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Chip stocks are catching a strong risk-on bid at midday Tuesday, with mega-cap semiconductors leading the broader tape higher. Intel (NASDAQ:INTC | INTC Price Prediction) stock is up 7% to $140.56, while Advanced Micro Devices (NASDAQ:AMD) stock is up 7% to $577.13.
The leveraged sector proxy is moving even harder. Direxion Daily Semiconductor Bull 3X Shares (NYSEARCA:SOXL) shares are up 11% to $263.09, amplifying the broader chip group’s gain in a textbook session for the 3x daily product.
The move builds on a long stretch of leadership for AI infrastructure names. AMD stock is up 163% year to date and, astoundingly, Intel stock is up 277% over the same time frame.
Risk-On Bid Lifts the Chip Group Today’s rally looks like a broad sector move rather than a stock-specific event for either Advanced Micro Devices or Intel. The bid appears broadly sector-wide, with AMD and Intel rising alongside peers rather than on company-specific news.
The backdrop remains the AI infrastructure spending narrative that has powered semiconductors all year. AMD’s most recent quarter showed Data Center revenue of $5.8 billion, up 57% year over year, with CEO Lisa Su telling investors customer engagement around the MI450 Series and Helios was “strengthening, with leading customer forecasts exceeding our initial expectations.”
Intel’s own Q1 2026 report showed Data Center and AI revenue up 22% year over year to $5.05 billion, with CEO Lip-Bu Tan flagging Intel Xeon 6 as the host CPU for NVIDIA (NASDAQ:NVDA) DGX Rubin NVL8 systems. That ecosystem positioning continues to support sentiment.
SOXL Amplifies the Sector Move SOXL offers broad leveraged exposure to the chip group. The Direxion Daily Semiconductor Bull 3X Shares is a leveraged ETF that seeks 300% of the daily performance of a broad semiconductor index whose constituents include NVIDIA, Advanced Micro Devices, Broadcom (NASDAQ:AVGO), and Intel. Top holdings as of the latest filing included Advanced Micro Devices at 4.56%, Broadcom at 4.51%, and Intel at 3.57%.
Because of the 3x daily reset, a strong up day for the chip group produces an outsized move in the ETF. That mechanic explains why a mid-single-digit advance in the underlying index translates into a double-digit pop for SOXL shares.
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Investors can treat the product accordingly. Importantly, leveraged ETFs are designed for single-day tactical exposure.
They amplify both gains and losses, and due to daily compounding and volatility decay, they can underperform the underlying index over longer holding periods. SOXL is a high-risk instrument intended for short-term use, with daily compounding making it ill-suited for buy-and-hold portfolios.
Context: Big Runs, Big Volatility Today’s move comes off a soft prior week. Over the past year, AMD stock is up 298% and Intel stock is up 522%. SOXL shares are up 16% over the past month, even after a sharp pullback into late June.
Retail sentiment is reflecting the bounce. Reddit chatter on Advanced Micro Devices stock flipped from bearish readings of 28 to 43 in late June to bullish prints of 64 to 74 heading into this week. The composite sentiment read on AMD now sits at 60.68, bullish with medium confidence.
The valuation backdrop remains demanding, though. AMD trades at a P/E ratio of 172x, and the analyst consensus target on Intel of $96.07 sits well below the current share price.
What to Watch The first question is whether today’s gains hold into the close, or whether momentum traders fade the move after the SOXL spike. Volume and tape action through the afternoon will tell that story.
Beyond today, investors can watch for any incremental analyst notes on AI capex and the next round of hyperscaler commentary. With AMD’s Q2 2026 guidance of $11.2 billion in revenue already on the table, the next scheduled earnings cycle is the more durable catalyst. In any case, position sizing should stay modest given how far these names have run.
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Although its growth rate has been cause for concern for investors in recent years, Pfizer (PFE 0.96%) is a stock that I don't think you should count out right now. The company is in the midst of a transition. It's been acquiring companies that it believes will position it for strong growth in the future.
One opportunity that the company isn't passing up on is the anti-obesity market. It added Metsera into the fold last year, which could prove to be a key acquisition that pays off for the business in the long haul. Although Pfizer doesn't have an approved GLP-1 weight loss drug in its portfolio just yet, here's why it could end up being a big player in that market.
Image source: Getty Images.
The company aims to be a leader in obesity therapies Late last year, Pfizer completed the acquisition of Metsera, valuing the enterprise at about $7 billion. By Pfizer's standards, that's not a terribly large acquisition. In 2023, it acquired oncology company Seagen for a whopping $43 billion. Both areas of healthcare, however, could be key to the company's long-term growth.
GLP-1 may be more underrated. That's because Metsera doesn't have any approved products in its portfolio today. However, Pfizer is optimistic that down the road, it could be a key player in the space. CEO Albert Bourla outlined the company's vision in the broader obesity space on the company's earnings call back in May:
We are also executing with focus to maximize the value of our Metsera acquisition. This underpins the strategy intended to position Pfizer as a leader in the next generation of obesity therapies. We intend to advance 10 phase 3 studies this year. We are targeting a first approval in 2028 from a portfolio that includes ultra-long-acting peptides with the potential, if successful, developed and approved for competitive efficacy and tolerability with a differentiated monthly maintenance dosing schedule.
Not only does Pfizer have many late-stage trials in the works, but focusing on monthly dosing could help it secure an advantage in the market, and it may be an attractive alternative to daily pills and currently approved injectables taken once per week. While Pfizer still has a long way to go and approval isn't guaranteed, the company has shown that it's serious in not missing out on the lucrative GLP-1 market.
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Buying Pfizer's stock can be a safer way to invest in GLP-1 There are loads of potential in GLP-1 stocks out there, but if you invest in a small company that doesn't have any approved products, it can involve taking on a lot of risk. With Pfizer, however, you'd be investing in a healthcare giant that's already large and established, and for which GLP-1 is just part of a broader growth strategy. It's a safer investment from that point of view, in that it's not as risky as a pre-revenue pharma stock.
Pfizer's success isn't a guarantee, but with the stock trading at only eight times its estimated future earnings (based on analyst expectations), you're buying it at a discount, effectively baking in some of that uncertainty and risky into the valuation. That's why I like Pfizer as a possible GLP-1 play: it has some exciting upside but may not have nearly as much downside risk as other, smaller stocks.
I keep buying Pfizer (NYSE:PFE | PFE Price Prediction) every time my brokerage cash builds up, and I am not slowing down. The market is treating this company like a value trap because COVID revenue is rolling off. I am treating it like a cash machine that just bought itself three extra years of patent life on one of its highest-margin franchises and is using the breathing room to fund the deepest late-stage pipeline I have seen from this company in a decade.
The conviction starts with a number that does not lie. I am collecting a 6.80% dividend yield on shares trading near $25.21, backed by a free cash flow yield of 6.32%. Pfizer paid out $2.4 billion in dividends in Q1 2026 alone, and the quarterly payout has climbed from $0.30 in 2016 to $0.43 today. That is income I can plan a retirement around.
The Patent Settlement Wall Street Slept On The catalyst that flipped my conviction from cautious to aggressive was the Vyndamax patent settlement extending U.S. exclusivity to June 2031. Wall Street had a devastating 2028/2029 patent cliff baked into the share price. CEO Albert Bourla told investors on the Q1 call that “starting in 2029, we will enter a five-year period of high single-digit revenue CAGR” and that the $17 billion LOE estimate is now more like $14 to $15 billion. That is billions of dollars in high-margin cash flow that the consensus model had erased. It is back.
The operating business is already proving the thesis. Q1 2026 revenue came in at $14.45B, beating the $13.80B consensus by 4.70%, with adjusted diluted EPS of $0.75 marking the fifth consecutive EPS beat. The non-COVID engine is firing on every cylinder: Padcev +39%, Nurtec ODT +41%, Eliquis +13%, Abrysvo +37%, Orgovyx +43%, and the launched and acquired portfolio grew 22% operationally. Management reaffirmed full-year 2026 guidance of $59.5B to $62.5B in revenue and $2.80 to $3.00 in adjusted EPS.
Then there is the pipeline I am effectively getting for free at a forward P/E of 9. Pfizer is launching roughly 20 pivotal studies in 2026, the Lyme disease vaccine candidate posted 73.2% efficacy in Phase 3, and the Metsera acquisition hands me ultra-long-acting GLP-1 optionality in the obesity market. Bourla himself has been accumulating Phantom Stock Units every month from March through June 2026, at prices ranging from $25.33 to $28.08.
The Risk I Am Not Pretending Away The real risk is policy and pricing. Comirnaty fell 59% and Paxlovid fell 63% in Q1, generic and biosimilar competition will pull roughly $1.5B off the top line in 2026, and Most-Favored-Nation pricing plus the TrumpRx platform could compress margins. I am watching it closely. The reason it does not derail my thesis: the dividend is covered by free cash flow, the Vyndamax extension fills the very gap these headwinds create, and the $7.2B cost savings program protects EPS while the pipeline matures.
Wall Street walked away from a $143.7 billion diversified pharma giant paying me almost 7% to wait. I will keep clicking buy until that math breaks.
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The Travelers Companies, Inc. (NYSE: [url="]TRV[/url]) today announced that it has developed TravelersLLM, a proprietary large language model tailored to its p
Stagwell's cross-network model offers the creative ambition and marketing capabilities an enterprise technology provider demands.
NEW YORK, NY / ACCESS Newswire / June 30, 2026 / IBM today appointed Stagwell (NASDAQ:STGW), the global challenger network transforming marketing through AI, as its lead creative partner. Stagwell's Code and Theory and Anomaly will work together as a single, unified creative force, together providing world-class brand and campaign creativity.
Working alongside IBM, Code and Theory and Anomaly will help evolve the "Let's Create Smarter Business" campaign across channels and geographies. Stagwell's technology-forward operating model ensures the creative work stays connected, consistent and moving at the speed IBM's business demands.
Jonathan Adashek, SVP Marketing and Communications at IBM: "At IBM, we believe that innovation happens at the intersection of human ingenuity and technological capability. Code and Theory and Anomaly bring the creative and strategic strength we need, along with modern tools and an operating approach that will help us move faster, work smarter and deliver more connected experiences."
Mark Penn, Chairman and CEO of Stagwell: "What this moment demands is creative force and operational precision simultaneously, at the speed the market now requires. Code and Theory and Anomaly bring the full range of what that takes, and operating as one team, under one accountability structure, they will deliver it. The convergence of the C-Suite is where this partnership lives, and that's where IBM will win."
Stagwell's first work with IBM is expected in August 2026.
As with the AI industry, investors often push the quantum computing industry aside as a "bubble." In both cases, however, it's important to acknowledge what this might mean. Quantum technology (like AI) is undoubtedly real and rapidly developing—even if it may not always be clear what the eventual end goal and use cases may be for those outside of the space. So concerns about a potential bubble have less to do with the technology itself and more with the question of whether current market valuations for quantum companies have grown too large too soon, given where that underlying tech is.
A balanced approach to evaluating a potential quantum bubble must consider valuations relative to revenue, profitability, commercial demand, cash run rate, and external threats.
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The Valuation Growth IssueD-Wave Quantum Today
$24.00 +0.18 (+0.73%)
As of 12:50 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$12.75▼
$46.75Price Target$36.80
Many pure-play quantum computing companies have experienced rapid share price appreciation in recent years: D-Wave Quantum Inc. NYSE: QBTS is up 68% in the last year, for instance, while Rigetti Computing Inc. NASDAQ: RGTI has climbed about 65% in that time.
Investors will want to see that revenue is also expanding in a way that supports valuation increases. In D-Wave's case, full-year 2025 revenue increased 179% year over year (YOY), while Rigetti's full-year 2025 revenue declined relative to the prior year. Despite D-Wave's impressive growth, revenue remained low in absolute terms, with the company reporting around $25 million for all of 2025.
Rigetti Computing Today
RGTI
Rigetti Computing
$19.45 +0.01 (+0.03%)
As of 12:50 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$11.23▼
$58.15Price Target$29.18
To keep an eye on how valuation and revenue match up, investors will want to watch metrics like the price-to-sales ratio. Both companies recently traded at extremely high sales multiples, with D-Wave above 700 times sales and Rigetti even higher.
That gives investors reason to question whether those stock prices have moved too far ahead of current revenue.
Rigetti shows why that concern is not just theoretical. Unlike D-Wave, its 2025 revenue declined from the prior year, making future contract wins and revenue conversion especially important for the stock.
Profitability and Demand ConcernsIt's not just sales that determine the viability of quantum computing firms. Profitability is essential as well. Many firms in this space still share traits, including negative operating margins and free cash flow, high spending on R&D, and continued reliance on capital from external sources. While this is typical for companies in their early stages (or in a nascent industry), investors will want to know if valuations are expecting profit levels that are still many years away from reality.
IonQ Today
$53.73 -0.15 (-0.27%)
As of 12:50 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$25.89▼
$84.64Price Target$69.88
IonQ is a good example, particularly because it has some of the largest revenues of any firm in this industry (in Q1 2026, the company reported almost $65 million in sales, up 755% YOY). On top of strong sales growth, IonQ also has an advantage in that it is quickly building commercial traction—something that not all quantum firms have succeeded at so far.
Even still, with GAAP R&D costs more than tripling YOY to almost $126 million in Q1 2026, IonQ faces a massive hurdle in its profitability path. Like many other pure-play quantum names, in order to continue funding its technology development, IonQ must be prepared to find other sources of funding.
A Bright Spot: Cash ReservesWhile cash run rates remain high, one bright spot for some pure-play quantum companies can be found in their cash reserves. IonQ ended Q1 2026 with $3.1 billion in cash, for instance, while D-Wave has been able to use its cash supplies to make an aggressive acquisition earlier in the year. This suggests that these companies have decent runways and are not in immediate danger of collapse. Investors will want to see signs that they are able to generate enough free cash flow over time to support their expenses, though.
Another question for investors is whether these companies are building their cash reserves in a way that is dilutive for shareholders. The industry has become known for capital raises through selling additional shares, a move that does provide near-term cash but which can sour the appeal for investors and signal longer-term issues.
The Looming External ThreatA final factor for investors to watch is the external threat posed by other tech firms on the quantum computing corner of the sector. Companies like D-Wave and Rigetti are tiny compared to rivals with burgeoning quantum arms like Intel Corp. NASDAQ: INTC and IBM Corp. NYSE: IBM, both of which have recently signaled plans to double down on their quantum operations.
Interest from legacy tech companies is likely to benefit quantum technology as a whole. However, it may be detrimental or even catastrophic for small firms already facing numerous pressures as described above. All of this contributes to the risk profile of these companies, which investors must keep in mind.
Should You Invest $1,000 in D-Wave Quantum Right Now?Before you consider D-Wave Quantum, you'll want to hear this.
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Investors deciding between MGM Resorts International (MGM 2.99%) and Royal Caribbean Cruises (RCL 1.02%) are choosing between two distinct ways to play the ongoing global trend in consumer travel and entertainment spending.
MGM focuses on land-based luxury resorts and a growing digital betting presence, whereas Royal Caribbean dominates the high seas with its extensive fleet. This comparison looks at which business model offers more value for your investment dollar today.
MGM Resorts International operates a global portfolio of 31 hotel and gaming destinations. The company reaches customers through strategic ventures like BetMGM, which focuses on online sports betting and iGaming. It also maintains an exclusive partnership with Major League Baseball and manages luxury destinations in Macau, though long-time executive Pansy Ho recently liquidated her personal equity stake.
In FY 2025, revenue reached nearly $17.5 billion, representing a growth rate of approximately 1.7% over the previous year. The company reported net income of roughly $206.2 million for the same period. This resulted in a net margin of about 1.2%, which reflects the percentage of revenue the company kept as profit after all its operating and financial costs were met.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 11.9x, which measures the company's total debt relative to the value of its shareholder equity. The current ratio, indicating the ability to pay short-term debts with short-term assets, is approximately 1.2x. Free cash flow, or cash from operations minus capital spending, was nearly $1.7 billion for the fiscal year.
The case for Royal Caribbean CruisesRoyal Caribbean Cruises operates a global vacation company with a fleet of 69 ships sailing to more than 1,000 destinations. The company relies on a network of travel advisors and joint ventures like TUI Cruises to reach passengers in the travel and tourism stocks category. It also partners with infrastructure investors to develop and own strategic cruise terminals in major Mediterranean ports.
During FY 2025, revenue rose to approximately $17.9 billion, which is a growth of nearly 8.8% compared to the prior year. The company generated net income of about $4.3 billion during this timeframe. This performance led to a net margin of roughly 23.8%, suggesting that the company is retaining a significant portion of its sales as profit.
Based on the December 2025 balance sheet, the debt-to-equity ratio is roughly 2.3x. This ratio shows the relationship between borrowed funds and the money provided by shareholders. The current ratio is approximately 0.2x, while free cash flow for the year was $1.2 billion, providing capital for fleet modernization and capacity growth.
Risk profile comparisonMGM Resorts International faces risks from significant debt levels and lease obligations that limit its capital allocation flexibility. The business also deals with intense competition from new land-based resorts and expanding iGaming platforms. Furthermore, the potential acquisition by People Incorporated introduces uncertainty regarding future governance, while persistent cybersecurity threats remain a material concern for its digital and physical operations.
Royal Caribbean Cruises depends on a limited number of global shipyards, making fleet expansion vulnerable to labor shortages or supply chain failures. The company must also navigate evolving environmental regulations regarding carbon emissions, which may increase compliance costs. Like its competitor Carnival, the business is highly sensitive to geopolitical tensions and fluctuations in the global economy that can impact vacation demand.
Valuation comparisonRoyal Caribbean Cruises currently appears cheaper based on its Forward P/E, which compares the stock price to future earnings estimates, while MGM Resorts International offers a lower P/S ratio relative to its total sales.
MetricMGM Resorts InternationalRoyal Caribbean CruisesSector BenchmarkForward P/E28.9x18.3x28.6xP/S ratio0.7x4.8xn/aSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?I'd go with Royal Caribbean. MGM Resorts has a diversified business spanning Las Vegas, regional casinos, and the BetMGM digital betting venture, and that diversification has its merits. But Las Vegas has been struggling lately, with occupancy and spending softening, and BetMGM just trimmed its own revenue outlook for the year. The growth story is mixed right now, even with bright spots in regional operations and Macao.
Royal Caribbean is firing on a different level entirely. The company just delivered a quarter that beat its own guidance, and management already has roughly two-thirds of this year's capacity booked at record prices. I like that kind of visibility into future demand; it’s rare and valuable. Earnings are projected to grow at a double-digit pace again in 2026, and the company keeps returning cash to shareholders through buybacks and dividends.
Royal Caribbean isn't cheap, and cruise demand can soften quickly if the economy turns. But right now, it's the clearer growth story with the stronger hand of cards.
The crude pricing environment is still promising for the integrated energy company’s exploration and production operations. The integrated players also have a stable midstream business that generates cashflows during all the business cycles, thereby making the prospects of the Zacks Oil and Gas Integrated International industry promising.
Due to their integrated business model, Exxon Mobil Corporation (XOM - Free Report) , Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) are well-positioned to make the most of the promising business environment.
About the Industry The Zacks Oil and Gas Integrated International industry covers companies primarily involved in upstream, midstream and downstream operations. These companies have upstream businesses in the United States (including prolific shale plays and the deepwater Gulf of Mexico), Asia, South America, Africa, Australia and Europe. Midstream operations of energy companies entail transporting oil, natural gas liquids and refined petroleum products. In downstream businesses, the firms buy raw crude to produce refined petroleum products. The companies’ downstream activities involve chemical businesses that manufacture raw materials for making plastics. The integrated players are now gradually focusing on renewables, leading to the energy transition. The firms aim to lower emissions from operations and cut the carbon intensity of the products sold.
3 Trends Shaping the Future of the Industry Favorable Oil Price to Aid Cash Flows: The price of West Texas Intermediate (“WTI”) crude is hovering around the $70 per barrel mark. The oil price is significantly higher than the shut-in prices of key resources in the United States, which is still promising for the exploration and production business of integrated players in the industry.
Sturdy Midstream Demand: With the possibility of upstream activities remaining advantageous, thanks to handsome commodity prices, oil and gas production is expected to stay satisfactory. This will likely boost the demand for pipeline and storage assets since more commodities will need to be transported and stored. Importantly, the midstream business has lower exposure to commodity price volatility since shippers generally book pipeline assets for the long term, thereby generating stable fee-based revenues.
Business Diversification: International integrated energy companies are gradually investing in the renewable business. Thus, by diversifying operations, companies will be able to capitalize on the mounting demand for cleaner energy.
Zacks Industry Rank Indicates Bullish Prospects The Zacks Oil and Gas Integrated International industry is part of the broader Zacks Oil - Energy sector. The industry carries a Zacks Industry Rank #99, which places it in the top 40% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to bet on or keep an eye on, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Outperforms the S&P 500, Lags the Sector The Zacks Oil and Gas Integrated International industry has outperformed the Zacks S&P 500 composite over the past year, but lagged the broader Zacks Oil - Energy sector over the same time frame.
The industry has rallied 23.5% over this period compared with the S&P 500’s surge of 22% and the broader sector’s improvement of 24.7%.
One-Year Price Performance
Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) ratio. This is because the valuation metric takes not just equity into account but also the level of debt.
On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 5.93X, lower than the S&P 500’s 18.21X. It is also below the sector’s trailing 12-month EV/EBITDA of 6.50X.
Over the past five years, the industry has traded as high as 7.37X and as low as 2.79X, with a median of 4.18X.
Trailing 12-Month EV/EBITDA Ratio
3 Integrated International Stocks to Focus on BP is an integrated energy giant and is well-positioned to capitalize on oil prices, which are still promising, through its upstream operations. Increasing global demand for LNG will continue to support natural gas. Therefore, BP, currently carrying a Zacks Rank #3 (Hold), is well-positioned to benefit from the rising demand for clean energy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: BP
With upstream businesses contributing the most to its earnings, ExxonMobil’s business outlook seems promising, thanks to handsome oil prices. Investors should also keep in mind that #3 Ranked XOM, has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt to capitalization of ExxonMobil is at 15.44%, lower than the 29.6% of the industry’s composite stocks. Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding its shareholders with annual dividend hikes at an average rate of 5.8%.
Price and Consensus: XOM
Chevron is an integrated energy giant with a stable business model. In the Permian, the most prolific basin in the United States, CVX, with a Zacks Rank of 3, has a strong footprint. Also, the company has a pristine balance sheet with significantly lower debt capital exposure than the industry’s composite stocks.
Key Takeaways Beyond Meat launched Beyond Steak Filet at Wegmans and H-E-B, its first retail availability.BYND's plant-based steak became its top-selling DTC product after launching in October 2025.BYND's whole-cut steak uses mycelium and avocado oil with a high-protein profile. Beyond Meat, Inc. (BYND - Free Report) continues to expand the availability of the plant-based products while strengthening its retail presence. The company has launched Beyond Steak Filet at Wegmans and H-E-B, marking the product's first retail availability following a successful direct-to-consumer debut.
The rollout follows the product's launch on Beyond Meat's direct-to-consumer platform in October 2025, where it quickly became the site's top-selling product, following a strong consumer response. Made with mycelium and avocado oil, the whole-cut plant-based steak is designed to deliver the taste and texture of conventional steak while offering a high-protein, lower-saturated-fat alternative. The product is also Clean Label Project Certified and Non-GMO Project Verified.
Management described Beyond Steak Filet as one of the company's most significant center-of-the-plate innovations since the Beyond Burger. The product introduces mycelium to Beyond Meat's portfolio while highlighting a nutritional profile designed to differentiate it from traditional steak and other plant-based alternatives.
The retail launch supports Beyond Meat's broader strategy of expanding distribution and strengthening its product portfolio. During the first-quarter 2026 earnings call, management identified retail distribution as a key growth priority, citing recent launches across its chicken and breakfast sausage portfolio. Management also noted that Beyond Steak Filet had generated encouraging consumer response through the company's direct-to-consumer platform and would expand into retail as production increased.
The availability of Beyond Steak Filet at Wegmans and H-E-B marks another step in executing that strategy, bringing one of Beyond Meat's newest products to additional retail channels.
Beyond Meat’s Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 8.6% over the past month, underperforming the industry and the broader Consumer Staples sector, which gained 1.6% and 4.6%, respectively. The stock also lagged the S&P 500, which declined 3.7% during the same period.
BYND Stock's Past Month Performance
Image Source: Zacks Investment Research
Is Beyond Meat a Value Play Stock?Beyond Meat currently trades at a forward 12-month P/S ratio of 1.47 compared with the industry average of 0.6. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
Image Source: Zacks Investment Research
Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 12.3% and 575%, respectively, from the prior-year reported levels. Darling Ingredients delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank of 2 (Buy). Tyson Foods delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.4% and 1%, respectively, from the year-ago reported numbers.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
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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.
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 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, 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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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: Newmont Corporation (NEM - Free Report) Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2025, Newmont had attributable gold reserves of 118.2 million ounces and resources of 148.7 million ounces. Its attributable gold production for 2025 was around 5.89 million ounces.
NEM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. NEM has a Growth Style Score of A, forecasting year-over-year earnings growth of 43.8% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.44 to $9.91 per share. NEM boasts an average earnings surprise of +33.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, NEM should be on investors' short list.
Key Takeaways Carnival ordered three new Princess ships for delivery in 2035, 2038 and 2039.CCL is modernizing its fleet and expanding destinations to boost guest satisfaction and onboard spending.Record 2027 bookings and disciplined fleet growth support Carnival's long-term strategy. Carnival Corporation Ltd. (CCL - Free Report) is reinforcing its long-term growth strategy through disciplined fleet expansion rather than aggressive capacity additions. While near-term demand has been affected by geopolitical tensions in Europe, management remains focused on investments that can enhance earnings power over the next decade.
A major highlight from the latest earnings call was Carnival's order for three new Princess Cruises ships, scheduled for delivery in 2035, 2038 and 2039. These vessels will build on the success of the Sphere Class platform, with Sun Princess and Star Princess already delivering strong guest satisfaction and commercial performance. Importantly, the company reiterated that it does not intend to accelerate ship deliveries beyond the measured pace of one to two new ships annually, reflecting a disciplined capital allocation strategy.
Beyond new ships, Carnival is investing heavily in modernizing its existing fleet through programs such as AIDA Evolution and Holland America Evolution. These upgrades are designed to improve onboard experiences, create additional revenue opportunities and enhance operating efficiency. Management also noted that refurbishment projects are expected to generate attractive returns, while cabin additions can pay for themselves within just a few years.
The company is complementing its fleet investments with expanded destination offerings, including Celebration Key and RelaxAway, Half Moon Cay, to strengthen itinerary appeal and drive higher guest spending. Combined with record booking levels for 2027, continued cost discipline and growing financial flexibility, Carnival appears well positioned to benefit once temporary geopolitical headwinds ease. If demand remains resilient, the new Princess ships and ongoing fleet enhancements could provide a meaningful boost to the company's long-term revenue growth, profitability and shareholder value.
Can Fleet Investments Keep Carnival Ahead in the Cruise Race?Carnival's strategy of combining selective newbuild orders with fleet modernization puts it in direct competition with peers like Royal Caribbean (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) , both of which are investing to capture growing cruise demand.
Royal Caribbean continues to expand the premium fleet with larger, experience-focused ships and destination investments, helping it command strong pricing and onboard spending. Its emphasis on innovative vessels and exclusive private destinations has strengthened Royal Caribbean’s customer loyalty, setting a high benchmark for the industry.
Norwegian Cruise Line, meanwhile, is refreshing its fleet with next-generation ships while enhancing onboard offerings and premium experiences. The company is also focusing on operational efficiency and higher-value itineraries to improve profitability.
Carnival's approach differs by maintaining disciplined capacity growth while extracting greater returns from both new and existing ships. Investments in the Princess fleet, ship modernization programs and exclusive destinations such as Celebration Key and RelaxAway, Half Moon Cay aim to enhance guest experiences without significantly increasing supply. If these initiatives continue to support pricing power and higher onboard spending, Carnival could strengthen its competitive position and deliver sustainable long-term growth despite intense industry competition.
CCL’s Price Performance, Valuation and EstimatesShares of Carnival have gained 1.9% in the past year compared with the industry’s rise of 3.5%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 11.96X, below the industry average of 17.2X.
P/E (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CCL’s 2026 sales and earnings implies a year-over-year uptick of 3.9% and a decline of 2.2%, respectively. EPS estimates for fiscal 2026 have decreased in the past 30 days.
Image Source: Zacks Investment Research
CCL 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 Hormel Foods is selling its Brazil-based Ceratti operations to Zanchetta Alimentos LTDA.Hormel Foods says the deal should have minimal impact on adjusted fiscal 2026 results.Hormel Foods' Ceratti operations are expected to continue without disruption until the deal closes. Hormel Foods Corporation (HRL - Free Report) is continuing to reshape its portfolio, agreeing to sell the Brazil-based CERATTI operations to Zanchetta Alimentos LTDA as the packaged food company sharpens focus on higher-growth markets and streamlines the international business.
The divestiture reflects Hormel Foods' broader strategy of directing resources toward markets and brands with stronger long-term growth prospects while reducing operational complexity. The transaction is expected to close in the coming weeks. Until then, Ceratti's operations are expected to continue without disruption for employees, customers and business partners.
Importantly for investors, Hormel Foods indicated that the sale is expected to have only a minimal impact on adjusted fiscal 2026 results.
The move also aligns with a broader pattern that has emerged across Hormel Foods' portfolio strategy over the past year. The company recently exited the whole-bird turkey business and has reduced exposure to lower-margin or more volatile operations while increasing its emphasis on branded, value-added protein offerings. Those efforts appear to be gaining traction, as Hormel Foods delivered its sixth consecutive quarter of organic sales growth and posted double-digit adjusted earnings growth in the second quarter of fiscal 2026.
The company's international business has also been showing encouraging momentum. International segment profit climbed 20% in the second quarter of fiscal 2026, supported by strong performance in China and robust demand for SPAM exports. The Ceratti sale marks another step in Hormel Foods' ongoing portfolio optimization efforts to continue refining its portfolio and international footprint.
Hormel Foods’ Share Price PerformanceShares of this Zacks Rank #2 (Buy) company have gained 14.3% over the past three months, outperforming the industry’s 5.3% decline and the broader Consumer Staples sector’s 6.7% increase. However, the stock lagged the S&P 500’s 16.3% advance over the same period.
HRL Stock's Past 3 Months’ Performance
Image Source: Zacks Investment Research
Is Hormel Foods a Value Play Stock?Hormel Foods currently trades at a forward 12-month P/E ratio of 17.17 compared with the industry average of 12.45. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
HRL Valuation Picture
Image Source: Zacks Investment Research
Other Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 12.3% and 575%, respectively, from the prior-year reported levels. Darling Ingredients delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank of 2. Tyson Foods delivered a trailing four-quarter earnings surprise of 18.1%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.4% and 1%, respectively, from the year-ago reported numbers.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Investors interested in Utility - Electric Power stocks are likely familiar with FirstEnergy (FE) and NextEra Energy (NEE). But which of these two stocks presents investors with the better value opportunity right now?
Oracle (NYSE:ORCL | ORCL Price Prediction) just posted one of the strongest cloud quarters in software history. Infrastructure revenue grew 93% year over year to $5.79 billion, and remaining performance obligations hit $638 billion. Yet shares trade at $148.53, down 23.33% YTD. Market cap sits at $427.8 billion. Can this stock reach $400 a share and push Oracle past a $1 trillion market cap by 2030?
The Real Reason Oracle Is Down 23% This Year Capital intensity. Oracle spent $55.66 billion on capital expenditures in FY2026 to build AI infrastructure, generating free cash flow of negative $23.69 billion. Total liabilities climbed to $218.7 billion, and management plans to raise roughly $40 billion in debt and equity in FY2027.
Investors are nervous. Shares fell 19.4% over the past week and 22.22% over the past month, taking ORCL from $190.96 to current levels. A beta of 1.655 makes the unwind worse than the market. The bear case: Oracle is borrowing heavily to chase AI workloads, and any slip in cloud margins detonates the model.
Wall Street Sees 70% Upside. Our Model Sees More Wall Street’s consensus target is $252.64, with 6 Strong Buy, 30 Buy, 6 Hold, and 1 Sell ratings. Our base case lands at $219.53, implying 47.8% upside with 90% confidence. The bull scenario reaches $351.63. The bear scenario still gets to $190.
Analysts appear to be modeling the next twelve months, not the booked backlog. With 84% bullish analyst sentiment and 21.9% YoY earnings growth, $252 looks conservative once OCI scales toward the FY2030 plan.
The Path to $400 Per Share Reaching $400 from $148.53 requires a gain of 169.3%. With forward EPS of $9.30, a price of $400 implies a forward P/E of 43. Our base case of $219.53 already implies 19x, meaning the bold target requires 24x of additional multiple expansion.
That sounds extreme until you stack the forward EPS curve. Oracle guided FY2027 non-GAAP EPS to $8.05 on $90 billion in revenue, with OCI scaling to $144 billion by FY2030. If those targets land, a 43x multiple today becomes far lower tomorrow.
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CEO Clay Magouyrk noted “It is unprecedented to scale a capital-intensive business so quickly while also increasing profitability.” Multicloud database revenue jumped 531% year over year, and AI infrastructure rose 243%. Our model’s 1.136 adjustment factor reflects that. The primary risk is execution slippage on the $55B annual CapEx commitment.
Where Oracle Trades Today vs Its Earnings Power At $148.53, Oracle trades at roughly 16x forward EPS of $9.30. That is cheap for a software company growing cloud revenue above 50% with a half-trillion-dollar backlog. The 52-week range of $134.57 to $343.01 shows how violently this name moves.
The 10-year return of 340.64% demonstrates the long-term compounding is real. Buyers at today’s multiple are paying a hardware price for a generational software asset.
Is $400 Realistic? Here’s My Verdict Reaching $400 from $148.53 demands a 169.3% gain. That is a stretch goal, not a base case.
For it to land by 2030, three things need to go right: OCI revenue must hit the $144 billion FY2030 target, AI infrastructure gross margins must keep climbing past the 32% already delivered, and the $638 billion RPO backlog must convert without major customer concentration breaks. What derails it is a sharp pullback in AI capex by hyperscalers or enterprises. We’ve outlined the blueprint for how Oracle could reach $400 in 2030.
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As Advanced Micro Devices, Inc. (NASDAQ: AMD) stock rallied to a new all-time high (ATH), Aaron Rakers, an analyst from Wells Fargo & Co. (NYSE: WFC), has signaled a further bullish outlook over the next 12 months.
Rakers raised his price target on AMD stock to $615 from $505, representing a 21.8% increase, while maintaining an ‘Overweight’ rating, according to a note to clients analyzed by Finbold on June 30.
The higher target for AMD stock price forecast was driven by stronger-than-expected demand and pricing power in Advanced Micro Devices’ EPYC server CPU business. As such, Rakers raised his earnings per share (EPS) estimates for calendar years 2027 (CY27) and 2028 (CY28) to $13.40 and $18.75, respectively.
Furthermore, he expressed greater confidence in the company’s ability to generate earnings exceeding $20 per share by calendar year 2028. The analyst highlighted the successful production ramp of AMD’s 6th Gen 2nm EPYC Venice server CPUs, which began in late May 2026, alongside sustained strength in Data Center GPU revenue.
As a result, Rakers projects AMD’s server CPU revenue to reach $25.0 billion in CY28, representing a 22% year-over-year increase. Although he acknowledges rising competition from Arm Holdings (NASDAQ: ARM) and NVIDIA Corp. (NASDAQ: NVDA), Rakers remains bullish on AMD stock.
He noted the company’s expanding competitive lead in high-core-count server CPUs and the strong long-term tailwinds from AI infrastructure buildout.
AMD stock price outlook Amid the bullish rating for Advanced Micro Devices stock, investors continued to bet on higher prices. Moreover, AMD stock has rallied over 153% year to date (YTD), trading at approximately $565.51 at press time.
AMD stock YTD. Source: Finbold As such, Rakers implies that Advanced Micro Devices stock price could rally roughly 23.8% over the next twelve months from its current level.
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American Tower Corporation remains a high-quality industry leader with steady revenue and cash flow growth, warranting a continued 'Buy' rating. AMT's international tower portfolio and expanding U.S. data center business drive robust top-line growth, with Q1 2026 revenue up 6.8% year-over-year. Management guides for property revenue of $10.66 billion and adjusted FFO of $5.09–$5.17 billion in 2026, reflecting increased investment and operational momentum.
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?
Let's take a look at what these Wall Street heavyweights have to say about Take-Two Interactive (TTWO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Take-Two currently has an average brokerage recommendation (ABR) of 1.19, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.19 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 27 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 87.1% and 6.5% of all recommendations.
Brokerage Recommendation Trends for TTWO
Check price target & stock forecast for Take-Two here>>>
The ABR suggests buying Take-Two, 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.
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 RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
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.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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 TTWO a Good Investment?Looking at the earnings estimate revisions for Take-Two, the Zacks Consensus Estimate for the current year has declined 2.2% over the past month to $6.7.
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 Take-Two. 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 Take-Two with a grain of salt.
Key Takeaways Block's Square will power payment and business tools for Sherwin-Williams PRO customers.XYZ's Square for Services supports estimates, scheduling, payments and client coordination.Square Invoices and Square Checking help speed payments, improve cash flow and reduce admin work. Block Inc.’s (XYZ - Free Report) Square recently announced that Sherwin-Williams, the world’s largest paint and coatings company, has adopted its payment solutions for its extensive network of PRO+ customers through the Digital Alliance Program.
As part of the collaboration, Sherwin-Williams will use Square for Services to streamline business operations, including creating estimates, scheduling jobs, collecting payments and coordinating with clients from the initial consultation through final invoicing.
Square Invoices further simplifies payment management by enabling painters and contractors to collect deposits upfront, schedule milestone payments within a single invoice, set up recurring billing for long-term clients and send automated payment reminders. These capabilities help reduce administrative burden, improve cash flow predictability and accelerate payment collection. Square Checking provides instant access to funds, enhancing financial flexibility for business owners.
Final Take on BlockThe Sherwin-Williams partnership strengthens Square's position in the professional services ecosystem by expanding the reach of its integrated business and payment solutions. As more contractors adopt Square's platform to manage operations and payments, Block is well-positioned to deepen customer engagement, drive ecosystem growth and support long-term revenue expansion.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have rallied 29.6% compared with the industry's growth of 3.5%.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and Reddit Inc. (RDDT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward 1.9% to $2.64 over the past month.
The consensus estimate for RDDT’s 2026 EPS has moved up significantly to $4.83 over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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?
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 Snowflake Inc. (SNOW - Free Report) .
Snowflake currently has an average brokerage recommendation (ABR) of 1.37, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.37 approximates between Strong Buy and Buy.
Of the 46 recommendations that derive the current ABR, 37 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 80.4% and 6.5% of all recommendations.
Brokerage Recommendation Trends for SNOW
Check price target & stock forecast for Snowflake here>>>
The ABR suggests buying Snowflake, 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.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
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.
Zacks Rank Should Not Be Confused With ABRAlthough 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.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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 SNOW a Good Investment?In terms of earnings estimate revisions for Snowflake, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.93.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Snowflake. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Snowflake.
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Costco (NASDAQ:COST | COST Price Prediction) and Target (NYSE:TGT) both delivered post-earnings stories that capture the split running through American retail. Costco posted 11.6% revenue growth on the back of a membership cash engine. Target turned in a 17.03% EPS beat, yet operating income fell. With sticky June inflation and dwindling personal savings squeezing households, the contrast matters.
Membership Dues Carry Costco. A Recovery Carries Target. Costco’s quarter leaned on the most boring line item in retail: dues. Membership fees hit $1.37 billion, up 10.7%, with a 89.7% worldwide renewal rate and executive members generating 75.0% of net sales. That recurring stream lets Kirkland Signature price bulk groceries at near cost, which is exactly what cash-strapped shoppers want. Digitally-enabled comp sales jumped 21.5%, and cash climbed 36.93% to $18.95 billion.
Target’s results read like an inflection, not a victory lap. Comparable sales swung to +5.6% from a 3.8% decline a year earlier, with traffic up 4.4% and all six core categories growing. CEO Michael Fiddelke called it “stronger than expected” while noting “there is much more work in front of us.”. The catch: operating income fell 22.89% and after-tax ROIC slid to 12.4% from 15.1%. The top line is healing faster than the profit line.
Defensive Compounder vs. Discretionary Turnaround The macro backdrop sharpens the divergence. The personal savings rate sits at 3.9% in Q1 2026, down from 6.2% in Q1 2024. Goods inflation has run from 1.28% YoY in January to 4.78% in May 2026, hitting exactly the apparel, home decor, and hardlines aisles Target leans on. Target’s segment mix shows the exposure: Apparel ($3.85B), Hardlines ($3.52B), and Home Furnishings ($3.24B) are precisely what tired wallets cut first.
Lens Costco Target Core Bet Membership-funded value Merchandising authority rebuild Profit Engine Recurring dues, Kirkland Roundel ads, Target+, Circle 360 Key Vulnerability Goods tariff pass-through Discretionary margin compression Target is pivoting to non-merchandise revenue, which grew nearly 25%, anchored by $246 million in Roundel ad revenue. Smart move, though still small relative to the discretionary base.
What Decides the Second Half I am watching whether Costco can keep widening its grocery price gap as core PCE holds at 3.41%. The company plans roughly 12 new warehouses to reach 940 by year-end, and Kirkland keeps adding SKUs. For Target, the test is whether guidance near the high end of $7.50 to $8.50 EPS holds once tariffs settle into landed cost.
Why I Lean Costco for Durability, but Respect Target’s Setup Costco is the cleaner business right now. The dues line covers the bulk of operating profit, and shoppers trade up into the warehouse during slowdowns. That is rare. Target intrigues turnaround investors: shares are up 39.66% year to date, and the merchandising reset is real. I would not chase it until the operating margin line stabilizes alongside the comp recovery. For defense, I lean Costco. For variance with a credible plan, Target earns a look.
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LOS ANGELES, June 30, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against First Solar, Inc. (“First Solar” or “the Company”) (NASDAQ: FSLR) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 26, 2025 and February 24, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 24, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. First Solar misled investors about its ability to mitigate the impact of tariffs on its operations. The Company overstated its ability to shift operations to the United States from Malaysia and Vietnam. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about First Solar, investors suffered damages.
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Key Takeaways First Solar is expanding U.S. manufacturing capacity across Ohio, Alabama and Louisiana facilities.FSLR added 1.9 GW of bookings, lifting its total backlog to 47.9 GW, extending through 2030.FSLR expects $0.8-$1.0B in 2026 capital spending for a new plant, R&D and equipment upgrades. First Solar’s (FSLR - Free Report) long-term growth story is increasingly being driven by manufacturing expansion. Its aggressive investment in domestic manufacturing capacity is strengthening its competitive position as utility-scale solar deployment accelerates across the United States.
The company continues to expand production across its manufacturing facilities in Ohio, Alabama and Louisiana, increasing its ability to supply American-made solar modules. During 2026, FSLR expects capital expenditures to be between $0.8 billion and $1.0 billion. These investments include the construction of a new manufacturing facility, ongoing research and development initiatives, and upgrades to existing machinery and equipment aimed at enhancing efficiency and performance.
The company has added 1.9 gigawatts (GW) of gross bookings since the previous earnings call, bringing its total booking backlog to 47.9 GW extending through 2030. This robust backlog indicates strong demand for FSLR’s products while reinforcing its capacity expansion strategy, providing greater revenue visibility and stability in the years ahead.
Rising electricity consumption from data centers, advanced manufacturing facilities and broader electrification trends continue to increase the need for utility-scale solar generation.
The company's differentiated cadmium telluride (CdTe) technology further strengthens its competitive position. Compared with conventional crystalline silicon modules, CdTe technology performs well in high-temperature environments and reduces dependence on polysilicon-based supply chains.
Although changes in trade policy, project timing and interest rates may create periodic volatility, FSLR’s manufacturing expansion, contracted backlog and technology leadership provide multiple drivers for sustainable long-term growth. As domestic solar deployment continues to accelerate, the company appears well positioned to benefit from increasing demand for U.S.-manufactured renewable energy equipment.
Solar Companies Investing in Manufacturing ExpansionSeveral solar companies are also expanding manufacturing capabilities to capitalize on growing renewable energy demand.
Enphase Energy (ENPH - Free Report) continues to invest in domestic manufacturing partnerships while expanding its residential solar and energy storage ecosystem.
Nextpower (NXT - Free Report) is benefiting from accelerating utility-scale solar deployment through growing demand for its integrated energy technology platform, including advanced solar tracking systems, electrical balance-of-system solutions and power conversion technologies.
FSLR’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share (EPS) indicates an increase of 23.93% and 38%, respectively, year over year.
Image Source: Zacks Investment Research
FSLR Stock Trading at a DiscountFirst Solar is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 11.13X compared with the industry average of 18.51X.
Image Source: Zacks Investment Research
FSLR Stock Price PerformanceIn the past three months, the company’s shares have risen 26.1% compared with the industry’s 11.4% growth.
LOS ANGELES, June 30, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises First Solar, Inc., (“First Solar” or the "Company") (NASDAQ: FSLR) investors of a class action on behalf of investors that bought securities between February 26, 2025 and February 24, 2026, inclusive (the “Class Period”). First Solar investors have until August 24, 2026 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: [email protected], to discuss their legal rights, or join the case via https://portnoylaw.com/first-solar-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
According to the Complaint, the Company made false and misleading statements to the market. First Solar misled investors about its ability to mitigate the impact of tariffs on its operations. The Company overstated its ability to shift operations to the United States from Malaysia and Vietnam. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about First Solar, investors suffered damages.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar [email protected]
310-692-8883
www.portnoylaw.com
LOS ANGELES--(BUSINESS WIRE)--Law Offices of Frank R. Cruz Encourages First Solar, Inc. (FSLR) Shareholders To Inquire About Securities Fraud Class Action.
Earned income demands your time. Passive income asks only that you stay invested. Dividend stocks remain the cornerstone of retirement portfolios because a check that arrives whether you worked Monday or not feels fundamentally different from a paycheck.
Real estate offers similar cash flow but locks capital behind tenants, repairs, and illiquid mortgages. Dividend stocks pay quarterly (or monthly in one case), settle in two days, and let you reallocate without a closing attorney. For investors who want durable cash flow without operational drag, a focused basket of blue-chip dividend payers delivers the same job with less friction.
We identified a collection of blue-chip dividend companies that, combined, can generate over $1,800 a year in passive annual income on a $10,000 investment in each stock at the time of this writing.
Johnson & Johnson Yield: 2.12% Shares for $10,000: 39.27 Annual Passive Income: $212 Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) runs Innovative Medicine (oncology franchises DARZALEX, CARVYKTI, and TREMFYA) and MedTech (Cardiovascular, Orthopaedics, Surgery, Vision). The dividend is modest in yield because the share price keeps rising. JNJ is up 71.71% over the past year, compressing the yield even as the company hiked the payout 3.1% in April 2026 to $1.34 per quarter.
What matters is the streak: 64 consecutive years of increases, backed by AAA-rated balance sheet quality and $96.36 billion in trailing revenue. Institutions hold 76.86% of the float, led by Vanguard, BlackRock, and State Street.
Coca-Cola Yield: 2.56% Shares for $10,000: 121.02 Annual Passive Income: $256 Coca-Cola (NYSE:KO) monetizes brand equity across Coca-Cola, Sprite, Fanta, Dasani, smartwater, Topo Chico, BODYARMOR, Powerade, Costa, fairlife, and Minute Maid. The quarterly dividend rose to $0.53 in 2026, marking 63 consecutive years of increases.
KO climbed 19.78% year to date. Operating margin of 35.1% and a 43.4% return on equity explain why institutions own 68.29% of shares.
P&G Yield: 2.85% Shares for $10,000: 67.11 Annual Passive Income: $285 P&G (NYSE:PG) owns Tide, Pampers, Gillette, Crest, Olay, Pantene, and SK-II. Consumer staples generate predictable free cash flow because shampoo and detergent demand does not flex with the business cycle, and management guides to roughly $10 billion in dividends and $5 billion in buybacks for fiscal 2026.
The quarterly payout stepped up to $1.0885 in April 2026, extending the company’s 70th consecutive annual increase and its 136th straight year of paying a dividend (uninterrupted since 1890). Vanguard, BlackRock, and State Street top the institutional book at 71.91% of shares.
Realty Income Yield: 5.21% Shares for $10,000: 158.43 Annual Passive Income: $521 Realty Income (NYSE:O) is a net-lease REIT with 98.9% occupancy across retail, industrial, gaming, and data-center assets. REIT status requires distributing at least 90% of taxable income to shareholders, leaving little capacity to retain earnings.
The company pays monthly and has declared 670 consecutive monthly dividends with 114 consecutive quarterly increases. Recent moves include a $1 billion strategic partnership with Apollo across 492 retail properties and a $1.7 billion U.S. Core Plus Fund cornerstone raise. Institutions hold 79.44% of the stock.
Verizon Communications Yield: 6.00% Shares for $10,000: 214.87 Annual Passive Income: $600 Verizon (NYSE:VZ) is the largest U.S. wireless carrier and, after closing the Frontier Communications acquisition on January 20, 2026, the largest fiber broadband operator. Fiber connections jumped 41.9% year over year to roughly 10.8 million.
The yield is elevated because the market discounts a balance sheet carrying $172.5 billion in total debt and net unsecured leverage of 2.6x, even as free cash flow guidance sits at $21.5 billion or more. Management completed $2.5 billion of buybacks in Q1 and intends to repay substantially all Frontier debt by year-end. Institutional ownership stands at 70.33%.
The bottom line Combined, these 5 positions generate $1,874 in annual passive income on a $50,000 investment, a blended yield of 3.75%. Verizon contributes $600, Realty Income adds $521, P&G delivers $285, Coca-Cola produces $256, and Johnson & Johnson rounds out the portfolio with $212.
Reinvesting those distributions compounds the gains. A 3.75% blended yield compounded across two decades roughly doubles a portfolio’s share count without additional capital, and unlike rental property, you can rebalance the whole position in a single trading session.
A bipartisan group of United States lawmakers has opened national security investigations into whether five major pharmaceutical companies, including Merck and AbbVie, were involved in clinical trials conducted in China that may have supported the country’s military capabilities, according to a Reuters report.
The inquiry, led by Republican Representative John Moolenaar of Michigan, chair of the House Select Committee on China, focuses on whether the drugmakers conducted adequate due diligence and maintained sufficient data protection standards at trial sites in China.
In letters dated Monday and first reported by Reuters on Tuesday, lawmakers requested detailed information from Merck & Co Inc (NYSE:MRK, XETRA:6MK) and Abbvie Inc (NYSE:ABBV) by July 17, including documentation on research practices, safeguards, and oversight mechanisms.
The scrutiny also extends to Eli Lilly and Co (NYSE:LLY), Pfizer Inc (NYSE:PFE, XETRA:PFE), and Bristol-Myers Squibb Co (NYSE:BMY, XETRA:RM, OTC:BMYMP), which received similar requests from the committee.
Lawmakers specifically asked for information related to clinical trial locations in China, including sites in the Xinjiang region and military-affiliated hospitals, and raised broader concerns about whether sensitive biomedical data could be accessed or repurposed in ways that pose national security risks.
Merck stated that patient safety and ethical integrity are central to its clinical research operations and said it adheres to global regulatory standards governing clinical trials. AbbVie declined to comment. Pfizer confirmed receipt of the letter but did not provide further comment. Bristol Myers Squibb and Eli Lilly did not immediately respond to requests for comment, according to the Reuters report.
The Chinese embassy in Washington rejected the premise of the investigation, saying in an email that there is “nothing credible” in the committee’s actions and reiterating opposition to what it described as efforts to politicize trade and technology issues.
The developments add to growing US-China tensions over scientific collaboration, particularly in sectors involving sensitive data and dual-use technologies, where commercial research may intersect with national security concerns.
The companies’ shares initially moved lower following the news, but were little changed by the early afternoon.
More than 97% of Duke Energy's $17.2 billion in annual sourcing supports U.S.-based suppliers Investments support critical grid equipment, American jobs and long-term reliability , /PRNewswire/ -- As the nation approaches Independence Day, Duke Energy is investing in American suppliers to help power local economies, support customer value and build the energy infrastructure needed to serve growing communities.
By the numbers: Duke Energy spent nearly $1 billion with North Carolina-based suppliers in 2025, helping local businesses grow while securing the equipment and services needed to keep energy reliable for customers.
Looking ahead, Duke Energy's continued investment in North Carolina suppliers could total nearly $5 billion over five years – supporting jobs, strengthening local economies and helping meet growing energy needs.
Why it matters: More than 97% of Duke Energy's $17.2 billion in annual sourcing supports U.S.-based suppliers, helping sustain domestic manufacturing, reduce supply chain risk and keep critical equipment closer to home. These investments ready the grid for rising energy demand and bolster reliability.
Go deeper: Duke Energy's supplier investments include transformers from GE Vernova in Goldsboro, N.C., gas turbines from Siemens Energy in Charlotte, N.C. and others.
What they're saying: "Powering America's future starts with investing in the people, businesses and communities building it," said Katie Aittola, senior vice president of supply chain, real estate and chief procurement officer for Duke Energy. "By working with American suppliers, Duke Energy is helping deliver reliable service and value for customers while reinvesting customer dollars in the local economies we serve. These investments help ensure our teams have the equipment and materials they need, support American companies and skilled workers, and create a ripple effect that strengthens manufacturing, jobs and long-term growth in our communities."
"North Carolina's business community is strongest when companies invest in one another," said N.C. Chamber President and CEO Gary Salamido. "Duke Energy continues to lead by example, directing nearly $1 billion to North Carolina-based suppliers in 2025 alone. Investments like these strengthen communities, support local businesses and reinforce the supply chains and partnerships that power North Carolina's growth."
"We are proud to provide the critical transformers and other electrification equipment that enables Duke Energy to help the people of North Carolina thrive," said Troy Kabrich, GE Vernova Goldsboro site director. "Supporting the communities we live and work in is an honor and a privilege we take seriously."
"We have a robust, decades-long foundation in North Carolina, supported through strong collaborations like that with Duke Energy and a dedicated workforce. The equipment we produce here is helping meet our nation's unprecedented growth in energy," said Matt Neal, Siemens Energy's President of North America.
The impact: As energy demand grows across North Carolina and beyond, Duke Energy's work with U.S.-based suppliers helps strengthen America's supply chain, keep critical grid equipment available and support the reliable infrastructure customers, businesses and communities need to grow.
About Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, North Carolina, is one of America's largest energy holding companies. The company's electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky. The company employs approximately 26,400 people.
Duke Energy is executing an ambitious energy transition, keeping customer reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including natural gas, nuclear, renewables and energy storage.
More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook.
Key Takeaways AIG's transformation is driving stronger underwriting and earnings growth.AFG combines disciplined underwriting with solid capital returns.Accelerant's AI-powered, capital-light model is fueling rapid specialty insurance growth. While AI and technology remain major market themes, investors are increasingly broadening their focus to defensive sectors. Insurance stands out as an attractive option, offering stable earnings, pricing power and resilient cash flows. In an environment marked by sticky inflation, higher-for-longer interest rates, geopolitical tensions and ongoing supply chain disruptions, companies with dependable earnings have become increasingly appealing.
Where the Biggest Opportunities AreNot every insurance company is benefiting equally, however. Investors are favoring insurers with disciplined underwriting, solid pricing power, fee-based revenues and exposure to specialized markets where competition is limited. At the same time, companies with heavy catastrophe exposure or weaker investment portfolios are drawing greater scrutiny.
Insurance brokers remain one of the industry's strongest long-term stories. Unlike insurers, brokers generate commissions without assuming underwriting risk. Demand for commercial insurance, employee benefits, cyber coverage and specialty products continues to rise, while industry consolidation is creating additional growth opportunities.
The broader commercial insurance market is also holding up well, even as pricing gradually normalizes after several years of sharp increases. According to Marsh & McLennan Companies, Inc.’s (MRSH - Free Report) Global Insurance Market Index, global commercial insurance rates declined 5% in the first quarter of 2026, marking the seventh straight quarter of easing prices. Even so, many commercial lines remain profitable, particularly property insurance, where favorable reinsurance conditions and ample capacity continue to support earnings.
Specialty & Excess-and-Surplus (E&S) insurance remains one of the fastest-growing niches. Businesses increasingly need protection against cyberattacks, professional liability claims, climate-related risks and other complex exposures. These policies are harder to underwrite, allowing insurers with specialized expertise to maintain stronger pricing and healthier margins.
Technology is Becoming a Competitive EdgeTechnology investments are increasingly separating industry leaders from the rest. More insurers are using artificial intelligence to speed up claims processing, improve underwriting, detect fraud and enhance customer service. While adoption varies across the industry, companies investing in modern technology platforms could improve efficiency and profitability over time. InsurTech and AI-enabled platforms remain a long-term growth theme as insurers modernize legacy systems, though many pure-play InsurTech firms remain smaller and more volatile.
Insurance Stocks That Stand OutAgainst this backdrop, three insurance companies stand out: American International Group, Inc. (AIG - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Accelerant Holdings (ARX - Free Report) . The companies carry a Zacks Rank #2 (Buy) each, combine solid earnings momentum with favorable estimate revisions and are well positioned to benefit from current industry trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s take a closer look at these three insurers and why they stand out.
American International Group continues to benefit from its multi-year transformation, which is driving stronger underwriting performance, disciplined capital allocation and consistent shareholder returns. In first-quarter 2026, General Insurance net premiums written increased 24% year over year, underwriting income more than tripled to $774 million, and the combined ratio improved to an excellent 87.3%, reflecting underwriting discipline across commercial and personal lines.
The company also benefits from a strong balance sheet. In February 2026, it completed minority investments in Convex and Onex, which are expected to be accretive to 2026 earnings and ROE. It is also expanding its commercial footprint through an agreement to acquire Everest’s insurance operations in Colombia, with closing expected in early 2027.
Based on short-term price targets offered by 22 analysts, the Wall Street average price target for AIG stands at $88.18 per share, suggesting a 17.4% upside from current levels.
The Zacks Consensus Estimate for AIG’s 2026 earnings is pegged at $7.98 per share, indicating 12.6% year-over-year growth. The estimate witnessed eight upward revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate indicates a further 10.3% increase. It beat earnings estimates in each of the past four quarters with an average surprise of 15.1%. The consensus mark for 2026 revenues is pegged at $29.18 billion, indicating 6.3% year-over-year growth, while the same for 2027 suggests a further 7% increase.
American Financial Group is well-positioned to benefit from sustained strength in the specialty property and casualty insurance market, supported by disciplined underwriting and a diversified commercial portfolio. In first-quarter 2026, net operating earnings increased 36.5% year over year, while Specialty P&C underwriting profit jumped 66%, driving an annualized return on equity of 15.8%.
The company continues to generate healthy investment income from its high-quality portfolio and maintains a shareholder-friendly capital allocation strategy. It returned $259 million through special dividends and share repurchases in the first quarter. Analysts' price targets currently range from $127 to $158, reflecting differing views on the stock's upside potential.
The Zacks Consensus Estimate for 2026 earnings is pegged at $11.37 per share, indicating a 10.5% year-over-year rise. The estimate has witnessed three upward revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate suggests a further 5.2% increase. American Financial Group beat the consensus estimate for earnings in three of the past four quarters and missed once, with the average surprise being 7.3%. The consensus mark for 2026 revenues is pegged at $8.01 billion, while the same for 2027 indicates a further 8% jump.
Accelerant Holdings is capitalizing on the growing specialty insurance market through its technology-enabled risk exchange that connects managing general agents or MGAs with diversified risk capital providers. In the first quarter of 2026, Exchange Written Premium increased 16% year over year to $1.14 billion, while operating revenues climbed 57% to $273.2 million. Fee-based Adjusted EBITDA more than doubled, reflecting the company's strategic shift toward capital-light, recurring revenue streams.
Accelerant also expanded its network to 296 members and reaffirmed strong full-year growth expectations. Its proprietary data, AI-driven underwriting tools and scalable marketplace model position the company to deliver profitable, long-term growth as specialty insurance adoption continues to expand. At the end of the first quarter, total assets stood at $8.6 billion. Based on short-term price targets offered by nine analysts, the Wall Street average price target for ARX is at $19.33 per share, suggesting a 53.1% upside from current levels.
The Zacks Consensus Estimate for ARX’s 2026 earnings is pegged at 73 cents per share, which has witnessed five upward estimate revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate indicates a 24.2% jump. It beat earnings estimates in each of the past four quarters, with an average surprise of 32.6%. The consensus mark for 2026 revenues is pegged at $1.09 billion, implying 19% year-over-year growth, while the same for 2027 suggests a further 9.4% increase.
Lemonade, Inc. (NYSE: LMND), the digital insurance company powered by AI and social impact, today announced the renewal of its reinsurance program, effective J
In the past few years, Palantir Technologies (PLTR +1.76%) has been among the hottest tech stocks to own. The rise in generative artificial intelligence (AI) opened up many exciting growth opportunities for the business, with its AI platform being a big hit with government and enterprise customers. The company's CEO, Alex Karp, has often boasted of its success and impressive Rule of 40 score, which, up until recently, has enabled the stock to surge in value despite trading at a sky-high premium.
This year, however, the stock is down 35%, as it's on track for its worst year since 2022, when it declined by 65%, back when the tech sector as a whole struggled due to rising inflation. What is behind the sell-off this year, and can Palantir bounce back?
Image source: Getty Images.
Has Palantir simply fallen out of favor with retail investors? Retail investors can play a big role in how a stock performs, particularly when its price is far above what may be warranted based on fundamentals, as is the case with Palantir. Now, however, with memory stock Micron Technology stealing the spotlight with its tremendous gains due to rising memory prices and Space Exploration Technologies (also known as SpaceX) recently going public, Palantir may simply not be as exciting a growth stock to own anymore; investors have more alluring options to consider.
For its part, Palantir's numbers still look good, and the business has continued to do well. In its most recent quarter, which covered the first three months of the year, the company's revenue rose by an impressive rate of 85%, totaling $1.6 billion. Its adjusted earnings also climbed by 61%. The company's results haven't been bad at all, but investors may simply not be as enamored with Palantir of late. And there is still the nagging issue about valuation, which may also be giving investors second thoughts about the stock.
Today's Change
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The stock may be struggling, but it remains incredibly expensive Although Palantir's stock has been in a tailspin this year, its price still isn't low enough to make it a cheap buy. It still trades at around 130 times its trailing earnings. And even based on its estimated future profits (according to analyst estimates), its forward price-to-earnings multiple remains steep at around 80.
Palantir may not be as egregiously overpriced as it was last year, but the stock continues to trade at a far higher value than is warranted based on its fundamentals. That's why, while it has come down hard this year, it may still have room to fall even further; I'd avoid the stock.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Palantir Technologies. The Motley Fool has a disclosure policy.
Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) has handed retirement investors a wild ride in 2026. Shares of Palantir closed Friday at $112.93, down 12.1% over the past week, 14.78% over the past month, and 36.47% year to date from a starting price of $177.75. The one year change sits at negative 21.71%, and the stock is roughly 46% below its 52 week high of $207.52.
Despite the pullback, most of the Street still holds moderate forecasts. The consensus 12 month analyst target sits at $182.75, with 18 Buy ratings, 10 Holds, and a couple of bears.
But veteran Rosenblatt Securities analyst John McPeake made waves earlier this year when he initiated coverage on February 27, 2026 with a Buy rating and a $150 price target, calling Palantir a market disrupting AI infrastructure play. From today’s price, that target implies meaningful upside by year end 2026.
That is well above the Polymarket crowd, which currently assigns just a 7% probability to PLTR hitting $150 in July, and below the broader sell side consensus. But can PLTR realistically reach $150 by the end of 2026?
McPeake’s thesis rests on operating leverage that is showing up in the numbers right now. Palantir’s Q1 2026 revenue grew 84.7% year over year to $1.632 billion, the highest growth rate in company history, and GAAP operating income reached $754 million at a 46% margin. CEO Alex Karp noted the “Rule of 40 score has soared to 145%”, a level matched only by NVIDIA, Micron, and SK hynix.
Key Drivers of PLTR Stock Performance AIP enterprise adoption. U.S. commercial revenue jumped 133% year over year to $595 million in Q1, with remaining deal value of $4.92 billion. For long term retirement accounts, that backlog supports years of compounding revenue over multiple quarters. Government AI spending. U.S. government revenue grew 84% year over year to $687 million. Defense and intelligence contracts are durable and renewable, the kind of recurring base retirement portfolios prize. Free cash flow generation. Q1 free cash flow hit $924.6 million, and management guides FY2026 adjusted free cash flow of $4.2 to $4.4 billion. Compounding cash flow at this scale is what funds buybacks, R&D, and the next leg of value creation. What Will It Take for PLTR to Reach $150? The math is clean. With 2,296,071,000 shares outstanding, $150 implies a materially larger market cap than today’s $270.7 billion. Three conditions need to hold:
Palantir delivers on its raised FY2026 revenue guide of $7.65 to $7.66 billion, a 71% growth rate. Operating margins stay near the 46% Q1 mark, validating the Rule of 40 narrative. The forward multiple holds near its current 77x, justified by triple digit U.S. commercial growth. The primary risk is multiple compression: a high beta of 1.515 and a P/E of 127 leave little margin for any guidance miss. Even so, with revenue growth accelerating, margins expanding, and a $4.92 billion U.S. commercial backlog already in hand, McPeake’s $150 target for year end 2026 looks well grounded, and the long term compounding story remains a credible anchor for retirement portfolios.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palantir didn't make the cut. Grab the names FREE today.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? 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, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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.
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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Bristol Myers Squibb (BMY - Free Report) New York-based Bristol Myers is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. Blockbuster immuno-oncology drug Opdivo maintains momentum on consistent label expansions. The company’s efforts to revive its portfolio amid generic competition for legacy drugs like Revlimid, Pomalyst, Sprycel and Abraxane are impressive.
BMY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.26; value investors should take notice.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $6.32 per share. BMY also boasts an average earnings surprise of +16.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, BMY should be on investors' short list.
As digital advertising markets evolve, investors must choose between established visual curation and high-growth community hubs. Choosing between Pinterest (PINS 3.47%) and Reddit (RDDT 0.45%) depends on your preference for stability versus rapid expansion.
Pinterest serves over 630 million users who seek inspiration for shopping and home projects, while Reddit connects over 126 million daily users through niche communities. Both platforms are vying for a larger share of the global advertising budget, but they take vastly different approaches to monetizing user attention and data.
The case for PinterestAs you explore investing in social media stocks, consider that Pinterest operates a visual search platform. Users curate ideas for fashion and home decor, while the company earns revenue by selling advertising to a broad network of retail brands. While the company does not disclose major individual customer names, it relies on Amazon Web Services to support its highly scalable visual search platform.
In FY 2025, revenue reached approximately $4.2 billion, representing growth of nearly 15.8% over the previous year. The company reported a net income of roughly $416.9 million. This resulted in a net margin of close to 9.9%, highlighting a trend of staying in positive territory for the second consecutive year.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x, which compares total debt to shareholder equity. The current ratio, measuring the ability to cover short-term debts with short-term assets, is roughly 7.6x, while free cash flow reached nearly $1.3 billion, representing cash from operations minus capital expenditures. Note that stock-based compensation represented 68.6% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for RedditReddit facilitates community-led discussions across thousands of niche topics, providing a unique environment for authentic user engagement. Revenue is heavily concentrated in advertising, which accounted for approximately 94% of its total sales in FY 2025. It relies on Amazon Web Services and Alphabet cloud infrastructure to support its massive community traffic.
For FY 2025, the company reported revenue of close to $2.2 billion, a significant increase of approximately 69.4% over the previous year. It achieved a net income of roughly $529.7 million, resulting in a net margin of nearly 24.1%. This reflects a sharp pivot from the net losses recorded in the preceding fiscal years.
Based on its December 2025 balance sheet, the debt-to-equity ratio, which measures total debt against shareholder equity, is 0.0x, indicating the company carries almost no debt. The current ratio is approximately 11.6x, providing a substantial cushion for short-term obligations, while free cash flow for the period was $684.2 million. Note that stock-based compensation represented 49.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonPinterest faces risks regarding its revenue concentration, as it relies heavily on the retail and consumer goods sectors. The company is also navigating multiple securities fraud class action lawsuits initiated in 2026, which could create legal and reputational hurdles. It must also successfully execute a restructuring plan to prioritize artificial intelligence roles while competing against giants like Meta Platforms and Alphabet.
Reddit carries risk from its reliance on a small group of major advertisers, making it vulnerable if those relationships change. The platform depends on a volunteer-moderator model, and any failure to maintain these relationships could lead to instability. It also faces regulatory pressure from global safety acts and intense competition from AI tools developed by companies like Microsoft and other tech leaders.
Valuation comparisonPinterest currently offers a lower Forward P/E and P/S ratio. These compare price to future earnings estimates and sales.
MetricPinterestRedditSector BenchmarkForward P/E11.0x33.8x16.2xP/S ratio3.3x14.6xSector benchmark uses the SPDR XLC sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Based on raw growth and momentum, I'd go with Reddit. Pinterest has built a loyal user base and a unique visual discovery platform that advertisers value, and growth has been respectable, with revenue and users climbing steadily for years. But the business is maturing into a more measured grower, and the stock has struggled to convince investors that its advertising business can accelerate from here.
Reddit is operating on a completely different growth curve. Advertising revenue has grown at a blistering pace for seven straight quarters, user engagement is climbing across every key metric, and the company is now solidly profitable with strong free cash flow. Reddit is also finding new revenue streams by licensing its enormous archive of human conversation to AI companies, which gives it a source of income that few other platforms can replicate.
Pinterest is a fine business, but Reddit is proving it can grow faster while building multiple paths to monetization. For an investor chasing the bigger growth story, that combination is hard to pass up.
Micron Technology (MU +0.71%) is the big name in tech these days. Its numbers have been out of this world, with both sales and profits rising at exceptionally high rates. Demand is high for its memory and storage products, while supply is limited, creating a terrific scenario for the company to be able to raise prices and for demand to remain robust.
This year, the stock has more than tripled in value, as it's been one of the hottest buys on the market. But could that change? In July, there's another big-name memory stock that could list on a top U.S. exchange, and for investors, it may be a more intriguing option to consider.
Image source: Getty Images.
SK Hynix to list on the Nasdaq as early as July 10 SK Hynix, one of the largest memory chipmakers in the world, plans to issue American depositary receipts on the Nasdaq exchange soon. They could begin trading by July 10 and would likely offer significant competition to Micron. The South Korean company is publicly traded, but by being on the Nasdaq, that would inevitably draw more attention to the tech stock and make it more accessible to the average North American investor.
The company, like Micron, has a valuation of more than $1 trillion. And with a dominant position in the high-bandwidth memory market, where it holds around 60% market share, it may lure many investors away from Micron's stock, making it suddenly less desirable for growth investors.
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Could Micron's stock be in trouble? Anytime a stock that's up around 800% in just the past year, like Micron is, there's going to be some risk of a correction on the horizon. While the company has been doing well and generating strong numbers, it also may not take much for investors to second-guess whether it's still a good buy at significantly elevated levels.
But, at the same time, investors who may have wanted exposure to SK Hynix could have bought the stock by now. While it may have taken a bit more effort to do so, this is not the same as a brand-new stock suddenly becoming available. There may be some investors who pivot to SK Hynix over Micron once it trades on the Nasdaq, but I would be surprised if there were a sudden, massive exodus.
Micron's stock may fall after July 10, but I don't anticipate a steep sell-off. Both stocks are likely to do well due to ongoing supply shortages, but that dependency also makes them both a bit risky to hang on to over the long haul. Growth investors should tread carefully, regardless of which stock they choose to buy.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
Key Takeaways Micron is seen as offering greater AI upside through HBM leadership and stronger earnings growth.MU trades at a lower forward P/E than STX while posting stronger one-year share price gains.Seagate is expanding AI storage with HAMR technology, cloud demand and higher-capacity Mozaic drives. The AI storage boom is transforming nearly every segment of the semiconductor industry. Massive AI models require enormous amounts of data to be stored, accessed and processed at high speed, creating heightened demand for both memory and storage solutions. Among the biggest beneficiaries are Seagate Technology Holdings plc (STX - Free Report) and Micron Technology (MU - Free Report) .
Per a report from Fortune Business Insights, the global AI-driven storage market is estimated to go from $44.94 billion in 2026 to $271.32 billion by 2034 at a CAGR of 25.2%. Growing data volumes, AI adoption in HPC data centers, cloud expansion, enterprise storage upgrades and increasing use of data analytics are fueling the AI-powered storage market. Although both companies operate within the broader storage ecosystem, they serve different parts of the AI infrastructure stack. Seagate dominates HDDs for hyperscale data centers, while Micron is a leader in DRAM and NAND flash memory that power AI servers.
For investors looking to capitalize on AI infrastructure spending, which stock offers greater upside? Let’s delve deeper.
The Case for STX StockAs enterprises retain more training data, images, videos and enterprise information, Seagate benefits from growing storage demand. Seagate is entering a period of structural growth, driven by three factors - sustained AI-led storage demand, its HAMR-based Mozaic technology roadmap for higher-capacity drives and a disciplined build-to-order strategy that supports profitable growth and margin expansion. These growth trends have helped the company deliver results ahead of its financial targets. Backed by sustained cloud infrastructure spending, the company has raised its annual revenue growth target to at least 20% over the next few years, with the expanding infrastructure commitments of hyperscalers supporting long-term demand.
AI is driving an explosion in data creation across generative AI, enterprise analytics, autonomous systems and edge computing, significantly increasing demand for scalable, cost-efficient storage. As AI workloads shift toward inference, data generation and long-term retention needs are rising across cloud and edge environments, boosting demand for Seagate's enterprise storage solutions. STX is well-positioned to capitalize on this trend through its HAMR-based Mozaic platform, which delivers higher-capacity, more cost-efficient drives that improve storage density and scalability.
Seagate's second-generation Mozaic 4+ HAMR platform delivers up to 44TB per drive, more than 30% higher capacity than earlier versions, while improving manufacturing efficiency through advanced laser and photonics technology. With HAMR adoption accelerating and Mozaic 5 targeting up to 50TB by late 2027, Seagate is well-positioned to expand beyond hyperscale customers into enterprise and edge markets, supporting long-term growth and cost efficiencies. Areal-density roadmap is another competitive advantage, enabling hard drives to maintain a lower total cost of ownership than alternative storage technologies. Higher-capacity HAMR drives are increasingly becoming the preferred solution for meeting AI-driven storage demand.
Furthermore, Seagate's capital allocation framework converts earnings growth and cash flow into a stronger balance sheet and greater long-term value for shareholders. Strong free cash flow generation, led by steady demand, operational improvements and disciplined capital spending, is expected to strengthen further through 2026. With capital expenditures projected to remain within its 4–6% of revenue target range as it ramps HAMR technology, Seagate appears well-positioned to sustain its current dividend in the near term.
Image Source: Zacks Investment Research
Nonetheless, Seagate still faces several risks despite its AI-driven growth opportunities. Demand for HDDs in consumer PCs continues to decline, SSD prices remain under pressure, enterprise IT spending is cyclical and hyperscale cloud customers can periodically delay storage purchases. While AI demand is helping offset these headwinds, Seagate remains partly exposed to traditional storage markets.
The Case for MU StockMicron is benefiting from the rapidly expanding AI-driven memory and storage markets. It recently delivered a strong third-quarter fiscal 2026 performance, highlighted by record cash flow and a continued focus on shareholder returns. The company reported EPS of $25.11 and revenue of $41.46 billion, both comfortably exceeding expectations. Micron expects free cash flow to surpass $30 billion and plans to accelerate share repurchases beginning Dec. 9, while maintaining ample cash for strategic investments and financial flexibility. It also significantly reduced debt over the past year, further strengthening its balance sheet.
Micron maintains a diversified memory portfolio spanning DRAM, NAND and HBM, enabling it to serve a broad range of end markets. The company continues to balance its DRAM and NAND mix while keeping HBM growth aligned with overall DRAM demand. Beyond AI data centers, Micron is expanding across automotive, industrial, aerospace and defense markets. It is also increasing the adoption of low-power DRAM for AI servers and CPUs, while its enterprise SSD business remains strong, generating $5 billion in revenue during the fiscal third quarter.
Micron has strengthened its long-term revenue visibility through 16 strategic customer agreements, including deals with hyperscalers for HBM. These non-cancellable, take-or-pay contracts include volume commitments and more than $22 billion in upfront commitments, including nearly $18 billion in cash deposits. Customer demand continues to exceed supply, particularly for HBM and DRAM, with HBM3E and HBM4 capacity for 2027 already booked and strong demand visibility extending into 2028. Management expects tight market conditions to persist beyond 2027 as the HBM market surpasses $100 billion.
Furthermore, Micron continues to invest in its global manufacturing footprint to meet strong customer demand, with fiscal 2026 capital spending expected to reach roughly $27 billion after government incentives. Capital expenditures are forecasted to stay high in fiscal 2027 as the company expands cleanroom capacity to support long-term growth. Management expects free cash flow to rise significantly in the fiscal fourth quarter. Over time, MU plans to return 100% of its excess cash to shareholders while keeping flexibility to invest in growth opportunities. Its guidance does not include potential impacts from trade or geopolitical developments.
Image Source: Zacks Investment Research
However, Micron remains vulnerable to the cyclical nature of the memory industry, where periods of oversupply can cause sharp declines in DRAM and NAND prices. The company also faces heavy capital spending needs and strong competition from Samsung and SK hynix. Additionally, if HBM supply eventually catches up with demand, pricing power and margins could come under pressure, potentially affecting future profitability.
Price Performance Trajectory for STX & MUOver the past year, MU has registered gains of 829.3%, outperforming STX and the Zacks Computer-Integrated Systems industry’s growth of 571.1% and 244.7%, respectively.
Image Source: Zacks Investment Research
Valuation: Discount vs. PremiumThe two companies trade at very different valuation profiles. MU looks more attractive than STX from a valuation standpoint. Going by the price/earnings ratio, MU’s shares currently trade at 10.25X forward earnings, lower than 35.71X for STX.
Image Source: Zacks Investment Research
How Do Zacks Estimates Compare for MU & STX?The Zacks Consensus Estimate for MU’s earnings for fiscal 2026 has been revised north by 24.3% to $71.74 over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for STX’s earnings for fiscal 2026 has been slightly revised up by 0.3% to $14.14 over the past 60 days.
Image Source: Zacks Investment Research
STX or MU: Which Stock Has More Upside?Both companies should benefit from the AI revolution, but they occupy different positions within the ecosystem. Seagate is building the storage infrastructure that supports AI data growth, with its HAMR technology, strong cloud demand and dividend making it an attractive choice for conservative, income-focused investors. Micron, meanwhile, is more directly exposed to AI computing. Its leadership in HBM positions it to benefit from surging AI accelerator demand, supporting faster earnings growth as AI infrastructure expands.
For investors seeking the highest upside, Micron appears to have the edge due to its direct exposure to the rapidly expanding HBM market and its stronger earnings growth trajectory. However, Seagate remains an attractive complementary investment, offering a more stable, lower-risk way to benefit from the relentless growth in AI-generated data.
Currently, STX has a Zacks Rank #3 (Hold), while MU sports a Zacks Rank #1 (Strong Buy). Consequently, in terms of Zacks Rank and valuations, MU seems to deserve a spot in your portfolio at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The disconnect suggests Micron’s explosive earnings growth has kept pace with, and perhaps even outstripped, its remarkable share price gains.
Micron’s Earnings Are Growing Even Faster Than Its StockMicron’s AI-fueled rally has been driven by surging demand for high-bandwidth memory (HBM) and other advanced memory products powering AI servers.
That demand is translating into profits at a pace few companies can match.
The company has posted EPS growth of more than 780% over the past year, while analysts expect earnings to grow another 109% over the next 12 months.
Those numbers help explain why Micron’s valuation has remained relatively restrained despite the stock’s enormous run. Instead of investors simply bidding up the shares, rapidly expanding earnings have prevented valuation multiples from stretching to the same extent seen in other AI names.
Nvidia And Broadcom Still Command Richer MultiplesThe comparison becomes more interesting when stacked against two of AI’s biggest winners.
Nvidia, now the world’s most valuable company, trades at roughly 30 times trailing earnings and about 22 times forward earnings.
Broadcom, another major beneficiary of AI infrastructure spending, carries a trailing P/E of around 62 and a forward multiple near 32.
Micron, by comparison, trades at approximately 26 times trailing earnings and just 7.5 times forward earnings.
That doesn’t necessarily make Micron undervalued. Each company has different business models, margins and long-term growth profiles. But it does suggest investors are assigning a more conservative valuation to the memory maker despite its outsized earnings growth.
AI’s Memory Boom May Still Have Room To RunFor years, memory chipmakers were viewed as cyclical businesses, with earnings swinging sharply alongside supply and demand.
The AI boom is beginning to change that narrative.
High-bandwidth memory has become one of the most critical components in AI servers, giving companies like Micron a larger role in the AI infrastructure buildout than many investors anticipated just a few years ago.
That shift is also reflected in stock performance. While Nvidia remains the face of the AI revolution, Micron has quietly delivered one of the strongest returns in the Nasdaq 100 this year.
The bigger surprise may not be the rally itself. It’s that after a gain of more than 300%, Micron still trades at a lower earnings multiple than Nvidia and at less than half Broadcom’s valuation, highlighting how rapidly the company’s fundamentals have strengthened alongside the AI boom.
Foto: Samuel Boivin / Shutterstock
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SanDisk (NASDAQ:SNDK | SNDK Price Prediction) is the ticker every screen is flashing right now, with the stock up 4,841.8% over the past year on a post-spinoff NAND euphoria trade that has Reddit calling it “the next play”.
The SanDisk Trade Has Nothing Left to Give SanDisk went from $47.25 to $2,335 in twelve months. That is a 26-bagger in a commodity NAND business that just printed a full-year FY2025 net loss of $1.64 billion and only became an independent public company in February 2025. Investors are paying a forward earnings multiple of 30 for a consumer-heavy storage maker whose consumer segment just declined 10% sequentially and whose pricing power depends on the Kioxia relationship.
The crowd has noticed. On June 15, an r/wallstreetbets post titled “Sandisk (SNDK) $1000 ITM” pushed retail sentiment to 85 (Very Bullish) before activity collapsed and sentiment slid back toward neutral within a week. When the only buyers left are options gamblers celebrating in-the-money lottery tickets, the marginal bid is gone.
The Coiled Spring: Micron Technology Micron Technology (NASDAQ:MU) just reported fiscal Q3 2026 and the numbers are the rebuttal. Revenue hit $41.46 billion versus a $35.25 billion consensus, a beat of 17.6%, with non-GAAP EPS of $25.11 against $20.28 expected. The stock trades at $1,213.56 on a forward multiple of 9. Read that again. Nine.
Three reasons this is the institutional redirect from the meme:
1. Scale and diversification SanDisk cannot match. Micron carries a $1.37 trillion market cap with four segments all growing in Q3 FY26: Cloud Memory at $13.77 billion, Core Data Center at $11.52 billion, Mobile and Client at $11.52 billion, and Automotive and Embedded at $4.63 billion. SanDisk leans on consumer NAND. Micron sells across cloud, data center, mobile, and automotive, and it is the only U.S.-based memory manufacturer.
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2. Profitability is already on the page. Micron has now delivered seven consecutive quarters of EPS beats. Q3 GAAP gross margin landed at 84.6%, up from 37.7% a year earlier. Free cash flow in the quarter was $18.30 billion, a 995% jump year over year. SanDisk is still digging out of a billion-dollar operating loss. Micron is printing cash by the quarter.
3. Earnings durability extends well into 2027. CEO Sanjay Mehrotra stated that “multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance.” HBM4 is in high-volume shipments for a lead AI accelerator platform, with HBM4E targeted for volume production in calendar 2027. Q4 guidance calls for revenue of $50.0 billion plus or minus $1.0 billion and non-GAAP EPS of $31.00. The board approved a 30% dividend increase earlier in the fiscal year, the quarterly payout sits at $0.15, and management has returned $650 million in buybacks through the first nine months of FY26.
Prediction markets reinforce the contrast. Polymarket gives MU a 95% probability of closing above $980 by the end of June, the floor support of a stock backed by real earnings rather than spinoff hopium.
The Action Micron belongs at the top of the research list before the next leg of the AI memory cycle prices in what the income statement already shows.
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Micron Technology (NASDAQ:MU | MU Price Prediction) has delivered one of the most extraordinary first halves in semiconductor history, with shares up 301.46% year to date through June 29, 2026. After a run like that, the question is whether anything is left in the tank.
My 24/7 Wall St. price target for Micron is $1,013.82, implying -11.48% downside from $1,145.28. Combined with extreme stretch from the 200-day moving average of $425.84, an insider base that is net selling across 96 recent transactions, and a bear scenario pointing to $737.55, the prudent call is sell.
Metric Value Current Price $1,145.28 24/7 Wall St. Price Target $1,013.82 Upside/Downside -11.48% Recommendation SELL Confidence Level 90% Why We Could Be Wrong Micron is one of the most divisive names, and real upside could come from sustained HBM4 pricing power or another guidance bombshell like the $50B revenue, $31 EPS Q4 guide. Thirty-nine of 44 covering analysts rate it Buy or Strong Buy, with a consensus target of $1,410.45. Treat my target as one datapoint.
A 4x Half Year, Then a Cooling Stock Shares ran from roughly $285.28 on December 31, 2025 to $1,145.28, fueled by Q3 FY26 revenue of $41.46B, up 345.72% year over year, and non-GAAP EPS of $25.11 versus the $20.28 consensus. That is the seventh consecutive beat.
Yet the stock is down 5.46% over the past week, sitting 12% below the 52-week high of $1,255. Polymarket traders give Micron only a 46.5% chance of closing higher today.
The Case for $1,400+ Bulls argue this cycle is structural. CEO Sanjay Mehrotra said the quarter “reflect[s] the strategic value of memory in the AI era”, and Micron has signed its first five-year Strategic Customer Agreement.
Gross margin expanded from 37.7% to 84.6% in a year, HBM4 is in volume for NVIDIA Vera Rubin, and management says supply stays tight “beyond calendar 2026”. Analyst consensus of $1,410.45 implies the bull case clears my target by a wide margin, and the model’s bull scenario reaches $1,338.83.
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What Could Go Wrong Memory is cyclical. The model’s bear case hits $737.55, a 35.6% drawdown. Reddit’s most-upvoted bearish thread warns “hyperscalers are implementing techniques that could compress memory usage by up to 40x”.
Capex is exploding, with FY26 spend above $25B and FY27 construction capex stepping up another $10B. A $325M loss on debt prepayments hit Q3, and insiders are net sellers. Bulls counter that capex funds the HBM capacity driving 80%+ margins, so heavy spend underwrites the growth thesis.
Micron Price Prediction 2026-2030 My 24/7 Wall St. price target sits at $1,013.82, my recommendation is sell, and my confidence is 90%. The factor tipping the scale is asymmetry: bull-case upside of roughly 17% versus a credible bear case near 36% downside on a beta-2 name after a 4x run. The setup would look more attractive if Micron pulls back toward $1,000 with HBM4E commitments intact.
Here is where our model projects Micron could trade, assuming current trajectories and a normalizing memory cycle hold.
Year 24/7 Wall St. Price Target 2026 $1,013.82 2027 $1,055 2028 $1,090 2029 $1,045 2030 $996.80 These projections assume Micron continues executing on HBM4E for calendar 2027 volume and memory pricing normalizes off current peaks. Significant upside could come from extended AI capex, while a hyperscaler-led efficiency shock remains the most credible downside catalyst.
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Key Takeaways BB's QNX saw strong demand across licenses, services, royalties and new automotive and GEM design wins.BB expanded Secure Communications with higher ARR and a broader Shared Services Canada agreement.BlackBerry cited Physical AI, Alloy Kore and key partnerships as drivers of future QNX growth. BlackBerry Limited’s (BB - Free Report) momentum has been supported by strong execution across its QNX and Secure Communications businesses. QNX continued to benefit from long-term trends, including software-defined vehicles, centralized computing, the broader embedded market and Physical AI.
The business reported strength across development licenses, professional services and royalties. Development license revenue reached its highest level in eight quarters, reflecting customer investment in new software platforms built on the latest SDP 8 technology. The company also secured new design wins across automotive and General Embedded Markets (GEM), including advanced driver assistance systems, driver monitoring solutions, commercial vehicles and medical diagnostics, while expanding adoption of its SDP 8 platform.
BlackBerry also highlighted several long-term growth drivers for QNX. GEM remains the company's fastest-growing segment, extending opportunities beyond automotive into robotics, industrial automation, medical devices and other safety-critical applications. The company believes Physical AI will continue to increase demand for technologies that offer safety certification, reliability and real-time determinism.
BlackBerry also continues to make progress with Alloy Kore, which is expected to expand its role from an operating system provider to a platform provider, increasing software content per vehicle and supporting future backlog growth. Partnerships with NVIDIA Corporation (NVDA - Free Report) , Qualcomm, Arm and other silicon ecosystem leaders continue to strengthen its position across next-generation intelligent systems.
Secure Communications also performed well in first-quarter fiscal 2027, supported by stabilizing fundamentals, improving customer retention and increasing government demand. Revenue exceeded guidance, while annual recurring revenue grew year over year. Growth benefited from the expansion and multiyear extension of its agreement with Shared Services Canada, which increased deployment of Secusmart's encrypted voice, data and video solutions.
The company also secured renewals, expansions and new customer wins across government, defense and regulated industries in North America and Europe. BlackBerry stated that demand remains healthy across both QNX and Secure Communications, supported by a growing pipeline, expanding backlog and continued customer engagement.
Taking a Look at BB’s CompetitorsCrowdStrike (CRWD - Free Report) remains well-positioned to benefit from sustained cybersecurity demand as customers consolidate tools on the Falcon platform and expand module adoption through subscriptions and Falcon Flex. AI-led launches, including agent-based workflows, broader data and browser protection, and deeper partnerships across the cloud ecosystem, support cross-sell and renewals over time. Recent acquisitions in identity and browser runtime security extend the platform’s addressable use cases, while the company’s liquidity and cash generation provide the flexibility to keep investing. The company also raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint and updated its full-year guidance to include total revenues of $5.91-$5.95 billion and ARR of $6.53-$6.55 billion.
Palo Alto Networks (PANW - Free Report) continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Platformization is translating into larger commitments, supported by expanding next-generation security ARR and RPO, and management guidance implies continued growth in the fourth quarter of fiscal 2026. Momentum in Network Security, SASE and Prisma AIRS, along with early execution on the CyberArk and Chronosphere integrations, supports the long-term revenue mix shift toward recurring software and free cash flow. For fiscal 2026, Palo Alto Networks now expects revenues in the range of $11.41 billion to $11.42 billion, suggesting year-over-year growth of 24%.
BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 27.8% in the past month against the Internet-Software industry’s decline of 9.9%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, BB is trading at 9.74, higher than the industry’s multiple of 4.39.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been unchanged over the past 60 days.
Image Source: Zacks Investment Research
BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Zillow Group, Inc. ("Zillow" or the "Company") (NASDAQ: Z, ZG).
IF YOU SUFFERED A LOSS ON YOUR ZILLOW INVESTMENTS, CLICK HERE BEFORE AUGUST 10, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between February 11, 2025 and May 7, 2026, Defendants failed to disclose to investors that: (1) Zillow's agreement with Redfin 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' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
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Glancy Prongay Wolke & Rotter LLP,
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The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Union Pacific (UNP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Union Pacific is one of 99 individual stocks in the Transportation sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Union Pacific is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for UNP's full-year earnings has moved 0.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, UNP has moved about 17.9% on a year-to-date basis. At the same time, Transportation stocks have gained an average of 15.9%. This means that Union Pacific is performing better than its sector in terms of year-to-date returns.
Another Transportation stock, which has outperformed the sector so far this year, is XPO (XPO - Free Report) . The stock has returned 51.7% year-to-date.
The consensus estimate for XPO's current year EPS has increased 8.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Union Pacific belongs to the Transportation - Rail industry, a group that includes 9 individual stocks and currently sits at #62 in the Zacks Industry Rank. On average, stocks in this group have gained 19.8% this year, meaning that UNP is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, XPO belongs to the Transportation - Truck industry. This 12-stock industry is currently ranked #43. The industry has moved +44.7% year to date.
Investors interested in the Transportation sector may want to keep a close eye on Union Pacific and XPO as they attempt to continue their solid performance.
Marley Kayden discusses Oppenheimer's downgrades on Bank of America (BAC), Citigroup (C), Morgan Stanley (MS) and Goldman Sachs (GS). With major banks set to report earnings on July 14, she talks about the key factors driving the firm's outlook.
Key Takeaways Intuit uses AI to automate workflows, improve decisions and expand higher-value assisted services.INTU's AI enhances TurboTax Live, supporting experts and growing assisted tax opportunities.Intuit embeds AI in QuickBooks to streamline business finances and drive mid-market growth. Intuit Inc. (INTU - Free Report) is advancing its transformation into an AI-driven expert platform by combining proprietary financial data, domain-specific AI and human expertise across TurboTax, Credit Karma, QuickBooks, Mailchimp and the Intuit Enterprise Suite. The company's AI strategy is expanding higher-value assisted services, automating workflows, improving decision-making and driving deeper monetization across its ecosystem. This momentum fueled strong third-quarter fiscal 2026 performance, with business verticals, assisted tax, the money portfolio and the mid-market business each growing more than 30%, prompting Intuit to raise its full-year fiscal 2026 revenue and non-GAAP guidance.
AI is enhancing TurboTax Live by supporting human tax experts and expanding assisted tax services. Management estimates assisted tax represents a $37 billion opportunity, covering nearly 88% of TurboTax's total addressable market.
The company's AI-powered ecosystem is also improving monetization. Customers using both TurboTax and Credit Karma generate roughly 30% higher average revenue per user (ARPU) than TurboTax-only users. More than 35% of TurboTax customers adopted fast-money offerings, while tax filers starting in Credit Karma are expected to grow 54%.
Meanwhile, QuickBooks is evolving into a financial "control tower" for businesses. The AI-native platform is gaining traction in the nearly $90 billion mid-market opportunity, with QuickBooks Online Advanced and Intuit Enterprise Suite Online Ecosystem revenues growing about 38% in the third quarter of 2026.
With AI embedded across its core platforms, Intuit is creating multiple avenues for growth through higher-value services, greater cross-selling and increased automation. Continued execution of this strategy should support durable revenue growth and reinforce its competitive advantage.
Other Fintechs’ PerformancePaychex (PAYX - Free Report) is rapidly integrating AI across its HR and payroll platforms, using generative and agentic AI to automate workflows and enhance decision-making. It has introduced AI assistants for conversational support, along with AI-powered analytics for real-time insights and forecasting. The company is also leveraging AI in recruiting and payroll to improve efficiency, accuracy and compliance.
Oracle Corp. (ORCL - Free Report) is a U.S.-based technology company offering cloud infrastructure, databases, enterprise software and ERP solutions such as NetSuite. Oracle is integrating generative AI across its cloud applications, including finance, planning, sales, operations and reporting tools, to improve automation and productivity.
INTU’s Price Performance, Valuation and EstimatesShares of Intuit have declined 24.7% over the past month, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 3.08X, which is at a discount to the industry average of 5.91X.
Image Source: Zacks Investment Research
Intuit’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised upward by a cent to $23.86 over the past week. The consensus estimate for 2026 calls for 18.4% growth year over year.
Image Source: Zacks Investment Research
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank 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.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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: Broadcom Inc. (AVGO - Free Report) Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.
AVGO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AVGO has a Growth Style Score of B, forecasting year-over-year earnings growth of 72% for the current fiscal year.
12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $11.73 per share. AVGO boasts an average earnings surprise of +2.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AVGO should be on investors' short list.
Palo Alto Network stock has gone parabolic this year, helped by the belief that the ongoing AI boom will lead to more demand for cybersecurity tools. PANW jumped to a record high of $332, up by 137% from its lowest level this year. Its market capitalization has jumped to over $270 billion.
Palo Alto Networks and other cybersecurity stocks have been in a strong bull run this year. Fortinet stock jumped to a high of $157, up by over 97% this year, while CrowdStrike has jumped by 62%. Other similar companies like Okta and SentinelOne have soared.
The surge is happening as investors remain optimistic about its prospects. Arete Research hiked its target from $185 to $433, while William Blair reiterated the rating to outperform.
Some of the other top investment banks, like Goldman Sachs, Susquehanna, and Piper Sandler, have all maintained a bullish outlook. The average target among analysts is $311, down slightly from the current level.
The general view among analysts is that the company’s tools will see more demand in the AI era. This urgency jumped after Anthropic released Mythos, its most advanced model.
The most recent earnings report showed that Palo Alto’s revenue jumped by 31% in the third quarter to $3 billion. This revenue growth included $388 million from CyberArk, the company it acquired in a $25 billion deal.
A look beneath the surface shows that the next-generation security ARR jumped by 60% YoY to $8.1 billion, while the Remaining performance obligation (RPO) soared by 36% to $18.4 billion.
Palo Alto Networks now expects that its next-generation ARR will jump to between $8.9 billion and $8.95 billion this year, an increase of 60%. Its revenue is expected to grow by 25% this year. While this double-digit growth rate is impressive, the main challenge is that it is boosted by CyberArk, a sign that the organic revenue growth is not all that strong.
Valuation concerns remainThere is no doubt that demand for cybersecurity solutions is rising and that Palo Alto Networks will continue being the most dominant player. However, there are now concerns about its valuation.
Data shows that the forward price-to-earnings ratio of 80, much higher than the sector median of 23. It is also higher than the five-year average of 23.
Notably, the company’s rule-of-40 shows that it is a bit overvalued. It has a net profit margin of 8% and a forward revenue growth of 24%, giving it a multiple of 33%. This is notable because its revenue growth estimate includes CyberArk, its recent buyout.
The daily chart shows that the PANW stock has been in a strong bull run in the past few months. It recently crossed the important resistance level of $302, the highest swing on June 1. Moving above that level invalidated the double-top pattern.
The risk, however, is that it has become highly overbought as the Relative Strength Index (RSI) has moved to 77.62. Also, the Stochastic Oscillator and other oscillators have continued rising. The stock remains above all moving average, with the 100-day EMA being at $223.
Therefore, there is a risk that the overbought stock will suffer a mean reversion. If this happens, it will drop to the key support level of $300.
LOS ANGELES, June 30, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Roblox Corporation (“Roblox” or “the Company”) (NYSE: RBLX) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between October 30, 2025 and April 30, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 7, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Roblox assured investors that it could minimize risks associated with age verification and accurately forecast its business performance. The Company claimed to be “enormously bullish” and able to rely on “tremendous organic growth.” The Company relied on viral events to supply growth while misleading shareholders about how age verification would impact platform engagement and the public’s view of its products. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Roblox, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
