop releasing physical disc copies of PlayStation games starting in 2028.
"New games will be available on PlayStation Store and at retailers in digital formats only," the company said.
Sony said the change is a response to evolving industry and consumer trends and won't affect any titles scheduled for release before 2028.
Sony's PS5 is sold in two formats — one all-digital and one with a disc drive — with the disc drive model costing $50 more. Both offer nearly identical performance.
Last week, game studio Rockstar Games told the Hollywood Reporter that its hotly anticipated "Grand Theft Auto VI" will not include physical media and will only be available as a digital download.
The company earlier sparked confusion when it referred to a physical version of the game, which it said in a press release last week would be a download code sold in a box.
Physical media for some other games, including various Xbox and Nintendo titles, increasingly require users to download additional data to play. In other cases, the disc serves little more than as a download code for online content.
Big box retailers like Best Buy, Target, and Walmart have also devoted less sales floor space to physical copies of gaming and entertainment titles as streaming and downloadable options have become more common.
Read next
Dominick Reuter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Dominick Reuter is a senior retail reporter for Business Insider, primarily covering Walmart, Target, and Costco. His stories tend to focus on issues and trends that affect employees and customers.Prior to joining BI in 2019, Dominick worked for more than a decade as an independent photojournalist covering a wide range of stories for global wire services and newspapers, including Reuters, the Wall Street Journal, and Agence France-Presse.Dominick studied photojournalism at Boston University and later earned a Masters in business and economics journalism from Columbia University.If you're an employee or customer with a story to share, please contact me via email or text/call/Signal at 646-768-4750.
Cathie Wood tends to do well when tech stocks are rallying, and the second quarter was strong for that kind of investing. The founder and CEO of Ark Invest saw her largest exchange-traded fund jump nearly 20% in the past three months, and she's not done making moves as we head into the second half of 2026.
Wood added to several existing Ark positions across her family of ETFs on Monday. Some of the more intriguing names include Amazon (AMZN +1.71%), SoFi Technologies (SOFI +3.82%), and Snowflake (SNOW +2.45%). Let's take a closer look at these three stocks.
Image source: Getty Images.
1. Amazon Everyone has an opinion on Amazon stock. Bears will argue that the country's largest publicly traded company by trailing revenue is vulnerable. With consumer confidence waning, can a retailing platform be a safe investing bet?
There's also the changing tide at Amazon Web Services (AWS). The cloud hosting platform is a juggernaut that accounts for just a fifth of Amazon's total business but more than half of its trailing operating profit. With Amazon investing heavily in AI, will the long-term gain for AWS come with some short-term pain?
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Bulls can counter that Amazon is a different company with AWS as a workhorse. The 17% jump in net sales it posted in the first quarter was its fastest year-over-year increase in four years. AWS is not only growing faster than all of Amazon -- up 28% in its latest quarter -- but also drawing welcome attention to the entire ecosystem.
It's been a year of large AI wins for Amazon, but 2026 has been mostly forgettable for Amazon investors. The stock is up a mere 3% this year, losing badly to the overall market.
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2. SoFi Technologies SoFi was Wood's largest purchase for Ark's largest ETF on Monday. SoFi is an online bank with 14.7 million members. After crushing the market for three consecutive years -- and appreciating fivefold in that time -- SoFi stock has stumbled this year. The shares are trading 32% lower this year, making the branchless bank an interesting out-of-favor purchase.
SoFi is growing faster than most stateside fintechs. Adjusted revenue rose 41% for its first quarter, and profitability doubled. The risk with SoFi is that it's at the mercy of the same financial trends of traditional banking platforms, and SoFi trades at an industry premium. However, it's also growing a lot faster. The recent conversion of its SoFi Plus platform to an exclusive premium offering will go a long way toward revealing the kind of brand and pricing power that SoFi has secured in recent years.
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3. Snowflake Snowflake provides a popular AI-fueled data warehousing and analytics platform that turns big data into actionable business insights. It's not growing as quickly as it did when it went public six years ago, back when revenue routinely more than doubled, but the platform's stickiness and recent acceleration should put it back on growth investors' radars.
The 34% revenue growth it posted in its latest fiscal quarter is Snowflake's strongest top-line jump since the summer of 2023. Companies trust Snowflake with a lot of money, with 779 of its customers spending more than $1 million apiece on the platform over the past year. It has a dollar-based net revenue retention rate of 126%, meaning returning customers spend 26% more with Snowflake than they did a year ago.
Reported profitability is still years away, but it's making positive moves on an adjusted basis -- bearing in mind that the company isn't cheap even on that basis, trading for 95 times next fiscal year's earnings. Snowflake stock is trading higher this year, but it's still more than 40% below its all-time high reached in late 2020.
It may be a hot summer, but Wood is out there catching a falling Snowflake.
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Snowflake. The Motley Fool has a disclosure policy.
Key Takeaways Costco's balance sheet remains a key edge as inflation, tariffs and cautious spending weigh on retail.Costco held nearly $20B in liquid assets, with current assets exceeding liabilities in fiscal Q3.Membership fee income rose 10.7%, supported by 82.9M paid memberships and an 89.7% renewal rate. Costco Wholesale Corporation's (COST - Free Report) balance sheet remains a key competitive advantage as retailers navigate inflation, tariff uncertainty and cautious consumer spending. The company ended the third quarter of fiscal 2026 with $18,946 million in cash and cash equivalents, up from $14,161 million at the end of fiscal 2025. Combined with $1,050 million in short-term investments, Costco held nearly $20 billion in liquid assets, providing ample financial flexibility to navigate short-term disruptions while continuing to invest in long-term growth.
The company's conservative capital structure further reinforces that strength. Current assets totaled $45,177 million, comfortably exceeding current liabilities of $42,125 million, while long-term debt remained modest at $5,670 million. Shareholders' equity increased to $33,509 million, reflecting continued earnings growth and a solid financial foundation. Management emphasized that maintaining financial flexibility allows Costco to prioritize investments in warehouse expansion, remodels, supply-chain infrastructure and digital capabilities without stretching its balance sheet.
Cash generation continues to support these investments. During the first 36 weeks of fiscal 2026, operating cash flow climbed to $11,133 million, comfortably funding $4,228 million of capital expenditures. Costco continues to expect approximately $6.5 billion in fiscal 2026 capital spending as it accelerates new warehouse openings, expands depot capacity, remodels existing warehouses and enhances the member digital experience.
Another important source of financial resilience is Costco's membership model. Membership fee income increased 10.7% year over year to $1,373 million, supported by 82.9 million paid memberships, 41.2 million executive memberships and a worldwide renewal rate of 89.7%. This recurring, high-quality revenue stream provides predictable cash flows that strengthen Costco's ability to invest through economic cycles.
Backed by substantial liquidity, disciplined leverage and durable membership economics, Costco remains well equipped to withstand retail headwinds while continuing to fund its long-term expansion strategy.
What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 7.8% over the past three months compared with the industry’s 4.4% decline. While shares of Dollar General have fallen 3.8%, those of Target have jumped 8.5% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.31, higher than the industry’s ratio of 30.41. However, the stock is trading below its 12-month median level of 46.37, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.23) and Dollar General (15.12).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for both the current and next fiscal year has increased by 1 cent to $20.38 and $22.46, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York, New York--(Newsfile Corp. - July 1, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FSLR, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302692
Source: Bronstein, Gewirtz & Grossman, LLC
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: SSR Mining (SSRM - Free Report) SSR Mining Inc. is a precious metals miner engaged in the operation, acquisition, exploration and development of gold and silver assets across four key jurisdictions: the United States, Türkiye, Canada and Argentina. Incorporated in British Columbia in 2005, the company is headquartered in Denver, Colorado. Its portfolio is anchored in several of the world’s most prolific mineral belts. These include the Çöpler mine along the Tethyan Metallogenic Belt in Türkiye; the Marigold mine situated on Nevada’s Battle Mountain–Eureka trend; the Cripple Creek & Victor (CC&V) mine in Colorado’s historic Cripple Creek Mining District; the Seabee operation along the Trans-Hudson Corridor in Saskatchewan, Canada; and the Puna operation positioned within the Bolivian silver belt in Jujuy, Argentina.
SSRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.29; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.42 to $4.50 per share. SSRM boasts an average earnings surprise of +54%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SSRM should be on investors' short list.
Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyrocket.
"I'm not throwing shade at them, but something has gone completely wrong," he told CNBC's "Squawk Box." "The basic view among enterprises in this country is I'm going to chillax and waste my time with tokens."
As AI costs surge, and new models prove pricier than previous iterations, enterprises are shifting from a mindset of so-called "tokenmaxxing" in favor of a return on investment.
That setup is prompting some enterprises to adopt open weight models, capable of performing similar tasks at a fraction of the price. Chinese models are also accelerating capabilities, raising concerns that the AI rival could soon catch up to U.S. frontier labs.
Shares of the AI software company climbed 9% on Wednesday.
Read more CNBC tech newsAnthropic says Trump admin has lifted export controls on Claude Fable 5 and Mythos 5OpenAI, Anthropic backer MGX raises one of the biggest AI funds ever as it closes at $49 billionEmployers who laid off workers citing AI are already starting to regret itRecord chip rally adds $2 trillion in combined value to Micron, Intel and AMD in second quarterKarp told CNBC that the industry should not underestimate the speed at which China is making progress in building AI models.
In this environment, many businesses are also shifting from using far-reaching AI models to building and training their own, more efficient proprietary tools.
Earlier this week, Palantir announced an expanded partnership with Nvidia to use the chipmaking giant's AI tools to build custom models for U.S. government agencies.
Karp views open weight models as a potential solution for CEOs frustrated by AI labs.
"What aligns me with Nvidia, and I think is what the technical customers want, which is control over their compute, their models, their data stack and their alpha," Karp said. "They want to know they own the means of production. It's not being transferred to someone else."
Palantir (PLTR +8.72%) stock is seeing strong bullish momentum in Wednesday's trading. The artificial intelligence leader's share price was up 9% as of 11:35 a.m. ET. At the same point in the daily session, the S&P 500 was up 0.3%. Meanwhile, the Nasdaq Composite was flat.
Palantir's valuation is moving higher today as investors have continued to rotate back into AI software stocks. The company's recent announcement of a new partnership with Nvidia and news that Michael Burry has reduced his short position on the stock are also factoring into today's gains.
Image source: Getty Images.
AI software stocks are regaining favor with investors For most of this year, AI semiconductor stocks have seen very strong bullish momentum. Demand for chips used to power artificial intelligence technology stacks has been red hot, and the dynamic has actually caused selling pressures for many companies in the AI software space. Lately, there have been some signs that this trend is reversing.
Most leading AI chip stocks are seeing sell-offs in today's trading, and it looks like investment capital is flowing back into top software names. If the trend continues, Palantir stock could be a top beneficiary.
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Palantir is rising on Nvidia and Michael Burry news Palantir announced yesterday that it had entered into a new partnership with Nvidia to deliver new AI models for government customers. Palantir will be helping the GPU hardware leader develop engines for its Nvidia AI and Nemotron open models to support functional advancements for U.S. government agencies and infrastructure programs.
In addition to that positive catalyst, Palantir's valuation is also getting a boost from news that Michael Burry has trimmed his short bet against the company. The stock has seen meaningful pullbacks this year in conjunction with bearish comments from Burry, but news that the famous investor has reduced his bet against the company has some investors betting that Palantir's share price may have recently reached a near-term bottom.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
ToplinePalantir CEO Alex Karp on Wednesday called the AI industry “effing insane” in a heated interview on CNBC, accusing leading AI firms of overcharging, exploiting customer data and jeopardizing U.S. national security.
“This is the voice of American business that is being channeled through me,” the billionaire cofounder remarked.
AFP via Getty Images
Key FactsKarp, who appeared on CNBC to discuss Palantir’s partnership with Nvidia in a deal to help the U.S. government use advanced AI more securely, said CEOs he speaks with privately are “livid” with leading AI companies and that Palantir’s recent deal with Nvidia was designed to relieve those concerns.
He criticized the U.S. for relying on AI companies to develop technology for the military and national security, saying: “Are we really going to outsource the battlefield of this country to the consensus view in Silicon Valley? That is effing insane.”
Karp accused AI companies of imposing a “wealth tax” on businesses by charging high fees for their AI tools while collecting valuable data that could improve their own AI models.
At one point during the interview, one host commented, “You sound pretty angry,” to which Karp responded, “This is the voice of American business that is being channeled through me,” and suggested other CEOs would express the same anger in private.
After the interview appeared to end, Karp asked the hosts, “Are we still on?”
Shares of Palantir soared by more than 9% as of Wednesday morning.
forbes valuationKarp has a fortune valued at $12.3 billion as of Wednesday, according to Forbes’ estimates. Karp cofounded Palantir with billionaire Facebook investor Peter Thiel ($27.4 billion), whom Karp met while at Stanford Law School, and Stephen Cohen ($4.6 billion), and the company went public on the New York Stock Exchange through an unusual direct listing process in 2020.
key backgroundThe rollout of new AI models from OpenAI and Anthropic in recent months has drawn criticism from the U.S. government. The Pentagon designated Anthropic a “supply chain risk” in March, after Anthropic claimed the company refused to remove restrictions preventing its technology from being used for mass domestic surveillance or fully autonomous weapons. Days earlier, amid a broader contract dispute with Anthropic, the Pentagon reached a deal with OpenAI that sparked criticism from AI policy and legal experts. President Donald Trump issued an executive order in June requesting that companies allow federal oversight of new AI models before they are publicly released. OpenAI announced last week it would roll out new AI models, but said broader access would come after a “limited preview for a small group of trusted partners” approved by the U.S. government.
tangentAnthropic said late Tuesday the Commerce Department lifted export controls on Claude Fable 5 and Mythos 5, after the government banned the company from allowing foreign nationals to access its newest models over national security concerns. Commerce Secretary Howard Lutnick said the government had “worked closely” with Anthropic to “analyze and improve” Fable 5 and “strengthen America’s leadership in AI.”
further readingForbesU.S. Lifts Restrictions On Anthropic’s Mythos 5 And Fable 5 AI ModelsBy Siladitya Ray
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Unity Software Inc. (U - Free Report) .
Unity Software currently has an average brokerage recommendation (ABR) of 1.81, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.81 approximates between Strong Buy and Buy.
Of the 26 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 57.7% and 3.9% of all recommendations.
Brokerage Recommendation Trends for U
Check price target & stock forecast for Unity Software here>>>
While the ABR calls for buying Unity Software, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is U a Good Investment?Looking at the earnings estimate revisions for Unity Software, the Zacks Consensus Estimate for the current year has increased 5.6% over the past month to $1.03.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Unity Software. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Unity Software may serve as a useful guide for investors.
Key Takeaways Etsy's marketplace GMS rose 5.5% year over year to $2.5B, improving 540 basis points from Q4.Active buyers grew sequentially for the first time in two years, with GMS per buyer rising to $122.Etsy expects marketplace GMS to grow every quarter of 2026 and full-year growth in the low single digits. Etsy, Inc. (ETSY - Free Report) entered 2026 with renewed momentum, but the bigger question is whether its marketplace gross merchandise sales (GMS) growth can remain sustainable through the rest of the year. The first quarter offered encouraging evidence that the company is rebuilding the marketplace on stronger operating fundamentals rather than relying solely on temporary tailwinds.
Marketplace GMS increased 5.5% year over year to $2.5 billion, with the growth rate improving 540 basis points from the fourth quarter. Management said progress in product development and marketing is translating into improvements across marketplace fundamentals, while foreign exchange tailwinds and a softer prior-year comparison also supported the performance.
What makes the current recovery more meaningful is the shift in customer behavior. Active buyers posted sequential growth for the first time in two years, new buyers and active sellers increased year over year, while GMS per active buyer rose for the first time since late 2022, reaching $122 on a trailing 12-month basis. Etsy's mobile app continues to play a central role, with app GMS increasing 11.2% year over year and accounting for roughly 47% of marketplace GMS. Management said the momentum reflects continued investments in machine learning, personalization and improved product discovery.
Management expects some first-quarter benefits, including foreign exchange tailwinds and tariff-related average order value increases, to moderate as the year progresses. Even so, it expects continued progress in product discovery, personalization and customer engagement initiatives to further strengthen marketplace fundamentals through the remainder of 2026.
During the earnings call, management reiterated its expectation for year-over-year marketplace GMS growth in every quarter of 2026 and forecast full-year growth in the low single digits. ETSY guided second-quarter marketplace GMS to be between $2.48 billion and $2.53 billion, implying 3% to 5% year-over-year growth.
How eBay & Shopify Compare With Etsy on Marketplace GrowtheBay Inc. (EBAY - Free Report) also delivered a strong marketplace performance in the first quarter of 2026, with gross merchandise volume (GMV) rising 14% year over year to $22.2 billion. eBay said growth was broad-based across major categories, supported by faster momentum in collectibles, motors, electronics and fashion, while AI-powered seller tools, Live commerce and consumer-to-consumer initiatives continued to improve marketplace engagement. Management expects eBay's GMV growth to moderate in the second quarter as some category-specific tailwinds ease, but reaffirmed confidence in sustained marketplace momentum through the remainder of 2026.
Shopify Inc. (SHOP - Free Report) also continued to deliver healthy marketplace expansion, with first-quarter 2026 GMV increasing 35% year over year to $101 billion. Shopify attributed the performance to balanced growth across merchant sizes, geographies and sales channels, while AI capabilities such as Sidekick and integrations with ChatGPT, Microsoft Copilot and Google continued to support merchant growth. Management highlighted accelerating online, offline and B2B commerce trends and expects Shopify to maintain strong momentum, supported by continued investments. The consistent GMV growth underscores Shopify's ability to scale merchant sales despite an evolving commerce landscape.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 45.9% over the past three months compared with the industry’s 7.9% rise.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 12.35, lower than the industry’s ratio of 21.21. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen an upward revision. The consensus estimate for the current fiscal year has risen from $3.76 to $3.82, while the estimate for the next fiscal year has increased from $4.30 to $4.59 over the past 60 days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Albemarle (ALB - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Albemarle currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 13 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 54.2% and 8.3% of all recommendations.
Brokerage Recommendation Trends for ALB
Check price target & stock forecast for Albemarle here>>>
While the ABR calls for buying Albemarle, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ALB Worth Investing In?In terms of earnings estimate revisions for Albemarle, the Zacks Consensus Estimate for the current year has increased 4.8% over the past month to $12.98.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Albemarle. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Albemarle may serve as a useful guide for investors.
Micron Technology's (MU 8.69%) fiscal 2026 third-quarter earnings left no doubt that the memory boom is still here. Not only did the company smash guidance, but it also told investors to expect more than 20% sequential growth for its fiscal 2026 fourth quarter.
Naturally, investors piled into Micron after earnings, but it's not the only winner. Sandisk (SNDK 9.36%) might be the better play post-Micron earnings, and investors should look with anticipation leading up to when Sandisk reveals its latest results in August.
Image source: Getty Images.
Sandisk is riding the same tailwinds as Micron The broad catalyst for memory stocks is that artificial intelligence (AI) infrastructure requires memory chips and products so AI chips can manage large workloads and become more efficient. Sandisk's NAND flash memory chips have become a staple for AI infrastructure, just like Micron's high-bandwidth memory chips. Those products have helped Sandisk and Micron outpace the S&P 500 by a wide margin over the past year, but Sandisk actually has higher financial growth rates than Micron. That's a big deal after Micron's blowout earnings, and as August approaches.
Micron's fiscal 2026 Q2, which ended Feb. 26, 2026, is the most accurate comparable to Sandisk's fiscal 2026 Q3 results, which ended April 3, 2026. Micron delivered 196% year-over-year revenue growth in that quarter, compared to Sandisk's 251% year-over-year revenue growth.
Sandisk's 97% sequential growth in its fiscal 2026 Q3 also exceeded Micron's 75% sequential growth in its fiscal 2026 Q2. This scenario also played out in the previous quarter, showing an AI-fueled trend. If it continues again when Sandisk reports earnings in August, the stock can continue to rally despite gaining more than 600% year to date.
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Sandisk's rising valuation reflects better fundamentals A soaring stock price comes with a higher valuation, but in Sandisk's case, the fundamentals back it up. After the run-up, Sandisk trades at a 32.3 forward P/E ratio after having a 19.3 forward P/E ratio less than one year ago.
Micron's recent earnings suggest Sandisk can maintain or even exceed current growth rate projections that have warranted a 32.3 forward P/E ratio. Micron also said in its fiscal year 2026 third-quarter press release that it secured strategic customer agreements that offer revenue visibility for multiple years.
Those agreements further shatter the idea of a cyclical memory market. The fact that tech giants are agreeing to these types of deals implies that Sandisk may report similar multi-year agreements in August.
AI inference and agentic AI tailwinds should continue to heat up for multiple years. The tech is still new, AI data centers are being built across the country, and the world's largest companies keep throwing money at this revolutionary opportunity. Micron's earnings results show that the wins keep piling up, and Sandisk may report the same in August.
Micron Technology, Inc. has climbed to the top AI name for 2026 as the memory shortage continues to plague the entire supply chain. We think the upside isn't coming from AI but from the offset of it, meaning HBM is cannibalizing capacity and pushing non-AI memory ASP much higher. In our opinion, this points to the cyclicality of memory and the unsustainability of further upside to the current margin projection.
Micron (MU 8.98%) may be moving from a cyclical memory stock into a key AI infrastructure supplier. The Anthropic partnership, rising HBM demand, and tight memory supply could support a much bigger bullish thesis, but the rally also comes with real valuation and competition risks.
Stock prices used were the market prices of June 25, 2026. The video was published on June 29, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Micron Technology MU shares fell more than 8% on Wednesday as a broad selloff in semiconductor stocks gathered pace, with investors locking in profits after a record first half for the sector.
At the same time, a fresh class-action lawsuit targeting major memory chipmakers added to the pressure.
The decline was part of a wider retreat across chip stocks.
SanDisk dropped more than 10%, Advanced Micro Devices lost about 5%, Nvidia fell over 2%, and Seagate Technology declined more than 6%.
The Nasdaq Composite was down more than 0.4% as investors rotated out of technology names after months of strong gains.
The VanEck Semiconductor ETF, which had surged 72% during the first six months of the year for its strongest first-half performance since launching in 2000, fell more than 4.7% on Wednesday.
Micron has been among this year's standout performers, with the stock rising more than 230% amid surging demand for artificial intelligence-related memory products.
The rally has also attracted significant retail investor participation, contributing to heightened volatility.
Market participants have increasingly questioned whether the rapid gains in memory stocks can be sustained as the industry approaches another expansion phase.
Concerns have also emerged over additional manufacturing capacity planned in South Korea, announced last week, raising fears that the traditionally cyclical memory-chip industry could eventually swing from tight supply to oversupply.
The combination of stretched valuations and profit-taking weighed on the sector, even as analysts continue to forecast healthy long-term demand driven by AI infrastructure spending.
Adding to investor caution, Micron has been named alongside fellow memory chipmakers Samsung Electronics and SK Hynix in a US class-action lawsuit alleging the companies deliberately restricted production of conventional DRAM memory chips to inflate prices.
The complaint alleges the three manufacturers reduced output of mainstream DDR3 and DDR4 memory while shifting manufacturing capacity toward higher-margin high-bandwidth memory (HBM), which is used in AI servers and advanced computing systems.
According to the plaintiffs, the industry's pivot toward AI became a cover for creating an artificial shortage in conventional memory products.
Together, Samsung, SK Hynix and Micron account for roughly 90% of the global DRAM market, giving their production decisions significant influence over industry pricing.
The lawsuit claims prices for conventional DRAM have climbed roughly 700% over the past four years.
The case also revives memories of the industry's previous legal troubles.
During the mid-2000s, Samsung and Hynix pleaded guilty in a US Department of Justice investigation into DRAM price fixing, paying criminal fines of $300 million and $185 million, respectively.
Micron cooperated with that investigation and avoided a corporate penalty, although one employee later pleaded guilty to obstruction of justice.
While that history may add weight to the latest allegations, legal experts note that proving coordinated supply restrictions remains challenging.
Analysts remain constructive on memory outlookDespite the lawsuit and the market selloff, analysts continue to project favorable industry fundamentals.
KeyBanc analyst John Vinh noted on Tuesday that contract prices for several standard DRAM configurations rose about 3% in June from the previous month, while NAND flash memory prices increased 2.4%.
"While the industry is building out capacity in response to AI-driven DRAM/HBM demand, meaningful capacity is not expected until 2027, which still will not be meaningful enough to close the gap," wrote Vinh.
"Given the constrained supply environment, industry production discipline, and outsized data center demand for HBM and DDR5, we anticipate a continued strong demand and positive pricing trends through 2026 for both NAND and DRAM," he added.
Vinh maintains an Overweight rating and a $1,600 price target on Micron.
Experts also point to Micron's strategy of securing long-term customer agreements with minimum pricing provisions, which management believes will help keep gross margins "well above" previous cyclical peaks.
Those contracts are expected to account for about 40% of company revenue, with management aiming to increase that proportion over time.
UBS analyst Timothy Arcuri said this suggests Micron believes it can sustain gross margins of 70% to 75%, lower than the roughly 85% reported in its latest quarter but still significantly above its previous peak of about 62% achieved in 2018.
Arcuri maintains a Buy rating with a $1,625 price target, while the average Wall Street target for Micron stands at $1,543, according to FactSet.
The Micron Technology logo is displayed on a smartphone screen with the company's website in the background, in Creteil, France, on May 27, 2026. The American semiconductor company officially crosses the symbolic threshold of $1 trillion in market capitalization on Wall Street the previous day. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The memory industry is in the midst of an unprecedented boom.
AI servers are driving unprecedented demand for high-bandwidth memory; supply remains tight, and DRAM prices have surged, forcing PC and smartphone makers to look beyond their traditional suppliers. That search is increasingly leading them to China. Apple has reportedly sought approval to source DRAM chips from blacklisted ChangXin Memory Technologies (CXMT), while Dell Technologies, HP Inc., Acer, and ASUS are reportedly considering similar moves.
For companies like Micron (MU), which recently posted gross margins above 84%, the real question is whether today’s extraordinary profitability can survive China’s entry into the market.
And if history is any guide, investors should start paying close attention.
China has followed this playbook before. Solar panels, batteries, EVs, and shipbuilding all went through the same cycle: state-backed investment, reverse-engineered technology, and relentless manufacturing scale, until established global players could no longer compete on cost. Until now, memory chips seemed immune. For nearly three decades, the DRAM market has been dominated by Samsung Electronics, SK Hynix, and Micron, whose technological lead and manufacturing expertise kept challengers at bay.
But the current shortage may be creating the opening China has been waiting for. If this shortage gives Chinese memory makers their first meaningful foothold with global OEMs, it could mark the biggest competitive shift the DRAM industry has seen in 30 years.
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The Squeeze That Created An OpeningThe proximate cause is the AI memory supercycle. Conventional DRAM contract prices surged between 93% and 98% QoQ over the first quarter of this year.
Samsung, SK Hynix, and Micron are shifting wafer capacity toward high-bandwidth memory, the premium high-speed memory that sits alongside Nvidia (NVDA) AI accelerators, because that is where the margin is. This is having a major side effect: commodity DRAM, the kind that goes into laptops and phones, is getting squeezed out. Apple just raised MacBook and iPad prices by between $100 and $300, citing component costs, while simultaneously shopping for a cheaper Chinese alternative. Both moves point to the same conclusion: management sees this as structural, not a passing cycle.
That is the opening companies like China’s CXMT could step into. And the speed of its rise is notable. The company began volume DRAM production in 2020. By 2026, its global revenue share had reached 8%, up from 3% a year earlier, making it the fourth-largest DRAM maker. CXMT currently has two 12-inch DRAM fabrication plants with a combined capacity of about 300,000 wafers per month. There are reports that, with a new Shanghai facility as well as other new capacity, CXMT will double its DRAM wafer output to approximately 600,000 wafers per month, according to Reuters. This compares to Micron’s own 385,000 capacity. Revenue is on pace for roughly 700% year-over-year growth in early 2026, with the company posting its first-ever profitable quarter. Its DDR5 chips are already inside Lenovo laptops shipping today.
Investors are betting that Micron will see a multi-year upcycle, driven by long-term contracts for memory. But there could be a catch.
There Are Still ChallengesStill, China’s memory push has a problem that its other sectors, such as solar and EVs, did not. Those industries were won mostly by building factories faster and cheaper than anyone else, using technology that was largely available to whoever could afford it. Memory is different because of a single piece of equipment: extreme ultraviolet (EUV) lithography machines, made only by the Dutch company ASML, which are not essential for DRAM production but are critical for manufacturing the most advanced chips efficiently. Washington has blocked ASML from selling these machines to Chinese firms, so CXMT is stuck building chips with older tools, no matter how much capital Beijing throws at it.
That shows up clearly in the numbers. CXMT’s DDR5 die is roughly 40% larger than Samsung’s equivalent, which means fewer usable chips per wafer and a structurally worse cost base, not a better one. The larger die size is itself a byproduct of working without EUV: older lithography tools cannot pack circuits as densely, so CXMT needs more silicon to do the same job. Its cost per bit remains more than 30% above the three leading suppliers, suggesting its current profitability is a function of unusually strong pricing across the whole market, not genuine product superiority.
The gap is starker in HBM, the high-bandwidth memory used in AI accelerators and the segment driving SK Hynix’s and Samsung’s surge. CXMT has only sampled HBM2 and HBM3 chips with customers like Huawei; commercial-volume production keeps slipping, even as rivals are already shipping HBM4. Unlike DDR5, catching up in HBM requires far more than manufacturing scale and capital investment.
What It Means For Micron, Samsung And SK HynixFor the likes of Micron, Samsung, and SK Hynix, China’s rise is a challenge, but not an existential one. CXMT is emerging as a credible competitor in commodity DRAM, where it could pressure pricing in PCs and smartphones. But the real investment story has shifted to HBM, where demand from AI accelerators remains strong and technological barriers are much higher. As long as China lacks access to EUV lithography and advanced HBM manufacturing, the incumbents are likely to maintain their lead in the industry’s fastest-growing and most profitable market.
That said, the industry’s trajectory will depend not just on technology, but also on regulation. Export controls, licensing decisions, and trade policy could determine how quickly Chinese suppliers expand globally and how much of the memory market ultimately becomes contestable.
A disciplined portfolio approach helps smooth these risks while still participating in long-term growth themes. The Trefis High Quality (HQ) Portfolio has consistently outperformed its market benchmark since inception, delivering cumulative returns of over 105%.
Key Takeaways BlackBerry topped Q1 revenue guidance, expanded profitability and raised full-year revenue and EBITDA outlook.BB sees QNX driving growth through vehicles, robotics, industrial AI and its expanded NVIDIA partnership.BlackBerry posted positive Q1 operating cash flow and expanded buybacks; Secure Communications grew 24%. After reporting a strong first-quarter fiscal 2027, BlackBerry Limited (BB - Free Report) saw its shares surge roughly 22% as investors rewarded better-than-expected revenue, expanding profitability and improved full-year guidance. BB’s shares have gained 265.6% in the past three months compared with the Internet Software industry’s rise of 5%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 23.5% and 13.6%, respectively.
Image Source: Zacks Investment Research
BB competes with much larger cybersecurity firms, such as CrowdStrike Holdings, Inc. (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) . PANW has gained 109%, while CrowdStrike is up 91.2% over the same time frame. CrowdStrike is leveraging strong cybersecurity demand through the consolidation of its Falcon platform and growing subscription adoption. Palo Alto Networks offers network security solutions to enterprises, service providers and government entities worldwide.
BB currently trades at $12.65, almost on par with its 52-week high of $12.93. The key question for investors now is whether the rally reflects the beginning of a sustained momentum or whether most of the good news is already priced into the stock. Let’s unwrap below.
BB’s Fiscal Q1 Exceeds ExpectationsBlackBerry reported a robust start to fiscal 2027 with revenue of $153 million, exceeding guidance, driven by growth in QNX and Secure Communications, with adjusted EBITDA more than doubling year over year. Beyond automotive software, management is increasingly discussing opportunities in industrial AI and physical AI. BlackBerry is positioning QNX as a foundational operating platform not only for vehicles but also for robotics, industrial automation, medical devices, aerospace and intelligent infrastructure.
The company's partnership with NVIDIA (NVDA - Free Report) has evolved from an automotive-focused collaboration into a broader strategic alliance centered on Physical AI and safety-critical software. The relationship began with joint work on NVIDIA's Thor platform and QNX architecture for automotive applications, strengthening over time through successful customer wins and growing trust. Building on this foundation, NVIDIA selected BB as a key partner for its Physical AI safety stack, which is being standardized on QNX. As Physical AI adoption expands across industries, management views this partnership as an evolving growth opportunity with long-term potential.
Another encouraging sign was the return of positive operating cash flow during what is typically BlackBerry's weakest seasonal quarter. It generated roughly $5 million in operating cash flow, marking the first positive fiscal first-quarter operating cash flow in nearly a decade, excluding the effects of patent sales. BB continues to prioritize shareholder returns through share repurchases. It bought back 2.6 million shares in the quarter for approximately $10 million and expanded its buyback program, authorizing up to 27 million additional shares as part of its disciplined capital allocation strategy.
QNX Continues to Drive Growth, Secure Comm RecoversThe primary growth engine remains QNX, BlackBerry's real-time operating system used in software-defined vehicles and other mission-critical embedded systems. QNX effectively delivered a Rule of 50 quarter in the fiscal first quarter, driven by strong revenue growth and profitability. QNX's development license revenue reached an eight-quarter high, reflecting strong investment in future vehicle programs, with most licenses tied to the new SDP 8 platform that supports long-term royalty growth.
It also secured new Automotive and GEM design wins, including ADAS and driver monitoring programs. Beyond automotive, BlackBerry sees significant growth opportunities in robotics, industrial automation, medical devices and Physical AI. Management expects GEM, its fastest-growing business, and Alloy Core to drive meaningful growth, with major customer wins anticipated later this year.
The Secure Communications business remains strong, with $74 million in revenue, a 24% increase and stabilized ARR at $220 million, with a healthy net retention rate of 92%, driven by government demand and large deals. Customer retention, recurring revenue and government demand for Secure Communications solutions continue to show encouraging momentum. A multiyear expansion with Shared Services Canada, driven by rising demand for digital sovereignty and cybersecurity, significantly boosted fiscal first-quarter revenue through the expanded deployment of Secusmart's encrypted communications solutions.
Management cautioned that large government contracts have long sales cycles, making this quarter’s outsized growth unlikely to recur every quarter. Still, Secure Comm is evolving into a stable growth business with upside from major government wins. During the quarter, BlackBerry also secured several renewals, expansions and new customers across government, defense, and regulated industries, including FedRAMP High re-certification for BlackBerry AtHoc, a partnership with The IP Company and a collaboration with TKMS, highlighting continued demand for mission-critical secure communications.
Image Source: Zacks Investment Research
The long-term growth outlook remains positive, with potential for growth rates exceeding previous guidance, driven by pipeline and new opportunities. Strong quarterly execution gave management confidence to increase full-year expectations. BB now expects total revenue of $594–$621 million and adjusted EBITDA of $119–$139 million, driven by higher QNX and Licensing guidance. The company also expects about $100 million in operating cash flow this year, nearly double from the prior levels, with roughly 90% of incremental revenue flowing through to adjusted EBITDA, underscoring its strong operating leverage.
Why Investors Should Remain Cautious About BBDespite the impressive quarter, investors should recognize that several risks remain. BlackBerry faces several headwinds, including long automotive production cycles, as design wins often take three to five years to generate meaningful royalty revenue. Growth also remains exposed to cyclical vehicle demand and potential delays in software-defined vehicle adoption. In addition, intense competition from Linux-based platforms, Android Automotive and proprietary operating systems could pressure market share and require sustained investment in innovation.
BlackBerry's China business faces ongoing geopolitical and regulatory uncertainties. While the company believes its safety certification expertise and local presence help mitigate some risks, evolving trade tensions and policy changes could weigh on growth in the region.
BB’s Estimate Revision TrendsThe Zacks Consensus Estimate for BB earnings for fiscal 2027 has been unchanged over the past 60 days.
Image Source: Zacks Investment Research
BB’s Valuation: Expensive or Reasonable?Regarding the price/book ratio, BB is trading at 9.88, higher than the industry’s multiple of 4.39.
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PANW and CrowdStrike are trading at a 12-month price/book multiple of 10.05X and 41.55X, respectively, compared with the Security industry’s multiple of 28.96X.
Although BlackBerry's recent rally makes the stock appear more expensive than it was several months ago, valuation should also be viewed in the context of improving fundamentals. If management continues executing, today's valuation may still prove reasonable for a software company transitioning into a profitable growth phase.
Investment VerdictBlackBerry is emerging as a profitable software business with multiple growth engines. QNX continues to benefit from software-defined vehicle adoption, Secure Communications has returned to healthy growth, cash flow is improving and management is expanding into industrial AI and embedded computing. Although the sharp share-price appreciation may limit near-term upside and increase volatility, BlackBerry still appears attractive for investors with a long-term investment horizon who believe in the continued growth of software-defined vehicles, embedded AI and secure enterprise communications.
Carrying a Zacks Rank #2 (Buy) at present, BB remains an appealing pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK, July 01, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ: Z) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zillow securities between February 11, 2025 and May 7, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/Z.
Zillow Case Details
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that:
(1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business;
(2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws;
(3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and
(4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What's Next for Zillow Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/Z. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zillow you have until August 10, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zillow Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zillow Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
A strong stock as of late has been TSMC (TSM - Free Report) . Shares have been marching higher, with the stock up 6.9% over the past month. The stock hit a new 52-week high of $479 in the previous session. TSMC has gained 57.2% since the start of the year compared to the 18.2% move for the Zacks Computer and Technology sector and the 57.2% return for the Zacks Semiconductor - Circuit Foundry industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 16, 2026, TSMC reported EPS of $3.49 versus consensus estimate of $3.31.
For the current fiscal year, TSMC is expected to post earnings of $15.35 per share on $161.91 in revenues. This represents a 44.13% change in EPS on a 32.26% change in revenues. For the next fiscal year, the company is expected to earn $19.5 per share on $204.95 in revenues. This represents a year-over-year change of 26.98% and 26.58%, respectively.
Valuation MetricsTSMC may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
TSMC has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 31.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 31.1X. On a trailing cash flow basis, the stock currently trades at 32.1X versus its peer group's average of 32.1X. Additionally, the stock has a PEG ratio of 1.2. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, TSMC currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TSMC meets the list of requirements. Thus, it seems as though TSMC shares could have potential in the weeks and months to come.
Intel (NASDAQ:INTC | INTC Price Prediction) stock is under heavy pressure today, falling 7% as semiconductor stocks retreat across the board. The weakness extends beyond Intel stock, with Advanced Micro Devices (NASDAQ:AMD) stock down 5% and Taiwan Semiconductor Manufacturing (NYSE:TSM) stock lower by 6%.
The broad-based decline comes after Bank of America warned that bubble risk is beginning to build in the artificial intelligence trade. While the firm’s comments don’t necessarily suggest the rally has reached unsustainable levels, they do highlight the elevated expectations surrounding many leading chip companies.
At the same time, semiconductor companies continue to benefit from robust demand tied to artificial intelligence infrastructure and data center investment. Today’s pullback reflects the market’s effort to balance those favorable long-term trends against increasingly demanding valuations.
Bank of America Warns Bubble Risk Is Rising Bank of America pointed to growing signs that enthusiasm surrounding artificial intelligence investments may be becoming excessive. The firm noted that strong gains across many semiconductor stocks have increased the potential for volatility if investor expectations begin to cool.
However, Bank of America’s warning stopped short of declaring that the semiconductor sector has entered a full-fledged bubble. Instead, the report suggests that investors may want to pay closer attention to valuation discipline after an extended rally.
Intel stock, Advanced Micro Devices stock, and Taiwan Semiconductor Manufacturing stock all traded lower as investors digested those comments. The broad nature of today’s decline suggests sentiment across the semiconductor sector is driving much of the price action rather than company-specific developments.
The Long-Term AI Story Remains Intact Despite today’s weakness, the investment case for semiconductor companies continues to rest on powerful long-term demand drivers. Artificial intelligence workloads require increasingly advanced processors, memory products, and manufacturing capacity, creating opportunities across the chip supply chain.
Advanced Micro Devices continues to expand its presence in AI accelerators and data center processors as it competes with industry leaders for enterprise spending. Meanwhile, Taiwan Semiconductor Manufacturing remains one of the world’s most important semiconductor foundries, producing advanced chips for many of the technology industry’s largest customers.
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Intel also continues pursuing a multiyear turnaround strategy that includes expanding its manufacturing footprint and strengthening its foundry business. Success in those initiatives could improve Intel’s competitive position, although execution remains an important factor for the company.
Why Investors Are Taking a More Cautious View One reason semiconductor stocks can experience sharp pullbacks is that strong business fundamentals don’t always justify rapidly expanding valuations. As expectations rise, even positive news can have a smaller impact on stock prices because much of the optimism may already be reflected in valuations.
Broader market weakness also appears to be weighing on technology stocks today. When investors reduce their exposure to growth-oriented sectors, semiconductor stocks often experience outsized moves because they’ve been among the market’s strongest performers.
Yet, today’s decline doesn’t necessarily signal that the artificial intelligence investment cycle is coming to an end. Instead, it may represent a period of reassessment as investors weigh long-term growth prospects against near-term valuation concerns.
What to Watch Next Investors can watch for whether semiconductor stocks stabilize as broader market sentiment improves. They may also want to monitor whether upcoming earnings reports continue to demonstrate strong demand for artificial intelligence infrastructure despite growing valuation concerns.
The bulls can point to sustained AI investment, expanding data center spending, and continued demand for advanced semiconductor technologies. On the other hand, the bears can point to elevated expectations and the possibility that richly valued stocks become more vulnerable during periods of market uncertainty.
For now, today’s pullback serves as a reminder that even compelling long-term growth stories can experience meaningful volatility. Investors should consider keeping their position sizes measured while watching for whether company fundamentals continue to support premium valuations across the semiconductor sector.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Texas Instruments (TXN - Free Report) Headquartered in Dallas, TX, Texas Instruments, Inc. is an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.
TXN is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TXN has a Growth Style Score of B, forecasting year-over-year earnings growth of 40.6% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $7.66 per share. TXN boasts an average earnings surprise of +7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TXN should be on investors' short list.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) will webcast its second quarter earnings conference call on Wednesday, July 22, at 3:30 p.m. Central time. Haviv Ilan, chairman, president and chief executive officer, Rafael Lizardi, senior vice president and chief financial officer, and Mike Beckman, vice president and head of Investor Relations, will discuss TI's financial results and answer questions from the investor audience.
You can access the audio webcast on the Investor Relations section of the company's website at ti.com/ir. An archived copy of the webcast will be available shortly after the call concludes.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Anheuser-Busch Inbev (BUD - Free Report) Anheuser-Busch InBev, alias AB InBev, is a global brewing company with more than 500 iconic brands. The company’s leading position in majority of its markets and a strong global footprint lends the advantage of economies of scale and growing its multi-country brands globally. Its strategy is based on efforts to develop a portfolio of brands that cater to extensive consumer needs within the market, in terms of price range, flavor profiles, and brand meaning.
BUD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Staples stock. BUD has a Momentum Style Score of A, and shares are up 2.3% over the past four weeks.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.13 to $4.33 per share. BUD also boasts an average earnings surprise of +4.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BUD should be on investors' short list.
Key Takeaways Morgan Stanley received conditional OCC approval to establish Morgan Stanley Digital Trust.MS must meet capital, liquidity and pre-opening requirements before beginning operations. MS aims to expand federally regulated custody, staking and digital-asset servicing capabilities. Morgan Stanley (MS - Free Report) has moved closer to building a regulated digital-asset infrastructure after receiving preliminary conditional approval from the Office of the Comptroller of the Currency (“OCC”) to establish Morgan Stanley Digital Trust, National Association.
The proposed national trust bank, headquartered in Purchase, NY, is expected to support Morgan Stanley’s digital-asset custody ambitions under federal oversight. Morgan Stanley Digital Trust is expected to provide custody of certain digital assets and conduct related activities, including the purchase, sale, swap and transfer of digital assets to support client investment activities. It will also facilitate staking of digital assets on a fiduciary basis and act as a collateral administrator for digital-asset lending offered by an affiliate.
The approval is conditional, meaning the trust bank cannot begin operations until it satisfies the OCC's pre-opening requirements and receives final authorization.
As part of the approval, the digital-asset trust must maintain at least $50 million in Tier 1 capital during its first three years of operation, with at least half held as eligible liquid assets. It must maintain additional eligible liquid assets sufficient to cover 180 days of operating expenses. During these three years, the trust is required to assess its capital and liquidity on a quarterly basis and engage an independent external auditor to conduct annual audits.
The trust must obtain the OCC's non-objection before appointing senior executive officers or directors during its first three years. It must also notify the OCC at least 60 days before making any significant changes to its business plan or operations.
Here’s Why This Matters for Morgan StanleyThe charter approval is strategically significant for Morgan Stanley as it strengthens the company’s push into regulated digital-asset services.
For a wealth-management-focused company like Morgan Stanley, client trust, regulatory oversight and operational reliability are critical. Bringing custody capabilities closer to its platform could improve control, reduce external dependency and enhance the client experience as demand for digital-asset exposure grows.
The trust charter provides MS with a clearer regulatory pathway to support crypto-related services such as custody, transfers, trading support and fiduciary staking. It also positions the company to capture fee opportunities across custody, servicing and related activities, while competing more effectively with established players benefiting from the institutionalization of crypto market structure.
The move complements Morgan Stanley’s broader cryptocurrency initiatives, including its partnership with crypto infrastructure provider Zerohash to introduce crypto trading capabilities for E*Trade clients. Establishing a federally regulated trust bank would give MS greater control over asset custody, settlement and operational risk management, making the initiative more than just a crypto expansion.It reflects the company’s effort to build the regulated infrastructure needed to serve investors who increasingly prefer digital-asset exposure through traditional financial institutions.
Crypto custody and related digital-asset services are unlikely to materially change Morgan Stanley’s near-term earnings profile. However, if finalized, the charter would enhance the company’s long-term growth opportunities and help it gain a competitive advantage against traditional financial institutions and crypto-focused custodians.
FinTech Taking Similar Steps as Morgan StanleyIn April 2026, Coinbase Global Inc. (COIN - Free Report) secured conditional approval from the OCC for a national trust company charter, which will help grow its crypto custody business. Once fully approved, the national trust company charter will help COIN to offer custody and related banking services nationwide.
In December 2025, Circle Internet Group’s (CRCL - Free Report) First National Digital Currency Bank, N.A. received conditional OCC approval for a crypto custody bank charter. Once fully approved, the federally regulated national trust bank would operate under OCC oversight and oversee management of the USDC Reserve for CRCL's U.S. issuer, while also supporting institutional-grade digital-asset custody capabilities.
Morgan Stanley’s Price Performance & Zacks RankMS shares have rallied 15% in the past six months, outperforming the industry’s growth of 2.8%.
Image Source: Zacks Investment Research
Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
