Analyst’s Disclosure: I/we have a beneficial short position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: MasterCard (MA - Free Report) Founded in 1966 and headquartered in Purchase, NY, Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.
MA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. MA has a Momentum Style Score of A, and shares are up 13.1% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $19.63 per share. MA boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MA should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Visa (V - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis global payments processor is expected to post quarterly earnings of $3.23 per share in its upcoming report, which represents a year-over-year change of +8.4%.
Revenues are expected to be $11.35 billion, up 11.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Visa?For Visa, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.12%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Visa will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Visa would post earnings of $3.09 per share when it actually produced earnings of $3.31, delivering a surprise of +7.12%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Visa appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Expansion of no fee loyalty program offers rewards to 30 million more Bank of America clients
Key points
BofA Rewards program sees surge in new members since launching May 27, 2026. Members in the no fee[1] loyalty program are uniquely rewarded for their full relationship. Member benefits include credit card reward bonuses, cash back deals and discounts from more than 15,000 national and local merchants, enhanced fraud and identity monitoring features, subscription credits, curated lifestyle experiences, and more. , /PRNewswire/ -- Bank of America today announced that more than 3 million clients have enrolled in BofA Rewards™ since the program launched on May 27, 2026. The no fee loyalty program rewards and recognizes clients for their full relationship across their Bank of America banking and Merrill investing accounts and is available to any client with a personal checking account.
"The response to BofA Rewards has been tremendous. More than 3 million enrollments in seven weeks tells us the program is resonating with clients who enjoy being rewarded for their full relationship," said Mary Hines Droesch, Head of Consumer and Small Business Products & Analytics at Bank of America. "Whether it's cash back offers, enhanced rewards or exclusive benefits, BofA Rewards is designed to deliver value in ways that are meaningful, easy to use, and tailored to how people live their everyday financial lives."
BofA Rewards features expanded benefits designed to help clients get more from their relationship with Bank of America. Benefits include credit card reward bonuses; cash back deals and discounts from more than 15,000 national and local merchants; banking and lending benefits; and enhanced fraud and identity monitoring features. Members in higher tiers also have access to subscription credits and curated lifestyle experiences.
Since launch, new and existing clients have embraced the program and are increasingly engaging with its many benefits:
Approximately 17,000 new members joining the program each week are new Bank of America clients. Nearly 1 million clients have engaged with Deals, generating millions in cash back over the last seven weeks. Deals on retail (45% of client engagement), gasoline (20%), entertainment (18%) and food (10%) are driving the greatest amount of activity, with offers at places like CVS, Shell Gasoline, Little Caesars, and Macy's seeing some of the strongest traction. All Bank of America clients have access to Deals, with members of BofA Rewards receiving additional deals and discounts. Depending on a client's membership tier and engagement, members can receive an estimated $150 to $4,000 in annual value through the program's rewards, benefits and exclusive offers. Any client with an eligible Bank of America personal checking account can join with no minimum balance required to enroll. Nearly 14 million clients are now enrolled in BofA Rewards.
About 80% of new enrollments have been completed through Bank of America Online Banking or Mobile Banking app. The redesigned BofA Rewards digital experience makes it easier for members to discover, activate and maximize personalized rewards and benefits.
Frequently asked questions
Question: How is BofA Rewards different from Preferred Rewards?
Answer: BofA Rewards expands eligibility to millions more clients by allowing anyone with an eligible Bank of America personal checking account to enroll regardless of account balance. The program also introduces a redesigned digital experience and expanded benefits, including 15,000 cash back deals and discounts, enhanced fraud and identity monitoring features, subscription credits, curated lifestyle experiences for eligible members, and more.
Question: Is there a minimum balance required to enroll in BofA Rewards?
Answer: No. Any client with an eligible Bank of America personal checking account can enroll in BofA Rewards at no cost, making rewards and benefits available to millions more clients.
Question: Does Bank of America plan to expand and add new benefits?
Answer: Yes. Bank of America will continue evaluating opportunities to add new offers, experiences and benefits to help members get more value from their relationship with the company.
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 60 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 and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Carolyn Batt, Bank of America
Phone: 1.646.983.1369
[email protected]
MAP #9026295
Footnotes
[1] To participate, you just need an eligible Bank of America checking account. Checking accounts may have a monthly maintenance fee if waiver requirements are not met.
New AI capabilities deliver relevant insights in seconds, helping employees provide more personalized client service in real-time
Key takeaways
More than 18,000 employees use EricaAssist as a human-assisted AI agent to help serve clients. New Generative AI (Gen AI) capabilities deliver contextual guidance in under three seconds, helping resolve client needs faster and supporting decision making by customer service representatives. EricaAssist reduces average call times by nearly one minute per interaction, improving efficiency and client experience. , /PRNewswire/ -- Bank of America (BofA) today announced enhancements to EricaAssist, its human assisted AI agent that supports employees during client conversations, delivering real time insights that help resolve client needs faster while keeping the employee at the center of the experience.
Used by more than 18,000 customer service representatives, EricaAssist works alongside employees during calls – summarizing and surfacing relevant guidance in real time – so employees can focus on listening to and understanding clients, explaining solutions, and building stronger relationships. The enhancements are making our human agents better and providing our customers with an improved and more efficient experience.
"EricaAssist reflects our high tech, high touch approach," said Ashley Ross, Head of Consumer Client Experience and Business Transformation at Bank of America. "By combining human judgment with real time AI guidance, we're helping employees navigate complex topics more easily and serve clients more effectively in the moments that matter most."
Bank of America customer service representatives use generative AI capabilities within EricaAssist to summarize why a client is calling, pull together relevant information, and recommend next steps based on the employee's role and the client's relationship with the bank – all without interrupting the flow of the conversation.
"This technology helps our teammates deliver relevant insights in seconds, while operating with strong governance, transparency, and accountability," said Tom Ellis, Chief Information Officer and Head of Consumer Technology at Bank of America.
Later this year, Bank of America plans to expand EricaAssist to support additional servicing scenarios and business lines.
Frequently asked questions
Question: Why enhance EricaAssist with GenAI capabilities?
Answer: Enhancing EricaAssist reflects the bank's focus on continuously improving how employees access and deliver personalized guidance and resolve client needs faster.
Question: How do EricaAssist enhancements reflect Bank of America's broader investments in technology?
Answer: Bank of America spends $14 billion annually on technology, of which more than $4 billion is allocated to new initiatives, including AI. These ongoing investments, combined with our high-tech, high-touch approach, continue to enhance our client experiences across all channels and to drive operational efficiencies across the company.
Question: Why blend AI with employee decision making?
Answer: Our responsible AI strategy ensures human oversight, transparency, and accountability for all outcomes. By leveraging AI at scale across our global operations, we are optimizing performance and improving client experiences. EricaAssist works alongside employees, supporting their decision-making and service. Employees ensure clients receive thoughtful guidance, with AI operating within established governance and oversight.
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 60 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 and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Catherine Page, Bank of America
Phone: 1.704.519.7314
[email protected]
Don Vecchiarello, Bank of America
Phone: 1.980.387.4899
[email protected]
On the July 14 earnings call, JPMorgan Chase (JPM +1.78%) CEO Jamie Dimon disclosed that artificial intelligence (AI) has already eliminated 30% to 40% of headcount in some of the bank's units. In the same breath, he tempered any hope that this would translate into fatter profits, warning that "you don't uniquely benefit from AI." That single sentence, more than the job-cut figure, is the one investors should study.
This is not a pilot program. JPMorgan is spending nearly $20 billion on technology this year, runs close to 1,000 AI use cases across functions from fraud detection to back-office processing, and now has roughly 150,000 of its more than 300,000 employees using an internal large language model every week. The headcount reductions Dimon described are the visible output of that investment: Real efficiency, applied at an industrial scale, already reshaping how the bank operates.
Jamie Dimon, CEO of JPMorgan Chase. Image source: JPMorgan Chase & Co.
Why the savings may not reach the bottom line Here is an analytically important part. A technology confers a durable advantage only when it is proprietary or scarce. When it diffuses across an entire industry, competition dissipates the excess returns it generates. Banking is intensely competitive and largely commoditized, so if every institution deploys similar AI tools, no single firm can hold onto the productivity windfall. The gains instead get passed through to customers in the form of lower prices, better service, or higher deposit rates, a textbook case of competitive pass-through.
That is precisely Dimon's point. AI lowers the cost of doing business, but it also lowers rivals' costs by roughly the same amount, leaving relative margins little changed. Worse, the technology is not free to run. CFO Jeremy Barnum cautioned that spending on generative AI is set to climb sharply in the second half of 2026, meaning some of the labor savings will be recycled into higher computing bills rather than dropping to earnings.
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The takeaway for JPMorgan Chase investors The takeaway here is a sobering one for anyone expecting an AI-driven profit surge at the big banks. AI is genuinely transforming JPMorgan's cost structure, trading expensive headcount for cheaper software, and that is real progress. But because the same transformation is available to every competitor, the productivity gains are more likely to flow to customers than to shareholders.
For investors, AI at JPMorgan is best understood as a defensive necessity, the price of staying competitive, rather than an offensive source of expanding margins. The bank that fails to adopt it would fall behind; the bank that adopts it merely keeps pace. That distinction is the difference between a cost saver and a moat, and Dimon is candidly telling the market it is the former.
The federal government has been sending money to deceased individuals, and Treasury Secretary Scott Bessent says the administration has built a system to stop it, one he argues is just scratching the surface of a far larger problem.
In a Fox Business appearance on July 21, 2026, Bessent announced that the Trump administration has implemented a government-wide payment verification process designed to keep federal funds from reaching deceased individuals. According to Bessent, the system has already stopped roughly 5,000 payments totaling about $99 million.
“So far we have saved 100 million dollars, payments that did not go to deceased people,” Bessent said, adding that the effort could prevent “up to 350 million that we can stop before end of this year.”
How the System Works The verification process, created through a presidential executive order, integrates the federal “do-not-pay” database with Treasury’s payment systems, checking outgoing payments against records of the deceased before the money leaves. Bessent described it as part of a broader push by the Vice President’s task force to root out waste and fraud across the government.
He framed the initiative in the administration’s own language. “This is part of what President Trump calls his common sense agenda,” Bessent said. “It is common sense.”
Stopping the Money at the Source Bessent’s argument centers on prevention rather than recovery. Once an improper payment goes out the door, clawing it back is slow, costly, and often futile.
“Once money gets out, trying to retrieve it, very, very difficult,” Bessent said. “Stopping at the source, our goal. There is hundreds of billions of dollars here. This is the start.” The system aims to block payments before they leave Treasury, avoiding the slow and costly process of clawing funds back after disbursement.
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Bessent also drew a pointed contrast with the prior administration. “In the Biden administration, HHS got rid of 50 or 60 people charged with monitoring fraud,” he said, arguing the current effort prioritizes keeping improper payments from going out in the first place.
The Much Bigger Number The $99 million already stopped is, by Bessent’s own framing, just a starting point. The far larger figure comes from the Government Accountability Office, which estimates that improper payments across the federal government could run as high as $500 billion, an amount the segment noted represents roughly 1.66% of GDP.
That is the “$500 billion more at stake” the administration is pointing toward. The GAO’s improper-payments estimate spans far more than checks to dead people. It includes overpayments, underpayments, payments made without proper documentation, and administrative errors across programs, not solely fraud. Payments to the deceased are one identifiable slice of a much broader category, which is part of why capturing the full $500 billion is a far taller order than stopping 5,000 checks.
Why It Matters Waste, fraud, and improper payments are among the rare fiscal issues with bipartisan appeal. Nobody is in favor of mailing checks to the dead, and prevention that costs little to implement is an easy case to make. Against a backdrop of a national debt that has become a central economic worry, with JPMorgan Chase (NYSE:JPM | JPM Price Prediction) CEO Jamie Dimon recently flagging $24 billion per week in federal interest payments on a $39 trillion national debt, any credible effort to plug leaks in federal spending draws attention.
The open questions are about scale and durability. Stopping $99 million is a concrete, verifiable win. Turning that into the “hundreds of billions” Bessent invokes would require the verification net to expand well beyond deceased-recipient checks into the messier, harder-to-fix categories the GAO describes, and to keep working across administrations. Bessent says the infrastructure is now in place to do exactly that.
For now, the headline number is modest relative to the problem, but the principle behind it is hard to argue with. As Bessent put it, this is “the start.” Whether it grows into the half-trillion-dollar opportunity he describes, or plateaus as a useful but limited fix, will be the real test of the common-sense pitch.
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 10.78. Over the past 52 weeks, DAL's Forward P/E has been as high as 9.94 and as low as 5.04, with a median of 8.52.
Another valuation metric that we should highlight is DAL's P/B ratio of 2.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. Over the past 12 months, DAL's P/B has been as high as 3.11 and as low as 1.52, with a median of 2.29.
Finally, investors should note that DAL has a P/CF ratio of 5.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.58. Over the past 52 weeks, DAL's P/CF has been as high as 7.54 and as low as 3.79, with a median of 5.32.
United Airlines (UAL - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. UAL is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
United Airlines is trading at a forward earnings multiple of 8.98 at the moment, with a PEG ratio of 1.19. This compares to its industry's average P/E of 10.78 and average PEG ratio of 0.48.
UAL's price-to-earnings ratio has been as high as 9.45 and as low as 4.45, with a median of 7.52, while its PEG ratio has been as high as 1.40 and as low as 0.37, with a median of 1.00, all within the past year.
Additionally, United Airlines has a P/B ratio of 2.57 while its industry's price-to-book ratio sits at 3.07. For UAL, this valuation metric has been as high as 2.95, as low as 1.45, with a median of 2.19 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines and United Airlines are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL and UAL feels like a great value stock at the moment.
The market expects Ford Motor Company (F - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%.
Revenues are expected to be $45.66 billion, down 2.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Ford Motor?For Ford Motor, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +11.95%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Ford Motor will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Ford Motor would post earnings of $0.2 per share when it actually produced earnings of $0.66, delivering a surprise of +230.00%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Ford Motor appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsHarley-Davidson (HOG - Free Report) , another stock in the Zacks Automotive - Domestic industry, is expected to report earnings per share of $0.58 for the quarter ended June 2026. This estimate points to a year-over-year change of -34.1%. Revenues for the quarter are expected to be $1.12 billion, up 6.5% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Harley-Davidson has remained unchanged. Nevertheless, the company now has an Earnings ESP of -1.16%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Harley-Davidson will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Ford's Q2 EPS is expected at 35 cents, down 5.4%, while revenues may fall 2.7% year over year.Ford's U.S. vehicle sales fell 10%, while Model e faces a projected $4-$4.5 billion loss in 2026.Ford Pro's paid software subscriptions rose about 20% to over 900,000 in the first half of 2026. Ford Motor Company (F - Free Report) is slated to release second-quarter 2026 results on July 28, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and automotive revenues is pegged at 36 cents and $45.66 billion, respectively.
For the second quarter, the consensus estimate for Ford’s earnings has moved up 2 cents over the past 60 days. Its bottom-line estimates imply a decline of 5.4% from the year-ago reported numbers.
The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 58.43%. This is depicted in the graph below:
Q1 HighlightsFord reported first-quarter 2026 adjusted earnings per share of 66 cents, which beat the Zacks Consensus Estimate of 20 cents by 232.3%. The bottom line increased from 14 cents in the prior-year quarter. F’s total automotive revenues rose 6.4% year over year to $39.82 billion, which surpassed the Zacks Consensus Estimate of $39.34 billion by 1.21%.
Things to NoteFord reported second-quarter U.S. sales of 549,200 vehicles, down 10% year over year, primarily due to discontinued models and a 69% decline in daily rental sales. Moreover, the Model e segment, which centers around retail sales of electric vehicles, remains a structural drag as Ford invests in next-generation EVs and software-defined platforms. In first-quarter 2026, Model e posted an EBIT loss of $777 million, and the company expects the segment to lose $4-$4.5 billion for full-year 2026. After posting losses of $4.8 billion in 2025, Model e still faces the dual challenge of matching EV supply with demand and funding new product development. The reported decline in U.S. deliveries and the expected loss in the Model e segment are likely to have weighed on Ford’s second-quarter results.
On the brighter side, the Ford Pro segment, which deals with commercial vehicles and services, remained a key growth engine for the company, supported by demand for commercial vehicles and the expansion of software and physical services. Ford Pro's paid software subscriptions exceeded 900,000 in the first half of 2026, an increase of approximately 20%, while cumulative hands-free driving hours using BlueCruise surpassed 12 million. The company expects 2026 Ford Pro EBIT of $6.5-$7.5 billion, which keeps the segment central to Ford’s longer-term earnings mix. Expected profit in the Ford Pro segment is likely to have improved the company’s performance in the to-be-reported quarter.
Let’s have a look at our estimates for Ford’s segmental performance.
The Zacks Consensus Estimate for Ford Blue’s second-quarter revenues is pegged at $25.7 billion, suggesting a year-over-year decline of 0.2%. The Zacks Consensus Estimate for Ford Pro revenues is pegged at $18.4 billion, representing a year-over-year decline of 2%. The Zacks Consensus Estimate for Model e revenues is pegged at $1.6 billion, representing a year-over-year decline of 31.3%.
The Zacks Consensus Estimate for Ford Blue’s second-quarter adjusted EBIT is pegged at $1.24 billion, which suggests a rise of 88.1% year over year. The Zacks Consensus Estimate for Ford Pro adjusted EBIT is pegged at $1.68 billion, which suggests a decline of 27.7% year over year. The Zacks Consensus Estimate for Model e adjusted EBIT loss is pegged at $1.26 billion compared with the loss of $1.33 billion reported in the same period last year.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Ford for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
Earnings ESP: F has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged in par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks With the Favorable CombinationHere are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
Lear Corporation (LEA - Free Report) is slated to release second-quarter 2026 results on July 31. The company has an Earnings ESP of +0.18% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s earnings and revenues is pegged at $3.89 per share and $6.14 billion.
Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on Aug. 4. The company has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.33 per share and $9.33 billion.
BorgWarner Inc. (BWA - Free Report) is slated to release second-quarter 2026 results on Aug. 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion.
3 Medical Device Stocks Giving Investors a Different Healthcare PlayGeneral Motors NYSE: GM raised its full-year 2026 guidance for the second time this year after reporting higher second-quarter revenue, adjusted earnings and free cash flow, with management citing steady North American demand, disciplined pricing, lower warranty costs and reduced electric vehicle losses.
Chair and CEO Mary Barra said the automaker delivered “another solid quarter” and that employees, dealers and suppliers helped the company “win in a dynamic market.” She said customer demand in North America remained steady, including for pickups and SUVs, while pricing was consistent.
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Flying Under the Radar: Lockheed Martin's $2.8B Stealth Setup“The business continues to perform very well,” Barra said. She added that GM’s U.S. full-size pickup market share stood at more than 42% through the first half of the year, more than 10 percentage points above its closest competitor, despite lower-than-target inventories for much of the year.
GM Raises 2026 Outlook After Strong First Half CFO Paul Jacobson said GM generated $92 billion in revenue and $8.2 billion in EBIT-adjusted earnings in the first half of 2026. Adjusted diluted earnings per share rose more than 35% year over year to $7.27, which Jacobson described as the company’s best first-half adjusted EPS performance ever.
MarketBeat Week in Review – 06/08 - 06/12For the second quarter, total company revenue was $48 billion, up $900 million from a year earlier. EBIT-adjusted earnings were $3.9 billion, also up $900 million year over year. Adjusted automotive free cash flow rose $2.2 billion to $5 billion.
GM now expects:
EBIT-adjusted earnings of $14 billion to $16 billion, up from prior guidance of $13.5 billion to $15.5 billion. Adjusted diluted EPS of $12 to $14, up from $11.50 to $13.50. Adjusted automotive free cash flow of $9.5 billion to $11.5 billion, up from $9 billion to $11 billion. Jacobson said the updated guidance reflects strong operating performance, improved pricing and warranty assumptions, and a slightly better commodity outlook. He said the outlook assumes no material escalation in the Middle East and no significant increase in commodity or other inflationary pressures from current levels.
North America Margins Return to Target Range GM North America delivered second-quarter EBIT-adjusted earnings of $3.4 billion, up $1 billion, or more than 40%, from a year earlier. The region’s margin was 8.6%, up 2.5 percentage points from the prior year and within the company’s 8% to 10% target range.
Jacobson said the improvement was broad-based and driven by strong pricing, lower EV losses, and warranty and emissions-related regulatory tailwinds. Those gains were partially offset by commodity inflation, logistics costs, higher DRAM costs and manufacturing costs tied to onshoring production to the U.S.
GM ended the quarter with U.S. dealer inventory of 511,000 units, or about 55 days of supply, which Jacobson said was in the middle of the company’s targeted 50- to 60-day range.
Barra said GM plans to launch the next-generation Chevrolet Silverado and GMC Sierra light-duty pickups in December. She said the trucks will offer improved ride quality, power, durability and towing capability, along with upgraded exterior and interior designs. The company plans to maintain record production volumes year over year while launching the trucks at three assembly plants and launching next-generation V8 engines at three propulsion plants.
EV Restructuring Charges Continue, But Cash Charges Near Completion GM recorded $2.3 billion in incremental EV-related restructuring charges in the second quarter. Jacobson said the charges included $900 million in supplier-related cash charges, $700 million in cash charges to right-size the battery supply chain with joint venture partners, and $700 million in non-cash write-offs for compliance-related and other asset impairments.
Since the second half of 2025, GM has recorded $10.9 billion in EV-related charges, of which about $7.2 billion will have a cash impact. Through the end of the second quarter, the company had paid $4.5 billion of that amount.
Jacobson said GM believes its actions “substantially complete the material cash charges” expected as the company aligns EV capacity and manufacturing footprint with regulatory policy changes, though he noted circumstances could change and some true-ups may occur.
For the full year, GM continues to expect EV losses to improve by $1 billion to $1.5 billion, driven by right-sizing EV capacity and significantly lower volume. The company realized about $500 million of that benefit in the first half and expects EV wholesale volumes to rise slightly in the second half as it resumes building to demand.
Software, Services and New Businesses Highlighted as Growth Areas Barra and Jacobson emphasized GM’s software and services business, including OnStar and Super Cruise, as a margin-accretive growth area. Barra said GM expects 1 million new subscriptions this year, contributing to more than $3 billion in recognized revenue. Jacobson said deferred revenue rose to $6.3 billion, up almost 50% from a year earlier, while second-quarter recognized revenue was $800 million, up 20% year over year.
Barra said GM will make Super Cruise standard on high-end Silverado and Sierra trims and optional on most other trims, estimating 160,000 incremental Super Cruise units from that strategy. During the Q&A session, Barra said GM continues to evaluate pricing and expansion based on customer reception, adding that the company sees “a very high attach rate” after included service periods end. Jacobson said Super Cruise attachment rates are in the 30% to 40% range.
GM also pointed to GM Insurance and GM Defense as emerging businesses. Barra said GM Insurance has expanded from three states in early 2024 to 21 states and is available to more than 60% of GM’s U.S. sales, with a goal of reaching more than 80% in the near term.
Barra said GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive EBIT results this year. She said the business is targeting a revenue compound annual growth rate of more than 30% over the next several years with double-digit margins.
Share Buybacks and 2027 Outlook GM continued to repurchase shares in the quarter, buying back $2 billion in open-market shares and retiring about 25 million shares. First-half repurchases totaled $2.8 billion, with 36 million shares retired. Jacobson said GM ended the second quarter with a diluted share count of 893 million, down about 8% from the second quarter of 2025 and 35% from the second quarter of 2023. The company had $3.5 billion remaining under its current repurchase authorization.
Looking ahead, Jacobson said GM believes it can grow revenue, margins, EBIT and free cash flow in 2027 based on current conditions. He cited continued improvement in EV profitability, growth in OnStar digital revenue, additional warranty improvements, fixed-cost efficiencies, a full year of the new Silverado and Sierra pickups, and increased full-size SUV supply.
Barra closed the call by saying GM’s vehicle portfolio is strengthening, its onshoring efforts should reduce tariff expense, and its software, services and adjacent businesses are creating additional value opportunities. “We’re confident in 2026, and have said it will be stronger than 2025,” she said. “More importantly, that 2027 and the years beyond will be stronger still.”
About General Motors (NYSE:GM)General Motors Company NYSE: GM is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world's largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM's operations encompass vehicle financing, connected services and advanced mobility initiatives.
GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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General Motors (GM - Free Report) reported $48.03 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.9%. EPS of $3.57 for the same period compares to $2.53 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $46.56 billion, representing a surprise of +3.15%. The company delivered an EPS surprise of +14.06%, with the consensus EPS estimate being $3.13.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how General Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Worldwide - Wholesale Vehicle Sales - Total GMI: 142 thousand versus 165.88 thousand estimated by four analysts on average.Worldwide - Wholesale Vehicle Sales - Total: 990 thousand versus the four-analyst average estimate of 989.9 thousand.Worldwide - Wholesale Vehicle Sales - Total GMNA: 848 thousand versus the four-analyst average estimate of 824.03 thousand.Total net sales and revenue- GM Financial: $4.27 billion compared to the $4.19 billion average estimate based on five analysts. The reported number represents a change of +0.3% year over year.Total net sales and revenue- Total Automotive- GMI: $3.69 billion compared to the $4.41 billion average estimate based on four analysts. The reported number represents a change of +11% year over year.Total net sales and revenue- Total Automotive: $43.76 billion versus the four-analyst average estimate of $42.96 billion. The reported number represents a year-over-year change of +2.1%.Total net sales and revenue- Total Automotive- GMNA: $39.91 billion versus $38.49 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.1% change.Total net sales and revenue- Total Automotive- Corporate: $159 million compared to the $64.1 million average estimate based on three analysts. The reported number represents a change of +179% year over year.Total net sales and revenue- Reclassifications/Eliminations: $-3 million compared to the $-9.53 million average estimate based on three analysts. The reported number represents a change of +50% year over year.Operating segments- GMNA: $3.45 billion compared to the $3.13 billion average estimate based on four analysts.Operating segments- Corporate and eliminations: $-298 million versus $-287.83 million estimated by four analysts on average.Operating segments- GM Financial: $605 million compared to the $698.02 million average estimate based on four analysts.View all Key Company Metrics for General Motors here>>>
Shares of General Motors have returned -5.8% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
General Motors GM shares are inching higher on Tuesday morning after the automaker posted a powerhouse Q2 earnings release, outperforming Street expectations across key operational metrics
Revenue came in just over $48 billion – reflecting a 1.9% year-over-year increase – while adjusted earnings per share went up 41.3% versus last year to $3.57 in the second quarter.
Driven by North American truck demand, resilient pricing power, and strict discipline on operating overhead, GM raised its full-year adjusted profit and free cash flow guidance for the second time this year.
Despite headline GAAP net income pressure, the firm’s “core engine” seems to be running at full throttle in an uncertain automotive landscape. Still, General Motors stock is hovering around the same price at which it started 2026.
GM’s standout performance in Q2 was fuelled by its lucrative North American vehicle portfolio.
Segment adjusted EBIT surged 42.7% year-over-year to $3.5 billion – pushing North American margins up to 8.6% - as average vehicle transaction prices remained "rock-solid" around $52,000, as consumer appetite for full-size pickups and SUVs showed remarkable stability.
Pricing gains added $700 million to adjusted EBIT, while internal cost discipline – notably lower warranty expenses – contributed another $300 million.
Crucially, General Motors made tangible progress narrowing its electric vehicle losses, remaining on track to cut EV cash burn by up to $1.5 billion this year.
Buoyed by these tailwinds, management boosted full-year adjusted EBIT guidance to at least $14 billion, triggering a 4% rally in GM shares.
General Motors' quarterly print wasn’t entirely free of weaknesses, though.
In Q2, net income attributable to stockholders tanked 31.1% year-over-year to $1.3 billion.
The primary drag stems from massive accounting write-downs and cash outlays associated with scaling back its electric vehicle footprint, bringing cumulative EV-related retreat charges to $10.9 billion.
Consequently, GM trimmed its full-year GAAP net income target to $8.4 billion–$9.8 billion.
Profitability faced headwinds from rising memory-chip costs, freight logistics inflation, and short-term friction tied to manufacturing onshoring.
Moreover, the company's financial segment earnings before taxes slid 14% year-over-year to $605 million amid broader consumer credit tightening.
For investors, GM stock presents a classic value-and-capital-return thesis.
Trading at “single-digit” earnings multiples, it offers massive upside potential relative to its fundamental cash generation.
Management’s aggressive share buyback plan – shrinking diluted shares outstanding by over 20% across two years – provides a powerful structural tailwind for adjusted EPS growth.
Paired with a newly declared $0.18 quarterly dividend and raised adjusted free cash flow guidance of up to $11.5 billion, General Motors' capital return strategy is top-tier.
Conservative traders should consider accumulating on short-term market dips. While write-downs from the EV pivot create temporary noise, GM’s dominant combustion-engine cash engine makes it a resilient long-term buy.
General Motors (GM) saw its stock rise by 4% following a robust Q2 performance that exceeded expectations and an upward revision of its full-year guidance. Inv
Key Takeaways GM's adjusted EPS rose 41.3% to $3.57, while revenues increased 1.9% to $48.03 billion.Pricing added $700 million to adjusted EBIT, while cost improvements contributed another $300 million.GM raised 2026 adjusted EBIT guidance to $14-$16 billion and EPS guidance to $12-$14. General Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Better-than-expected adjusted EBITDA from North America and International segments led to the outperformance.
Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. Global wholesale volume rose to 990,000 vehicles from 974,000 a year earlier.
Adjusted earnings before interest and taxes increased 29.8% year over year to $3.94 billion. The adjusted EBIT margin expanded to 8.2% from 6.4%, reflecting stronger core operating performance.
Price contributed $700 million to the year-over-year improvement in adjusted EBIT, supported by GM’s product portfolio and incentive discipline. Cost performance added $300 million, primarily due to lower warranty expenses, reduced tariff exposure and emissions-related regulatory savings. Commodity inflation, logistics expenses, higher memory-chip costs and manufacturing costs tied to U.S. production onshoring partly offset the gains.
General Motors' North America Business StrengthensGM North America generated revenues of $39.91 billion, up 1.1% from the prior-year quarter. Wholesale volume was nearly flat at 848,000 units as a 31,000-unit decline in electric vehicle volume was offset by higher internal-combustion-engine vehicle shipments.
The segment’s adjusted EBIT surged 42.7% to $3.45 billion, surpassing the Zacks Consensus Estimate of $3.12 billion. Adjusted EBIT margin improved 250 basis points to 8.6%, aided by pricing, incentive discipline and operating efficiencies. U.S. dealer inventory ended the quarter at 511,000 vehicles, down about 3% year over year and within management’s targeted range of 50-60 days.
GM's International Operations Deliver Mixed ResultsGM International revenues climbed 11% year over year to $3.69 billion, while wholesale volume increased to 142,000 vehicles from 125,000. Strong execution in South America supported the top line, though shipping disruptions reduced wholesale volume in the Middle East.
Adjusted EBIT for the segment declined 6.6% to $190 million, surpassing the consensus mark of $176 million. Meanwhile, GM’s China joint ventures generated equity income of $83 million, up 16.9%. The China business delivered its seventh consecutive profitable quarter, supported by cost efficiencies and product-mix optimization.
General Motors' Finance Arm Faces Cost PressureGM Financial revenues edged up to $4.27 billion from $4.26 billion. Higher net financing revenues and insurance premiums supported results.
However, adjusted earnings before taxes fell 14% to $605 million. Increased lease depreciation, higher costs related to insurance operations and a larger provision for loan losses offset the revenue benefits. GM Financial paid a $250 million dividend to its parent during the quarter, bringing first-half dividends to $900 million.
General Motors' Digital Business Keeps ScalingOnStar ended the quarter with deferred revenues of $6.3 billion, up nearly 50% year over year. Recognized revenues reached $800 million, increasing more than 20%. The company remained on track to add about 1 million subscribers in 2026.
Super Cruise recognized revenues grew roughly 70%, and GM added about 70,000 subscribers during the quarter. The company expects to exceed 850,000 Super Cruise subscribers by year-end, while the attach rate after the three-year prepaid period remained in the 30-40% range.
GM's Cash Flow Supports Shareholder ReturnsAutomotive operating cash flow increased 9% to $5.07 billion. Adjusted automotive free cash flow jumped 78% to $5.03 billion, driven by higher automotive earnings, tariff reimbursement timing and lower capital spending.
Capital expenditures totaled $1.92 billion in the quarter. GM repurchased $2 billion of stock and retired approximately 24.9 million shares. The company also distributed about $200 million in dividends. Automotive cash and marketable securities totaled $19.7 billion at quarter-end, while automotive liquidity was $33.6 billion.
General Motors Raises Its 2026 OutlookGeneral Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
The company also increased its adjusted automotive free cash flow forecast to $9.5-$11.5 billion from $9-$11 billion. GM continues to expect an 8-10% adjusted EBIT margin in North America and capital spending, including battery joint-venture investments, of $10-$12 billion.
Management attributed the improved outlook to strong pricing and warranty performance, along with a slightly better commodity-cost environment. The board also declared a quarterly dividend of 18 cents per share, to be paid out on Sept. 17, 2026, to shareholders of record as of Sept. 4.
GM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases From the Auto SpaceAutoliv (ALV - Free Report) reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales.
Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended the June quarter with $2.3 billion of liquidity, including $559 million in cash.
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GM said it delivered fewer EVs to dealerships in the last quarter. Bloomberg/Getty Images The price tag for General Motors' EV reset has ballooned to nearly $11 billion.
During the automaker's Tuesday earnings update, executives said GM recorded a nearly $2.3 billion EV-related charge in the most recent quarter. That brings the automaker's total related costs to $10.9 billion since the second half of 2025 as it slows its EV build-out and builds more gas-powered cars. The billions in write-downs are tied to cutting battery capacity and to reworking factories for gas engine production.
US demand for EVs has fallen since the expiration of the $7,500 federal EV tax credit in September, and legacy automakers have responded with billion-dollar write-downs on their EV development plans. Jeep's parent company, Stellantis, announced a $26 billion charge in February, Ford recorded a $19.5 billion charge in December, and Volkswagen wrote off $3.5 billion in September.
On Tuesday, GM said its most recent write-down has now "substantially" completed the major cash costs it expects from the EV reset.
For General Motors — which builds nine EV nameplates, the largest lineup of any US automaker — the billion-dollar cutbacks starkly contrast with CEO Mary Barra's once lofty EV expectations. In 2021, she predicted the company would sell more electric vehicles than Tesla by 2025.
That didn't happen. Last year, GM sold just over 150,000 EVs while Tesla delivered nearly 590,000.
Instead, GM's gas-powered trucks and SUVs remain its main profit engine — and that is changing the vehicles it sends to dealerships.
During the second quarter, GM shipped 31,000 fewer EVs to dealerships in North America than it did a year earlier. At the same time, it shipped 30,000 more gas-powered vehicles.
The shift is also reaching GM's top-end brand, Cadillac, which calls itself America's best-selling luxury EV maker — it's developing new internal combustion engine, or ICE, cars.
"Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles," Barra said during the Tuesday earnings call.
GM's stock price jumped more than 3% after the bell.
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Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
General Motors (NYSE:GM | GM Price Prediction) delivered its fifth straight earnings beat on Tuesday, July 21, and CFO Paul Jacobson used a CNBC interview this morning to frame the results as validation of a multi-year discipline strategy rather than a one-off surprise.
Adjusted EPS came in at $3.57 against estimates of $3.20, while revenue of $48 billion topped the $47 billion consensus. Management raised full-year adjusted EPS guidance to $12 to $14 per share, up from $11.50 to $13.50, the second guidance lift this year.
Shares responded, trading up 5.24% intraday to $79.82 after the report. The stock is still down 1.94% year to date but has gained 49.86% over the trailing 12 months.
GM’s First-Half Earnings Beat 6 of Its Last 10 Full Years CFO Jacobson pointed to the depth of the first-half performance. “Our first-half earnings per share is 25% higher than the first half at any time in our history. And actually more than six out of the last ten full years we’ve already recorded in the first six months,” he said on CNBC.
Lower Incentives Help GM Deliver Its Fifth Straight Beat He credited operational discipline for the recent streak of earnings beats. “Our inventory discipline, our incentive discipline, which has been below the industry average for more than three years, has really led to these consistent results,” Jacobson said. GM incentives currently run at 4.7% of MSRP versus a 6.3% industry average, a spread that flows straight to margin. GM North America posted adjusted EBIT of $3.45 billion at an 8.6% margin, up 2.5 percentage points year over year, on 990,000 wholesale units.
Consumers Keep Buying GM Trucks Despite Recessionary Sentiment On demand, Jacobson said, “Our consumer has been very resilient. We’ve got a very broad portfolio, probably the best portfolio we’ve ever had in our history. And we can meet customers at all price points.” Full-size SUVs and the truck-and-SUV mix drove the North American results.
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This message runs counter to the recessionary sentiment that some macro signals are currently showing. University of Michigan consumer sentiment printed 44.8 in May 2026, a 12-month low and well into what the index defines as recessionary territory. Yet BEA data shows motor vehicle personal consumption held at $759.5 billion (SAAR) in May 2026, consistent with the buying behavior Jacobson described.
GM Expects Up to $3.5 Billion in Tariff Costs GM is guiding to a $2.5-$3.5 billion full-year tariff impact. Jacobson framed the situation as manageable: “The tariff dynamic remains somewhat fluid… the new tariffs that were announced don’t affect autos under 232. We expect a minimal impact from that. But we’re optimistic that the administration can come to a resolution and get final resolution on USMCA or bilateral deals with Mexico and Canada.”
GM Has Retired 35% of Its Shares and Still Trades Below 6x Earnings GM repurchased nearly $3 billion of stock in the first half of 2026 and has now retired over 35% of fully diluted shares since 2023. The board also declared a $0.18 quarterly dividend payable September 17, 2026.
CFO Jacobson clearly made the case for GM being a value play: the stock trades at less than six times 2026 anticipated earnings, while management targets margin expansion toward 8-10%. Adjusted automotive free cash flow of $5.03 billion in Q2, up 78.0% year over year, supports that framing.
What to Watch Next GM’s fifth straight earnings beat reflects stronger margins, disciplined incentives, resilient truck and SUV demand, and aggressive share repurchases. With management raising guidance for the second time this year, GM appears positioned to grow earnings despite billions of dollars in expected tariff costs and ongoing EV restructuring charges. The next test is whether North American margins and pricing remain strong through the second half of 2026.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and General Motors didn't make the cut. Grab the names FREE today.
GE Aerospace Chairman and CEO Larry Culp discusses the company's order backlog, supply chain investments, and how improved deliveries from key suppliers is helping to boost output. He speaks with Guy Johnson on the sidelines of the Farnborough International Air Show 2026.
FARNBOROUGH, England, July 21, 2026 (GLOBE NEWSWIRE) -- GE Aerospace (NYSE: GE) today announced that AerCap Holdings N.V. ("AerCap") has selected the GEnx-1B engine to power an additional 15 Boeing 787 Dreamliners.
BlackRock (BLK), a global investment management firm expanding further into private markets, is preparing a debt sale of more than $12 billion to help finance a
Key Takeaways SBUX's U.S. comps rose 7.1%, with transactions up more than 4% in the fiscal second quarter.Starbucks raised non-GAAP EPS guidance to $2.25-$2.45 as operating momentum strengthened.SBUX expects sales leverage and its $2B savings plan to support further margin recovery. Starbucks Corporation (SBUX - Free Report) is showing tangible signs that its "Back to Starbucks" turnaround is translating into financial improvement. In the second quarter of fiscal 2026, the company returned to year-over-year EPS growth for the first time in more than two years, while consolidated operating margin expanded for the first time since the first quarter of fiscal 2024. Starbucks also raised its full-year outlook, now expecting global and U.S. comparable sales growth of 5% or better, up from its prior outlook of at least 3%. The company also lifted its non-GAAP EPS guidance to $2.25-$2.45 from $2.15-$2.40, pointing to greater confidence in the recovery.
The improved outlook is being supported by stronger customer demand and transaction-led comp growth. U.S. comparable sales increased 7.1%, fueled by transaction growth of more than 4%, while U.S. company-operated morning transactions were roughly back to fiscal 2022 levels. The comp recovery was supported by Green Apron Service, improved staffing, service-time execution, delivery expansion and menu innovation. Starbucks Rewards membership also reached a record 35.6 million active members, strengthening the company’s digital engagement base.
Higher transaction volumes are becoming increasingly important because they can support operating leverage as sales recover. Starbucks expects sales leverage to build over the next two quarters, while its $2 billion cost-savings program remains on track through fiscal 2028. The company also expects coffee and tariff pressures to begin easing in the back half of fiscal 2026. These factors could help offset ongoing Back to Starbucks investments and support better margin flow-through.
International profitability and the China joint venture add another layer to the earnings recovery setup. Starbucks expects the China JV structure to be margin accretive, with the transaction expected to be relatively EPS neutral in fiscal 2026. The company also expects the transition to support a more capital-efficient model in China while allowing it to continue participating in the market’s long-term growth opportunity.
Starbucks’ ability to deliver sustainable earnings growth will likely depend on whether it can convert improving traffic into consistent operating leverage and margin expansion. Customer demand is recovering, guidance has moved higher and several operating initiatives are beginning to support stronger traffic, sales leverage and margin recovery. Together, these factors likely suggest that the Back to Starbucks turnaround is gaining financial traction.
SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 16.1% in the past year against the industry’s of 5.3% fall. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) have gained 5.9%, while McDonald's Corporation (MCD - Free Report) has declined 7.3%.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.01, below the industry’s average of 3.30. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 4.95 and 6.51, respectively.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share has increased in the past 30 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating an 13.2% rise in fiscal 2026. Conversely, industry players like McDonald's are likely to witness an increase of 5.4%, year over year, in 2026 earnings. Meanwhile, Dutch Bros’ 2026 earnings are likely to witness a rise of 22.4% year over year.
SBUX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean (RCL - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis cruise operator is expected to post quarterly earnings of $3.97 per share in its upcoming report, which represents a year-over-year change of -9.4%.
Revenues are expected to be $4.81 billion, up 6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.25% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Royal Caribbean?For Royal Caribbean, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.05%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Royal Caribbean will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Royal Caribbean would post earnings of $3.2 per share when it actually produced earnings of $3.60, delivering a surprise of +12.50%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Royal Caribbean appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
SummaryHewlett Packard Enterprise is evolving from a server vendor to a dominant owner of the networking layer, driving a higher-margin, less cyclical business mix.Networking now delivers 27% of HPE revenue but nearly 44% of segment profit, with Juniper and Aruba platforms fueling rapid margin expansion and growth.The H3C divestiture transforms HPE into a cleaner Western infrastructure asset, reducing geopolitical risk and compressing its risk premium.I rate HPE a buy with 15–20% upside, supported by strong growth, margin expansion, and a discounted valuation relative to peers. Sundry Photography/iStock Editorial via Getty Images
Thesis Hewlett Packard Enterprise Company (HPE) draws most of its attention from AI server units and GPU pass-through economics, which is warranted given the company's history in compute. But most of this commentary is
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Wall Street expects a year-over-year increase in earnings on higher revenues when Hilton Worldwide Holdings Inc. (HLT - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $2.28 per share in its upcoming report, which represents a year-over-year change of +3.6%.
Revenues are expected to be $3.36 billion, up 7.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.07% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Hilton Worldwide?For Hilton Worldwide, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.54%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Hilton Worldwide will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Hilton Worldwide would post earnings of $1.96 per share when it actually produced earnings of $2.01, delivering a surprise of +2.55%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Hilton Worldwide appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Hotels and Motels industry, Hilton Worldwide Holdings Inc. (HLT - Free Report) , is soon expected to post earnings of $2.28 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +3.6%. Revenues for the quarter are expected to be $3.36 billion, up 7.1% from the year-ago quarter.
The consensus EPS estimate for Hilton Worldwide has been revised 0.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.54%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Hilton Worldwide will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The market expects Paypal (PYPL - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis technology platform and digital payments company is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of -8.6%.
Revenues are expected to be $8.52 billion, up 2.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.22% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Paypal?For Paypal, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.02%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Paypal will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Paypal would post earnings of $1.27 per share when it actually produced earnings of $1.34, delivering a surprise of +5.51%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Paypal doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Lip-Bu Tan serves as the CEO of Intel. CHENG Yu-chen / AFP via Getty Images US chipmaker Intel is planning layoffs within its data center group amid a larger effort to become a "more focused and efficient" company.
"As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," an Intel spokesperson told Business Insider on Tuesday.
The spokesperson added that Intel is committed to supporting affected employees through the transition. It was not immediately clear how many company employees would be impacted by the layoffs.
A person familiar with the matter told Business Insider that the changes would not affect the data center group's product commitments and roadmaps and should help to better streamline the business.
News of the planned layoffs was first reported by The Oregonian.
The new round of job cuts comes as Intel has steadily reduced its workforce over recent years. Last year, Intel laid off at least 15% of its factory workers, or more than 5,000 employees, across four US states.
In August 2024, the chip manufacturer announced more than 15,000 job cuts as part of a plan to deliver $10 billion in cost savings for 2025.
Intel's turnaround effort gains momentumThe latest planned layoffs come at a pivotal period for Intel, which has shown signs of renewed momentum under CEO Lip-Bu Tan.
Tan was appointed CEO in March 2025 and is attempting a turnaround. The chipmaker's market share decreased in the last decade amid competition with foreign suppliers like Taiwan Semiconductor Manufacturing Company.
The US chipmaker is in the midst of developing its foundry business, an effort to develop chips for other companies.
On Tuesday, Intel announced its first named customer for its foundry business during Tan's tenure, a partnership with California-based cybersecurity company Fortinet to develop its next-generation security chip. Intel shares were up more than 6% following the news.
Last year, the US government took a nearly 10% stake in Intel, making it the company's largest shareholder. Intel's stock soared after President Donald Trump discussed the agreement at the White House and have climbed roughly 179% since the start of the year.
Tesla CEO Elon Musk has also said that the EV maker plans to use Intel's more advanced 14A chip process, which would mark a major win for the chipmaker.
Back in May, Intel's stock rose to an all-time high following reports that the company was in talks with Apple to make chips for its devices.
Do you work at Intel? Contact the reporter from a non-work email and device at [email protected] or on Signal at 718-288-1655.
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Natalie Musumeci You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Natalie is a senior reporter on Business Insider's Business News team.She was previously on BI's Legal Affairs team where she covered major cases out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles around the trending news of the day. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the headquarters for the New York Police Department. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a journalism degree. Popular articles
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Nvidia became the most valuable company because of insatiable demand for its graphics processing unit, or GPU, the primary chip used for creating and deploying artificial intelligence.
But the chip giant is now shipping its own central processing units, or CPUs, which cloud providers could decide to deploy in place of those from Advanced Micro Devices and Intel, opening up a new battleground in AI servers.
On Tuesday, Nvidia released new information about its data center CPU, called Vera, including specifications and the kind of benchmarks and architectural information that prospective customers need to fully evaluate the chip. Nvidia representatives said Vera chips were delivered to clients, including OpenAI, Anthropic, and SpaceX, in June.
Nvidia is seen as the company that sets the direction for the information technology industry. But in CPUs, Nvidia is the challenger once again, competing against two well-established players in Intel and AMD, which have deep ties to hyperscalers and cloud giants.
The company's investment in CPUs is another example of Nvidia's strategy to vertically integrate its systems and produce more of the chips and technology inside them every year. It aims to sell the entire system as a full rack of computing power, instead of simply selling chips by themselves.
It's a strategy that Nvidia says will help engineers squeeze more performance out of their GPUs, helping the company's systems remain the computers of choice for leading AI labs as competition from AMD and custom chips heats up.
Before the AI boom, the CPU was the most important and most expensive part in a server. The first generation of AI servers available when ChatGPT was released in 2022 paired as many as eight GPUs to one CPU, signaling a shift towards Nvidia's GPUs.
But the rise of agentic AI, which can run independently in the background with minimal human input, has returned attention to the CPU, which is needed to babysit and feed data to an agent. Financial markets have noticed, and CPU incumbents AMD and Intel are among the two best-performing chip stocks so far in 2026, up 128% and 149% respectively, besting Nvidia's rise of 8%.
Nvidia, AMD and Intel stock chart.
Agents have made CPUs "much more integral," Ian Buck, Nvidia's vice president of hyperscale, said at a presentation last week. "Particularly how fast a CPU can answer one question."
Nvidia said the whole server CPU market could eventually be worth $200 billion, while a Bernstein estimate from earlier this year said the mature server CPU market in total was worth about $37 billion in 2025.
Wolfe Research said in May that it expected the average selling price to be about $5,000 per Vera chip, and forecast that Nvidia would ship about 1.3 million of them this year. Nvidia declined to comment on pricing.
Gartner analyst Kevin Knox said that AMD is currently the company to beat in enterprise AI server CPUs. AMD reportedly holds about 33% of the market for server CPUs, and Intel has 66.8%, but AMD is gaining share and has deep relationships with hyperscalers.
"AMD's done a great job building their ecosystem around their chips," Knox said.
Single-core performanceNvidia said last week that Vera is the first server CPU that it has designed from the core, as opposed to using an off-the-shelf design provided by Arm, which requires less engineering work.
The company said Vera was specifically designed to address bottlenecks in AI agents, and that its chip has 50% better performance for AI agents than x86 chips, the type of silicon that Intel and AMD make.
That's because previous CPUs for clouds from Intel and AMD focused on core count, but Nvidia's chip and Olympus core focuses on single-core speed instead, Nvidia said.
Hannah Coutand, a Vera product marketer at Nvidia, said in a presentation that the chip focused on per-core speed, high memory bandwidth, and latency, "so that agents can return to their GPUs as quickly as possible and keep those GPUs, which are a very expensive and a highly valuable asset in the AI factory, as highly utilized as possible."
The company said that it will sell the chip by itself, in addition to being paired with the company's GPUs. It will also come in a liquid-cooled rack of 256 Vera chips tied together, as well as a configuration with two Vera chips in a single server. It will also be available paired with Nvidia's GPUs in a system called Vera Rubin.
Read more CNBC tech newsElon Musk's Memphis AI empire is the epicenter of the data center backlashAMD launches Helios, its first rack AI system to rival Nvidia, adding Microsoft as newest buyerTSMC is accelerating Arizona factory build-out to capitalize on AI 'megatrend,' CFO saysLeather jacket worn by Nvidia CEO Jensen Huang goes for just under $1 million at Sotheby's auctionThe CPU is power-hungry, using between 250 watts and 450 watts of power. The chip also uses a huge amount of low-power memory, the same kind used in laptops and phones, supporting up to 1.5 terabytes of memory per chip.
Some analysts have said that Nvidia has created a new class of CPUs that Intel and AMD don't have a response to yet. Cambrian AI Research founder Karl Freund said Nvidia's new CPU won't be used to serve websites or other traditional server tasks, but will be reserved for intense AI tasks.
But getting the cloud providers to buy the chips could still be a challenge, even for Nvidia.
Coutand said that Vera was in "early innings" of adoption. The company didn't list any major cloud service providers except Oracle on its list of partners but said OpenAI plans to deploy Vera chips in large quantities starting this quarter.
"The CPU is something they've done to kind of unhook their customers from using Intel or AMD CPUs, and they covet that revenue," said Freund. "What they've done is they decided to focus on a unique CPU that isn't available in the market from anyone right now."
The market’s most explosive first-half winners of 2026 are getting hammered in the second half, and the reversal has been swift and severe.
According to new data from Bespoke Investment Group, the 25 best-performing Russell 1000 stocks in the first half of 2026 — each up at least 150%, for an average gain of 235% — have collectively lost a quarter of their value in fewer than three weeks since July began.
SNDK stock is moving. See the chart and price action here. A Brutal Reversal Takes HoldEvery single one of those 25 stocks has fallen at least 8% this month, even as the rest of the Russell 1000 gained an average of 0.8% over the same stretch.
It’s a textbook case of mean reversion, and the AI infrastructure trade that fueled the first-half rally is now bearing the brunt of the pullback.
They are not alone. Other AI-infrastructure darlings that topped the first-half leaderboard include:
Chips, memory, storage and servers dominated the list, reflecting just how concentrated the AI trade had become by mid-year.
Bespoke’s Data Shows a Near-Perfect InversionBespoke’s broader breakdown shows the pain isn’t limited to the top 25. The 47 Russell 1,000 stocks that gained 100%+ in the first half are down an average of 21.6% in July, while the 17 stocks that had fallen 50%+ in the first half have bounced 10.6% — a near-perfect inversion.
Slicing the index into deciles by first-half performance confirms the pattern: the top decile is down 13.2% month-to-date, and returns improve steadily as you move down the ranks.
For traders who chased 2026’s biggest winners into July, the unwind has been swift, and stocks like SanDisk and Intel are now Exhibit A.
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Key Takeaways Intel's DCAI business may benefit from stronger Xeon demand and AI infrastructure investment.INTC expanded its Google collaboration to advance AI infrastructure and cloud data center innovation.Intel introduced Xeon 6 processors with up to 288 efficient cores for AI and cloud workloads. Intel Corporation (INTC - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Datacenter and AI Group (DCAI) segment backed by strong Xeon server CPU demand, growing AI infrastructure investment and long-term hyperscaler agreements.
Factors at PlayThe DCAI segment seeks to develop leading data center products, including Intel Xeon servers and field programmable gate array products, while overseeing the overall AI strategy.
During the quarter, Intel expanded its collaboration with Google to advance AI infrastructure, aiming to improve computing performance, accelerate AI workloads, and develop more efficient hardware-software integration to support next-generation artificial intelligence applications and large-scale cloud innovation across global data centers.
In the quarter under review, the company recently introduced Xeon 6+ processors built on Intel 18A. The chip, optimized for agentic AI infrastructure, brings key capabilities, such as up to 288 efficient cores and up to 2.5X performance improvement versus the prior generation. It is designed to support high concurrency, data movement, AI orchestration, Telecom workloads and cloud-native infrastructure.
In the Bellflower Connect smart city pilot, Tradewinds Networks leveraged Intel Xeon-powered edge infrastructure and AI-driven cybersecurity to deliver affordable broadband connectivity. Collaboration with major tech giants, strong focus on innovation and customer wins are expected to have a favorable impact in this segment.
Overall ExpectationsThe Zacks Consensus Estimate for DCAI revenues is pegged at $5.47 billion, indicating an improvement from $3.93 billion in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.43 billion, which indicates a increase from the year-ago quarter’s reported figure of $11.81 billion.The consensus estimate for EPS is pegged at 21 cents per share, indicating an increase from a loss of 10 cents per share year ago.
Earnings WhispersOur proven model predicts a likely earnings beat for Intel for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to ConsiderHere are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29.
The Earnings ESP for Celestica Inc. (CLS - Free Report) is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.
The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +1.08%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.
Key Takeaways Intel's Q2 Client Computing revenue is expected to edge up to $7.96 billion from $7.87 billion a year ago.INTC launched Core Series 3 and Arc G-Series processors to expand PC and handheld gaming demand.Intel partnered with ChatPPT on a Hybrid AI PC Edition combining cloud and on-device AI capabilities. Intel Corporation (INTC - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Client Computing Group (CCG) segment backed by AI PC adoption, innovative product launches and the enterprise PC refresh cycle.
Factors at PlayCCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards, form factor systems and graphic products
During the quarter, Intel introduced Core Series 3 processors, boosting everyday computing with improved performance and efficiency. The new chips target mainstream users, offering better speed, responsiveness, and power optimization. This has strengthened Intel’s position in the entry-level PC market and is driving broader client computing demand.
Intel launched Arc G-Series processors, a new family of handheld gaming processors built on the Intel Core Ultra Series 3 (Panther Lake) architecture. The processors are designed to deliver higher gaming performance, improved power efficiency and longer battery life for next-generation handheld gaming devices. Intel highlighted upcoming systems from partners including Acer, MSI and OneXPlayer. These developments are likely to have supported the CCG segment’s top line during the quarter.
In the quarter under review, Intel joined forces with ChatPPT to launch a Hybrid AI PC Edition, marking a strategic move toward on-device intelligence. The partnership aims to deliver faster, secure, and efficient AI experiences by combining cloud and local processing capabilities for users worldwide. Such collaborations are expected to drive innovation and propel user growth.
Overall ExpectationsThe Zacks Consensus Estimate for CCG revenues is pegged at $7.96 billion, indicating an improvement from $7.87 billion in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.43 billion, which indicates a increase from the year-ago quarter’s reported figure of $11.81 billion. The consensus estimate for EPS is pegged at 21 cents per share, indicating an increase from a loss of 10 cents per share.
Earnings WhispersOur proven model predicts a likely earnings beat for Intel for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel currently has an ESP of +5.18% with a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to ConsiderHere are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29.
The Earnings ESP for Celestica Inc. (CLS - Free Report) is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.
The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +1.08%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Shopify (SHOP - 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.
Over the past month, shares of this cloud-based commerce company have returned +15.3%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Services industry, which Shopify falls in, has lost 3.9%. The key question now is: What could be the stock's future direction?
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 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.
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, Shopify is expected to post earnings of $0.39 per share, indicating a change of +11.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.84 points to a change of +57.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.21 indicates a change of +20.4% from what Shopify 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 #1 (Strong Buy) for Shopify.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
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.
For Shopify, the consensus sales estimate for the current quarter of $3.43 billion indicates a year-over-year change of +28.1%. For the current and next fiscal years, $14.72 billion and $18.06 billion estimates indicate +27.4% and +22.7% changes, respectively.
Last Reported Results and Surprise HistoryShopify reported revenues of $3.17 billion in the last reported quarter, representing a year-over-year change of +34.3%. EPS of $0.36 for the same period compares with $0.25 a year ago.
Compared to the Zacks Consensus Estimate of $3.08 billion, the reported revenues represent a surprise of +2.79%. The EPS surprise was +12.5%.
Over the last four quarters, Shopify surpassed consensus EPS estimates two 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.
Shopify 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.
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 Shopify. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Shopify (SHOP - Free Report) Ottawa,Canada-based Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. Its platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.
SHOP, a #1 (Strong Buy) stock, was added to the Focus List on September 6, 2022 at $29.94 per share. Since then, shares have increased 315.76% to $124.48.
For fiscal 2026, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $1.84. SHOP boasts an average earnings surprise of 7.4%.
Moreover, analysts are expecting SHOP's earnings to grow 57.3% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
American Express aims to improve the B2B payments experience for buyers and suppliers with two new offerings, including a new B2B payment feature and automated invoice reporting capabilities.
Both offerings join American Express’ Buyer Initiated Payments (BIP), which enables buyers to initiate electronic payments to suppliers, the company said in a Tuesday (July 21) press release.
The new B2B payment experience, BIP Connect, enhances BIP by connecting eligible BIP customers to Paymode, a B2B payment network, through a new partnership with the network’s owner, Bottomline, a provider of payments and FinTech solutions, according to the release.
Connecting American Express BIP customers to Paymode’s network of authenticated and verified suppliers helps to streamline onboarding, improve payment efficiency and reduce risk, per the release.
“With BIP Connect, we’re combining the strengths of American Express and Bottomline to accelerate supplier onboarding and provide seamless access to one of the largest supplier networks in the U.S.,” Eva Reda, executive vice president, global commercial services products at American Express, said in the release.
In Bottomline’s own press release about the partnership, Bottomline CEO Craig Saks said: “By integrating Paymode into BIP, we’re giving buyers access to greater control, enhanced security and a simpler way to manage payables and receivables, while making it easier for vendors to reconcile payments and maintain visibility into their cash flow.”
The PYMNTS Intelligence, Bottomline and FIS collaboration “Time to Cash™: A New Measure of Business Resilience” found that chief financial officers are using real-time payment rails and digital workflows to cut “time to cash.” They are also using artificial intelligence-powered forecasting and automation to build smarter, faster payment ecosystems.
The second new offering from American Express will add capabilities within BIP that improve invoice matching through automated reporting, according to the company’s press release. These capabilities will help enhance visibility on the status of invoices, save businesses time and ensure the right payment gets made faster.
The automated reporting capabilities are set to be released later this year to a subset of American Express BIP customers, per the release.
“As more businesses look to modernize B2B payments, American Express is helping connect buyers and suppliers through a more integrated and automated invoice payment experience that simplifies accounts payable and receivable, streamlines workflows and makes it easier to do business together,” Casey Klyszeiko, executive vice president, global merchant and network services products at American Express, said in the release.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
See More In: accounts payable, accounts receivable, American Express, B2B, B2B Payments, bottomline, invoice payments, News, partnerships, PYMNTS News, supplier payments, What's Hot, What's Hot In B2B
Key Takeaways American Express reports Q2 results on July 24, with estimates suggesting 7.8% EPS and 9.9% revenue growth.AXP's network volumes, cards-in-force and net interest income are expected to support quarterly growth.American Express has a positive Earnings ESP, though higher customer engagement costs may weigh on margins. American Express Company (AXP - Free Report) is set to report second-quarter 2026 results on July 24, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.40 per share, and the same for revenues is pinned at $19.62 billion.
The second-quarter earnings estimate witnessed two upward revisions over the past 60 days against two downward movements. The bottom-line prediction indicates a year-over-year increase of 7.8%. The consensus estimate for quarterly revenues implies year-over-year growth of 9.9%.
Image Source: Zacks Investment Research
For the full-year 2026, the Zacks Consensus Estimate for AmEx’s revenues is pegged at $79.28 billion, implying a rise of 9.8% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at $17.67, implying growth of 14.9% on a year-over-year basis.
AmExbeat the consensus estimate in three of the last four quarters and missed once, with the average surprise being 4%.
Q2 Earnings Whispers for AmExOur proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
AXP has an Earnings ESP of +0.61% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What is Shaping AmEx’s Q2 Results?AmEx is expected to see a rise in network volumes during the second quarter, likely attributable to the resilient consumer spending of its premium customer base, which is less impacted by economic volatilities. The Zacks Consensus Estimate for second-quarter total network volumes indicates 10.1% year-over-year growth from $472 billion.
Discount revenues, a key source of AmEx’s top line, are expected to have benefited from rising network volumes. The consensus mark for second-quarter Discount revenues indicates 7.7% year-over-year growth. Billed businesses in U.S. Consumer Services and Commercial Services are expected to witness growth of 11.8% and 3.5% year over year, respectively. The Zacks Consensus Estimate for pre-tax income from Commercial Services indicates a 7.5% jump from a year ago.
Cards-in-force are expected to increase in the quarter on the back of expanding product offerings and stronger market penetration.The consensus projection for second-quarter total cards-in-force indicates 4.7% year-over-year growth. The estimate for Average fee per card also implies a 14.3% year-over-year increase.
AmEx’s interest income, another major revenue contributor, is expected to rise on higher loan receivables. The estimate for AXP’s net interest income implies an upside of 11.3% from the year-ago reported figure.
The above factors are expected to support year-over-year growth in the second quarter and set the stage for a potential earnings beat. However, higher customer engagement and operating costs could limit the upside. Higher variable customer engagement costs resulting from increased spending by Card Members and greater use of travel and lifestyle benefits are likely to have partially impacted margin growth.
Other Stocks That Warrant a LookHere are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Credicorp Ltd. (BAP - Free Report) has an Earnings ESP of +2.31% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Credicorp’s bottom line for the to-be-reported quarter is pegged at $7.20 per share, which indicates 15.4% year-over-year growth. The consensus estimate for BAP’s revenues is pegged at $1.72 billion, a 9.3% increase from a year ago.
Brookfield Asset Management Ltd. (BAM - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, which indicates 15.8% year-over-year growth. The consensus estimate for BAM’s revenues is pegged at $1.49 billion, a 15.6% increase from a year ago.
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.67 per share, suggesting growth of 9.2% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $639.48 million, a 12.6% year-over-year jump.
Key Takeaways Pfizer's Q2 non-oncology outlook includes gains for Eliquis and Vyndaqel amid mixed portfolio trends.PFE's Comirnaty and Paxlovid sales are expected to decline on lower demand and purchases.Pfizer's Abrysvo may gain internationally, while U.S. vaccination rates remain weaker. Pfizer (PFE - Free Report) will announce its second-quarter 2026 earnings on Aug. 4, and investors will be watching the performance of its oncology business closely, as the segment generates nearly 27% of the company's total revenues. Its key cancer medicines include Ibrance, Xtandi, Lorbrena, Braftovi/Mektovi and Seagen-acquired antibody-drug conjugate, Padcev.
Apart from oncology, Pfizer has a broad portfolio spanning primary care, vaccines, inflammation and immunology, rare diseases, and other specialty therapies. These businesses are organized under the company's Primary Care and Specialty Care segments.
Here’s a closer look at the expected second-quarter performance of Pfizer’s therapies across these two non-oncology business segments.
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) -partnered Eliquis are likely to have risen, driven by higher demand trends globally, partially offset by price and generic erosion in some ex-U.S. markets. As regards sales of key vaccine Prevnar, higher sales in ex-U.S. markets are likely to have been offset by the impact of lower demand in the United States.
The Zacks Consensus Estimate for alliance revenues from Eliquis is $1.98 billion.
The Zacks Consensus Estimate for sales of the Prevnar family of vaccines is $1.39 billion.
Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty. Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the second quarter due to narrower COVID-19 vaccine recommendations in the United States that have reduced Comirnaty’s eligible patient population. Sales of the antiviral pill for COVID, Paxlovid, should also have declined due to lower infection rates, which hurt demand trends and lower international government purchases.
The Zacks Consensus Estimate for direct sales and alliance revenues from Comirnaty is $278 million, while that for Paxlovid is $119.0 million.
Among the newer products, sales of the RSV vaccine, Abrysvo, are likely to have gained from launch uptake in some international markets, partially offset by weaker vaccination rates in the United States. The Zacks Consensus Estimate for sales of Abrysvo is $155 million.
In the Specialty Care unit, sales of Vyndaqel are expected to have risen as higher sales in international markets may offset lower revenues in the United States. The Zacks Consensus Estimate for sales of Vyndaqel/Vyndamax is $1.75 billion.
While sales of Xeljanz rose, those of Enbrel declined in the first quarter, a trend likely to have continued in the second quarter.
Pfizer’s Key CompetitorsIn inflammation & immunology, Pfizer’s key competitors include AbbVie, Johnson & Johnson, Amgen and Novartis. In areas such as diabetes, cardiovascular disease, obesity, and other chronic conditions, Pfizer faces competition from Eli Lilly, Novo Nordisk, Merck, AstraZeneca, and Sanofi. In vaccines, it competes primarily with Merck, GSK, Sanofi, and Moderna.
PFE’s Price Performance, Valuation and EstimatesPfizer’s stock has risen 2.8% so far this year compared with an increase of 12.7% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 8.55 forward earnings, significantly lower than 18.88 for the industry as well as the stock’s five-year mean of 9.34.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has declined from $2.99 per share to $2.96 per share, while that for 2027 has declined from $2.86 per share to $2.85 per share over the past 30 days.
Image Source: Zacks Investment Research
Pfizer has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IBM shareholders who lost money after the July 14 guidance cut may have legal rights. The investigation focuses on IBM's 2026 growth guidance and the later reduction tied in part IBM's disclosed inability to "execute perfectly."
, /PRNewswire/ -- IBM (NYSE: IBM) shares were falling approximately 24.5% on July 14, 2026, after the Company released preliminary second-quarter results and trimmed near-term revenue and earnings guidance tied in part to lower AI-related spending from its customer base. If IBM's drop caused losses in your portfolio, you are encouraged to act now. Submit your IBM loss information
Levi & Korsinsky is investigating potential securities law violations involving IBM's prior 2026 outlook. During the previous earnings call on April 22, 2026, IBM's management repeatedly claimed to be "confident this will be our strongest Z cycle," "remain[ed] confident in [their] ability to sustain revenue growth of 5% plus," and were overall "confident in [their] outlook."
Just a few months later on July 14, 2026, management backpedaled on those repeated assurances. Instead, CEO Arvind Krishna now claimed the market conditions "require[d] our teams to execute perfectly" in order to achieve guided metrics. Investors who held IBM shares through the announcement saw an immediate market reaction of more than 24%.
If you suffered a loss on IBM shares, send your information for review or call (212) 363-7500.
Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com
Frequently Asked Questions About the IBM Investigation
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether International Business Machines Corporation made materially false or misleading statements regarding its 2026 growth outlook, including guidance for constant-currency revenue growth of 5% plus and software growth of 10%. When IBM reduced its near-term outlook on July 14, 2026, shares fell nearly 25%.
Q: When did International Business Machines Corporation allegedly mislead investors?A: The investigation concerns statements made before the July 14, 2026 announcement that coincided with IBM's sharp stock decline.
Q: Who is eligible to participate in the IBM investigation?A: Investors who purchased IBM stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do IBM investors need to do right now?A: Investors should gather brokerage records including purchase dates, share quantities, prices paid, and any sale information. No immediate action is required to remain eligible to participate in the investigation.
Q: What documents do I need to participate?A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my IBM shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought IBM and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: There is no upfront cost to participate. Securities investigations and any resulting recovery efforts are generally handled on a contingency basis. No upfront fees, no retainer, and no out-of-pocket costs.
Q: What if I live outside the United States?A: U.S. securities investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Merck (MRK - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Merck currently has an average brokerage recommendation (ABR) of 1.76, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.76 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 58.6% and 6.9% of all recommendations.
Brokerage Recommendation Trends for MRK
Check price target & stock forecast for Merck here>>>
While the ABR calls for buying Merck, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MRK a Good Investment?In terms of earnings estimate revisions for Merck, the Zacks Consensus Estimate for the current year has declined 47% over the past month to $2.74.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Merck. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Merck with a grain of salt.
Over 10 million people will face a hosepipe ban after Thames Water became the latest water company to announce usage restrictions - as the Environment Agency (EA) warns much of England is at risk of drought.
The UK's largest water provider said the new restrictions will come into effect from 23 July, but that customers in the affected areas should abide by the new rules straight away.
Households have been told not to use hosepipes for non-essential uses, such as watering gardens, cleaning cars, filling up paddling pools or topping up hot tubs.
The decision follows recent periods of record hot weather and increased demand.
Meanwhile, the EA's National Drought Group said parts of southern, central and eastern England have moved closer to drought status, classified as under "prolonged dry weather".
Image: Pic: Environment Agency 'Only 40% of average spring rainfall'
Thames Water said demand was currently around 10% above normal levels across the Thames Valley and Home Counties and 7% above normal in London.
More on Heatwave
Hosepipe ban brought in for more people amid 'decline in river levels'
Run of very high UK temperatures 'set to end' - but intense heat may return, say forecasters
What is a 'firewave'? And when will the risks from blazes during this heatwave end?
In addition, it said the Thames Water region had only received 40% of average spring rainfall this year - with no rainfall so far in July within the Thames catchment area.
Could the new PM nationalise Thames Water?
Met Office figures show that central and South East England have seen the longest unbroken spell of no recorded rainfall this century.
The forecaster warned that during peak periods, water had been used faster than it could be treated and moved through parts of the network, straining local supplies.
Nevil Muncaster, the director of strategic water resources at the company, said the firm "would not be taking this step unless it was necessary".
He added that: "Many customers have already reduced their water use and that support has made a difference. Thank you to everyone who has already changed their daily habits."
Read more on Sky News: What is a 'firewave'?
Image: Thames Water is the seventh company to bring in hosepipe bans. File pic: Reuters 'Difficult combination' of hot and dry weather
After Thames Water announced the latest hosepipe ban, Helen Wakeham, chair of the National Drought Group, said that the hot conditions and lack of rain have made for a "difficult combination, and we are seeing the effects on our farmers, our wildlife, and the amount available for public and business use".
"All sectors are taking action," she said, "and we are grateful to the public for following the restrictions, where in place, to make sure there is enough water for everyone this summer.
"We want everyone to stay safe and hydrated during the hot weather but every drop we can save is a drop more for nature and agriculture."
'Customers using an extra 100 million litres every day'
Thames Water said earlier that customers were using an extra 100 million litres every day - equivalent to adding all the homes in Manchester to the network.
Thames Water's new measures are the latest in a string of hosepipe bans.
Bans are also in place for Southern Water customers in Hampshire and the Isle of Wight, Cambridge Water customers, Affinity Water customers in Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey, and Anglian Water customers in the East of England.
On Monday, South East Water said more than two million people face a hosepipe ban after it was extending water restrictions.
Read more:
Reform deputy urges Burnham to seize control of Thames Water
Thames Water lenders plot legal fight with Burnham over nationalisation
As well as pushing up demand as people consume more water, periods of hot weather can also lead to physical pressure on underground water pipes, leading to higher rates or bursts and leaks.
Thames Water stressed that it was repairing more than 750 leaks every week and continuing its biggest network upgrade in 150 years.
While the company said it plans for periods of dry weather and increased summer demand, it claimed the scale and duration of recent demand is having a "significant impact" on water resources.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Caterpillar (CAT - Free Report) .
Caterpillar currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 13 are Strong Buy, representing 54.2% of all recommendations.
Brokerage Recommendation Trends for CAT
Check price target & stock forecast for Caterpillar here>>>
The ABR suggests buying Caterpillar, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CAT Worth Investing In?Looking at the earnings estimate revisions for Caterpillar, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $24.87.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Caterpillar. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Caterpillar may serve as a useful guide for investors.
Key Takeaways NEM will report Q2'26 results July 23, with earnings seen up 49% and revenue up 16.4% year over year.NEM expects lower Q2 gold output and higher unit cost from mine sequencing, inflation and sustaining capital.NEM expects lower 2026 output at Penasquito, Cadia, Nevada Gold Mines and Pueblo Viejo. Newmont Corporation (NEM - Free Report) is slated to report second-quarter 2026 results after the closing bell on July 23. The mining giant is expected to have benefited from significantly higher realized gold prices in the second quarter compared with the year-ago period. However, the pricing tailwind is likely to have been weaker than in the first quarter. Gold prices retreated from the record highs reached earlier in the year as easing trade tensions, profit-taking after a solid rally and a stronger U.S. dollar reduced safe-haven demand.
NEM’s second-quarter performance is expected to have been weighed down by lower production across certain operations, planned mine sequencing and persistent cost inflation. Higher labor, energy and consumable costs are also likely to have pressured margins. Although stronger copper and silver prices may have provided some support, these gains are expected to have been insufficient to fully offset the impact of lower output and elevated operating expenses.
The Zacks Consensus Estimate for second-quarter earnings was revised downward in the past 90 days. The consensus estimate for earnings is pegged at $2.07 per share, suggesting a 44.8% year-over-year rise. The Zacks Consensus Estimate for second-quarter revenues currently stands at $6.19 billion, indicating a roughly 16.4% increase from the year-ago quarter.
Image Source: Zacks Investment Research
NEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 33.6%, on average.
Image Source: Zacks Investment Research
Q2 Earnings Whispers for NEMOur proven model doesn’t predict an earnings beat for NEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NEM has an Earnings ESP of -10.65% and a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping NEM’s Q2 ResultsNEM saw lower gold production for the first quarter, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces. Newmont expects second-quarter 2026 production to be below the first-quarter level. The company had produced 1.5 million attributable gold ounces in the first quarter of 2025.
Our estimate for attributable gold production stands at 1.23 million ounces for the second quarter, which indicates a 10.9% year-over-year decline.
The company anticipates gold production at about 5.26 million ounces for 2026, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine.
Newmont is expected to have benefited from higher realized gold prices on a year-over-year basis in the to-be-reported quarter, but the pricing tailwind is likely to have been less pronounced than in the first quarter of 2026. Gold prices have retreated from the record highs reached earlier in the year amid easing geopolitical and trade tensions, a firmer U.S. dollar and profit-taking following a sharp rally, reducing safe-haven demand. Consequently, the company's average realized gold price is expected to have been lower than the record $4,900 per ounce reported in the first quarter, limiting the upside from higher gold prices in the second quarter.
Our estimate of the average realized gold price for the second quarter is $4,774 per ounce, indicating a 2.5% sequential decline.
Lower production is expected to lead to higher unit costs in 2026. NEM expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to lower sales volumes resulting from planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 to 2026, and inventory changes.
Newmont also sees a significant sequential increase in unit costs in the second quarter, partly due to increased sustaining capital spending, higher costs associated with sales at Boddington, Tanami, Lihir and Penasquito and increased oil prices. The production decline and higher costs could undercut the profitability goals.
Newmont Stock’s Price Performance and ValuationNewmont’s shares have surged 44.5% in the past year, outperforming the Zacks Mining – Gold industry’s 26.2% increase and the S&P 500’s rise of 21.1%. Its gold mining peers, Barrick Mining Corporation (B - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) have surged 60.5%, 6% and 37.4%, respectively, over the same period.
Price Performance of NEM vs. Industry, S&P 500, KGC, AEM & BImage Source: Zacks Investment Research
From a valuation standpoint, Newmont is currently trading at a forward 12-month earnings multiple of 9.09, higher than the industry. NEM is trading at a premium to Barrick and Kinross Gold and at a discount to Agnico Eagle. Newmont and Kinross Gold have a Value Score of B, Barrick has a Value Score of A, while Agnico Eagle currently has a Value Score of C.
Valuation of NEM vs. Industry, KGC, AEM & BImage Source: Zacks Investment Research
Investment Thesis for NEM StockNewmont faces near-term headwinds from anticipated lower gold production, mine transitions and rising costs, which are expected to have weighed on earnings and margins in the second quarter of 2026. Production is projected to have declined due to weaker output at key operations, while higher all-in sustaining costs and softer realized gold prices sequentially could pressure profitability. Although contributions from the Ahafo North mine and elevated year-over-year gold prices might have provided some support, they are unlikely to have fully offset these challenges. These factors are expected to have limited earnings growth and could keep pressure on the stock in the near term.
Final Thoughts: Sell NEM SharesNewmont's near-term outlook remains challenging as lower gold production, softer realized gold prices and significantly higher all-in sustaining costs are expected to weigh on earnings and margin performance. Production headwinds stemming from mine transitions, asset divestments and weaker output at several key operations are likely to persist through 2026, limiting volume growth. At the same time, easing gold prices reduce the benefit of the favorable pricing environment seen earlier this year, while rising operating and sustaining capital costs are expected to pressure profitability.
With weakening fundamentals and a relatively expensive valuation, the stock offers a less compelling risk-reward profile, and investors may be better served by considering more attractively valued alternatives in the gold mining space.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Newmont Corporation (NEM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Newmont currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 79.2% and 8.3% of all recommendations.
Brokerage Recommendation Trends for NEM
Check price target & stock forecast for Newmont here>>>
While the ABR calls for buying Newmont, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is NEM a Good Investment?In terms of earnings estimate revisions for Newmont, the Zacks Consensus Estimate for the current year has declined 8.5% over the past month to $9.07.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Newmont. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Newmont with a grain of salt.
Carnival Cruise Line's Exclusive Destination Celebrates One Year of Creating Memorable Guest Experiences and Lasting Impact in Grand Bahama
, /PRNewswire/ -- Celebration Key, Carnival Cruise Line's exclusive destination on Grand Bahama celebrated its first anniversary Sunday, July 19, 2026, after welcoming 2.4 million guests since opening on July 19, 2025. Designed to celebrate the natural beauty of Grand Bahama and the culture of The Bahamas, the destination offers guests the opportunity to connect with the island's unique spirit while enjoying the signature fun Carnival is known for. The milestone marks a successful inaugural year defined by unforgettable guest experiences, meaningful community partnerships and economic opportunity for Grand Bahama.
Celebration Key turns one and hosts special Junkanoo performance
Guests greeted with birthday inspired Junkanoo performance as they arrive to Celebration Key
Team celebrates Celebration Key's first year anniversary
Celebration Key turns one In just one year of operation, Celebration Key has delivered incredible guest experiences and cultural immersion memories across its shores:
500,000+ thrill-seekers raced down the destination's signature waterslides. 400,000+ sweet treats were served by Mini Donut King, a popular Bahamian-owned food truck. 100,000+ refreshing Piña Coladas were enjoyed by guests across the island. Hundreds of lively Junkanoo parades brought the vibrant energy and music of The Bahamas directly to travelers. Celebration Key also achieved a historic milestone by becoming the world's first cruise destination to earn Sensory Inclusive Certification through the partnership with KultureCity, reinforcing Carnival's commitment to providing welcoming and accessible experiences for all guests.
"We've built something special here at Celebration Key," said Christine Duffy, president of Carnival Cruise Line. "Our goal is to create unforgettable memories for our guests, and in its first year, the destination has done exactly that for more than 2 million people. We're proud to be part of those moments while also creating real, lasting impact in the local community. As we look ahead, we're excited to continue building on this momentum, creating new experiences for our guests and deepening our commitment to Grand Bahama and its people."
Beyond the guest experience, Celebration Key has delivered meaningful economic opportunities for Grand Bahama. The destination supports approximately 1,000 year-round local jobs and continues to prioritize partnerships with Bahamian entrepreneurs and businesses. Today, more than 80 percent of Celebration Key's food and retail operators are locally owned, including Bahama Mama Seafood Pit, Flipping Fritters and Mini Donut King.
The destination's milestone was celebrated with a day of special festivities for guests visiting aboard Carnival Conquest and Carnival Freedom. From a special birthday-inspired Junkanoo performance to interactive scavenger hunts and a giant birthday cake displayed at the entrance to welcome guests and mark the occasion, the festivities reflected the energy, fun and Bahamian spirit that have defined Celebration Key's first year.
The anniversary also coincides with Carnival Corporation's expansion of its Less Left Over food waste reduction strategy to The Bahamas, where Carnival Cruise Line ships Carnival Freedom and Carnival Conquest made the program's first surplus meal donation in the country, redirecting prepared, unserved meals to local community organizations on Grand Bahama.
For additional information on Carnival Cruise Line and to book a cruise vacation, call 1-800-CARNIVAL, visit carnival.com, or contact your favorite travel advisor or online travel site.
ABOUT CARNIVAL CRUISE LINE
Carnival Cruise Line, part of Carnival Corporation (NYSE: CCL), the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide – and is proud to be known as America's Cruise Line and for carrying more Americans and serving more U.S. homeports than any other. Carnival sails more than six million guests annually and in 2023 was the first cruise line to sail more than 100 million guests in total. Operating from 13 U.S. and two Australian homeports, as well as seasonally from Europe, Carnival hosts more than 95,000 guests on its ships every day of the year and employs more than 50,000 team members, representing 120 nationalities.
Since its founding in 1972, Carnival has continually revolutionized the cruise industry and popularized the cruise vacation as an affordable and fun travel option. Carnival's fleet of 29 ships reflects an exciting period of growth that continues with the addition of five ships through 2033: a fourth and fifth Excel class ship scheduled for 2027 and 2028 respectively; followed by three additional new ships from an innovative new class currently under development. Carnival's newest guest offering is its all-new exclusive destination, Celebration Key on Grand Bahama, which debuted in 2025 to join the company's Paradise Collection of Caribbean gems.
Salesforce (CRM - 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.
Over the past month, shares of this customer-management software developer have returned +15.8%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Software industry, which Salesforce falls in, has gained 8.8%. 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 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.
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.
Salesforce is expected to post earnings of $3.27 per share for the current quarter, representing a year-over-year change of +12.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $14.12 for the current fiscal year indicates a year-over-year change of +12.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $15.49 indicates a change of +9.7% from what Salesforce 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 #2 (Buy) for Salesforce.
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 Salesforce, the consensus sales estimate of $11.3 billion for the current quarter points to a year-over-year change of +10.4%. The $46.09 billion and $50.47 billion estimates for the current and next fiscal years indicate changes of +11% and +9.5%, respectively.
Last Reported Results and Surprise HistorySalesforce reported revenues of $11.13 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.88 for the same period compares with $2.58 a year ago.
Compared to the Zacks Consensus Estimate of $11.06 billion, the reported revenues represent a surprise of +0.68%. The EPS surprise was +24.36%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times 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.
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.
Salesforce 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.
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 Salesforce. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways Salesforce leads on AI scale, earnings revisions and valuation, strengthening its investment case.Agentforce ARR surged 205% to $1.2B, while AI and Data ARR more than tripled to $3.4B.Salesforce trades at 2.96 times forward sales versus Adobe's 3.33 after similar stock declines. Salesforce, Inc. (CRM - Free Report) and Adobe Inc. (ADBE - Free Report) are two of the biggest names in enterprise software. Both companies are benefiting from businesses spending more on digital transformation and artificial intelligence (AI). Salesforce continues to dominate the customer relationship management (CRM - Free Report) market, while Adobe remains the leader in creative software and digital document solutions.
The next phase of growth for both companies depends heavily on AI. Each is investing aggressively to make AI a core part of its products, improve customer experience and create new revenue opportunities. But when it comes to choosing the better stock today, which one stands out? Let’s take a closer look.
The Case for Salesforce StockSalesforce has remained the world's leading CRM provider for years, according to Gartner. However, the company is no longer satisfied with being just a CRM leader. It is steadily transforming itself into a broader enterprise software platform that combines customer data, collaboration and AI.
The company's acquisition strategy reflects this vision. Large deals like Slack and Informatica have expanded Salesforce's enterprise ecosystem, while smaller acquisitions such as Doti AI and Spindle AI strengthen its AI capabilities. These moves show that management is focused on keeping Salesforce ahead in the fast-changing AI race.
AI has become the biggest growth driver for Salesforce. The company has integrated generative AI across its platform to help businesses automate routine tasks, improve decision-making and deliver better customer experiences.
Its newest AI platform, Agentforce, is proving that customers are embracing these capabilities. In the first quarter of fiscal 2027, Agentforce's annual recurring revenues (ARR) jumped 205% year over year to $1.2 billion. Combined AI and Data ARR, which includes Agentforce, Data 360 and Informatica Cloud, climbed to $3.4 billion, more than three times the level reported a year ago. These numbers suggest that AI is becoming a meaningful revenue contributor rather than just a future opportunity.
Salesforce's financial performance remains equally impressive. In the first quarter of fiscal 2027, revenues increased 13% year over year, while non-GAAP earnings per share (EPS) surged 50%. The growth momentum is likely to continue as the Zacks Consensus Estimate for fiscal 2027 revenues and EPS indicates a year-over-year increase of 11% and 12.8%, respectively.
The Case for Adobe StockAdobe is also making impressive progress in AI. The company continues to strengthen its Creative Cloud and Acrobat businesses by embedding AI into products that millions of users rely on every day. AI-powered offerings like Firefly and Acrobat AI Assistant are helping Adobe improve productivity while making content creation faster and easier.
Adobe is also introducing conversational and AI agent-based features across Reader, Acrobat and Express. These enhancements simplify everyday tasks for users while making Adobe's software even more valuable for creative professionals. As a result, customer engagement and product adoption continue to improve.
Firefly has become one of Adobe's strongest AI growth engines. The platform is now deeply integrated across major creative applications such as Photoshop, Illustrator and Premiere while also supporting third-party AI models. New offerings, including Photoshop Mobile and Premiere Mobile with YouTube integration, further strengthen Adobe's ecosystem by allowing creators to produce content from virtually anywhere.
Another important advantage is Adobe's expanding AI partner network. The company has built integrations with leading AI platforms such as Amazon Web Services, Microsoft Azure, Google Gemini, Microsoft Copilot and OpenAI. Firefly also supports models from several AI startups, giving customers greater flexibility when creating content. In the second quarter of fiscal 2026, Firefly's ARR increased 50% sequentially, highlighting the growing demand for Adobe's AI tools.
Adobe continues to deliver healthy financial results as well. During the second quarter of fiscal 2026, revenues grew 13% year over year, while earnings per share increased 18%. The growth momentum is likely to continue as the Zacks Consensus Estimate for fiscal 2026 revenues and EPS indicates a year-over-year increase of 11.6% and 16.1%, respectively.
CRM vs. ADBE: Earnings Estimate Revision TrendBoth Salesforce and Adobe are benefiting from rising AI adoption, but analysts appear more optimistic about Salesforce's earnings outlook.
Over the past 60 days, analysts have raised the Zacks Consensus Estimate for Salesforce's fiscal 2027 and 2028 earnings by 7.13% and 4.87%, respectively. These meaningful upward revisions reflect growing confidence that Salesforce's AI initiatives will continue to support earnings growth.
Adobe is also seeing positive estimate revisions, although the magnitude is relatively smaller. During the past 60 days, the consensus estimate for fiscal 2026 and 2027 earnings has increased by 3.40% and 3.24%, respectively. While this remains encouraging, it suggests that analysts currently see stronger earnings momentum at Salesforce.
CRM vs. ADBE: Price Performance and ValuationBoth stocks have struggled this year as investors rotated away from expensive technology names. Salesforce shares have fallen 34.4% year to date, while Adobe has declined 32.9%. The similar pullback indicates that market sentiment has weighed on both companies despite their solid business fundamentals.
Image Source: Zacks Investment Research
Salesforce also looks more attractive from a valuation perspective. The stock currently trades at 2.96 times forward 12-month sales compared with Adobe's multiple of 3.33. Given Salesforce's improving AI business, stronger earnings momentum and lower valuation, the stock appears to offer a more favorable risk-reward profile.
Image Source: Zacks Investment Research
Conclusion: CRM Has the Edge Over ADBESalesforce and Adobe are both well-positioned to benefit from the rapid adoption of AI, and each company has built a strong competitive position in its respective market. Salesforce is evolving into a broad enterprise AI platform, while Adobe continues to strengthen its leadership in creative software through AI-powered innovation.
However, Salesforce appears to have a slight advantage at current levels. The company is delivering stronger earnings estimate revisions, its AI business is scaling rapidly, and the stock trades at a more attractive valuation than Adobe. While Adobe remains a high-quality long-term investment, Salesforce currently offers the stronger overall investment case.
Salesforce and Adobe each carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Dividend Kings to Buy in July with Irresistible Value and YieldGenuine Parts NYSE: GPC reported higher second-quarter sales and adjusted earnings as growth in its industrial business and margin initiatives helped offset inflationary pressures and costs tied to the Iran conflict, executives said on the company’s earnings call Tuesday.
Chairman and Chief Executive Officer Will Stengel said the company delivered “a strong second quarter” despite a “dynamic global macro environment,” citing total sales of $6.5 billion, up about $400 million, or 6%, from the second quarter of 2025. Adjusted earnings per share rose to $2.15 from $2.10 a year earlier.
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Don’t Try to Catch These 3 Falling KnivesExecutive Vice President and Chief Financial Officer Bert Nappier said adjusted EPS increased 2.5% year over year, driven by higher sales, particularly in Global Industrial, and benefits from restructuring initiatives. Those gains were partially offset by cost inflation in operating expenses, including impacts from the Iran conflict, as well as an $0.08 headwind from depreciation and interest expense.
Industrial Segment Leads Growth Genuine Parts’ industrial segment, Motion, posted total sales of $2.4 billion, up about $160 million, or 7%, from the prior year. Comparable sales increased 6%, with price inflation contributing about 2.5%.
The Hidden Value in Genuine Parts Company’s Spin-Off PlanStengel said Motion delivered “an excellent quarter,” with balanced growth across large corporate accounts, small and medium-sized customers and value-added solutions. He pointed to improving industrial sentiment, including six consecutive PMI readings above 50, and said the company saw growth in 11 of the 14 end markets it tracks.
Growth was strongest in equipment and machinery and food products, with additional strength in iron and steel, automotive, mining, fabricated metals, distribution centers and logistics, oil and gas, and equipment rental and leasing. Softer demand in pulp and paper, lumber and wood, and rubber and plastics partially offset those gains.
Motion’s core maintenance, repair and operations business, which accounts for about 80% of segment sales, rose roughly 7% in the quarter. Project-based demand, representing the remaining 20% of sales, increased about 9%, marking its strongest performance since the first quarter of 2023, Stengel said.
Industrial segment EBITDA rose about 10% to $316 million, while EBITDA margin increased 30 basis points to 13.1% of sales.
Automotive Results Mixed Across Regions In North America Automotive, total sales rose approximately 4%, while comparable sales increased 2.6%. Segment EBITDA was $208 million, up 6%, with EBITDA margin improving 20 basis points year over year to 8.2% of sales.
Stengel said the North America Automotive business continued to navigate a cautious consumer backdrop and persistent inflation, both of which he said were affected by the Iran conflict. U.S. total sales rose about 3%, with comparable sales also up about 3% and price contributing roughly 2.5%.
Average daily sales rose in the low- to mid-single digits in April and May but were roughly flat in June, which Stengel attributed to a softer market tied to higher fuel prices. He said July month-to-date average daily sales had improved and were tracking in line with company expectations.
Company-owned store comparable sales increased about 4%, with commercial sales up around 5.5%. Independent same-store purchases improved sequentially from the first quarter and increased about 1.5% from a year earlier. Stengel said the broader NAPA system, including company-owned sales and sales to end customers from independent stores, delivered 3% sales growth in the quarter.
By customer type, comparable sales to commercial customers rose about 4%, while retail comparable sales declined about 3%. Non-discretionary repair and maintenance and service categories remained relatively strong, rising in the low- to mid-single digits. Discretionary categories improved sequentially and were up low single digits.
In Canada, total sales rose 9% in local currency and comparable sales increased 1%. Stengel said the Benson acquisition continued to provide a tailwind and remained ahead of company financial and operational targets.
International Automotive total sales rose about 8%, while comparable sales increased approximately 1%. Segment EBITDA rose 6% to $150 million, though EBITDA margin declined 20 basis points to 9.4% of sales. Nappier said the margin decline was primarily due to inflation in salaries and wages, rent and freight, partially offset by restructuring and cost actions.
In Europe, total sales increased about 4% in local currency and comparable sales were up about 1%, with notable improvement in the U.K. and Germany. In Asia Pacific, total sales rose about 2% in local currency, with comparable sales up 1%.
Margins, Costs and Cash Flow Nappier said total company sales growth included a 340-basis-point contribution from comparable sales, a 120-basis-point benefit from acquisitions and a 140-basis-point benefit from foreign currency. Each segment delivered sequentially improved comparable sales growth compared with the first quarter.
Adjusted gross margin increased 20 basis points to 37.9%, driven by strategic pricing and sourcing initiatives, partially offset by higher product costs tied to inflation from the Iran conflict. Adjusted SG&A as a percentage of sales rose 40 basis points to 29.1%.
Nappier said core SG&A increased 4% year over year, with higher healthcare, freight and rent costs. U.S. healthcare expenses were up about 15%, while freight and rent were up mid-single digits. He said people-related costs as a percentage of sales were roughly flat, reflecting restructuring and cost actions.
Year to date, Genuine Parts has incurred $134 million of restructuring costs and realized $55 million of cost savings, including about $30 million in the second quarter. Nappier said the company estimated a $16 million negative EBITDA impact in the quarter from the Iran conflict, in line with its prior expectation of $10 million to $20 million. In response to an analyst question, he said all but $1 million of that impact was in Automotive.
For the first half of 2026, Genuine Parts generated $464 million in cash from operations, aided by an approximately $260 million improvement in net working capital. The company invested $205 million in capital expenditures and returned $288 million to shareholders through dividends.
Guidance Reaffirmed Despite Second-Half Caution Genuine Parts reaffirmed its 2026 adjusted diluted EPS guidance of $7.50 to $8.00, representing 5% growth at the midpoint compared with 2025. The company expects diluted EPS, including restructuring expenses and year-to-date separation costs, to range from $5.90 to $6.40.
Nappier said first-half results were ahead of internal expectations and, absent second-half headwinds, would have put the company on pace toward the high end of its earnings range. However, the company adopted a more cautious view of the second half for Global Automotive due to volatility around the Iran conflict, uncertainty around improved European market conditions and performance among independent U.S. NAPA owners.
The company continues to expect total sales growth of 3% to 5.5% for the year. Its outlook assumes roughly flat market growth, approximately 2% benefit from pricing, carryover benefits from mergers and acquisitions, about one point of growth from strategic initiatives and about one point from foreign exchange.
Nappier said Genuine Parts now expects $20 million to $30 million of incremental operating costs for the rest of the year related to the Iran conflict, including higher freight and fuel costs. He said the company has not changed its gross margin outlook because it broadly expects to pass through many supplier cost increases.
Separation Plan Remains On Track Stengel said Genuine Parts remains on track to separate its Global Automotive and Global Industrial businesses into two independent public companies in the first quarter of 2027. He said the standalone audit work has been completed and the company expects to confidentially file a Form 10 with the SEC later this summer.
The company also expects to host investor days for both businesses in early December in New York, where it plans to provide more detail on strategy, financial profiles, capital structures and capital allocation priorities.
Stengel addressed recent market speculation about a potential transaction involving the Global Automotive business and a competitor, saying the company is “not currently in discussions with any competitor.” He said Genuine Parts remains focused on creating two public companies while continuing to evaluate ways to maximize shareholder value.
Nappier also provided preliminary corporate cost allocations tied to the separation. He said 2025 corporate costs were approximately $360 million. The company estimates $210 million to $230 million of current corporate costs will be allocated to Global Automotive, including about $20 million related to asbestos litigation costs. Including expected dis-synergies, Global Automotive is expected to incur about $250 million of additional costs on a pro forma basis.
For Global Industrial, Nappier said $50 million to $75 million of corporate resources will support Motion as a standalone public company, and when combined with expected dis-synergies, the pro forma Global Industrial business is expected to incur about $100 million in additional costs. He said another approximately $50 million of financing fees tied to the company’s accounts receivable program remains under review as part of capital structure planning.
About Genuine Parts (NYSE:GPC)Genuine Parts Company NYSE: GPC is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.
Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.
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Genuine Parts (GPC - Free Report) reported $6.54 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6%. EPS of $2.15 for the same period compares to $2.10 a year ago.
The reported revenue represents a surprise of +2.36% over the Zacks Consensus Estimate of $6.39 billion. With the consensus EPS estimate being $2.10, the EPS surprise was +2.38%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Genuine Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Automotive: $4.13 billion versus the two-analyst average estimate of $4.03 billion. The reported number represents a year-over-year change of +5.5%.Net Sales- Industrial: $2.41 billion compared to the $2.35 billion average estimate based on two analysts. The reported number represents a change of +7.1% year over year.Segment EBITDA- Automotive: $358.32 million compared to the $339.12 million average estimate based on two analysts.Segment EBITDA- Corporate: $-107.81 million versus $-92.09 million estimated by two analysts on average.Segment EBITDA- Industrial: $316.45 million versus $312.36 million estimated by two analysts on average.View all Key Company Metrics for Genuine Parts here>>>
Shares of Genuine Parts have returned +16.5% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
