Key Takeaways DOE aims for at least three advanced reactors to achieve criticality by July 4, 2026.OKLO, SMR and NNE may benefit as policy support accelerates advanced nuclear development.Testing, licensing and project execution remain key factors for advanced nuclear stocks. The U.S. nuclear industry is approaching a milestone that could shape the future of advanced reactor development. Under the Department of Energy’s (“DOE”) Reactor Pilot Program, the goal is to have at least three advanced reactors achieve criticality by July 4, 2026. Criticality means a reactor has achieved a self-sustaining nuclear chain reaction, an essential step before it can eventually generate electricity commercially. While it does not mean the reactor is ready to produce power immediately, reaching this stage validates years of design, engineering and regulatory work and marks meaningful progress toward commercialization.
Among publicly traded companies, Oklo Inc. (OKLO - Free Report) , NuScale Power (SMR - Free Report) and NANO Nuclear Energy (NNE - Free Report) are likely to remain in focus as investors assess which companies stand to benefit from the renewed policy support for advanced nuclear technology.
A Faster Path for Advanced ReactorsThe DOE launched the Reactor Pilot Program in 2025 to accelerate the testing and demonstration of first-of-a-kind advanced reactors. The program was created under Executive Order 14301, which directed the DOE to streamline approvals and target at least three reactors reaching criticality by this Independence Day.
Two projects have already crossed this important milestone. Antares Nuclear's Mark-0 reactor achieved criticality on June 4, becoming the first U.S. non-light-water reactor to do so in more than four decades. Valar Atomics followed on June 18 with its Ward 250 microreactor, while Aalo Atomics is expected to become the third reactor to reach criticality before the July 4 deadline.
Recent comments from U.S. policymakers suggest confidence in achieving the target of having three advanced reactors reach criticality by July 4. Officials have described the current period as the beginning of a new phase for advanced nuclear development, supported by faster regulatory processes and stronger policy backing. They also believe that some small modular reactors (SMRs) could begin generating electricity as early as next year, with wider commercial deployment expected before 2028. If that timeline holds, it could improve investor confidence in the long-term outlook for the advanced nuclear industry.
What It Means for Oklo, NuScale and NANO NuclearAlthough Oklo, NuScale and NANO Nuclear are not the reactors currently racing toward the July 4 milestone, the broader policy environment could benefit the entire advanced nuclear sector.
OKLO has one of the closest links to the DOE's broader effort. The company is developing its Pluto project under the Reactor Pilot Program and is targeting July 4, 2026 criticality for its Groves isotope test reactor. OKLO is also moving forward with its Aurora-INL project while expanding into fuel fabrication and fuel recycling. This gives the Zacks Rank #3 (Hold) company exposure to several parts of the nuclear value chain rather than relying on reactor development alone.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NuScale stands out for its regulatory progress. Its SMR technology has already received key U.S. Nuclear Regulatory Commission approvals, and the company uses commercially available low-enriched uranium fuel. NuScale is also working on large-scale deployment opportunities through projects in the United States and Romania, positioning it as one of the more commercially advanced SMR developers.
NANO Nuclear is focused on smaller microreactors through its KRONOS MMR design. The company is preparing to begin the NRC licensing process for its first deployment at the University of Illinois after its construction permit application is formally accepted. At the same time, NANO Nuclear is pursuing opportunities in AI data centers, industrial facilities and defense applications while expanding partnerships that could support future commercialization.
Beyond the July 4 DeadlineThe significance of the July 4 target extends well beyond one milestone. The administration ultimately wants U.S. nuclear capacity to reach roughly 400 gigawatts by 2050, with advanced reactors expected to serve military bases, data centers, industrial facilities and export markets. The DOE is also expanding testing infrastructure through initiatives such as the Nuclear Energy Launch Pad to provide developers with a more permanent pathway from demonstration to commercial deployment.
For investors, this means the investment case is no longer centered on a single reactor announcement. Instead, OKLO, NuScale and NANO Nuclear are increasingly being evaluated within a policy framework designed to shorten development timelines and encourage private investment. Even so, commercial deployment requires additional testing, licensing and execution, making regulatory progress and project delivery important factors to monitor alongside technological advances.
Cerebras (CBRS 3.95%) shares took a hit after the inference chipmaker reported its first quarterly results as a public company after the bell on June 23. After surging on its opening day back on May 14, the stock has been on a steady decline since, and it traded below its $185 IPO price for a short period last week.
Let's take a closer look at the company's results to see whether this weakness presents a buying opportunity for the AI stock.
Image source: The Motley Fool.
Cerebras posted strong revenue growth Cerebras demonstrated rapid revenue growth in Q1, with sales surging 92% year over year to $193.4 million. Its net loss, meanwhile, narrowed to $14 million from $23.9 million a year earlier, while its adjusted loss was just $3.5 million. Hardware revenue climbed 60% year over year to $111.6 million, while core cloud and other service revenue surged 167% to $79.8 million.
The company also announced two major partnerships. It revealed that it signed a $20 billion multi-year deal with OpenAI in late December. It also announced a collaboration with Amazon's cloud computing unit, Amazon Web Services (AWS), to combine Amazon's Trainium chip with Cerebras' CS-3 system to be used within AWS data centers. Given the large size of Cerebras' inference chips and the specialized cooling they require, it only sells them as a full system.
Looking ahead, Cerebras projected full-year 2026 core revenue to be between $855 million and $865 million, representing growth of around 69%. For Q2, it expects revenue to soar 88% to $194 million. It is seeking revenue to accelerate later in the year as cloud deployments ramp up. The AWS partnership will become a bigger contributor in 2027.
One area that disappointed investors was its gross margin guidance. After seeing gross margins expand from 42.1% a year ago to 46.5% in Q1, it forecast that they would drop to between 38% and 41% for the year. The company's CEO later said investors were confused by its gross margin guidance, noting that the only reason they were set to fall was that it decided to rent back some capacity from an existing customer.
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Is it time to buy the dip on Cerebras? Cerebras is uniquely tackling the inference market with its wafer-sized SRAM-based chips. They have superior performance, but given their size and cooling needs, they cost more and right now remain a bit of a niche. However, with the OpenAI and AWS deals, the company has the opportunity to move its technology closer to the mainstream.
That said, with a market cap of around $40 billion and projected revenue of less than $900 million this year, this is an expensive stock. It really needs to show it can upend the inference market to justify its current valuation. As such, I'd consider it a highly speculative stock at this point.
On Tuesday, June 23, its sixth full day of trading, the stock of Space Exploration Technologies Corp. (SPCX +1.36%), or SpaceX, briefly dipped to an all-time low of $147.55/share, below its debut price of $150/share. Since then, it hasn't closed above $157/share.
But is this price drop actually a buying opportunity in disguise? Here's what investors should know about SpaceX's prospects moving forward.
Image source: Getty Images.
Par for the course SpaceX's shares shot up to an intraday high of $176.52/share just after it began trading on Friday, June 12. Many observers thought that might be the high-water mark for the stock.
But SpaceX surprised everyone over the following two days as its stock price rocketed up to close at $211.39/share on Tuesday. This briefly put its market capitalization at $2.6 trillion, surpassing Amazon to become the fifth-largest company in the world. Analysts began to wonder if the classic trajectory of a hot IPO -- a brief Day 1 share price spike followed by a long, gradual decline -- didn't apply to SpaceX.
That dream was short-lived. The decline began the very next trading day, with shares eventually closing below $160/share on June 22, where they've mostly stayed since.
So, is now a good time to buy shares?
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SpaceX stock has a long road ahead of it There are two compelling reasons to stay away from SpaceX shares right now: dilution and lockup expiration.
Dilution comes from additional share issuances. SpaceX's recent agreement to acquire artificial intelligence developer Anysphere in a $60 billion all-stock deal already requires the issuance of about 400 million new shares. An additional preexisting deal for wireless spectrum will require the issuance of $11.1 billion in new shares in 2027. And various executive bonuses, stock options, settlements, and other awards totaling about $150 billion in new shares could be issued under certain conditions as well. These issuances will likely drive the share price lower.
Meanwhile, a healthy chunk of SpaceX's existing shares are currently on "lockup." Those shares will begin unlocking two trading days after SpaceX's Q2 earnings report, which is likely to occur in late July. Additional shares unlock throughout the year until the big 180-day lockup period expiration (for employees and most pre-IPO investors) on Dec. 8. Elon Musk's shares won't unlock until June 2027.
Image source: Getty Images.
Given widespread concerns about the company's sky-high valuation, there will be strong incentives for shareholders to sell their shares as soon as their lockups expire, which would put more near-term downward pressure on the stock.
In other words, if you want to buy and hold SpaceX shares for life, waiting at least until Dec. 9, after all those new shares have flooded the market, is likely to get you a better price than buying now. And waiting until 2027, when all shares are unlocked, and we'll have a year of quarterly numbers to help us evaluate the stock price, is probably an even smarter move.
Key Takeaways CHTR shares surged 9.4% after reports of talks with SpaceX about a potential mobile partnership.CHTR's Spectrum Mobile growth could gain from satellite-backed coverage in underserved areas.CHTR trades below industry valuation metrics with expected 18.8% earnings growth this year. While SpaceX (SPCX - Free Report) has been hogging the headlines in recent weeks, shares of Charter Communications, Inc. (CHTR - Free Report) soared 9.4% on June 29 after reports suggested the cable and broadband provider has held discussions with SPCX over a potential mobile partnership. The report fueled investor optimism that closer collaboration with SPCX's satellite capabilities could strengthen Charter's wireless ambitions and improve connectivity in underserved areas, complementing its existing broadband network.
Charter has been navigating a landscape where cord-cutting remains persistent as consumers increasingly favor streaming platforms over bundled pay-TV packages. At the same time, operators have relied more heavily on broadband and mobile offerings to offset declines in video subscribers. The industry has also been investing aggressively in network upgrades to defend market share against fiber expansion and fixed wireless access services.
Despite these headwinds, Charter has continued to position itself as more than a cable television provider. Its Spectrum Mobile business has delivered steady customer additions, highlighting growing demand for bundled broadband and wireless services. A partnership involving SpaceX could further enhance Charter's long-term strategy by expanding mobile coverage and potentially enabling satellite-backed connectivity in hard-to-reach locations. Such a move would also reflect the broader convergence of terrestrial broadband, wireless and satellite communications.
Comparison With PeersCHTR currently carries a Zacks Rank #3 (Hold). The rally marked a welcome change for Charter after a challenging month. While it has outperformed the broader Zacks Cable Television industry over the past month, it has risen a 2.5% against a 7.2% fall for the industry. The stock has faced pressure as investors remained cautious about slowing broadband subscriber growth, intense competition from fiber providers and the continued shift away from traditional cable television. CHTR has, however, outdone peers like Comcast Corporation (CMCSA - Free Report) and Naspers Limited (NPSNY - Free Report) , which have declined 3.3% and 1.4%, respectively, over the same period. CMCSA and NPSNY also carry a Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Resilience of CHTRCHTR appears attractively valued relative to its industry. Its forward P/E of 3.11, well below the industry's 5.80, suggests the stock trades at a significant discount. Its PEG ratio of 0.23 versus the industry's 0.57 indicates investors are paying less for each unit of expected earnings growth. Backed by an expected 18.8% earnings growth this year, the valuation implies the market may be underpricing CHTR's growth prospects, provided it delivers on earnings expectations. The company is expected to report its second-quarter 2026 earnings on July 24, before the market opens.
Bottom LineLooking ahead, investors will likely focus on CHTR's ability to sustain broadband growth, expand its mobile subscriber base and improve profitability while managing competitive pressures. Any formal agreement with SpaceX could create new opportunities to differentiate its service offerings and accelerate innovation. Although challenges from cord-cutting and fierce broadband competition are unlikely to disappear, Charter's evolving business model suggests it is increasingly focused on becoming a diversified connectivity provider rather than relying on the shrinking traditional cable TV business. If execution remains strong, the company could be better positioned to capitalize on the next phase of the communications industry's evolution.
Space Exploration Technologies (SPCX +1.09%) had a very successful initial public offering (IPO), with the rocket company raising close to $86 billion earlier this month. It was a record figure, highlighting just how much appetite there is for Elon Musk's company, commonly referred to as just SpaceX.
What may be eyebrow-raising is that despite the recent IPO, the company was once again raising cash through a $25 billion debt sale. Within just two weeks, SpaceX has been raising even more money. But why?
Image source: Getty Images.
SpaceX is using the money to pay off its bridge loan for xAI SpaceX acquired xAI earlier this year, and it took out a $20 billion bridge loan to do so. According to reports, the company initially planned to raise $20 billion in this recent debt sale. However, with strong interest and demand, the figure climbed to $25 billion.
Tech companies have been increasingly turning to bonds this year to raise cash for expansion, particularly to make heavy investments in artificial intelligence (AI). Simply offering stock all the time can be less than ideal, as it dilutes the stock and weighs down the price, which is bad news for investors. Debt, however, comes with interest expense.
Companies often use a mix of both to try to manage their cash flow needs, and with SpaceX's recently issued notes being due between 2031 and 2056, it gives the company some important financial flexibility.
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Why SpaceX's cash flow needs could intensify SpaceX has bold plans to put data centers into space and land rockets on Mars. And not only are they ambitious plans, but they're also going to be incredibly costly endeavors to undertake. That means the company's need for cash is likely to balloon significantly. It already has.
During the first three months of the year, the company's capital expenditures totaled $10.1 billion, which was more than double what they were a year ago ($4.1 billion). The bulk of that increase came from its AI segment, which may not slow down anytime soon. Meanwhile, with the company's operations being unprofitable, SpaceX isn't in a terribly strong financial position today.
For investors, this means that there could be frequent stock offerings and more debt issued in the future. As rosy as the growth expectations may be with SpaceX, there are also plenty of reasons to be concerned; optimism alone may not be enough to keep the stock from falling. Already trading at a high valuation and with a market cap of $2 trillion, SpaceX stock is incredibly expensive and comes with significant risk; it's a stock I'd stay far away from.
The post-IPO boom phase for those red-hot shares of Space Exploration Technologies (NASDAQ:SPCX) didn’t seem to last very long, peaking at just north of $200 per share before plunging as low as the low-$150 levels, well below the day-one opening close. Indeed, if you didn’t buy on the first day of trading, patience was rewarded quite quickly. With shares a few dollars above where they were on day one, though, the big question is whether it still makes sense to buy before the stock is added to the Nasdaq 100.
Indeed, that S-1 prospectus was packed with profound innovations, some of which, at least in my humble opinion, are quite ambitious and could take many years longer than excited investors expect. Indeed, orbital data centers aren’t going to happen overnight. And questions linger as to whether the model is practical enough to evolve into a profitable business anytime soon.
SpaceX is full of promise, but the premium bakes in a lot As for asteroid mining, who knows when that will be a thing? In many ways, a big bet on SpaceX shares requires a big leap of faith and utmost confidence in Elon Musk. There’s no shortage of people who’ve been more than willing to pay up in the first week of trading.
As the Nasdaq 100 starts buying while insiders get ready to offload their positions in a few months, investors had better be prepared for extreme levels of volatility in both directions. At this juncture, it’s not hard to imagine that many investors have already piled into the stock with the expectation that the Nasdaq 100 will need to start loading up at market prices.
Add the limited float that’s trading around, and I do think that patience is the best move when it comes to SpaceX. In due time, more shares will be made available, and my guess is that the initial glimmer from that packed S-1 prospectus will begin to fade, as focus shifts from what’s possible to the challenges facing the firm in the present moment.
Will AI CapEx jitters weigh down SpaceX shares? Indeed, AI-related CapEx has not been taken well by the market of late. And as we gain more clarity into the trajectory of the financial situation, I do think that there’s more than enough fuel for a correction to IPO prices of $135 per share. Who knows? Maybe a Fed rate hike or two could be enough for investors to fall out of love with some of the market’s most expensive, growthy tech stocks, including the likes of SpaceX.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and SpaceX didn't make the cut. Grab the names FREE today.
For long-term thinkers who just have to have a piece of SpaceX in year one, I do think that the moment to pounce has a pretty high chance of arising at some point in the second half. Any way you look at it, 104.0 times price-to-sales (P/S) is a ridiculously high price to pay for any stock, including one with unbounded ambitions. My worry is that the market might start souring on SpaceX shares once we learn more about how much CapEx will be in the cards in the years to come.
Indeed, SpaceX is serious about being a combatant in the AI wars. And the price to play is, indeed, steep. AI data centers do not come cheap, and SpaceX is the only firm that’s building on the ground and up in the sky, where the costs could be astronomical (no pun intended).
The bottom line While I do find SpaceX to be a profoundly ambitious company with invaluable, unique assets and a wide moat, I just can’t justify the valuation. Once more shares trade hands and the price of admission cools off a bit, I might give the name a second look. But, for now, I’m in no rush to buy at over $160 per share.
Though I do understand why some would want to initiate a starter position right here, given the FOMO (fear of missing out) and the potential for the firm to enter some sort of growth inflection point if Elon Musk’s ambitious projections do prove realistic.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and SpaceX didn't make the cut. Grab the names FREE today.
Just three days after the initial public offering (IPO) and during the initial rally, Jim Cramer opined on X that SpaceX (NASDAQ: SPCX) stock was a ‘monster’ at $200.
At the time, the post was jokingly criticized by the former hedge fund manager’s social media followers, including enterprise accounts and some prominent figures such as Tiffany Fong, in accordance with the popular meme that his bullishness tends to be a harbinger of disaster.
SpaceX trading at $200… Monster!
— Jim Cramer (@jimcramer) June 15, 2026 By press time on June 30, however, the joke turned serious as the SpaceX rocket took a stock market nosedive shortly after recording its $225.64 all-time high (ATH).
Indeed, while they have recovered slightly from the lows they hit late last week, SPCX shares are changing hands at $164.99 on Tuesday morning. Therefore, Elon Musk’s newer public company lost $17.51 of its value from the time Jim Cramer declared it a ‘monster.’
In other terms, an investor who decided to put $1,000 into the equity upon seeing the social media post would have suffered a $175.10 unrealized loss – provided they did not rush for the exit in the meantime – by press time on June 30.
SpaceX stock price one-month chart. Source: Google Was Jim Cramer bullish on SpaceX stock ahead of the crash? Simultaneously, it is worth pointing out that Jim Cramer remained skeptical throughout the SpaceX launch upsurge and, indeed, declared it a ‘meme rally’ of a ‘meme stock’ that was unlikely to be sustained.
Indeed, even the CNBC host’s forecast made during the uptrend that he anticipates the shares of SPCX to climb one point per hour was likely ironic given the rest of his commentary from the period.
Maybe it's okay to you, but I would hate to see a meme stock–what SpaceX stock has become–walked to the size of Nvidia over a series overnight moves with no sellers. But that seems to be the goal. Maybe early release of those who want to go?? I am uncomfortable watching a stock…
— Jim Cramer (@jimcramer) June 16, 2026 What is next for SpaceX stock in 2026? Elsewhere, the SpaceX rocket and nosedive dynamic was, arguably, to be expected given the extreme IPO valuation of the company and the historical performance of similar previous offerings.
Additionally, the SPCX shares’ recent downturn is unlikely to prove permanent, and the equity will enjoy strong tailwinds as soon as July 7, as its inclusion in the Nasdaq-100 has been confirmed for the date.
SpaceX stock is likely to launch into the stratosphere once more, both in the days preceding the event and especially later in the month as index funds begin their automatic buying of the equity.
Lastly, the firm’s subsequent performance is harder to gauge as, on the one hand, major insiders will slowly be gaining the ability to sell – a fact they might be keen to take advantage off given the severe mismatch between the firm’s financials and market capitalization – but on the other, Wall Street experts overall appear confident the SPCX stock trajectory will remain upward at least by 2027.
Featured image via Shutterstock
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Toll Brothers (TOL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this home builder have returned +19.2% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Building Products - Home Builders industry, to which Toll Brothers belongs, has gained 12% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Toll Brothers is expected to post earnings of $2.90 per share for the current quarter, representing a year-over-year change of -22.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.1%.
For the current fiscal year, the consensus earnings estimate of $12.69 points to a change of -5.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $14.13 indicates a change of +11.3% from what Toll Brothers is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 Toll Brothers.
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Toll Brothers, the consensus sales estimate of $2.6 billion for the current quarter points to a year-over-year change of -11.8%. The $10.7 billion and $11.12 billion estimates for the current and next fiscal years indicate changes of -2.4% and +3.9%, respectively.
Last Reported Results and Surprise HistoryToll Brothers reported revenues of $2.53 billion in the last reported quarter, representing a year-over-year change of -7.6%. EPS of $2.72 for the same period compares with $3.5 a year ago.
Compared to the Zacks Consensus Estimate of $2.41 billion, the reported revenues represent a surprise of +5.07%. The EPS surprise was +5.43%.
Over the last four quarters, Toll Brothers surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Toll Brothers is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Toll Brothers. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
When it comes to the top artificial intelligence (AI) stocks, it seems like investors pay less attention to Apple (AAPL +1.59%) than in prior years. Even after its founder and main innovator, Steve Jobs, passed away in 2011, its products remained popular for some years, and the stock became the primary holding of Warren Buffett's Berkshire Hathaway during that time.
Today, Apple remains Berkshire's largest holding, but it now makes up less than 20% of its portfolio, down from a peak of close to 50%. Although it may not be a sell for most investors, the stock is not looking like much of a buy in today's environment, and three reasons likely explain why.
Image source: Getty Images.
1. Rising memory costs One recent development that alarmed Apple investors was a sudden price increase in its MacBook and iPad products. Memory companies like Micron Technology benefit from unprecedented demand for their high-bandwidth memory (HBM). Hence, they have considerable pricing power, at least for now.
Apple admitted that the rising price of memory chips prompted the higher product prices, and its stock fell by 6% on June 25 following the news. Interestingly, this news did not include the iPhone, the product that makes up the majority of Apple's revenue. Nonetheless, its iPhone has benefited from an upgrade cycle in recent quarters, which has led to a renewed interest in Apple stock.
Such price hikes may lead to speculation as to whether that cycle will continue. That theory may or may not become reality, but it brings a level of uncertainty that can dampen optimism in Apple stock.
2. Lack of AI leadership When it comes to AI innovation, Apple rarely comes up in discussions. Interestingly, the business model that once built Apple's leadership may have hampered its AI development.
For one, its strict privacy laws prevent the use of its data for developing large language models (LLMs). That may partially explain why Siri AI is not impressing investors. Furthermore, the use of AI agents seems to have made many apps irrelevant. That is a threat to the commissions (which are as high as 30%) collected by its App Store.
Additionally, Apple recently partnered with Alphabet to power Apple Intelligence features. Knowing this, one has to wonder whether Apple has simply given up on its in-house AI.
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3. Valuation Such news might lead to the perception that Apple should trade like a value stock. Unfortunately, investors will find no such bargain. Today, its price-to-earnings (P/E) ratio is 34. That may seem difficult to justify, considering that Alphabet, the company now powering much of its AI, trades at 26 times earnings.
Ironically, Apple stock rarely traded above a 20 P/E ratio in the second half of the 2010s, the time when Buffett took a heavy interest in Apple and dramatically increased Berkshire's stake in the tech giant.
Indeed, Apple is not as overvalued as some AI stocks. Still, given that Apple's P/E ratio makes it the most expensive "Magnificent Seven" stock next to Tesla, its earnings multiple seems to make little sense in today's market.
Moving forward with Apple stock Despite its challenges, Apple stock is likely not a sell. However, investors should think twice before buying the tech stock in today's market environment. For one, the unprecedented demand for memory chips has forced Apple to increase prices, something that could undermine the upgrade cycle that has benefited the company in recent months.
Moreover, Apple's contract with Google Gemini shows that it is less likely to become a leader in AI. Under such conditions, investors should be reluctant to pay 34 times earnings for Apple stock when the stock of AI leaders like Alphabet is significantly cheaper.
Ultimately, until the above conditions improve, investors should probably refrain from adding more Apple shares.
Social media and tech giant Meta Platforms (META 1.18%) has been known for expanding its business in many ways, pursuing various opportunities. The next big opportunity it is reportedly eyeing is prediction markets, which have been one of the hottest new trends in recent years, with people making bets on just about any event.
According to reports, Meta Platforms is working on a prediction markets platform. Could this be a game changer for its business, or is this just another example of the social media company looking to hop on the latest trend?
Image source: Getty Images.
Why the move could make sense for Meta The app Meta Platforms is working on is reportedly known internally as "Arena," but may have a different name if and when it launches. While it would look to tap into Meta's massive user base on its social media platforms, the app would be separate from them. In prediction markets, the more people placing bets, the greater the interest may be, as there are more types of event contracts to bet on, and thus, Meta would have a big advantage over other companies in the space.
The opportunity is a potentially massive one, with the investment firm Bernstein projecting that by the end of the decade, prediction market volumes will top $1 trillion. But what may impede that is regulation, as there have been growing concerns about people trading and making bets with insider information. Building trust on any such platform would be key. At the same time, competition in prediction markets is growing, with many companies looking to get a slice of the pie. But with Meta having billions of active daily users, it could be well-positioned to succeed.
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555.97
Does this make Meta Platforms stock a better buy? Over the years, Meta has pursued many opportunities, but not all have paid off simply because it has a large user base. People may use Facebook and Instagram regularly, but that doesn't guarantee they'll pivot to other platforms it creates.
Although getting into prediction markets is a good opportunity for the business, I'd hesitate to call it a game changer for Meta. It could take years for any such app to result in significant growth for the business, and even then, it's not a sure thing given the obstacles that the prediction markets industry faces. For a company that generated more than $56 billion in revenue in its most recent quarter, it would take a lot to move the needle and have a significant impact on its financials. Meta social media apps and the ad revenue they generate will continue to be its bread and butter for the foreseeable future.
The good news is that with the stock trading at just 18 times its estimated future profits (based on analyst expectations), it offers some good value right now, and could be a good buy for the long run, regardless of what happens with its latest venture.
Tesla (NASDAQ: TSLA) could overtake SpaceX (NASDAQ: SPCX) in market capitalization by July 2027, according to an analysis by OpenAI’s ChatGPT that considered the latest developments across Elon Musk’s companies.
The projection comes as SpaceX holds a market value of about $2.16 trillion following its historic initial public offering, while Tesla is valued at roughly $1.55 trillion, leaving a gap of about 28.5%.
According to the analysis, Tesla has a higher probability of delivering near-term commercial milestones that could drive faster valuation growth over the next 12 months.
The company continues to expand its autonomous driving ambitions through Full Self-Driving (FSD) updates, including Version 14, while increasing robotaxi operations in select U.S. cities.
Tesla is also preparing for Cybercab production and advancing Optimus, its humanoid robot platform, which is viewed as a potentially significant long-term revenue opportunity.
As a result, Tesla’s valuation is becoming increasingly tied to its artificial intelligence and robotics businesses rather than vehicle sales alone.
Based on these factors, ChatGPT estimates Tesla could reach a market capitalization of between $2.4 trillion and $2.7 trillion by mid-2027, allowing it to surpass SpaceX if execution remains on track.
Under the base-case scenario, Tesla would overtake SpaceX around July 2027 and hold a market value about 6% to 8% higher shortly after the crossover.
The case for SpaceX stock growth While Tesla may have the edge in near-term commercialization, ChatGPT noted that SpaceX continues to benefit from strong investor interest following its public market debut.
The company’s long-term growth strategy remains centered on Starship, Starlink, and artificial intelligence initiatives integrated through xAI.
SpaceX has advanced testing of its Starship V3 vehicle, featuring upgraded Raptor 3 engines, redesigned propulsion systems, and increased propellant capacity.
The company is also working toward orbital refueling demonstrations, expanding production facilities, and increasing launch capacity across multiple sites.
Meanwhile, Starlink remains SpaceX’s largest revenue driver and is widely viewed as the financial foundation supporting future Mars missions, lunar exploration projects, and broader space infrastructure ambitions.
The company also continues to play a key role in NASA’s Artemis program while pursuing potential uncrewed Mars missions later in 2026.
On the other hand, Tesla still faces regulatory and production risks tied to autonomous driving, Cybercab, and Optimus.
Meanwhile, SpaceX could retain its lead if Starship development progresses faster than expected, Starlink growth accelerates, or investors place greater value on its space infrastructure business.
Tesla (TSLA +0.83%) shares have had a magnificent run since their initial public offering in 2010. But over the past half-decade, they have only risen by 69% (as of June 26).
The S&P 500 index, by comparison, has generated a total return of 85%. Investors might be thrown off by the electric vehicle company's underperformance.
There is chatter about a merger between Tesla and Space Exploration Technologies. Assuming this potentially massive deal doesn't go through, where will Tesla's shares be in five years?
Image source: The Motley Fool.
Bringing AI to the physical world In 2025, Tesla's automotive revenue of $69.5 billion accounted for 73% of the company's entire top line. Founder and CEO Elon Musk wants the business to evolve from one-time sales like this. Tesla continues to develop its artificial intelligence capabilities in hopes of creating a major impact on the physical world.
Autonomous driving technology is one area. The Cybercab, which will supply the Robotaxi platform and full self-driving software to customers, is slowly progressing.
With Optimus, robotics is the other focus. Tesla is preparing its Fremont factory to eventually produce 1 million robots per year. In 2024, Musk said that he believed Optimus would one day lift the company's total market capitalization to $25 trillion.
It's impossible to know the exact timeline for these two strategic priorities. In five years, Tesla's sales and profit mix could look fundamentally different from today. If autonomous driving and robotics take longer than planned, then the company likely won't change much.
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Expectations will be hard to beat Any objective observer of Tesla would come away impressed by what the business is trying to do. However, the ambitions of all this technological innovation must eventually result in a financial windfall. This is the company's biggest question.
The market is extremely bullish, which is not a shock given the benefit of the doubt that Elon Musk receives from supporters. Tesla shares trade at an eye-watering price-to-earnings ratio of 347. This is a stock priced for perfection.
Assume that Tesla's valuation is the same in June 2031, and earnings per share would need to expand 100% for the stock to double.
This profit forecast, while encouraging, most likely wouldn't satisfy the investment community. The market has extremely high hopes. And its patience will eventually be put to the test.
I think the only way Tesla's stock becomes a big winner over the next five years is if the company rapidly commercializes its Robotaxi service worldwide, while simultaneously scaling Optimus manufacturing and selling them in commercial settings. These trends need to develop to the point where they start to have a sizable impact on Tesla's financial performance.
The stock's extreme valuation makes me doubtful that even notable fundamental improvements will make Tesla a winning portfolio addition over the coming five years.
Our 24/7 Wall St. price target for Tesla (NASDAQ:TSLA | TSLA Price Prediction) is $416.37, modestly above where the stock trades today. With shares at $411.84, the implied move is roughly 1.1% over the next 12 months. That puts Tesla in hold territory by our model, with a confidence level of 90%. The setup is measured: after a year that included a 27.26% one-year gain, near-term reward looks balanced against risk.
24/7 Wall St. Price Target Summary Metric Value Current Price $411.84 24/7 Wall St. Price Target $416.37 Upside 1.1% Recommendation HOLD Confidence Level 90% A Choppy First Half Sets the Stage Tesla is down 8.42% year to date and 5.5% over the past month, though shares popped 8.46% on June 29 alone. The stock sits roughly 16% below its 52-week high of $498.83 and well above the $288.77 low.
Q1 2026 was a real turn: revenue of $22.39B grew 15.8% YoY, non-GAAP EPS came in at $0.41 versus a $0.36 estimate, and auto gross margin expanded to 21.1% from 16.2%. Services revenue grew 42% and free cash flow more than doubled to $1.44B. That reset the narrative after a soft FY2025, when revenue fell 2.93% and net income dropped 46.79%.
The Case for $480+ Bulls have a real shot to break the model. Our internal bull-case scenario points to $481.13 over 12 months, a 16.83% return.
The catalysts are concrete: Cybercab, Tesla Semi, and Megapack 3 all targeting 2026 volume production; Optimus Gen 3 unveiling in Q1 with stated capacity of 1M robots per year at Fremont and 10M at the Texas Gigafactory; FSD v14.3 deployed in April; and Robotaxi expansion to Dallas and Houston with unsupervised rides.
The $2B SpaceX equity tie-up and the chip-fab partnership at Gigafactory Texas add a strategic kicker. The Street’s average target sits at $421.16, with 23 Buy ratings.
The Risks Worth Watching The bear scenario takes Tesla to $361.77, a 12.16% drawdown. Valuation is the headline risk at 407x earnings against a 4.59% operating margin. FY2025 vehicle deliveries fell 9%, Q4 deliveries dropped 16%, and inventory days rose to 27 from 22.
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Operating expenses jumped 37-50% YoY on AI R&D and the CEO award. Bulls would argue that op-ex surge reflects investment in Optimus, Dojo 3, and AI5 that should pay off over multiple years, and that the Q1 26 margin recovery suggests the auto cycle has turned.
Still, 7 Sell ratings exist, insider activity skews to net selling, and prediction-market sentiment turned down 18.58 points in seven days.
Hold for Now The 24/7 Wall St. price target of $416.37 implies hold at 90% confidence. The factor tipping the scale is the gap between fundamentals and price: Q1 momentum is real, but valuation already prices in flawless execution on robotaxi, Optimus, and energy.
The bull case strengthens if FSD wins regulatory clearance in China or the EU at scale and Q2 deliveries clear 475,000 units. The thesis weakens if auto margins compress again or Optimus slips past Q4 2026.
Tesla Price Prediction 2026-2030 Extending our model with current growth trajectories and reasonable multiple compression on the AI/robotaxi optionality, here is where the 24/7 Wall St. price target points over five years.
Year 24/7 Wall St. Price Target 2026 $416 2027 $432 2028 $449 2029 $465 2030 $482 These projections assume Tesla keeps executing on Cybercab, Optimus, and energy storage. A material acceleration in robotaxi monetization could push the 2030 path toward the $629.88 bull case, while a stalled FSD rollout could drag toward the $374.15 bear path.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.
Key Takeaways Coca-Cola gained value share for the 20th straight quarter with 3% volume growth across all segments.KO is driving growth through innovation, localized marketing and expanded retail distribution.Coca-Cola's 4 I's strategy combines insights, innovation, intimacy and execution to build loyalty. The Coca-Cola Company's (KO - Free Report) brand portfolio continues to be a powerful competitive advantage. However, management believes sustained market share gains depend on combining brand equity with consumer-centric execution rather than relying on brand recognition alone. The company extended its streak of overall value share gains to 20 consecutive quarters while delivering 3% volume growth across every operating segment despite a volatile macroeconomic backdrop.
Management highlighted that the company's strategy revolves around strengthening its flagship brands through consumer insights, innovation and localized execution. Trademark Coca-Cola led the industry in North American retail sales growth, supported by innovations such as Coca-Cola Cherry Float, Diet Coke Cherry and expanded mini-can offerings. In Europe, Coca-Cola Zero Zero, featuring zero sugar, zero caffeine and zero calories, generated strong trial and repeat purchases by addressing evening consumption occasions. Sprite and Fuze Tea also posted robust volume growth through localized flavors and marketing campaigns tailored to regional preferences.
Beyond product innovation, Coca-Cola is leveraging digital capabilities and its extensive distribution network to reinforce brand relevance. In the first quarter, the system added more than 600,000 retail outlets, expanded off-shelf displays by double digits and installed over 340,000 cold drink equipment units to improve visibility and capture impulse purchases. Interactive packaging linked to major events such as the FIFA World Cup is also helping deepen consumer engagement while generating data to personalize future marketing efforts.
Management emphasized that its $32 billion brand portfolio, combined with the "4 I's" strategy of insights, innovation, intimacy and integrated execution, is helping recruit new consumers and strengthen loyalty. The company's consistent share gains suggest that Coca-Cola's brand strength remains a critical growth driver, but its continued success increasingly depends on executing locally while leveraging its unmatched global scale.
KO vs PEP & KDP on Brand Strength & Market Share GrowthCoca-Cola's sustained market share gains underscore the strength of its brands, but PepsiCo Inc. (PEP - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) are also leveraging brand investments and innovation to defend and expand their positions.
PepsiCo believes brand strength remains central to sustaining market share growth, supported by investments in innovation, affordability and portfolio refreshes. In the first quarter of 2026, brands such as Gatorade, Propel, Pepsi Zero Sugar, Mountain Dew and Mug Root Beer gained value and volume share, while the company continued restaging iconic brands, expanding functional offerings and increasing consumer engagement. Management said these commercial initiatives are helping improve marketplace performance and strengthen long-term competitive positioning.
Keurig Dr Pepper continues to rely on brand strength, innovation and disciplined execution to expand market share. In the first quarter of 2026, Dr Pepper's core lineup gained share, Canada Dry benefited from successful Fruit Splash innovation, while GHOST, Bloom and Electrolit delivered strong momentum through distribution gains and consumer demand. Management also highlighted increased brand investment, precision marketing and innovation as key drivers supporting sustained growth across its beverage portfolio.
Zacks Rundown for Coca-ColaKO shares have gained 18.2% in the year-to-date period compared with the industry’s growth of 13.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 24.5X, higher than the industry’s 19.44X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 8.7% and 6.9%, respectively. Earnings estimates for both 2026 and 2027 have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Britain's competition regulator on Tuesday proposed measures that would allow app developers to direct users to alternative payment options outside Apple and Google app stores.
The move is aimed at reducing fees for developers and promoting greater competition in the digital marketplace.
The UK Competition and Markets Authority (CMA) said its proposals would remove existing barriers that prevent developers from guiding users to off-platform payment methods.
According to the regulator, Apple currently prohibits developers from directing users to external payment options.
Google allows the practice only under limited conditions.
The CMA said removing these restrictions would give developers greater flexibility in how they process payments and could increase competition within the app ecosystem.
The regulator also outlined its expectations if Apple or Google decides to charge developers for enabling links to alternative payment platforms.
According to the CMA, any such fees should be reasonable and significantly lower than the commissions currently charged through their respective app stores.
The regulator added that these charges should ultimately benefit consumers or encourage further innovation within the app economy.
The proposal is intended to ensure that developers are not discouraged from offering alternative payment options because of high costs.
In addition to payment-related changes, the CMA is considering a proposal that would require Apple to provide broader access to its near-field communication (NFC) technology.
If implemented, the measure would allow developers to integrate contactless payment functionality directly into their own iOS applications.
The proposal could reduce developers' reliance on Apple's existing payment system by enabling them to offer their own contactless payment services.
In an emailed statement to Reuters, Google said it has already implemented many of the changes proposed by the regulator.
The company said revised Google Play Store policies introduced earlier this month now allow developers to direct users to complete purchases outside the platform, although certain conditions continue to apply.
Google also said it has updated its app store fee structure as part of those policy changes.
Earlier this year, Britain's Competition and Markets Authority (CMA) secured commitments from Apple and Google to make their mobile app stores fairer and more transparent for developers as part of the UK's strengthened oversight of dominant digital platforms.
Under the agreement, Apple and Google pledged to ensure app review processes are fair, objective, and transparent, while giving developers clearer guidance on approval decisions and improved channels to raise concerns.
The CMA said the measures are intended to reduce uncertainty for developers and promote competition in a market where Apple's iOS and Google's Android operating systems dominate app distribution and mobile browsing.
Alphabet (GOOGL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this internet search leader have returned -6% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Internet - Services industry, to which Alphabet belongs, has lost 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Alphabet is expected to post earnings of $2.86 per share, indicating a change of +23.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $14.3 points to a change of +32.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $14.75 indicates a change of +3.1% from what Alphabet is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alphabet is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Alphabet, the consensus sales estimate for the current quarter of $101 billion indicates a year-over-year change of +23.6%. For the current and next fiscal years, $422.05 billion and $510.84 billion estimates indicate +23.1% and +21% changes, respectively.
Last Reported Results and Surprise HistoryAlphabet reported revenues of $94.67 billion in the last reported quarter, representing a year-over-year change of +23.8%. EPS of $5.11 for the same period compares with $2.81 a year ago.
Compared to the Zacks Consensus Estimate of $92.22 billion, the reported revenues represent a surprise of +2.65%. The EPS surprise was +93.56%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Alphabet is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alphabet. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Alphabet Inc. (GOOG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned -5.7% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Internet - Services industry, to which Alphabet belongs, has lost 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Alphabet is expected to post earnings of $2.86 per share for the current quarter, representing a year-over-year change of +23.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The consensus earnings estimate of $14.3 for the current fiscal year indicates a year-over-year change of +32.3%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $14.75 indicates a change of +3.1% from what Alphabet is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alphabet is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Alphabet, the consensus sales estimate of $101 billion for the current quarter points to a year-over-year change of +23.6%. The $422.05 billion and $510.84 billion estimates for the current and next fiscal years indicate changes of +23.1% and +21%, respectively.
Last Reported Results and Surprise HistoryAlphabet reported revenues of $94.67 billion in the last reported quarter, representing a year-over-year change of +23.8%. EPS of $5.11 for the same period compares with $2.81 a year ago.
Compared to the Zacks Consensus Estimate of $92.22 billion, the reported revenues represent a surprise of +2.65%. The EPS surprise was +93.56%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Alphabet is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alphabet. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Not all businesses are at the same stage of their life cycles. Some companies offer a more exciting opportunity to investors. They are able to quickly increase their sales and profits, most likely resulting from powerful tailwinds pushing them forward.
Along the same vein, here's my top growth stock to buy in July and hold forever.
Image source: Getty Images.
Amazon (AMZN 0.29%) is an excellent choice for investors who want to add more growth potential to their portfolios. In the past five years, the company's revenue and operating cash flow rose 67% and 121%, respectively. According to analyst consensus estimates, the business will exceed $1 trillion in sales in 2028.
Investors have known that this company benefits from e-commerce penetration. It's also registering soaring advertising revenue. And it has a position in autonomous driving and the space economy.
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However, the most exciting segment is Amazon Web Services (AWS). This is an industry-leading cloud computing platform that posted 28% year-over-year revenue growth and a fantastic 38% operating margin in the first quarter (ended March 31). It has gained from enterprises moving their IT workloads off-premises.
The success of AWS, more recently and going forward, will be propelled by the artificial intelligence (AI) revolution. As a so-called hyperscaler, Amazon builds the data centers that power AI capabilities for its cloud customers. That demand can impact the company's overall growth for a very long time.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
My buy order on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has fired five times this year, and the sixth sits queued for Monday morning. The stock is down. The headlines are nervous. I keep adding, and I am writing this to explain exactly why.
What pulls me back is simple. Microsoft sits at the center of the agentic computing era with the balance sheet, the contracted customers, and the cash flow to fund the buildout without flinching. Satya Nadella runs it like an owner. The numbers behind that sentence are the reason I cannot stop hitting buy.
The Backlog Tells Me What Happens Next Reason one is contracted revenue. Commercial remaining performance obligations reached $627 billion in Q3 FY2026, a figure that nearly doubled year over year. CFO Amy Hood noted weighted average duration of approximately two and a half years, with roughly 25% recognized in revenue in the next twelve months, up 39% year over year. That is multi-year visibility most companies would trade a kidney for.
Reason two is the AI engine. The AI business crossed an annual revenue run rate of $37 billion, up 123% year-over-year. Azure grew 40%. Microsoft Cloud revenue hit $54.5 billion, up 29%. The restructured OpenAI partnership carries Microsoft’s stake at roughly 27%, worth around $135 billion, plus a contracted $250 billion of incremental Azure spend and IP rights extended through 2032, including post-AGI models.
Reason three is the quality of the cash. Operating margin sits at 45.62%. Return on equity is 33.28%. Operating cash flow in Q3 alone was $46.68 billion, up 26.01%. The balance sheet holds $32.11 billion in cash against debt-to-equity of 0.176 and interest coverage of 53.89x. This is a fortress paying for its own growth.
The Valuation I Am Buying Into Price did the work for me. Shares closed at $372.97, down 22.54% year to date. Forward P/E sits at 19x. Trailing P/E is 22x. PEG is 1.15 against quarterly earnings growth of 23.4%. EPS came in at $4.27 versus $4.07 consensus, the fourth straight beat. I am paying a reasonable multiple for a business compounding earnings in the low twenties.
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The Risk I Will Not Pretend Away Capex hit $30.88 billion in one quarter, up 84.39% year over year. If AI demand softens before this infrastructure earns its return, margins compress and the bear case lands hard. OpenAI investment losses already swung to $3.1 billion in Q1 FY2026 versus $523 million a year earlier. Reddit’s loudest bears called it capital incineration in a thread titled “Satya and Zuckerberg are incinerating capital” that drew over a thousand upvotes.
I read that thread. Then I read Amy Hood’s reminder that much of the capital we’re spending today and the GPUs we’re buying are already contracted for most of their useful life. The capex is pre-sold. That changes the calculus, and it is why the buildout does not scare me out of the position.
Why The Buy Button Stays Live The dividend yield is modest at 0.87%, with the next ex-dividend date on August 20, 2026. The payout is a bonus.
I own this stock because contracted revenue, cloud growth, and pricing power are compounding through one of the largest infrastructure transitions in software history. Of 55 analysts covering the name, 52 rate it buy or strong buy with zero sells. I am buying alongside them, and I will keep buying until the thesis breaks.
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I think a little bit of a dip in these stocks could offer value for many traders out there.
Amazon is a little bit soft in pre-market trading, and it looks much like a stock that is probably going to continue to consolidate right around the 200-day EMA. This isn’t to say that I’m bearish on the market; it’s just that it’s worth noting we gave back a lot during the Monday session.
So, I think we’ve got some work to do here before we can turn things around and really get moving. We’ll just have to wait and see how that plays out. I think a little bit of a dip could be a buying opportunity for longer-term-minded investors.
MSFT Technical Analysis The Microsoft market looks like it’s basically going to open up about where it closed. I think we’re still in the middle of trying to sort out whether or not this is a double bottom that we’re forming. I think if we can break above the $385 level, it’s a good sign. At that point in time, I’d become a lot more interested in Microsoft because I think it has quite a bit of room to run.
If we turn around and fall from here, I’d be looking to see whether or not we can hold the $350 level as support. That could be a nice little buying opportunity as well.
AAPL Technical Analysis Apple looks a little bit soft. I still think the $275 level offers support as well, though. We have the 50-day EMA above at the $290 level roughly, which is in the middle of a gap. I think that’s our ceiling.
I would expect a little bit of sideways action here, probably over the next several days, as we determine the next move for Apple, which, of course, is owned far and wide by institutions, so I do tend to favor the upside over the longer term.
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has been brutalized in 2026, down 26.72% year to date and 7% in the past week alone, even as fundamentals accelerate.
With shares at $352.83 heading into the final trading days of June 2026, the question is whether this is capitulation or the start of something worse. Our model says capitulation, and the setup over the next 12 months looks asymmetric to the upside.
The 24/7 Wall St. Price Target for Microsoft Our 24/7 Wall St. price target for Microsoft is $478.99 over the next 12 months, implying 35.76% upside from current levels. We rate MSFT a buy with 90% confidence. Prediction markets imply 67.5% probability that MSFT finishes this week near $350 and 76.6% probability of closing above $345 at month end.
Metric Value Current Price $352.83 24/7 Wall St. Price Target $478.99 Upside 35.76% Recommendation BUY Confidence Level 90% A Selloff That Has Outrun the Fundamentals MSFT is off 27.75% over the past year and 15.19% in the last month, with shares falling 3.46% on June 25 alone.
Yet the Q3 FY26 earnings report showed the fourth consecutive EPS beat: $4.27 EPS on revenue of $82.89 billion (+18.3% YoY). Azure grew 40%, the AI business crossed a $37 billion annual run rate (+123% YoY), and commercial RPO ballooned to $627 billion, nearly double the prior year.
The bear story centers on capex. Q3 capital expenditures hit $30.88 billion, up 84.39% YoY, and a viral r/wallstreetbets post titled “Satya and Zuckerberg are incinerating capital” drew over 1,000 upvotes. That tension between earnings growth and infrastructure spend explains the selloff better than any deterioration in the business.
The Case for $599 and Beyond Our bull case price is $599.22, or 69.83% upside. Microsoft Cloud reached $54.5 billion in quarterly revenue growing 29%, and the restructured OpenAI partnership extended Microsoft’s IP rights through 2032 and locked in a $250 billion incremental Azure commitment from OpenAI.
With analyst consensus at 52 buy ratings, 3 hold, 0 sell and a Street target of $561.39, even partial rerating to historical multiples gets shares back near $500. One r/stocks post noted “Microsoft is now cheaper than the April 2025 Tariff crash, yet TTM EPS is up 30%”.
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What Could Drag Shares to $431 Our bear case lands at $431.28, still 22.23% above the current quote, showing how much pessimism is already priced in. Capex doubled, OpenAI investment losses widened to $3.1 billion in Q1 FY26, and insiders have been net sellers across 33 recent transactions.
Bulls counter that capex funds the RPO backlog that grew 99%, and OpenAI losses are paper marks against a stake Microsoft values near $135 billion.
Microsoft Price Prediction 2026-2030 The 24/7 Wall St. price target of $478.99 reflects a buy with 90% confidence. The disconnect between a 22x forward multiple and 123% AI growth on a $37 billion run rate tips the scales.
The model favors accumulation on a 12-month horizon, with tolerance for capex-driven volatility built into the thesis. The thesis weakens if FY27 Azure growth decelerates below 30% or commercial RPO conversion slows materially.
Our model projects Microsoft could trade as follows, assuming current growth and AI monetization trajectories hold.
Year 24/7 Wall St. Price Target 2026 $405 2027 $478.99 2028 $575 2029 $695 2030 $835 These projections assume Microsoft sustains Azure and Microsoft 365 growth while capex returns on AI infrastructure begin flowing through to operating margins. Material upside could come from agentic computing monetization at scale; downside risk centers on sustained AI capex overbuild without commensurate revenue conversion.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
A Microsoft sign is displayed outside the Microsoft Germany headquarters in Munich, Bavaria, Germany, on May 22, 2026. Microsoft develops software, cloud computing services, computer hardware, consumer electronics, video games, business applications, and digital platforms including Windows, Microsoft 365, Azure, Teams, Xbox, LinkedIn, GitHub, OneDrive, Outlook, and Dynamics 365. (Photo by Michael Nguyen/NurPhoto via Getty Images)
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This article was written by Doug Nathman, with research by his team at Trefis.
The technology behemoth is reporting unprecedented results, primarily fueled by its cloud and AI sectors, but the choice to invest relies on whether you believe its significant investment in the future will yield returns.
Microsoft (MSFT) has emerged as a wager on the future of AI, even though its shares have faced challenges this year, declining by 23.6% and trading roughly 31% below its peak over the past 52 weeks. This decrease in stock price stands in stark contrast to the company’s operational performance, which recently reported a “record third quarter” supported by its resilient cloud segment. For investors, the stock's decline offers both an opportunity to invest in a transformational growth narrative and a caution regarding the significant expenses associated with building that future.
What You Are Paying ForWhen assessing Microsoft’s valuation, a mixed signal emerges that captures this tension. On a price-to-earnings basis, the stock trades at a multiple of 20.9, which is indeed lower than the S&P 500 average of 24.4. However, when looking at the price-to-sales ratio, the narrative shifts, as it stands at 8.2—over double the market’s 3.3. This isn't a contradiction; it reflects the market's numerical verdict. You are paying a high premium for each dollar of Microsoft’s revenue, banking on its substantial AI investments to foster a significantly larger and faster-growing sales stream in the future. Concurrently, you are receiving a discount on present profits, reflecting the reality that developing this AI infrastructure is currently squeezing margins.
What You Receive In ReturnWhat you obtain is a company operating optimally, focused on the crucial segment: Microsoft Cloud. That division's revenue surpassed $54 billion in the latest quarter, marking a 29% increase year-over-year. The driving force behind that cloud is AI, which management indicates has exceeded a $37 billion annual revenue run rate, up by 123%. The firm’s strategy is straightforward: construct the leading AI infrastructure globally while developing “high-value agentic systems” like its Copilot assistants for coding, security, and productivity. Adoption rates are evident, with more than 20 million active subscriptions for Microsoft 365 Copilot. The company is well-positioned to finance this ambitious expansion, generating approximately $170.1 billion in operating cash flow, while its debt is a mere 2.2% of its market capitalization—a small fraction compared to the 20.8% for the typical S&P 500 firm.
What Occurs During A Market DownturnHistorically, for a corporation of its magnitude, Microsoft’s stock has shown resilience during market downturns, maintaining proximity to the broader index. During the inflation crisis of 2022, it decreased by 38% while the S&P 500 fell 25%. Contrarily, in the market crash of 2020 linked to the pandemic, it performed better, declining by 28% compared to the market's 34% downturn. Reflecting back to the 2008 global financial crisis, it closely followed the market, dropping 59% versus the S&P 500’s fall of 57%. Collectively, its historical performance implies that during a significant market decline, one can expect it to behave comparably to the S&P 500, both in terms of extent of decline and recovery trajectory.
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Bringing It All TogetherThe choice to acquire Microsoft stock today ultimately hinges on your belief in the company’s capital strategy. The firm occupies a pivotal position in a technological transition, with management forecasting “another year of double-digit growth in revenue and operating income.” However, the sheer scale of that investment raises concerns among investors. The company anticipates “investing around $190 billion in capital expenditures” in calendar year 2026, a figure that has prompted one analyst to describe it as “a bit of a disconnect that makes investors slightly anxious.” Currently, the sole metric that truly matters is whether the swift uptake of its AI technologies can generate sufficient revenue growth to fund that vision.
The Trefis High Quality (HQ) Portfolio consists of 30 high-quality equities, sized and rebalanced with intent, allowing you to invest in quality without your financial stability relying on a solitary choice. It has demonstrated a history of outperforming a benchmark that integrates the three primary indices—the S&P 500, S&P Mid-cap, and Russell 2000.
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 Microsoft Corporation (“Microsoft” or “the Company”) (NASDAQ: MSFT) 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 May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 11, 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. Microsoft’s Copilot AI products suffered from problems ranging from poor user experience to capacity limitations. The Company’s AI model ranked poorly against competitors on industry benchmark tests. The Company would need to spend billions on capital expenditures related to AI including diverting hardware away from profitable business units to improve its competitive posture in artificial intelligence. The Company was incapable of converting a large percentage of Microsoft 365 users to paid Copilot subscriptions, losing market share to rivals. 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 Microsoft, 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]
Wells Fargo has increased its price target on Advanced Micro Devices to $615 from $505 while maintaining its Overweight rating, reflecting growing confidence in the company's long-term server CPU business and continued demand driven by artificial intelligence (AI).
AMD shares rose 2% on Tuesday's trading after closing the previous session 3.4% higher at $539.49.
Wells Fargo increased its revenue estimates for AMD's server CPU business over the next three years.
The brokerage now projects server CPU revenue of $16.0 billion in 2026, rising to $20.5 billion in 2027 and $25.0 billion in 2028.
The firm left its data centre GPU revenue estimates unchanged at $15.6 billion for 2026, $40.6 billion for 2027 and $63.0 billion for 2028.
The brokerage also raised its earnings outlook, forecasting earnings per share of $7.15 in 2026, $13.40 in 2027 and $18.75 in 2028.
Wells Fargo based its new price target on a price-to-earnings multiple of 33 times its projected 2028 earnings.
AMD currently trades at a price-to-earnings ratio of 179.
A Wells Fargo analyst team led by Aaron Rakers said the higher price target reflects expectations that demand for server central processing units will remain strong due to continued momentum in agentic AI.
The firm expects AMD's server CPU revenue to increase 68% in 2026.
It also forecasts server CPU sales growth of between 22% and 28% during 2027 and 2028.
Based on Monday's closing price, the revised target implies approximately 14% upside for the stock.
AMD recently said production of its sixth-generation 2nm EPYC Venice server processors began ramping in late May, with volume production expected to continue through the second half of 2026.
The company said more customers are validating and ramping the Venice platform than any previous EPYC generation.
AMD also raised its estimate for the server CPU total addressable market to $120 billion by 2030 during the previous quarter.
The company added that its next-generation 2nm EPYC Verano processors are expected to launch in 2027, with a focus on delivering AI performance per dollar and per watt.
AMD also announced its acquisition of MEXT, a company specialising in AI-driven memory optimisation technology.
The acquisition is intended to strengthen AMD's AI portfolio by improving performance and lowering the total cost of ownership for customers operating in cloud and enterprise environments where memory constraints are a challenge.
Separately, AMD participated in the Series B funding round for cloud computing startup TensorWave, which closed at a valuation of $1.55 billion.
The investment supports TensorWave's plans to expand its infrastructure using AMD hardware and software and further strengthens AMD's position in the data centre ecosystem.
Several brokerages have recently revised their outlook on AMD.
Cantor Fitzgerald raised its price target to $700 while maintaining an Overweight rating, citing continued momentum in the compute market.
UBS increased its target price to $670, pointing to gains in AMD's server CPU market share.
Meanwhile, Wolfe Research reiterated its Outperform rating with a $450 price target, highlighting AMD's progress in artificial intelligence and graphics processing units.
Stock futures are steady this morning after Monday's rally as the market look to close out the second quarter of the year on a high note; major stock indexes surged in the second quarter, while oil and gold prices tumbled owing to developments in the Iran war; Nike is set to releases its quarterly results after the closing bell; details about Apple's upcoming iPhone 18 Pro were reportedly included in a massive leak following a hack of an Indian electronics manufacturer; and AeroVironment shares are rallying after the military contractor's earnings topped estimates. Here's what you need to know today.
Nike (NKE) shares are experiencing what Rick Ducat calls a “dicey” situation. He points out that the stock slipped below a key support level ahead of earnings.
Nike Inc. (NYSE:NKE) shares are in the spotlight Tuesday ahead of the company’s fourth-quarter earnings report today after the market closed.
Nike stock is showing downward bias. What’s ahead for NKE stock? Nike Earnings Preview & What To WatchNike is expected to report earnings per share of 12 cents and revenue of $10.86 billion. For the prior quarter, the company reported earnings per share of 35 cents, beating the consensus estimate of 28 cents. In addition, it reported revenue of $11.28 billion, beating the consensus estimate of $11.23 billion.
Nike has beaten EPS estimates in 8 consecutive quarters.
Investors should keep an eye on same-store sales growth, which has been under pressure, as well as e-commerce growth rates, which are crucial for Nike’s long-term strategy. Additionally, inventory levels will be critical to monitor; any significant increases could signal overproduction or declining demand, further impacting revenue and profitability.
Management Commentary“Win Now actions will continue to impact results over the balance of the calendar year, and we remain confident in our ability to position the Company for profitable growth long-term,” said Elliott Hill, CEO and President of Nike in its third-quarter earnings report.
Nike Analyst Ratings And Price Targets: Wall Street OutlookThe stock carries a Hold Rating with an average price target of $52.47. Notable recent moves include:
BTIG: Buy (Lowered Target from $75.00 to $55.00) (June 25) JP Morgan: Neutral (Lowered Target from $52.00 to $47.00) (June 29) Deutsche Bank: Hold (Lowered Target from $51.00 to $43.00) (June 26) Oppenheimer: Outperform (Lowered Target from $120.00 to $60.00) (June 26) Keybanc: Upgraded to Sector Weight (June 26) Nike Shares Trade FlatNKE Price Action: At the time of publication, Nike shares are trading 0.31% lower at $41.35, according to data from Benzinga Pro.
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State Street Technology Select Sector SPDR ETF (XLK +2.08%) provides low-cost U.S. technology exposure, while Roundhill Generative AI & Technology ETF (CHAT +2.94%) focuses on higher-cost, research-driven investments in the global generative artificial intelligence theme.
Investors seeking technology exposure may weigh a legacy sector fund against a thematic newcomer. XLK tracks a diversified index of U.S. tech giants, whereas CHAT targets the specific infrastructure and software driving the expansion of artificial intelligence across global markets.
Snapshot (cost & size)MetricCHATXLKIssuerRoundhill InvestmentsSPDRShare price (as of June 26, 2026)$93.61$181.11Expense ratio0.75%0.08%1-yr return (as of June 26, 2026)98.2%45%Dividend yield1.8%0.4%Beta1.841.33AUM$2 billion$120.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The SPDR fund is significantly more affordable, offering a lower expense ratio than the Roundhill ETF. While CHAT charges a higher fee for its specialized thematic research, it currently offers a higher trailing dividend yield.
Performance & risk comparisonMetricCHATXLKMax drawdown (3 yr)(31.3%)(25.7%)Growth of $1,000 over 3 years (total return)$3,358$2,164What's insideThe SPDR ETF invests in U.S. companies within the information technology sector, utilizing a full replication technique to track its index. Its largest positions include Nvidia (NVDA +1.54%) at 14.8%, Apple (AAPL +1.54%) at 12.62%, and Microsoft (MSFT +0.86%) at 8.18%. The fund holds 74 stocks and was launched in 1998. The SPDR ETF has paid $0.79 per share over the trailing 12 months, which on its recent ~$181.11 share price works out to a 0.4% yield.
The Roundhill fund employs proprietary research to target global companies involved in AI software, cloud infrastructure, and semiconductors. Its top holdings include Nvidia at 6.34%, SK hynix at 5.45%, and Alphabet (GOOGL 0.08%) at 5.05%. The Roundhill ETF maintains 47 holdings and was launched in 2023. The fund has paid $1.68 per share over the trailing 12 months, which on its recent ~$93.61 share price works out to a 1.8% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsIt's a bit difficult to compare these two ETFs, as they're plainly quite different. One thing I want to want to highlight, however, is that CHAT's much higher expense ratio can probably be attributed to the fact that it's an actively managed fund. Conversely, XLK passively tracks an index, so it likely has considerably lower costs.
While XLK's performance trails that of CHAT, it's cheaper to own, carries a lower beta, and has much higher average trading volume, suggesting it's very liquid. Plus, XLK absolutely dwarfs CHAT in terms of assets under management. The SPDR fund is probably a more attractive choice for investors who tend to be more conservative.
Erin Kennedy has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Magnificent 7 stocks have retreated sharply this year and erased over $2.3 trillion in value. The closely-watched Roundhill Magnificent 7 ETF (MAGS) dropped to $60.80 from the year-to-date high of $71.17.
Most companies in the group have dived in the past few months. Nvidia, the world's largest company, has dropped by nearly 20% from its year-to-date high.
Similarly, Microsoft stock has dived by 33%, while Meta Platforms, Amazon, and Tesla have fallen by 30%, 14%, and 16%, respectively from their highest levels this year. Apple has also dropped modestly from its year-to-date high, down from $317 to $280 today.
One possible reason behind the ongoing Magnificent 7 stocks retreat is that investors are taking profit after their surge. At its peak this year, Apple was up by over 150% from its lowest level in 2023. Nvidia was up by 43% from the lowest level last year.
Most notably, these stocks are retreating because of the sector rotation towards companies in the memory industry. A closer look at data shows that memory companies are among the top gainers this year. This includes companies like Micron, Sandisk, Western Digital, and Seagate. Most recently, the Roundhill Memory ETF (DRAM) has accumulated over $24 billion in assets since its launch in April.
The companies have done well amid the ongoing supply shortage that has pushed their prices to the highest level on record. As a result, hyperscalers, who are their biggest clients, are having to spend billions of dollars more.
For example, the top hyperscalers are planning to spend over $750 billion in capital expenditures this year, much higher than what they spent last year. This surge is driven by both new data center launches and soaring memory prices.
Just last week, Apple made headlines last week when it said that it would hike prices of its MacBooks because of higher prices. It is also considering hiking iPhone prices.
Some Magnificent 7 stocks are also falling amid fears of return on investment (RoI) as they boost their data center spending. The most affected companies in this are the top hyperscalers like Microsoft, Meta, and Google.
At the same time, they have now started raising capital in highly dilutive ways to fund their ambitions. For example, Google recently raised over $80 billion in a combination of debt and equity, diluting its shareholders.
Meta Platforms is considering such a move, while Nvidia recently raised over $25 billion in debt. Tesla has already warned that it will not generate positive cash flows this year because of its Terafab
Therefore, some analysts are worried about whether they will achieve the return on investment any time soon.
Still, on the positive side, these companies have now become bargains. For example, data shows that Nvidia is trading at a forward price-to-earnings (PE) multiple of 22, slightly lower than the S&P 500 Index’s 23. Meta Platform’s forward PE ratio has dropped to 16, while Google’s multiple has fallen to 23.
Therefore, since these are some of the most profitable companies in the world, there is a likelihood that investors will rotate to these companies, potentially after the next earnings season.
Despite becoming the world’s most valuable company with a market capitalization approaching $4.7 trillion, Nvidia now trades at roughly 30 times trailing earnings, per Benzinga Pro data—well below several of Wall Street’s most popular AI stocks.
The shift suggests investors are no longer paying the biggest premium for AI’s dominant chipmaker. Instead, some of the market’s richest valuations are being reserved for companies expected to deliver the next wave of AI-driven growth.
Nvidia’s Valuation Looks Surprisingly ReasonableNvidia’s valuation stands out not because it’s cheap in absolute terms, but because of how it compares with many of its AI peers.
Looking ahead, the gap becomes even more striking. Nvidia trades at roughly 22 times forward earnings, Benzinga Pro data reveals; compared with about 77 for AMD, 79 for Palantir and more than 156 for Arm.
While each company operates in different parts of the AI ecosystem and investors assign different growth expectations to them, the valuation spread highlights just how aggressively Wall Street is pricing future earnings for several AI favorites.
Expectations Carry Their Own RisksPremium valuations can be justified when earnings growth keeps pace.
AMD is expected to grow earnings by roughly 78% next year, while Palantir’s earnings are projected to increase by about 43%. Arm is forecast to deliver nearly 39% EPS growth.
Nvidia, meanwhile, is expected to grow earnings by more than 40% over the next year while continuing to post one of the strongest long-term growth records among large-cap technology companies.
That combination has narrowed the valuation gap considerably. Instead of Nvidia’s stock price running far ahead of fundamentals, years of explosive earnings growth have allowed profits to catch up with investor enthusiasm.
The AI Trade Is Becoming More SelectiveThe changing valuation landscape reflects a broader shift across AI investing.
During the early stages of the AI boom, investors were willing to pay almost any price for exposure to the theme. Today, valuations appear to matter more, with companies increasingly judged on their ability to convert AI demand into sustainable earnings growth.
That shift is also reflected in market performance. While Nvidia shares have gained only modestly this year after years of exceptional returns, investors have rotated across different parts of the AI ecosystem, rewarding companies tied to memory, semiconductor manufacturing equipment and infrastructure.
For investors, the takeaway is less about whether Nvidia is inexpensive and more about how expectations have changed. The company once viewed as the poster child for AI excess now trades at a lower earnings multiple than several of the market’s fastest-growing AI names, underscoring that Wall Street is paying the biggest premiums not for today’s AI leader, but for companies it believes could drive tomorrow’s growth.
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I keep buying NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and the receipts make it hard to stop. Every paycheck, every dip, every quarter that prints another set of numbers most companies will never see, I add. This is the position I size up when I should be diversifying away from it, and I want to explain why with the data.
The core of my thesis is simple. Nvidia sells the picks and shovels for what Jensen Huang calls “the largest infrastructure expansion in human history”, and the buyers are the richest companies on earth.
OpenAI committed to at least 10 gigawatts of NVIDIA systems. Meta signed up for millions of Blackwell and Rubin GPUs. CoreWeave is building 5+ gigawatts of AI factories by 2030. When that customer list keeps growing, I keep adding.
Reason 1: A financial engine at a scale I have not seen before In the quarter reported May 20, 2026, NVIDIA put up revenue of $81.6 billion, growing 85.23% year over year. Non-GAAP gross margin landed at 75%. Free cash flow for the quarter hit $48.55 billion, on top of FY2026 free cash flow of $96.58 billion.
The company has now beaten EPS estimates for 12 consecutive quarters, with the most recent report of $1.87 topping the $1.77 consensus. A trailing P/E of 30 with a PEG of 0.59 and a forward P/E of 22 tells me the market is still pricing this like a normal chip company.
Reason 2: A widening moat Data Center revenue was $75.25 billion, up 92% year over year, with networking alone growing 199%. The company guided Q2 to $91 billion. Behind that guide sits $119 billion in total supply-related commitments. CUDA, NVLink, InfiniBand, Spectrum-X, and the upcoming Vera Rubin platform mean customers are buying a full stack they cannot easily swap out.
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Reason 3: Capital returns have shifted gear On May 18, 2026, the board raised the quarterly dividend from $0.01 to $0.25 per share and authorized an additional $80 billion in buybacks on top of $38.5 billion remaining. NVIDIA returned $20 billion to shareholders in a single quarter and $41.1 billion across FY2026. For a long-term holder, that is compounding I can feel.
The risk I take seriously China is the real one. NVIDIA shipped zero H20 Data Center compute units to China in Q1, against $4.6 billion in the year-ago quarter, and Q2 guidance assumes none. Hyperscalers also account for roughly 50% of Data Center revenue, which is real concentration.
My thesis holds because the $91 billion Q2 guide and 85.23% growth were produced with China explicitly stripped out. Demand outside that one geography is already setting records.
Why the buy button stays active The stock trades at $194.97, down 7.55% over the past month, while the underlying business produced net income of $58.32 billion in one quarter.
Sovereign AI builds across the UK, Germany, France, South Korea, and India, the Vera Rubin ramp, and DRIVE Hyperion in autos give me a multi-year roadmap with cash to fund every step. I keep buying because the cash flow keeps showing up, and the moat keeps getting deeper.
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SAN FRANCISCO--(BUSINESS WIRE)--The global economy is expected to grow 2.4% in 2026, according to Visa Business and Economic Insights' (VBEI) 2026 Midyear Global Economic Outlook. While higher energy prices are squeezing household budgets and creating fresh challenges, a surge in business investment—particularly in artificial intelligence, clean energy, and strategic industries—is helping offset the strain on consumers and keep the economy moving forward. “As digital commerce continues to resha.
Consumers around the world are continuing to make discretionary purchases despite rising prices, according to Visa. Rather than cutting back, consumers are seeking deals, often with the help of digital commerce, the company said in a Tuesday (June 30) press release outlining findings from the Visa Business and Economic Insights (VBEI) 2026 midyear Global Economic Outlook.
, /PRNewswire/ -- As previously announced, Bank of America will report its second quarter 2026 financial results on Tuesday, July 14. The results will be released at approximately 6:45 a.m. ET, followed by an investor conference call at 8:30 a.m. ET.
The news release, supplemental filing and investor presentation can be accessed at Bank of America's Investor Relations website at https://investor.bankofamerica.com/quarterly-earnings. A Form 8-K containing Bank of America's financial results will also be available at the U.S. Securities and Exchange Commission's website at https://www.sec.gov.
Investor Conference Call information
For a listen-only connection to the investor conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international). The conference ID is 79795. Please dial in 10 minutes prior to the start of the call. Investors can listen to live audio of the conference call and view the presentation slides by visiting the "Events & Presentations" section of the company's Investor Relations website.
Replay information for Investor Conference Call
Investors can access replays of the conference call by visiting the Investor Relations website or by calling 1.800.934.4850 (U.S.) or 1.402.220.1178 (international) from noon on July 14 through 11:59 p.m. ET on July 24.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Investors May Contact:
Lee McEntire, Bank of America
Phone: 1.980.388.6780
[email protected]
Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
[email protected]
Reporters May Contact:
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
[email protected]
Walmart (WMT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this world's largest retailer have returned 0%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Retail - Supermarkets industry, which Walmart falls in, has lost 1.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Walmart is expected to post earnings of $0.74 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $2.89 points to a change of +9.4% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $3.27 indicates a change of +13.3% from what Walmart is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 Walmart.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Walmart, the consensus sales estimate for the current quarter of $186.4 billion indicates a year-over-year change of +5.1%. For the current and next fiscal years, $750 billion and $783.74 billion estimates indicate +5.2% and +4.5% changes, respectively.
Last Reported Results and Surprise HistoryWalmart reported revenues of $177.75 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $0.66 for the same period compares with $0.61 a year ago.
Compared to the Zacks Consensus Estimate of $174.56 billion, the reported revenues represent a surprise of +1.83%. The EPS surprise was +1.54%.
Over the last four quarters, Walmart surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Walmart is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Walmart. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, June 30, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
JPMorgan Chase stock is showing upward bias. What’s next for JPM stock? What Is Driving JPMorgan’s Dividend and Buyback Boost?The bank’s board is lifting the quarterly common dividend to $1.65 in the third quarter from $1.50 and authorized a new $50 billion share repurchase program effective July 1. The stock’s recent push toward the prior record area near $338.09 has traders treating the payout and buyback update as a sentiment backstop near the highs.
CEO Jamie Dimon framed the move as enabled by excess capital and liquidity, positioning JPMorgan to keep returning cash while maintaining balance-sheet strength and staying a "pillar of strength," a message that helped fuel the prior breakout.
In the background, the firm is also tightening internal controls around AI tooling, including restricting Hong Kong staff access to Anthropic’s Claude models tied to export-control pressure on "Fable 5" and "Mythos 5."
JPM Stock: Key Levels and Trends to WatchWith the broader tape mixed premarket (Nasdaq -0.02%, S&P 500 +0.04%, Dow -0.05%), JPM’s action looks like consolidation after a strong run rather than a clean breakdown. At $329.06, the stock is still trading 3% above its 20-day SMA ($319.53) and 6.8% above its 200-day SMA ($308.12), keeping the longer-term uptrend intact even if near-term upside cools.
Trend structure remains constructive: the 20-day SMA is above the 50-day SMA, and the golden cross that formed in June (50-day SMA above the 200-day SMA) supports the intermediate bullish regime after the death cross in March. Momentum is best read through MACD here—MACD is above its signal line and the histogram is positive, which typically means upside pressure is improving versus the prior downswing (even if price chops sideways for a bit).
Key Resistance: $337.50 — a nearby pivot just under the 52-week high zone ($343.45) where breakouts can stall after a run-up Key Support: $293.50 — a prior demand zone well below current levels that would matter more if the uptrend starts to unwind JPM Earnings Preview: What Analysts ExpectThe countdown is on: JPMorgan Chase & Co. is set to report earnings on July 14, 2026 (confirmed).
EPS Estimate: $5.48 (Up from $4.96 YoY) Revenue Estimate: $48.96 Billion (Up from $45.68 Billion YoY) Valuation: P/E of 15.8x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $347.44. Recent analyst moves include:
Morgan Stanley: Equal-Weight (Raises Target to $362.00) (June 29) Truist Securities: Hold (Raises Target to $344.00) (June 26) Evercore ISI Group: Outperform (Raises Target to $340.00) (April 17) JPMorgan Chase’s Benzinga Edge Scorecard BreakdownBelow is the Benzinga Edge scorecard for JPMorgan Chase &, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: JPMorgan Chase &’s Benzinga Edge signal reveals a growth-tilted profile with neutral momentum and a weaker quality read. For longer-term bulls, that often argues for buying strength only after clean breakouts or buying dips into support rather than chasing extended moves near resistance.
JPM Stock Price Action in Premarket TradingJPM Stock Price Activity: JPMorgan Chase shares were up 0.07% at $329.61 during premarket trading on Tuesday, according to Benzinga Pro data.
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JPMorgan Chase & Co. (JPM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +11.1% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Financial - Investment Bank industry, to which JPMorgan Chase & Co. belongs, has gained 7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $5.47 per share, indicating a change of +10.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.
The consensus earnings estimate of $22.72 for the current fiscal year indicates a year-over-year change of +11.7%. This estimate has changed +1.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $23.8 indicates a change of +4.7% from what JPMorgan Chase & Co. is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for JPMorgan Chase & Co..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For JPMorgan Chase & Co., the consensus sales estimate for the current quarter of $48.29 billion indicates a year-over-year change of +7.5%. For the current and next fiscal years, $197.62 billion and $205.08 billion estimates indicate +8.3% and +3.8% changes, respectively.
Last Reported Results and Surprise HistoryJPMorgan Chase & Co. reported revenues of $49.84 billion in the last reported quarter, representing a year-over-year change of +10%. EPS of $5.94 for the same period compares with $5.07 a year ago.
Compared to the Zacks Consensus Estimate of $48.56 billion, the reported revenues represent a surprise of +2.62%. The EPS surprise was +8.2%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
JPMorgan Chase & Co. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about JPMorgan Chase & Co.. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
CINCINNATI--(BUSINESS WIRE)--Cascade®, America's #1 recommended dishwasher detergent brand*, today announced the launch of its new Clean and Dry Booster Rinse Aid. Designed to work in tandem with Cascade® Platinum Plus, this premium dishwasher enhancer establishes the ultimate dishwashing routine to tackle people's biggest frustrations, including stubborn water spots, cloudiness, hard water sediment, and damp dishes. Together, the power duo clears away food residue and film for a brilliant dry.
Johnson & Johnson (JNJ - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this world's biggest maker of health care products have returned +15.7% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Large Cap Pharmaceuticals industry, to which Johnson & Johnson belongs, has gained 10.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Johnson & Johnson is expected to post earnings of $2.83 per share, indicating a change of +2.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $11.57 points to a change of +7.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $12.6 indicates a change of +9% from what Johnson & Johnson is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Johnson & Johnson is rated Zacks Rank #3 (Hold).
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Johnson & Johnson, the consensus sales estimate for the current quarter of $25.04 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $100.81 billion and $106.33 billion estimates indicate +7% and +5.5% changes, respectively.
Last Reported Results and Surprise HistoryJohnson & Johnson reported revenues of $24.06 billion in the last reported quarter, representing a year-over-year change of +9.9%. EPS of $2.7 for the same period compares with $2.77 a year ago.
Compared to the Zacks Consensus Estimate of $23.45 billion, the reported revenues represent a surprise of +2.63%. The EPS surprise was +1.12%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Johnson & Johnson is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Johnson & Johnson. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CORAL GABLES, Fla., June 30, 2026 (GLOBE NEWSWIRE) -- Catalyst Pharmaceuticals, Inc. ("Catalyst") (Nasdaq: CPRX), a commercial-stage biopharmaceutical company focused on in-licensing, developing, and commercializing novel medicines for patients living with rare and difficult-to-treat diseases, today announced topline results from a two-part Phase 1 clinical study of vamorolone in healthy adult volunteers. The study demonstrated balanced corticosteroid activity with expected cortisol suppression and no evidence of significant immunosuppressive activity at clinical doses. These findings suggest that vamorolone delivers glucocorticoid and anti-inflammatory activity, while avoiding significant immunosuppressant effects, supporting its potential use as a treatment across a broad range of chronic inflammatory rare diseases.
Key Highlights and Readouts:
Overall study design
A two-part (referred to as Parts A and B) Phase 1 study was conducted in healthy adult volunteersThe primary purpose of Part A was to assess equipotency between deflazacort and vamorolone to help address the clinical case in which a patient might experience differential cortisol effects when switching from deflazacort to vamoroloneThe primary purpose of Part B was to evaluate ascending doses of vamorolone to assess vamorolone’s clinical immunosuppressive potential in consideration of potential life cycle management indicationsThe study evaluated cortisol suppression, anti-inflammatory activity, and immunosuppressive effects across clinical and supratherapeutic doses
Part A: Vamorolone vs. deflazacort (equipotency assessment)
24 healthy adults were enrolled in a randomized, single-center, crossover studySingle doses of vamorolone (300 mg) and deflazacort (0.9 mg/kg) were evaluatedBoth agents demonstrated expected on-target glucocorticoid receptor activity, including cortisol suppression, leukocyte redistribution, and effects on functional immune biomarkersSimilar time to onset was observed for both treatments (approximately 2–4 hours post-dose)Comparable cortisol suppression was observed at clinical dosesVamorolone demonstrated less pronounced immunosuppressive biomarker effects compared with deflazacort
“By demonstrating similar cortisol suppression at label-based clinical doses of vamorolone and deflazacort, these data support the currently labeled dosing of vamorolone in the treatment of DMD and do not suggest the need for other dosing considerations when switching patients from deflazacort to vamorolone,” said William Andrews, MD, Chief Medical Officer of Catalyst Pharmaceuticals. “Moreover, vamorolone achieved robust glucocorticoid and anti-inflammatory activity without evidence of significant immunosuppression at clinical doses.”
Part B: Ascending dose evaluation of immunosuppressive potential
36 healthy volunteers received vamorolone at doses of 9, 27, or 40 mg/kg once daily for seven daysImmune biomarkers and cellular markers were evaluated through Day 21Clinically relevant immunosuppressive effects were observed only at the highest dose level (40 mg/kg/day)No relevant immunosuppressive effects observed at lower dose levels (9 or 27 mg/kg/day)Immunosuppressive effects increased with repeated dosing at 40 mg/kg/day and persisted after treatment cessation “As the 40 mg/kg/day dose is above currently approved vamorolone dosing and higher than doses previously studied in clinical trials, these findings suggest that clinically meaningful immunosuppression with vamorolone is unlikely at clinically relevant doses,” Dr. Andrews added. “The prospect of this favorable profile—glucocorticoid and anti-inflammatory activity without clinically meaningful immunosuppression at clinically relevant doses—has the potential to distinguish vamorolone from conventional corticosteroids. Additionally, this profile may support vamorolone’s potential utility across a broad range of chronically inflammatory rare diseases.”
About Catalyst Pharmaceuticals, Inc.
Catalyst Pharmaceuticals, Inc. (Nasdaq: CPRX) is a biopharmaceutical company committed to improving the lives of patients with rare diseases. With a proven track record of bringing life-changing treatments to the market, we focus on in-licensing, commercializing, and developing innovative therapies. Guided by our deep commitment to patient care, we prioritize accessibility, ensuring patients receive the care they need through a comprehensive suite of support services designed to provide seamless access and ongoing assistance. Catalyst maintains a well-established U.S. presence, which remains the cornerstone of our commercial strategy, while continuously evaluating strategic opportunities to expand our global footprint. Catalyst, headquartered in Coral Gables, Fla., has been recognized by Forbes as one of America’s Most Successful Companies in 2023, 2024, and 2025, and on the 2025 Deloitte Technology Fast 500™ list as one of North America’s Fastest-Growing Companies.
For more information, please visit Catalyst's website at www.catalystpharma.com.
Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Catalyst's actual results in future periods to differ materially from forecasted results. A number of factors, including (i) whether vamorolone can be developed and successfully commercialized in the future for the treatment of other chronic inflammatory rare diseases, and (ii) those factors described in Catalyst's Annual Report on Form 10-K for the 2025 fiscal year and its subsequent filings with the U.S. Securities and Exchange Commission (“SEC”), could adversely affect Catalyst. Copies of Catalyst's filings with the SEC are available from the SEC, may be found on Catalyst's website, or may be obtained upon request from Catalyst. Catalyst does not undertake any obligation to update the information contained herein, which speaks only as of this date.
Key Takeaways Target's Q1 net sales rose 6.7% to $25.44B, with comparable sales up 5.6% after last year's decline.Target's comp traffic grew 4.4%, while store-originated comps rose 4.7% and digital comps advanced 8.9%.Target raised fiscal 2026 net sales growth guidance to around 4%, up from its prior roughly 2% view. Target Corporation’s (TGT - Free Report) first-quarter fiscal 2026 performance gave Wall Street a reason to revisit the retailer’s growth story, as sales momentum showed a sharper rebound than expected and appeared to be broad-based rather than tied to one isolated category or channel. Net sales rose 6.7% to $25,443 million, while comparable sales increased 5.6%, reversing last year’s decline and signaling stronger guest engagement across the business.
The most important takeaway was the quality of the growth. Comparable traffic rose 4.4%, meaning the comp gain was driven mainly by more shopping trips, not just a higher basket. Store-originated comparable sales increased 4.7%, while digital comparable sales advanced 8.9%. Same-day delivery powered by Target Circle 360 grew more than 27%, adding another layer to the traffic-led recovery.
Target also showed sales improvement across all six core merchandise categories. Management highlighted strength in Beauty, Food and Beverage, Fun 101, baby, wellness and value-oriented toys. Newness played a key role, including 3,000 new food items, around 1,500 wellness items and a refreshed baby assortment that helped accelerate baby comp trends in the back half of the quarter.
What makes the acceleration stand out is that it came across categories, channels and guest demographics. Management said Target gained or held share in the significant majority of divisions and across income brackets. That makes the quarter more than a simple rebound from weak comparisons. It suggests that Target’s sharper merchandising focus and improved shopping experience are beginning to bring guests back more often.
The stronger sales momentum also prompted Target to raise its full-year outlook. Management now expects fiscal 2026 net sales growth of around 4%, up from its prior expectation of roughly 2%, while continuing to project sales growth in every fiscal quarter.
Management cautioned that the first quarter benefited from the easiest comparison of the year, and that tougher comparisons, fading tax-refund benefits, and an uncertain consumer backdrop could moderate the pace of growth. Even so, the guidance increase suggests that broad-based improvement in traffic and merchandising is translating into a stronger top-line trajectory than previously anticipated. That is why Wall Street is paying closer attention to Target’s sales rebound.
How Target Compares With Walmart and Costco’s Comp SalesWhile Target is showing signs of improving category momentum, peer performance provides additional context on how consumer demand is trending across the retail landscape.
Walmart Inc. (WMT - Free Report) posted U.S. comparable sales growth of 4.1% in the first quarter of fiscal 2027, driven by higher customer transactions, increased unit volumes and strong e-commerce performance. Walmart continued to gain market share across income groups while benefiting from growth in advertising, marketplace sales and Walmart+ membership revenues. Walmart’s results reflected steady demand for both grocery and general merchandise offerings.
Costco Wholesale Corporation’s (COST - Free Report) third-quarter fiscal 2026 comparable sales rose 9.8%, helped by fuel inflation and foreign exchange. Costco’s adjusted comparable sales increased 6.6%, reflecting broad-based demand, with traffic up 2.4% and adjusted ticket growth of 4.2%. Costco also posted healthy regional adjusted comps of 6.8% in the United States, 6.2% in Canada and 5.9% internationally.
What the Latest Metrics Say About TargetTarget has seen its shares jump 10.5% over the past three months against the industry’s decline of 1.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.62, lower than the industry’s ratio of 30.91. However, TGT is trading above its 12-month median level of 13.47.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 10.3%, respectively. For the next fiscal year, the consensus estimate indicates a 2.9% rise in sales and 6.4% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 2 cents and 3 cents to $8.35 and $8.89, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta Air Lines, Inc. (NYSE:DAL) will release its second quarter earnings report before the opening bell on Friday, July 10.
Analysts expect the Atlanta, Georgia-based company to report quarterly earnings of $1.48 per share, down from $2.10 per share in the year-ago period. The consensus estimate for Delta Air’s quarterly revenue is $18.68 billion. It reported $16.65 billion last year, according to Benzinga Pro.
On June 18, Delta Air Lines raised its quarterly dividend from 18.75 cents to 21.50 cents per share.
Delta Air Lines shares gained 0.7% to close at $93.17 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying DAL stock? Here’s what analysts think:
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Ford Motor Company (F 0.78%) has been uncharacteristically rewarding its investors. Since the start of 2025, the Detroit car manufacturer's share price has climbed 43% (as of June 26). The market has clearly been pleased with the company's recent financial results, as profit figures have exceeded analyst estimates in four of the past five quarters.
Long-term investors are getting interested in Ford. In 10 years, will you wish you'd bought this automotive stock right now?
Image source: The Motley Fool.
Don't look in the rearview mirror If you're investing in the stock market, the common saying is that past performance doesn't guarantee future results. This is a good mental model to have. However, investors can still look at history to understand what might happen.
Doing so will lead to a pessimistic view of Ford, whose shares have generated a total return of 91% in the past decade. Investors would have fared significantly better had they owned an exchange-traded fund that tracked the S&P 500 index.
Between 2015 and 2025, Ford's total revenue increased at a compound annual rate of 2.1%. And its diluted earnings per share rose by a yearly clip of 1.1%. This isn't making anyone bullish. Because the mass-market auto industry is mature, intensely competitive, cyclical, and capital-intensive, investors will struggle to put money to work here.
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Trying to hit the gas pedal Ford is positioning itself for a more successful future. For instance, it's prioritizing light trucks and vans, leaning into where the demand is. "This approach prioritizes affordability, choice, and profits," the December 2025 press release reads.
The company completely restructured its electric vehicle segment, taking a $19.5 billion write-off in the process, as it aims to introduce affordable models. By 2030, Ford aims to achieve a 50% global volume split between hybrids, electric vehicles (EVs), and extended-range EVs, up from 17% in 2025.
Seeing the increased need for electricity amid the artificial intelligence boom, the company recently launched Ford Energy, leveraging its existing infrastructure. This segment will start shipping battery systems to utilities, data centers, and industrial and commercial customers in late 2027. It could contribute to Ford's bottom line.
Despite these encouraging moves, warranty costs could continue to plague the company. And there's the constant threat of future demands from labor unions that pressure the already-thin margin profile.
Investors might believe that Ford is in the early stages of an operational upgrade, as it tightens its product focus and aims to drive efficiencies. However, I remain bearish given the cyclical and capital-intensive nature of the automotive industry. This reality overrides the stock's cheap forward price-to-earnings ratio of 8.5 and high dividend yield of 4.25%.
Imagine it's late June 2036. And you decide to check your portfolio. I think there's a very low probability that you'd regret not buying Ford stock today.
Ford Motor Company (F - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned -15.7% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Automotive - Domestic industry, to which Ford Motor belongs, has lost 5.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Ford Motor is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of -6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.6%.
For the current fiscal year, the consensus earnings estimate of $1.64 points to a change of +50.2% from the prior year. Over the last 30 days, this estimate has changed +1.5%.
For the next fiscal year, the consensus earnings estimate of $1.83 indicates a change of +11.8% from what Ford Motor is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 Ford Motor.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Ford Motor, the consensus sales estimate of $45.44 billion for the current quarter points to a year-over-year change of -3.2%. The $175.77 billion and $174.79 billion estimates for the current and next fiscal years indicate changes of +1% and -0.6%, respectively.
Last Reported Results and Surprise HistoryFord Motor reported revenues of $39.82 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $0.66 for the same period compares with $0.14 a year ago.
Compared to the Zacks Consensus Estimate of $39.34 billion, the reported revenues represent a surprise of +1.21%. The EPS surprise was +230%.
Over the last four quarters, Ford Motor surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Ford Motor is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ford Motor. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Multi-year global partnership will focus on lightweight materials, manufacturing and testing to aid on-track performance
, /PRNewswire/ -- The Cadillac Formula 1® Team and 3M today announced a multi-year global partnership to push the limits of innovation in the world's toughest laboratory, Formula 1®. As the team's Official Material Science Partner, 3M scientists and engineers will work closely with the Cadillac Formula 1® Team to support car development, advance performance and streamline operations.
3M joins Cadillac Formula 1® Team as Official Material Science Partner to accelerate racing performance The partnership unites two industry-leading American companies with deep expertise in design and precision engineering. The initial collaboration will center on lightweight materials, bonding and surface preparation, manufacturing optimization, laboratory testing and trackside support. In Formula 1®, where every detail is tested under extreme conditions, only the highest-performing technologies can provide a material advantage.
"At 3M, we apply science and manufacturing expertise to help solve complex challenges," said William Brown, 3M chairman and CEO. "This partnership demonstrates how 3M technologies can drive results in a highly demanding environment by advancing speed, efficiency and performance."
Formed by TWG Motorsports and General Motors, the Cadillac Formula 1® Team combines engineering excellence with a clear focus on innovation and performance. 3M will support the team through material selection, process optimization, testing and real-time trackside assistance. Backed by a broad technology portfolio and manufacturing expertise, 3M can help accelerate the path from development to application.
"We're proud to welcome 3M to the Cadillac Formula 1® Team," said Tyler Epp, global head of commercial strategy, Cadillac Formula 1® Team. "They share our belief that championships are won in the details, and their materials and R&D will help us compete where the margins matter most."
3M brings more than a century of automotive experience to the collaboration, with technologies already at work in vehicles on roads around the world. The Formula 1® track provides 3M with a high-speed innovation environment to validate technologies, test materials at their limits and accelerate product development cycles. The highest-performing solutions can be rapidly translated and scaled across global automotive manufacturers, accelerating advancement of next-generation vehicles.
3M will also harness the global platform of Formula 1® to accelerate growth and brand visibility through car and team branding, while Cadillac Formula 1® Team will leverage 3M's industry leading R&D to explore additional areas of performance, including chassis development, advanced materials research and other technical applications that support long-term performance and efficiency.
Excel Sports Management, the agency of record for Cadillac Formula 1® Team, supported partnership discussions between 3M and the team.
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.
About Cadillac Formula 1® Team
The Cadillac Formula 1® Team is a specialist motor racing team competing in the FIA Formula 1® World Championship. Backed by TWG Motorsports and General Motors, the team has operations in Indianapolis, Indiana (USA); Charlotte, North Carolina (USA); and Silverstone, Northamptonshire (UK). With the confidence to dream big and the passion to deliver, the Cadillac Formula 1® Team is building everything from the ground up - from high-performance race cars to an inclusive, values-driven culture. The team made its Formula 1® debut in 2026.
About TWG Motorsports
TWG Motorsports is the motorsports entity of TWG Global, unifying a robust racing portfolio across the world's biggest stages in Formula 1®, INDYCAR, Formula E, IMSA and NASCAR. With strategic partnerships that include General Motors on the Cadillac Formula 1® Team and ownership of Andretti Global, Wayne Taylor Racing and Spire Motorsports, TWG Motorsports combines deep technical expertise, proven competitive excellence and industry-leading business acumen. TWG Motorsports is committed to innovating, growing and winning at the highest levels of the sport. Learn more at TWGMotorsports.com.
About GM
General Motors (NYSE: GM) is driving the future of transportation, leveraging advanced technology to build safer, smarter, and lower-emission cars, trucks and SUVs. GM's Buick, Cadillac, Chevrolet and GMC brands offer a broad portfolio of innovative gasoline-powered vehicles and the industry's widest range of EVs, as we move to an all-electric future. Learn more at GM.com.
