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 | Source: LPL Financial Holdings, Inc.

SAN DIEGO, Aug. 20, 2026 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today released its monthly activity report for July 2026.

Total client assets at the end of July were $2.55 trillion, a decrease of $16.1 billion, or 0.6%, compared to the end of June. Advisory assets as a percentage of total assets increased to 60.6%, up from 55.5% a year ago.

Total organic net new assets (“NNA”) for July were $7.4 billion, translating to a 3.5% annualized growth rate.

Total client cash balances at the end of July were $54.3 billion, a decrease of $2.6 billion compared to the end of June. Net buying in July was $14.7 billion.

(End of period $ in billions, unless noted)July June Change July Change 2026 2026 M/M 2025 Y/Y Client Assets     Advisory1,544.2 1,548.4         (0.3%)1,077.0         43.4%Brokerage1,002.4 1,014.3         (1.2%)862.4         16.2%Total Client Assets2,546.6 2,562.7         (0.6%)1,939.4         31.3%      Organic NNA     Advisory10.2 13.3 n/m 7.5 n/m Brokerage(2.8)(2.0)n/m (2.0)n/m Total Organic NNA7.4 11.3 n/m 5.4 n/m       Acquired NNA     Advisory0.0 0.5 n/m 0.0 n/m Brokerage0.0 0.0 n/m 0.0 n/m Total Acquired NNA0.0 0.5 n/m 0.0 n/m       Total NNA     Advisory10.2 13.8 n/m 7.5 n/m Brokerage(2.8)(2.0)n/m (2.0)n/m Total NNA7.4 11.8 n/m 5.5 n/m       Net brokerage to advisory conversions1.9 2.3 n/m 2.4 n/m       Client Cash Balances     Insured cash account sweep36.8 38.4         (4.2%)33.7         9.2%Deposit cash account sweep15.0 15.6         (3.8%)10.8         38.9%Total Bank Sweep51.8 54.1         (4.3%)44.4         16.7%Money market sweep1.1 1.1         — %3.4         (67.6%)Total Client Cash Sweep Held by Third Parties52.8 55.2         (4.3%)47.9         10.2%Client cash account1.5 1.7         (11.8%)1.6         (6.3%)Total Client Cash Balances54.3 56.9         (4.6%)49.5         9.7%      Net buy (sell) activity14.7 13.1 n/m 13.7 n/m             Market Drivers     S&P 500 Index (end of period)7,490 7,499         (0.1%)6,339         18.2%Russell 2000 Index (end of period)2,931 3,024         (3.1%)2,212         32.5%Fed Funds daily effective rate (average bps)363 363         —%433         (16.2%)       For additional information regarding these and other Company business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com.

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About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports more than 32,000 financial advisors and the wealth management practices of approximately 1,100 financial institutions, servicing and custodying approximately $2.6 trillion in brokerage and advisory assets on behalf of approximately 8 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and advisory services offered through LPL Financial LLC (“LPL Financial”) and LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Key Takeaways Darling Ingredients' core ingredients adjusted EBITDA rose to $352.5M in Q2 from $206.9M a year earlier.Darling's DGD adjusted EBITDA share jumped to $389.2M, with EBITDA per gallon sold rising to $2.23.DAR's 2026 earnings estimate rose 55.1% in four weeks, while capacity and higher costs remain key offsets. Shares of Darling Ingredients Inc. (DAR - Free Report) have gained 12.8% in the past week, putting the durability of the move in focus. The rally is backed by a sharp improvement in core ingredients profitability and much stronger renewable-fuel economics.

Estimate revisions have also moved decisively higher. The question now is whether Darling can sustain those earnings drivers as capacity constraints, higher costs and a weaker momentum signal create offsets.

DAR's Core Earnings Base Looks StrongerCore ingredients adjusted EBITDA climbed to $352.5 million in the second quarter of 2026 from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiencies are helping Darling extract more earnings from its existing asset base.

Management expects third-quarter core ingredients adjusted EBITDA of $325-$340 million. Excluding the second-quarter tariff recovery in Food, that outlook implies underlying earnings generally consistent with the elevated second-quarter level, supporting the case for a more durable core earnings base.

Darling's DGD Economics Add Another Earnings LiftDarling's share of Diamond Green Diesel adjusted EBITDA surged to $389.2 million from $42.6 million a year earlier. EBITDA per gallon sold rose to $2.23 from 34 cents, helped by higher Renewable Identification Number values, diesel prices, production tax credits and about $50.5 million of tariff recovery at the DGD entity level.

Valero Energy Corporation (VLO - Free Report) , Darling's partner in Diamond Green Diesel, also has direct exposure to the venture's renewable-diesel economics. Bunge Global SA (BG - Free Report) is relevant on the feedstock side, with its renewable-fuels partnerships and oilseed processing network positioning it in the same policy-driven demand chain.

DAR's Estimate Revisions Support the RallyThe Zacks Consensus Estimate for 2026 earnings has risen 55.1% in the past four weeks and 53.6% over the past 12 weeks. That magnitude of upward revision gives the recent stock-price advance a clearer earnings foundation.

Darling reported second-quarter earnings of $2.41 per share, compared with 8 cents a year earlier, and topped the consensus mark of $1.45. Continued estimate support will depend on core-margin execution and renewable-fuel economics holding up through the balance of the year.

Darling Still Faces Capacity and Cost PressureFeed raw material processed remained at 3.1 million metric tons in the second quarter, unchanged from both a year earlier and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could put additional pressure on its processing network.

Selling, general and administrative expenses rose to $151 million from $138.1 million a year earlier, while acquisition and integration costs increased to $13.2 million from $3.4 million. If commodity prices or DGD margins retreat, those costs could limit operating leverage and cash conversion.

Image Source: Zacks Investment Research

DAR's Ratings Mix Supports Cautious OptimismDAR's 12.8% weekly rally has a solid earnings foundation, but continuation is not assured. Stronger core earnings, favorable DGD economics and sharply higher estimates are constructive, while throughput constraints and a higher expense base leave less room for weaker pricing or renewable-fuel margins.

DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a VGM Score of A, Growth Score of A and Value Score of B, while its Momentum Score of D is the weaker signal. The favorable Rank and broader Style Score mix support the earnings case, but the Momentum Score argues for a measured view after the rapid weekly advance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways MasTec's Superior deal expands its data center reach with added electrical and skilled-workforce capabilities.Superior can pair with MasTec's power, civil, telecom and construction management services on larger projects.Most of MasTec's recent $2.5 billion backlog growth is expected to benefit 2027 rather than 2026. MasTec, Inc. (MTZ - Free Report) is expanding its exposure to the fast-growing data center market through its acquisition of The Superior Group, adding electrical expertise to an infrastructure platform already spanning power, civil construction, telecom and maintenance.

Superior, acquired in July, is a full-service electrical contractor with roughly 3,000 employees and a strong position in data center infrastructure. Management believes combining Superior’s electrical capabilities with MasTec’s broader services can provide customers with more integrated solutions, improving speed, quality and execution certainty.

The deal also creates cross-selling opportunities. MasTec expects to pair Superior’s capabilities with its construction management, civil, power and telecom operations, allowing it to participate across more stages of mission-critical projects. Its existing turnkey data center project is progressing well, while the company is pursuing several large opportunities and expects additional awards in 2026.

Importantly, data center growth can benefit multiple MasTec businesses. Power Delivery is seeing rising demand tied to the power requirements of data center development, while Communications is pursuing billions of dollars of hyperscaler connectivity opportunities. Superior adds another important piece by strengthening MasTec’s electrical infrastructure capabilities and expanding its skilled workforce.

The financial impact could become more visible in 2027. MasTec recorded nearly $2.5 billion of backlog growth over the past two quarters, but only a modest portion is expected to contribute to 2026 revenues, with most benefiting 2027. Management believes Superior and its turnkey data center capabilities have fundamentally expanded MasTec’s mission-critical position.

Superior gives MasTec a broader way to capture the AI-driven data center infrastructure buildout rather than relying on a single construction specialty.

MasTec Faces Strong Data Center CompetitionMasTec’s expanding data center position puts it against established infrastructure players such as Quanta Services (PWR - Free Report) and EMCOR Group (EME - Free Report) , both of which are benefiting from rising AI-related infrastructure investment.

Quanta Services is a particularly strong competitor because its capabilities span the power infrastructure needed to support large data centers. Quanta Services provides solutions covering high-voltage transmission, substations and grid interconnections as well as electrical infrastructure inside data centers. Rising AI workloads and power requirements are expanding Quanta Services’ addressable market, making it a major competitor as MasTec combines Superior’s electrical expertise with its existing power and construction capabilities.

EMCOR Group also represents a meaningful competitive threat. EMCOR Group has significant exposure to data centers and high-tech facilities, supported by its electrical and mechanical construction capabilities. EMCOR Group’s established presence in complex facilities overlaps directly with the opportunity MasTec is targeting through Superior. Still, Superior strengthens MasTec’s ability to compete by adding electrical expertise to its broader power, telecom, civil and construction-management platform.

MTZ Stock’s Price Performance, Valuation & Estimate TrendShares of this Florida-based infrastructure construction company have gained 23.7% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.

MTZ Price Performance (YTD)

Image Source: Zacks Investment Research

MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 23.78, as shown in the chart below.

MTZ Valuation (P/E F12M)

Image Source: Zacks Investment Research

MTZ's earnings estimates for 2026 have moved upward in the past 30 days to $9.31 per share, but the same for 2027 moved down to $12.77 per share. The revised estimates for 2026 and 2027 imply a year-over-year surge of 42.1% and 37.2%, respectively.

Image Source: Zacks Investment Research

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

Key Takeaways BigBear.ai signed a five-year CargoSeer deal in El Salvador after a successful 12-month pilot.CargoSeer uses AI and computer vision to flag cargo anomalies and help customs officials manage trade.BigBear.ai says the El Salvador deployment is already attracting interest from other customs agencies. BigBear.ai Holdings, Inc. (BBAI - Free Report) sees changing global trade and mobility patterns as a potential growth engine for its applied AI solutions. Management believes increasingly complex trade regulations, supply-chain security concerns and border-management challenges are pushing governments and businesses to invest in new technology.

CargoSeer is central to this opportunity. The AI-powered cargo inspection platform combines X-ray imagery, import-export documents and structured trade data in one workflow. In El Salvador, BigBear.ai recently signed a five-year commercial deployment agreement following a successful 12-month pilot, marking CargoSeer’s first deployment in Central America. The system helps customs officials detect contraband, collect appropriate duties and keep legitimate trade moving.

The potential market is sizable. Global merchandise trade totals roughly $26 trillion annually, while ports and border crossings face rising volumes, security threats and limited resources. CargoSeer uses AI and computer vision to compare cargo scans with declarations and other trade data, flagging anomalies. Importantly, the platform can be configured for individual countries and updated as trade patterns and risks change. Management said that the El Salvador deployment is already attracting interest from customs agencies elsewhere.

BigBear.ai enters this opportunity with improving business momentum. Second-quarter 2026 revenues rose 13% year over year to $36.7 million, gross margin expanded 781 basis points to 32.8%, and backlog increased 9% from 2025-end to $269.6 million. The company also reaffirmed its 2026 revenue guidance of $135-$165 million.

Global trade could therefore provide BigBear.ai with another route to scale beyond its defense-focused operations. The key will be converting growing international interest in CargoSeer into additional long-term commercial deployments.

Palantir and Parsons Target Similar AI-Led OpportunitiesBigBear.ai faces competition from Palantir Technologies (PLTR - Free Report) and Parsons Corporation (PSN - Free Report) as governments and businesses increase spending on AI-driven trade, border security and supply-chain solutions. Palantir offers its Artificial Intelligence Platform for supply-chain and procurement operations, including tools that help companies respond to changing tariffs, supplier risks and material shortages. Palantir also offers AI-based export-control capabilities designed to improve import/export compliance and classification.

Parsons competes more directly in border and national-security applications. Parsons combines AI, surveillance, communications and command-and-control technologies to help government agencies detect illicit activity and manage complex border environments. Its broader portfolio includes border security, biometrics and AI-enabled threat detection.

For BigBear.ai, CargoSeer provides differentiation through its focus on AI-assisted cargo inspection and customs workflows. However, Palantir brings significant data-integration capabilities, while Parsons has extensive border-security experience. BigBear.ai’s ability to turn CargoSeer’s early international traction into broader deployments will determine how effectively it competes with Palantir and Parsons.

BBAI’s Price Performance, Valuation & EPS Estimate TrendShares of BBAI have plunged 17% over the past six months, underperforming the Zacks Computers - IT Services industry, as shown below.

BBAI’s 6-Month Price Performance

Image Source: Zacks Investment Research

BBAI stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 9.64, as evidenced by the chart below.

P/S Ratio (F12M)

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BBAI’s 2026 loss per share has widened in the past 30 days, as shown below. However, the estimated figure indicates a narrower loss than the year-ago loss of 82 cents per share.

EPS Trend of BBAI

Image Source: Zacks Investment Research

BBAI’s Zacks Rank

Shares of Comstock Holding Companies, Inc. (CHCI - Free Report) have gained 27.7% since the company reported its earnings for the quarter ended June 30, 2026, compared with the S&P 500 index’s 0.6% decline over the same period. Over the past month, the stock has advanced 22.8% compared with the S&P 500’s 2.2% increase.

Comstock reported second-quarter 2026 earnings per share of 84 cents, which jumped from 14 cents per share in the prior-year quarter. 

Revenues of $22.6 million denoted a 74% rise from $13 million in the year-ago quarter. 

Net income surged 512% to $8.9 million from $1.5 million, while Adjusted EBITDA rose 231% year over year to $7.4 million from $2.2 million.

Other Key Business MetricsComstock ended the quarter with 108 managed assets, up from 82 a year earlier. Its stabilized commercial portfolio was 92% leased, with nine commercial leases covering approximately 409,000 square feet executed during the quarter and 447,000 square feet leased year to date. The stabilized residential portfolio was 94% leased, with 351 units leased during the quarter and 501 units year to date. ParkX subsidiary revenues increased 89% from the prior-year period, while the business secured eight new contracts during the quarter, including three third-party parking garages.

The company also reported progress across its development portfolio. The final phase of the BLVD Haley residential tower and roughly 6,000 square feet of adjacent retail space was delivered, completing all buildings at The Row at Reston Station. Lease-up at BLVD Haley reached 37%. Meanwhile, the JW Marriott Reston Station Hotel conference center expansion is scheduled for delivery in fall 2026.

Management CommentaryChairman and CEO Christopher Clemente attributed the quarter's performance to Comstock's continued focus on strategic growth and said the results demonstrated the potential of its asset-light, debt-free platform. Management highlighted the diversity of the company's revenue sources, noting that recurring fee-based revenues from the core business increased alongside expansion of the managed portfolio. Comstock also pointed to its institutional venture and data center platforms as contributors to both top- and bottom-line growth and said it remains positioned to capitalize on that momentum.

Factors Influencing the Headline NumbersThe sharp increase in reported net income partly reflected a $4.3 million gain on equity investments in Jericho Energy Ventures during the quarter. Excluding unrealized gains on equity investments, along with other specified items, adjusted EBITDA still increased substantially to $7.4 million. Comstock said the improvement in adjusted EBITDA was primarily driven by expansion of its managed portfolio, which generated higher recurring fee-based revenues from its three operating property-management subsidiaries and increased asset-management fees. Higher supplemental leasing and acquisition fee revenues also contributed.

Operating income increased to $6.7 million from $1.8 million despite higher expenses. Cost of revenue rose to $14.6 million from $10.5 million, while selling, general and administrative expenses increased to $1.3 million from $0.6 million. Income before taxes reached $11.2 million, compared with $2.1 million a year earlier, aided significantly by the equity-investment gain.

Balance Sheet UpdateCash and cash equivalents declined to $25.3 million as of June 30, 2026, from $31.3 million as of Dec. 31, 2025. Total assets increased to $92.2 million from $85 million.

Total liabilities decreased to $11 million as of June 30, 2026, from $15 million at 2025-end.

Total stockholders’ equity rose to $81.2 million from $70 million over the same period.

Other DevelopmentsComstock finalized the acquisition of the Woodland Pointe office complex through its Institutional Venture Platform, generating $4.1 million of supplemental fees during the quarter. The transaction added an existing 185,000-square-foot office building to the stabilized commercial portfolio and approximately 100,000 square feet of build-to-suit office space to the development pipeline, with both buildings fully leased to Peraton. It was Comstock's second Institutional Venture Platform transaction of 2026.

The company also finalized its Oklahoma data center joint venture with Jericho Energy Ventures. The venture has development rights covering roughly 6,000 acres of an approximately 18,000-acre subsurface portfolio and secured a letter of intent with an electric power and energy infrastructure company to serve as exclusive power provider for up to 3 gigawatts of power to the assembled land portfolio.

For 2026, Alphabet (GOOG -1.02%) (GOOGL -1.14%) management projected the tech giant would spend $175 billion to $185 billion on capital expenditures, mostly for data centers. That turned out to be a bad estimate, as Alphabet has raised its guidance range each quarter and now expects to spend between $195 billion and $205 billion this year.

The market may see rising spending plans as a red flag, but I don't see it that way. If you look at Alphabet's latest results, one metric shows that this spending is well worth it, and Alphabet is likely making the right move by increasing it.

But what does that mean for investors? Let's take a look.

Image source: Getty Images.

Alphabet is approaching the AI arms race from two directions Alphabet hasn't placed all of its chips on one bet in the artificial intelligence (AI) world. Instead, it has spread them out. It has bet on itself to develop strong AI models and applications internally, and has used some of its computing capacity to pursue that goal. However, it has also built up its cloud computing division, allowing other AI firms to build and create competing models to Alphabet's own. Regardless of which bet works out (they both may be smart moves), Alphabet is assured it will make money from this generational shift.

The primary way this is showing up in Alphabet's financials right now is in its cloud computing division, Google Cloud. During the second quarter, Google Cloud's revenue rose at a jaw-dropping 82% pace, posting an impressive 36% operating margin. That kind of growth blows away all the competition, and with Alphabet increasing its capital expenditure guidance, it shows there's a lot more demand to meet.

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This bodes well for Alphabet's future, as cloud computing is less dependent on the economic cycle than its advertising business is. By diversifying Alphabet away from ads, it's becoming a more balanced company. Additionally, with AI and computing demand growing far faster than the advertising market, Alphabet is investing heavily where it sees the highest growth potential, a smart move by management.

With Alphabet making smart moves by investing in the fastest-growing sector around, I think it's a great stock to buy. It may take several years for Alphabet's cash-generating state to return, as it has already indicated that 2027 spending will be far higher than in 2026. But I think the long-term benefit of building out a sprawling cloud computing network will far outweigh the costs.

Alphabet is a top AI winner to buy a stake in now. Even if you've missed out on it so far, now is not too late to reverse course and take a position.

Walmart’s NYSE: WMT near-term hurdle is weaker-than-expected Q2 sales in North America. The issue, foreshadowed by weak July retail sales, led to a 5% price drop, taking the stock to near its 52-week low.

Walmart Today

$103.06 -11.24 (-9.83%)

As of 03:22 PM Eastern

$95.42▼

$135.150.96%

36.16

$138.50

That is the opportunity: the 52-week low and potential for long-term gains. While the near-term hurdle exists, it is offset by sustained growth and improved profitability, which is the critical factor. Walmart is a big business; more than moderate growth is unlikely given its size and scale, and its cash flow is the key. Cash flow enables healthy capital returns, which drive the stock price higher over time.

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Walmart’s capital return is incredibly reliable, backed up by healthy insider ownership centered on the founding family. They run Walmart in their own interests: to produce healthy cash flow and pay themselves to own it.

As it stands, Walmart is a Dividend King with more than 50 years of consecutive annual increases on its record, a signal that it can withstand economic changes and sustain its capital return over time.

The yield isn’t impressive at under 1%, even with the Q3 price pullback, but it is as safe as they come, amounting to less than 35% of the current-year earnings forecast and compounded by share buybacks. Walmart’s share buybacks drive most returns, accounting for 56% of Q2 activity. They reduce the share count incrementally each quarter, providing shareholders with leverage as the company grows and builds equity.

Walmart Outperforms in Q2, Raises GuidanceWalmart’s near-term headwind isn’t as big a problem as it may seem, given its Q2 strengths. The company’s push into international markets and its advertising business helped offset domestic weakness, resulting in $187.94 billion in net sales, up nearly 6% year over year and $1.12 billion above expectations. Segmentally, U.S. comp sales increased 2.6% on traffic and tickets, International grew 12.8%, and Sam’s Club grew 8.8%.

Internally, ecommerce continues to drive sales, up approximately 23%, while the ad business is growing rapidly. It advanced by 38%, with 38% growth in the United States, and is expected to remain strong and drive margin long into the future. Membership is another strength, up 17% year over year (YOY), driven by gains in Sam’s Club and Walmart+. Walmart+ is a premium tier enabling enhanced shopping experiences, free delivery, shipping, and streaming services.

Margin was the better part of the Q2 report. While IEEPA tariff refunds affected the GAAP results, even the adjusted figures revealed improvement. The company widened gross and operating margins, driving a nearly 29% increase in operating income, 17.9% adjusted, and sufficient cash flow to sustain the capital return outlook.

Guidance is another hurdle, as it came in slightly below MarketBeat’s consensus for Q3 and full year results. However, the company improved its previous forecast, expecting mid-single-digit top-line growth and modestly accelerated earnings growth.

Walmart Analysts See 30% Upside Despite Near-Term PressureWalmart’s analysts are bullish on the stock, having issued numerous affirmations and price targets in the weeks leading up to the release. The trend includes steady coverage by 36 analysts, a firm Moderate Buy consensus rating with 86% Buy-side bias, and a $138.50 consensus price target.

The good news is that consensus forecasts about a 30% upside relative to the critical support target; the bad news is that July/August activity created a top in the price-target trend, which may turn into a retreat. In this environment, WMT’s stock price has upside but is unlikely to advance until analysts revert to a more optimistic posture. Looking ahead, WMT’s rebound may be sharp and sweet when it triggers, as the stock trades below the low-end analyst target as of mid-August.

Institutional Buying Could Put a Floor Under Walmart StockMeanwhile, institutional activity suggests the downside risk is limited. The group owns 25% of the stock, a seemingly small amount, but it's offset by high insider holdings above 50%.

MarketBeat data shows that institutional buyers outpaced sellers $3-to-$1 over the trailing 12 months, with buying activity spiking in early Q3. With this in play, the group will likely buy on price dips and may provide solid support near $105.

Early price action wasn't favorable following the Q2 release, with the stock down more than 5% in premarket trading. The question is whether Walmart confirms support in the subsequent sessions or moves lower, presenting its buying signal sooner rather than later.

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Disney CEO Josh D'Amaro's company has unveiled a new employee stock purchase program. Kevin Dietsch/Getty Images; Illustration by Cheng Xin/Getty Images Disney is shaking up its employee benefits by launching a stock purchase program and switching up its health insurance plans.

Eric Chaisson, Disney's EVP of total rewards and employee services, told US-based employees about the changes in a Wednesday memo.

"We're planning to introduce an Employee Stock Purchase Plan later in 2027, pending approvals, giving eligible employees the opportunity to build company ownership by purchasing Disney stock," Chaisson said in an email, which was viewed by Business Insider.

Details of the stock purchase plan "are still being finalized," Chaisson said, including who's eligible and how the program will be designed.

The new stock program could be a way for Disney to encourage retention and boost morale after multiple rounds of layoffs this year. It could also help Disney staffers make more money without the company giving raises. However, Disney employees won't strike it rich if the stock continues to underperform the market.

Why Disney is more expensive than ever

CEO Josh D'Amaro's company had a major round of cuts in April and reduced stock-based compensation for some tech staffers shortly after. Disney's ESPN let go of additional staffers in July, and some staffers in other parts of the company, including Pixar, were also affected.

Two software engineers previously told Business Insider that their long-term incentive awards, which are restricted stock units vesting every six months for three years, were cut from 35% of their base salary to 25%.

Disney is also changing "most medical plans" next year, Chaisson said, which will affect employee contributions. However, Disney isn't switching health insurers, a person familiar with the updates said.

"Unlike in past years, your current coverage will not automatically roll over: nearly all employees will need to actively choose their plans and re-enroll any dependents for 2027," Chaisson said. He added that Disney is "encouraging everyone to take a fresh look at their options and choose what works best for them and their families."

When asked for comment, Disney spokesperson said: "Like a growing number of large employers, we're making measured adjustments to our employee benefits in response to rising healthcare costs nationwide."

The spokesperson said Disney would share more details about these changes with staffers in the coming months and said the company is "committed to providing our employees with a comprehensive package of high-quality coverage and other benefits that support their total health and well-being."

Businesses across the US are grappling with surging healthcare costs. Employers' healthcare expenses are expected to rise 9.5% next year, insurance brokerage giant Aon said on Thursday.

Disney is also "evolving" well-being programs and consolidating some "to create a more consistent and streamlined experience," Chaisson said. He added that the company is doubling the number of counseling sessions available in its Employee Assistance Program.

Disney at a discountDisney's stock purchase plan announcement comes amid a yearslong share slump. Shares are up over 15% from their late-July low but are down 8% in the past year and 38% in the last five years.

Stock purchase programs let employees buy their firm's shares at a discount, usually about 15% below the market rate, said Josh Bersin, who runs the HR consulting firm The Josh Bersin Company.

That contrasts with stock-based compensation programs, which give eligible employees shares at no charge. Employees must stay at the company for a certain amount of time to collect their shares.

Stock-based compensation can be a highly effective retention tool, especially for staffers at hot companies like OpenAI or Anthropic, Bersin said. But when a stock doesn't move much, like in Disney's case, employees with unvested shares might be less reluctant to leave.

Letting employees buy shares at a discount can be "a better way of managing benefits when the stock is not going up a lot," Bersin said, since they'll profit unless shares tank more than the employee discount.

"They end up with employees who are more committed and feel like owners," Bersin said.

Bill Castellano, a professor of human resource management at Rutgers University, said that an employee stock purchase plan is "much broader based" than stock-based compensation, which is usually reserved for managers or high-ranking staffers.

This new program could be a way for Disney to extend an olive branch to employees and boost morale, given that its April move to cut stock-based compensation "can send a pretty negative signal," Castellano said.

One Disney software engineer said they were "totally stoked" to join the stock purchase program.

Another software engineer was less enthused, saying their level of interest would depend on the program's terms.

Shares acquired through these programs would be taxed at the same rate as ordinary income unless they were held for more than a year.

"The tax complexity is such that it would be beneficial to someone who holds and feels the company is a long-term prospect for growth," the second software engineer said. "It doesn't seem like an easy win."

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Deere & Company (DE) Q3 2026 Earnings Call August 20, 2026 10:00 AM EDT

Company Participants

Christopher Seibert - Director of Investor Relations
Dan Pulley
Brent Norwood - CFO & Senior VP
Deanna Kovar - President of Worldwide Ag & Turf Div, Production and Precision Ag and Americas and Australia

Conference Call Participants

Jamie Cook - Truist Securities, Inc., Research Division
Tami Zakaria - JPMorgan Chase & Co, Research Division
Kristen Owen - Oppenheimer & Co. Inc., Research Division
Steven Fisher - UBS Investment Bank, Research Division
Jerry Revich - Wells Fargo Securities, LLC, Research Division
David Raso - Evercore ISI Institutional Equities, Research Division
Robert Wertheimer - Melius Research LLC
Stephen Volkmann - Jefferies LLC, Research Division
Charles Albert Dillard - Bernstein Institutional Services LLC, Research Division
Angel Castillo Malpica - Morgan Stanley, Research Division
Peter Kalemkerian - Robert W. Baird & Co. Incorporated, Research Division
Sabahat Khan - RBC Capital Markets, Research Division

Presentation

Operator

Good morning, and welcome to Deere & Company Third Quarter Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Mr. Chris Seibert, Director of Investor Relations. Thank you. You may begin.

Christopher Seibert
Director of Investor Relations

Hello. Welcome, and thank you for joining us on today's call. Joining me on the call today are Brent Norwood, Chief Financial Officer; Deanna Kovar, President, Worldwide Agriculture & Turf Division, Production & Precision Ag, Sales and Marketing regions of the Americas and Australia; and Dan Pulley, Manager, Investor Communications.

Today, we'll take a closer look at Deere's third quarter earnings, then spend some time talking about our end markets and our current outlook for fiscal 2026. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at johndeere.com/earnings.

First, a reminder. This call is broadcast live on

Key Takeaways Snowflake's product revenues rose 34% as AI tools accelerated adoption and enterprise data transformation. Snowflake raised fiscal 2027 product revenue growth guidance to 31%, citing stronger AI-driven consumption. SNOW's dynamic model routing helps enterprises balance AI quality and costs while expanding model access. Snowflake (SNOW - Free Report) is benefiting from the accelerating momentum of artificial intelligence (AI), positioning itself at the forefront of enterprise data and AI transformation. In the first quarter of fiscal 2027, product revenues rose 34% year over year due to rapid adoption of its AI-driven products, Snowflake Intelligence and Cortex Code (CoCo). These tools enable both business users and developers to interact with data and build applications using natural language, driving faster decision-making and automation.

The company’s deep integration of AI into its core platform has become a key differentiator relative to legacy competitors such as Dell Technologies (DELL - Free Report) and Oracle (ORCL - Free Report) . While Dell Technologies and Oracle have robust hardware and database offerings, Snowflake’s cloud-native architecture and focus on governed, unified data make it easier for enterprises to migrate workloads and scale AI initiatives securely. Major customers such as Holiday Inn Club Vacations and Houzz have chosen Snowflake for its simplicity, built-in AI capabilities and strong governance, enabling them to modernize analytics and operations more rapidly than traditional platforms allow.

Further strengthening this AI strategy, Snowflake recently announced dynamic model routing across Cortex AI Gateway and its flagship AI products, enabling enterprises to balance AI quality and costs by automatically selecting the most suitable model for each task. The company also expanded access to leading open models, strengthening its AI capabilities and helping customers improve the efficiency of their intelligence.

Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.42 billion, implying 30% year-over-year growth. The company raised its fiscal 2027 product revenue growth outlook to 31%, highlighting increased confidence in AI-driven consumption.

How Competitors Fare Against SNOWSnowflake is facing stiff competition from major players like Dell Technologies and Oracle. Both these companies are expanding their footprint in the AI space.

Dell Technologies is benefiting from surging demand for AI infrastructure. In the first quarter of fiscal 2027, Dell Technologies reported record revenues of $43.8 billion, up 88% year over year, with AI server revenues reaching $16.1 billion and a record AI backlog of $51.3 billion. This robust performance is driven by customers across neocloud, sovereign and enterprise segments seeking to secure supply and modernize their IT environments.

Oracle’s expanding portfolio has been noteworthy. In June 2026, Oracle introduced Oracle OPERA Cloud Assistant, a suite of AI-powered capabilities built into OPERA Cloud that automates guest room assignments, generates AI-driven rate descriptions, supports multilingual operations across 230 countries and territories and gives hotel staff real-time operational guidance.

SNOW’s Share Price Performance, Valuation, and EstimatesSnowflake shares have gained 47.8% year to date, outperforming the broader Zacks Computer & Technology sector’s 16.4% increase. The Internet Software industry has declined 5.5% in the same time frame.

SNOW Stock Performance
Image Source: Zacks Investment Research

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 16.33X compared with the Internet Software industry’s 3.88X. SNOW has a Value Score of F.

SNOW's Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.97 per share, which has increased by a penny over the past 30 days. The figure indicates a 57.60% year-over-year increase. 

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

Palantir Technologies ((PLTR - Free Report) ) has been one of the strongest fundamental growth stories in the market, but over the past year the stock itself has made relatively little progress. That may finally be changing.

Following its latest earnings report, PLTR broke decisively above the upper boundary of a large year-long consolidation pattern. Shares quickly advanced into the upper-$170s and have since spent several sessions trading sideways, forming a tight consolidation just below resistance near $179.

That creates a relatively straightforward trading setup. A decisive breakout above $179 would clear the recent highs and could open the door to another leg higher. Meanwhile, the recent consolidation around $170–$179 gives traders a clear range to monitor.

The technical picture is particularly interesting because the breakout is being supported by improving fundamentals and rising earnings estimates.

Image Source: TradingView

PLTR Stock Gets UpgradedPalantir reported another exceptional quarter recently, with revenue increasing 93% year over year and earnings climbing 225%.

Those results have driven another round of upward earnings estimate revisions. Palantir currently carries a Zacks Rank #1 (Strong Buy), with consensus earnings estimates rising nearly 8% across the board over the past 30 days.

Image Source: Zacks Investment Research

That estimate momentum matters. Some of the strongest stock trends occur when improving fundamentals and positive price momentum reinforce one another, and that appears to be happening with Palantir today.

Valuation remains the obvious concern. PLTR trades near 80x next year’s earnings, which is expensive on an absolute basis. However, that multiple has compressed substantially from the levels investors have historically paid for the stock.

For much of the past year, Palantir shares traded sideways while revenue and earnings continued to compound at very high rates. In effect, the business has been growing into the valuation even without a major advance in the share price.

Palantir's Expanding Role in AIThere may also be a broader fundamental catalyst emerging.

CEO Alex Karp has increasingly positioned Palantir as a differentiated AI platform for corporations and governments that want the benefits of artificial intelligence without giving up control of sensitive data, intellectual property or proprietary business information.

Karp has been particularly critical of the large AI labs and the potential risks associated with allowing proprietary information to become part of broader AI training systems. Palantir's pitch is effectively that enterprises can deploy advanced AI while maintaining much tighter control over their data.

There is evidence that customers are responding. Net dollar retention reached 157% in the latest quarter, indicating that existing customers are rapidly expanding their spending with Palantir.

That will be an important metric to follow. If customers continue moving deeper into Palantir's AI products, the company could increasingly establish itself as a core AI infrastructure layer across large corporations and government agencies.

Unity and Match Group: Two More Software Stocks Approaching a BreakoutMatch Group ((MTCH - Free Report) ) is another software stock approaching an important technical breakout. Match Group carries a Zacks Rank #1 (Strong Buy) and has spent roughly three years building a large base, with shares now testing a long-standing area of resistance.

The fundamental setup is also attractive. Earnings estimates are moving higher, while Match Group trades at just 9.6x forward earnings. With long-term EPS growth projected at 20.66% over the next three to five years, the stock carries a PEG ratio of just 0.47.

Image Source: TradingView

Unity Software ((U - Free Report) ) is developing a similar setup. Unity carries a Zacks Rank #2 (Buy), has seen strong upward earnings estimate revisions and is also emerging from a roughly three-year technical base. Unity shares have rallied sharply in recent weeks and are now pressing against a major resistance level.

Despite the recent move, Unity still offers an appealing growth-adjusted valuation. The stock trades at 38.9x forward earnings, while long-term EPS growth is projected at 41.33%, giving Unity a PEG ratio below 1.

Image Source: TradingView

Together, Match Group and Unity provide further evidence that momentum is broadening across software, with both stocks approaching potentially significant technical breakout levels.

Is PLTR Stock Ready to Break Out?Palantir now has several factors moving in the same direction: exceptional revenue and earnings growth, sharply rising earnings estimates, a Zacks Rank #1 and a potentially important expansion of its role within enterprise AI.

The technical setup adds another catalyst.

PLTR has already broken out of its much larger year-long pattern and is now consolidating near the highs. A move above roughly $179 would represent the next technical breakout and could signal the beginning of another leg higher.

The valuation remains rich, so this is not a low-risk setup. But with fundamentals improving and the stock pressing against clearly defined resistance, Palantir is one of the more compelling momentum setups in the market right now. The similar strength developing in Unity and Match Group also suggests that the move may be in part, driven by a broader improvement in software stocks.

Wall Street is still on edge as the third earnings season of 2026 winds down. Walmart (WMT -9.72%) beat on revenue, beat on earnings, and raised its full-year guidance. The stock promptly fell about 10%. Welcome to earnings season in 2026, where beating the numbers doesn't seem to be the point these days.

The S&P 500 (^GSPC -0.70%) is down 0.29% as of 11:44 a.m. ET, the Dow Jones Industrial Average (^DJI -1.17%) has fallen 0.64%, and the Nasdaq Composite (^IXIC -0.99%) is off 0.80%. Twenty of the Dow's 30 components are lower.

^SPX data by YCharts

Walmart's earnings beat comes with a warning Let's start in Arkansas. Retail giant Walmart posted Q2 results on Thursday morning, beating Wall Street's estimates across the board and raising full-year guidance targets. But the stock fell 9.8% anyway, adding up to a 21.3% drop over the last three months. You see, Walmart's domestic comparable sales grew just 2.6%, well short of the roughly 3.7% analysts expected and the slowest pace since Q4 2020. And roughly $2.9 billion of the quarter's earnings surprise came from tariff refunds rather than core operations.

You may hear echoes of Home Depot's (HD -3.02%) market-moving report in this update. U.S. consumer spending is slowing after the spring's generous tax refund boost. Walmart's own management noted shoppers are making trade-offs amid high fuel costs. Walmart's $114 share price makes it one of the lightest weights on the Dow, but today's massive drop still resulted in the second-largest score change on the index. With a $826 billion market cap, it also weighed heavily on the S&P 500 and Nasdaq indexes.

Image source: Getty Images.

The macro trends didn't help, either. Oil prices are up by roughly 3% as the United Arab Emirates suspended all financial transactions with Iran. 30-year Treasury yields are hanging on to yesterday's multi-decade high. Treasury Secretary Scott Bessent went on TV to announce bigger buybacks of long-dated debt while admitting liquidity there is "very poor."

The gloom isn't completely universal, though. Deere (DE +6.88%) rose 9.4% on another beat-and-raise report, and the memory chip bellwethers are up by a few percent today. Micron Technology (MU +2.46%) rose 1.8% while SK Hynix (SKHY +3.77%) gained 3.7%. There's still room for optimism in this anxious market climate.

Index

Dow Jones Industrial AverageToday's Change

(

-1.17

%)

-623.09

Index Level

52,839.96

A tired consumer meets rising rates Step back and the week has a clear message. Three big retail-adjacent reads (Home Depot, July retail sales, and now Walmart) all say the same thing: Americans are spending more carefully. That's the demand side of the economy losing a step.

That matters because bond yields are simultaneously near their highest levels since before the 2008 financial crisis. The combo of cautious consumer spending and higher financing costs points to a slowing economy. Bessent stepping in with bond buybacks tells you the long-term picture is under real strain.

Anders Bylund has positions in Micron Technology and Walmart. The Motley Fool has positions in and recommends Deere & Company , Home Depot, Micron Technology, and Walmart. The Motley Fool has a disclosure policy.

Key Takeaways Coinbase shares slipped 0.1% in six months, lagging the industry, sector and S&P 500 composite.COIN trades at 70.7X forward earnings versus the industry's 16.5X average, reflecting a premium valuation.Coinbase is expanding globally and into tokenized assets, but weaker crypto prices are pressuring profits. Shares of Coinbase Global (COIN - Free Report) have dipped 0.1% in the past six months, underperforming the industry, sector and the Zacks S&P 500 composite.

Coinbase, a leading player in the crypto space, is well-positioned to gain from expanding its range of listed digital assets and tokenized equities, along with its international growth and strategic acquisitions. The company has been actively pursuing initiatives that support CEO Brian Armstrong’s vision of evolving Coinbase into an “everything exchange,” delivering a comprehensive suite of digital financial services.

COIN vs. Industry, Sector, S&P 500 in 6 Months
Image Source: Zacks Investment Research

Its peers, Robinhood Markets (HOOD - Free Report) and Interactive Brokers Group, Inc. (IBKR - Free Report) , two crypto-oriented companies, have gained 33.4% and 26.5%, respectively, in the past six months.

Pessimistic Analyst Sentiment for COINThe Zacks Consensus Estimate for 2026 is pegged at a loss of 5 cents per share, a nosedive from earnings of $1.41 expected 30 days ago. The consensus estimate for 2027 earnings has moved 16% south in the past 30 days.

Image Source: Zacks Investment Research

Consensus estimates for Robinhood Markets’ 2026 and 2027 EPS have moved south in the past 30 days. However, the same for Interactive Brokers Group witnessed no movement in the same time frame.

Growth Projections for COINThe Zacks Consensus Estimate for 2026 revenues indicates a year-over-year decrease, while for EPS it indicates an increase. However, the consensus estimate for 2027 revenues implies a year-over-year increase, but EPS reflects a decrease. Long-term earnings are expected to improve 3.1%, lower than the industry average of 7.5%.

COIN Is ExpensiveCOIN shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 70.7X is much higher than the industry average of 16.5X and the median of 53.71X over the past three years.

Image Source: Zacks Investment Research

Its Value Score of D suggests that the stock is not cheap and indicates a stretched valuation at this moment.

COIN is more expensive than both Robinhood Markets and Interactive Brokers Group.

Investment Thesis for COIN StockInternational expansion also supports this strategy. Coinbase operates across Australia, Brazil, Kenya, the European Union, India, Japan, the Philippines, Indonesia, Singapore, the U.K. and Switzerland, helping diversify revenues and reduce dependence on the U.S. market. In the U.K., the company recently launched futures, perpetuals and options for professional investors, broadening its institutional offering and strengthening its position as a multi-asset trading venue.

Coinbase is further expanding through additional cryptocurrencies and tokenized equities. Regulatory approval to establish an international tokenization hub in Abu Dhabi positions the company to benefit from the migration of traditional financial assets onto blockchain infrastructure. Tokenized securities could eventually generate opportunities across issuance, custody, trading and settlement.

In 2026, Coinbase plans to prioritize real-world asset perpetuals, specialized exchanges, advanced trading tools, decentralized finance infrastructure, and AI- and robotics-driven innovation. Its continued strategic initiatives suggest that this broader expansion remains on track.

Despite maintaining strong liquidity and relatively low leverage, Coinbase remains vulnerable to crypto market volatility, rising operating expenses, impairment charges and restructuring costs tied to weaker digital asset prices.

Though Coinbase is gaining market share, given the weakening crypto market, the same is not translating into strong profits. The last reported quarter slumped with declining revenues, softer consumer trading dragging transaction revenues and lower crypto prices weighing on assets on the platform.

What Should Investors Do?Coinbase is well-positioned for growth through its continued efforts to expand the crypto ecosystem, gain additional spot trading market share across both retail and institutional segments, and strengthen its platform capabilities. Rising average USDC balances, growth in USDC market capitalization and relatively stable cryptocurrency prices could also contribute to more consistent revenue generation.

Nevertheless, the stock’s premium valuation, softer market volatility, weaker digital asset prices, cautious analyst sentiment, near-term pressure on revenues and earnings, and below-average return on equity suggest a cautious outlook. Given these factors, it is better to shy away from this Zacks Rank #5 (Strong Sell) stock at the moment.

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

powered by

AI-security picks-and-shovels buy

Buy Palo Alto Networks (PANW). The news reinforces that AI adoption is creating a new security spend cycle (new attack surface, new tools). PANW is positioned to capture broad enterprise security budgets even if individual AI-security startups struggle, and it benefits from platform consolidation rather than single-tech bets.

Key Risk: Enterprise security budgets stall or PANW’s AI-security offerings fail to translate into durable growth/renewals.

CRWD sell

Sell CrowdStrike (CRWD). The CTO—key technical driver—exits to start a competing AI-security venture fund, and there’s no announced successor. With shares already near a 52-week high and investors taking profits, this leadership uncertainty plus valuation risk is a bad setup into the next earnings window.

Key Risk: A fast, credible leadership replacement and strong earnings/forward guidance that proves product momentum is intact.

CrowdStrike CRWD shares fell 4.8% after Axios reported that Chief Technology Officer Elia Zaitsev is leaving the cybersecurity company to launch an AI-focused cybersecurity venture fund.

Zaitsev is departing after 13 years at CrowdStrike and will launch Cognition alongside former CrowdStrike corporate development executives Gur Talpaz and Tayler Sipperly.

The new firm is targeting a $170 million fund focused on cybersecurity startups developing technologies for the emerging AI threat landscape.

CrowdStrike has not publicly commented on Zaitsev's departure or announced a successor.

The leadership change comes as investors are already taking some profits following a sharp rally in the stock. Shares had climbed to a 52-week high of $227.50 reached just days before the latest decline.

The stock was trading at $191.79 at the time of writing.

Cognition's investment strategy is based on the view that the rapid adoption of AI and AI agents is creating new cybersecurity vulnerabilities and attack surfaces.

"We have this new attack surface that's being brought on by AI and agents," Zaitsev told Axios.

The venture firm plans to identify technical teams capable of developing broad cybersecurity platforms to address the changing threat environment.

It expects to lead or co-lead seed and Series A funding rounds, making three or four concentrated investments each year.

Cognition plans to invest an average of $6 million in seed-stage companies and $15 million in Series A rounds.

Talpaz told Axios that the expansion of enterprise AI adoption is creating demand for new security tools. "AI security didn't exist five years ago... But as the adoption of AI dramatically ramps up in the enterprise, it requires a new set of tools," he said.

Zaitsev and his co-founders will focus on companies they believe can respond to increasingly sophisticated threats associated with AI systems.

Analysts remain divided on CrowdStrike stockThe departure adds another consideration for CrowdStrike investors ahead of the company's earnings report, although Wall Street views on the stock remain mixed.

Guggenheim reiterated its Neutral rating, citing limited upside to consensus annual recurring revenue expectations despite positive conditions across the cybersecurity industry.

Stifel, meanwhile, maintained its Buy rating and a $230 price target. The firm pointed to its reseller survey, which showed that 44% of partners reported results above expectations, the highest reading in nine quarters.

The leadership transition therefore comes as CrowdStrike continues to operate in a market benefiting from growing cybersecurity needs while investors assess the company's valuation and future growth prospects.

For Cognition, Zaitsev's departure represents a move from building cybersecurity technology at an established company to investing in startups seeking to address the security challenges created by AI.

The venture firm's strategy will depend on identifying companies capable of developing new tools as enterprise adoption of AI continues to expand.

Key Takeaways Chipotle sees room for 7,000 North American restaurants while sustaining about 350 annual company openings.CMG's new restaurants maintain roughly 80% productivity, with second-year cash-on-cash returns near 60%.High-efficiency equipment is boosting peak throughput and is targeted for systemwide rollout in 2027. Chipotle Mexican Grill, Inc. (CMG - Free Report) continues to see the potential to operate at least 7,000 restaurants in North America while maintaining a measured development strategy. The company continues to view approximately 350 company-operated openings annually as a sustainable pace, reflecting an emphasis on preserving restaurant execution and the strength of the existing store base as the system expands.

The expansion case is supported by resilient new-unit economics. New restaurant productivity has remained around 80%, while second-year cash-on-cash returns continue to approximate 60%. Meanwhile, the impact of new openings on comparable restaurant sales has held at roughly 100 basis points, consistent with historical levels, even as Chipotle adds restaurants in some of its more densely penetrated markets.

Operational investments could provide additional support as the restaurant base grows. Chipotle’s high-efficiency equipment package is improving food preparation and throughput, with equipped restaurants outperforming the broader system by two to three entrees during peak 15-minute periods. The equipment is now standard in new restaurants, while Chipotle hopes to complete the rollout across the existing portfolio sometime in 2027.

The development model, however, remains sensitive to the pace of expansion. Chipotle has acknowledged that accelerating materially beyond its current annual opening rate could create diminishing returns or place pressure on the existing restaurant network.

CMG’s ability to reach 7,000 North American restaurants without weakening store economics will likely depend on whether its disciplined development approach continues to hold as the footprint expands. So far, stable new-unit productivity and returns suggest that the company’s growth runway remains intact.

Chipotle’s Competitive LandscapeCAVA Group, Inc. (CAVA - Free Report) is also expanding rapidly while maintaining strong new-unit performance. The company ended the second quarter with 476 restaurants after opening 17 net new locations and expects 75-77 net new openings in 2026. New restaurant productivity remained above 100%, with recent openings exceeding expectations on both sales and margin performance, while systemwide average unit volumes reached $3.1 million. CAVA is also incorporating recent opening performance into its site-selection models as it seeks to maintain attractive cash-on-cash returns as development continues.

McDonald’s Corporation (MCD - Free Report) , meanwhile, is pursuing the fastest period of restaurant growth in its history but has adjusted its development pace to preserve attractive returns. The company now expects to reach 50,000 restaurants globally in 2028 rather than by the end of 2027, citing a pressured consumer environment and cumulative inflation in development costs. McDonald’s remains on track for about 2,600 gross openings in 2026 and continues to allocate capital to new restaurants based on their ability to generate attractive returns. The company emphasized that the timing adjustment reflects a focus on quality over quantity and ensuring new openings deliver appropriate returns.

The competitive backdrop reinforces the importance of balancing expansion with restaurant economics. CAVA is demonstrating strong productivity from a much smaller base, while McDonald’s is adjusting development to protect returns as costs and consumer conditions evolve. For Chipotle, maintaining disciplined development as market density rises will be important to preserving the economic strength that supports its long-term North American growth opportunity.

CMG’s Price Performance, Valuation & EstimatesShares of Chipotle have declined 19.2% in the past year compared with the industry’s fall of 7.3%.

CMG One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Chipotle trades at a forward price-to-sales (P/S) multiple of 3.16, above the industry’s average of 3.11.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CMG’s 2026 earnings per share (EPS) implies a year-over-year decline of 2.6%. The EPS estimates for 2026 have increased in the past 30 days.

EPS Trend of CMG Stock
Image Source: Zacks Investment Research

CMG’s Zacks RankChipotle stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Capital One (COF - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Capital One due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Capital One's Q2 Earnings Beat on Higher Revenues, Lower ProvisionsCapital One’s second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line was up from $5.48 in the prior-year quarter.

Results benefited from a rise in NII and non-interest income, along with a substantial decline in provisions. Loan growth and improvement in NIM were other positives. However, higher expenses and a sequential decline in deposits were undermining factors.

Results excluded acquisition-related amortization expenses and Discover Financial and Brex integration costs. Including these, net income available to common stockholders (GAAP basis) was $2.94 billion or $4.73 per share against a net loss available to common stockholders of $4.34 billion or $8.58 per share in the prior-year quarter.

Revenues Increase, Expenses RiseTotal net revenues were $15.85 billion, rising 27% year over year. Also, the top line beat the Zacks Consensus Estimate of $15.7 billion.

NII was $12.37 billion, up 24% from the prior-year quarter. NIM expanded 39 basis points (bps) to 8.01%.

Non-interest income was $3.48 billion, jumping 39%. This was driven by higher net discount and interchange fees, service charges and other customer-related fees and other income.

Non-interest expense was $9.04 billion, up 29%. The increase reflected a rise in salaries and associate benefits, occupancy and equipment costs, marketing expenses, communications and data-processing costs, amortization of intangibles and other expenses.

The efficiency ratio was 57.05%, falling from 55.96% in the prior-year quarter. A rise in the efficiency ratio indicates lower profitability.

As of June 30, 2026, loans held for investment were $457.17 billion, up 2% from the prior quarter. Total deposits were $484.26 billion, down 1% sequentially.

Credit Quality ImprovesProvision for credit losses was $2.99 billion, down 74% year over year. The allowance for credit losses, as a percentage of loans held for investment, was 5.02%, down 41 bps.

The 30-plus-day performing delinquency rate was 2.91%, down 22 bps year over year. The 30-plus-day delinquency rate was 3.13%, down 19 bps. The quarter included a $662-million loan reserve release, primarily driven by favorable credit performance in Domestic Card.

On the other hand, net charge-offs (NCOs) were $3.64 billion, rising 19% year over year.

Capital Ratios DeclineAs of June 30, 2026, the common equity Tier 1 capital ratio was 13.7%, down from 14% in the prior-year quarter. The Tier 1 capital ratio was 14.8%, down from 15.1% a year ago.

Share Repurchase UpdateDuring the reported quarter, Capital One repurchased 14 million shares for $2.7 billion.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Capital One has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Capital One has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

It has been about a month since the last earnings report for Bank OZK (OZK - Free Report) . Shares have lost about 2.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Bank OZK due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Bank OZK before we dive into how investors and analysts have reacted as of late.

Bank OZK Q2 Earnings Beat Estimates on Higher Fee IncomeBank OZK reported second-quarter 2026 earnings per share of $1.49, which surpassed the Zacks Consensus Estimate of $1.46. However, the bottom line declined 5.7% year over year from $1.58.

Results benefited from higher non-interest income and deposit balances. Progress in the strategic diversification of the loan portfolio also provided support. However, a higher provision for credit losses, rising expenses, lower net interest income (NII) and weakening credit quality were headwinds.

Net income available to common shareholders was $163.3 million, down 8.7% from the year-ago quarter’s $178.9 million. Our estimate for the metric was $158.3 million.

Revenues & Expenses RiseNet revenues were $430.02 million, up 0.5% year over year. The top line missed the Zacks Consensus Estimate of $432.02 million.

NII was $392.1 million, down 1.2% year over year. Our estimate for the metric was $397.3 million.

The net interest margin (NIM), on a fully-taxable-equivalent basis, contracted 12 basis points year over year to 4.24%. Our estimate for NIM was 4.13%.

Non-interest income was $37.9 million, up 21% from the year-ago quarter. The increase reflected growth in deposit-related fees, loan-related fees and other income. Our estimate for the metric was $32.7 million.

Non-interest expenses were $170.6 million, up 11.4% from the prior-year quarter. The increase was due to higher salaries and employee benefits, net occupancy and equipment costs and other operating expenses. We expected this metric to be $166.4 million.

Bank OZK’s efficiency ratio was 39.16%, up from 35.46% in the year-ago quarter, indicating reduced profitability.

Loan Balances Decline & Deposits RiseAs of June 30, 2026, total loans were $32.6 billion, down 1.3% from the prior quarter. Total deposits were $34 billion, reflecting increases of 0.7% sequentially. Our estimates for total loans and deposits were $33.7 billion and $34.7 billion, respectively.

Credit Quality WeakensNet charge-offs to average total loans grew to 0.69% from 0.10% in the year-ago quarter. Provision for credit losses was $45.6 million, rising 29.5% year over year. We projected provisions of $52.3 million.

The ratio of non-performing loans to total loans was 0.92% as of June 30, 2026, up from 0.18% a year ago. The non-performing assets-to-total assets ratio increased to 1.42% from 0.53%.

Profitability Ratios DeclineAt the end of the second quarter, return on average assets was 1.60%, down from 1.81% in the year-earlier quarter. Return on average common equity also declined to 11.14% from 12.98%.

Share Repurchase UpdateDuring the second quarter, Bank OZK repurchased 0.33 million shares for $15.5 million. This was part of the company’s June 2025 share buyback program.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -5.74% due to these changes.

VGM ScoresCurrently, Bank OZK has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Bank OZK has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Top 5 AI & Autonomy Stocks Trading Under $15 With Big PotentialAurora Innovation NASDAQ: AUR executives said the company expects to reach at least 200 commercially operating, fully driverless trucks on public roads in 2026, supported by contracted capacity and growing customer demand for its Driver-as-a-Service offering.

During a town hall with retail investors, CEO and Chairman Chris Urmson and CFO Dave Maday discussed Aurora’s technology position, production plans, financing approach, customer adoption and operational expansion. The company said it would not provide financial outlook beyond its previously issued 2026 guidance.

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Technology and competitive position 3 High-Risk, High-Reward Stocks With Explosive UpsideUrmson said advances in artificial intelligence are helping Aurora’s business but argued that AI alone does not solve the challenge of deploying autonomous technology in safety-critical trucking applications.

“There’s a big gap between a demo you could vibe code together” and industrializing autonomous driving for an 80,000-pound vehicle traveling at highway speeds, Urmson said. He pointed to Aurora’s investments in three generations of hardware, its supply-chain relationships, customer network and operating experience as elements of a defensible competitive advantage.

NVIDIA Deal Ignites Aurora Stock’s Explosive PotentialUrmson said Aurora is currently the only company operating driverless trucks on public roads and believes its first-mover position will compound as customers gain experience with the Aurora Driver. He said the company expects its technology to continue improving in areas including dynamic rerouting, operating efficiency, weather capability and fleet availability.

Aurora expects to operate in light snow and colder weather by the end of the year, Urmson said. For severe conditions such as flooding, black ice or heavy storms, he said the system continuously monitors its environment and can slow down, seek a safe location, pull over or stop when appropriate. Aurora also uses a command-center function to proactively avoid routes affected by significant weather events, according to Urmson.

Production capacity and route growth Maday said Aurora is fully contracted to support its 2026 target of at least 200 driverless commercial trucks. He added that Roush is expected to have capacity to build 20 trucks per week by October, equivalent to roughly 1,000 trucks annually.

The company also cited Volvo’s previously announced plan for up to 300 trucks by 2027, as well as Aurora’s relationships with Fabrinet for second-generation hardware kits and AUMOVIO for its third-generation hardware. Urmson said Aurora is working with PACCAR on a platform intended to support line-side installation of the third-generation hardware, though he did not provide a timeline.

Aurora expects to operate 20 to 25 trucks by the end of the third quarter and 200 trucks by year-end, Maday said. The company has 10 approved driverless routes and 12 active routes overall, including Dallas-to-Oklahoma City routes. Its 2026 fleet is expected to operate on those routes.

Urmson said the time required to open new lanes has declined substantially. He said Aurora’s first lane took about eight years to develop, while its second opened in roughly six months and its third in six weeks. The company expects to expand across the Sun Belt this year and across more of the U.S. in subsequent years, with route priorities driven largely by customer demand.

Maday said Aurora expects to cover a large portion of the Sun Belt by the beginning of 2028, including California, representing about 60 billion vehicle miles traveled.

Customer demand and value proposition Executives said Aurora is already generating revenue from customers and is seeing demand beyond its available 2026 capacity. Urmson said customers have moved from evaluating the technology to receiving contracts for driverless operations, although he noted that fleet operators need time to become comfortable with a new technology.

Maday said customers in Aurora’s Driver-as-a-Service model do not purchase the autonomous hardware separately; the hardware is embedded in the subscription price. He said customers are evaluating the technology through total cost of ownership, safety and operating benefits rather than through a conventional capital-investment payback calculation.

Labor savings and potential fuel savings of 10% to 32% as optimization progresses. Reduced insurance overhead. More than 20 hours of potential daily vehicle operation without driver hours-of-service limitations. The ability for a 200-truck autonomous fleet to provide service comparable to 400 human-driven trucks, according to Maday. Maday cited Hirschbach’s outlined plans to purchase 500 Aurora Driver-equipped trucks in 2027 and 2028 as an example of longer-term customer demand. He said Aurora is actively negotiating additional Driver-as-a-Service commitments with large enterprise customers.

Liquidity and operational integration Maday said Aurora had $1.2 billion in liquidity, which the company believes is sufficient to reach positive free cash flow in 2028. He said Aurora expects to use its at-the-market equity program in the near term primarily to cover tax liabilities and cash bonus payments in 2027, while retaining the ability to use it opportunistically.

Addressing recent sales by insiders and affiliated funds, Urmson said the transactions were not indicative of undisclosed information about Aurora’s business. He attributed the activity primarily to venture-capital fund cycles and technical issues related to returning capital following Aurora’s public listing through a special purpose acquisition company transaction.

On daily operations, Urmson said Aurora is focused initially on highway driving and drop-and-hook operations rather than backing into docks. Fueling may occur at customer sites or through existing truck-stop infrastructure, while inspections and roadside repairs will continue to involve people and service providers such as Ryder. He said Aurora’s approach is to integrate into existing freight infrastructure while expanding autonomous operations.

About Aurora Innovation (NASDAQ:AUR)Aurora Innovation, Inc is a technology company specializing in the development of self-driving vehicle systems for both passenger and commercial applications. Headquartered in Mountain View, California, Aurora has built an end-to-end platform—known as the Aurora Driver—that integrates proprietary software, machine learning algorithms and a suite of sensors (LiDAR, radar and cameras) to enable vehicles to operate safely and efficiently in diverse driving environments.

The company's core business revolves around designing, testing and deploying its autonomy stack on vehicles from established automotive and transportation partners.

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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 | Source: Ottawa Bancorp, Inc.

OTTAWA, Ill., Aug. 20, 2026 (GLOBE NEWSWIRE) -- Pontiac Bancorp, Inc. (“Pontiac”), the holding company of Pontiac-based Bank of Pontiac, and Ottawa Bancorp, Inc. (“Ottawa Bancorp”), the holding company of Ottawa-based OSB Community Bank (“OSB”), have jointly announced today that they have entered into an agreement and plan of merger whereby Pontiac will acquire Ottawa Bancorp. Following the closing of the transaction, which is anticipated in the first quarter of 2027, Pontiac will merge OSB with and into Bank of Pontiac and the surviving bank will operate under the Bank of Pontiac name.

The transaction has been approved by the Board of Directors of both companies and is subject to the receipt of Ottawa Bancorp shareholder approval and required regulatory approvals, and the satisfaction of other customary closing conditions. In accordance with the terms of the merger agreement, shareholders are expected to receive cash consideration equal to $45.5 million, which equates to approximately $19.78 per share, subject to adjustment as provided for in the merger agreement.

Based on June 30, 2026 financial information, the combined institution is expected to have approximately $1.5 billion in total assets and 18 banking offices, inclusive of OSB’s 3 full-service locations and 1 loan production office spanning LaSalle and Grundy Counties.

“We are excited to welcome the customers, employees, and communities of OSB Community Bank to Bank of Pontiac,” said Mark Donovan, President and CEO of Bank of Pontiac. “This partnership brings together two Illinois community banks that share the same commitment to relationship-based service, local decision-making, and the long-term success of the markets we serve. OSB Community Bank has built an outstanding reputation, and together we will have the scale, expanded product set, and broader footprint to better serve our customers.” Mark Donovan added, “Our goal has always been to grow in a way that strengthens the communities we serve and increases shareholder value, and this transaction does exactly that. Customers can expect the same familiar faces and personal attention they know today, now backed by the resources and lending capacity of a larger, combined organization.”

“We are proud to partner with Bank of Pontiac and believe this combination is an excellent opportunity for our customers, employees, and shareholders,” said Craig Hepner, President & CEO of OSB. “Joining a larger organization that shares our customer-first philosophy allows us to offer expanded products, enhanced technology, and greater lending capacity, while preserving the local, personal service our communities have counted on for years. We look forward to the opportunities this next chapter creates for everyone we serve.”

Olsen Palmer LLC served as financial advisor to Pontiac Bancorp and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as its legal counsel. Performance Trust Capital Partners, LLC served as financial advisor to Ottawa Bancorp, and Kilpatrick Townsend & Stockton LLP served as its legal counsel.

About Pontiac Bancorp, Inc. and Bank of Pontiac

Pontiac Bancorp is headquartered in Pontiac, Illinois and owns Bank of Pontiac, a 79-year-old bank with $1.2 billion in total assets and 14 banking offices in Livingston, Grundy, Tazewell, Ford, and McLean Counties.

About Ottawa Bancorp, Inc. and OSB Community Bank

OSB Community Bank is a subsidiary of Ottawa Bancorp, Inc., which is headquartered in Ottawa, Illinois. OSB Community Bank has total assets of approximately $356 million and operates 4 banking offices in La Salle and Grundy Counties.

Forward-Looking Statements

This press release contains forward-looking statements concerning the proposed transaction between Pontiac and Ottawa Bancorp, including statements regarding the anticipated timing and completion of the transaction, the expected benefits of the combination, integration plans, leadership arrangements and the future operations of the combined institution.

Forward-looking statements are based on current expectations, estimates and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These factors include, among others, the possibility that required regulatory, corporate or shareholder approvals may not be obtained or may be delayed; the possibility that other closing conditions may not be satisfied; challenges associated with integrating the two organizations; changes in economic, market, competitive, interest rate or regulatory conditions; and other risks affecting the parties or the proposed transaction.

Neither Pontiac nor Ottawa Bancorp undertakes any obligation to update or revise any forward-looking statement except as required by applicable law.

Contacts:

Pontiac Bancorp, Inc.        Pontiac Bancorp, Inc.        Ottawa Bancorp, Inc.
Christopher Clement         Mark Donovan                   Craig Hepner
President & CEO               Vice President                   President & CEO
(815) 844-6155                 (815) 844-6155                  (815) 433-2525

Key Takeaways IDEXX raised 2026 EPS guidance to $14.69-$14.94 after Q2 earnings rose 18% to $4.27 per share. Recurring diagnostics sales up 10% organically as utilization, volumes and newer-product adoption increased. Margins expanded 140 bps, while softer U.S. veterinary visits and FX remain key operating headwinds. IDEXX Laboratories, Inc. (IDXX - Free Report) paired a second-quarter earnings beat with faster recurring diagnostics growth, wider margins and a higher 2026 earnings outlook. The results show operating momentum holding up even as U.S. veterinary traffic remains soft.

The updated guidance also separates underlying demand from currency pressure. Higher diagnostic utilization, product adoption and international expansion are supporting growth, while weaker wellness visits remain the main operating risk.

IDXX Q2 Beat Reflects Recurring Diagnostics StrengthSecond-quarter earnings reached $4.27 per share, up 18% year over year and 8.1% above the Zacks Consensus Estimate. Revenues rose 10% to $1.22 billion and exceeded the consensus mark by 1.3%.

Companion Animal Group Diagnostics recurring revenues increased 10% organically. Higher volumes, greater testing utilization and adoption of newer offerings helped sustain growth despite softer U.S. veterinary visits.

IDXX Raises EPS View After Stronger Quarterly ProfitIDEXX raised its 2026 earnings outlook to $14.69-$14.94 per share from $14.45-$14.90. The revision followed a quarter in which operating profit increased 14% to $425.6 million.

Per the Zacks Consensus Estimate, IDXX’s earnings for 2026 is pegged at $14.81. 

Image Source: Zacks Investment Research

Operating margin expanded 140 basis points to 35%, while gross margin also improved 140 basis points to 64%. Recurring revenue volume gains, operational productivity and net price realization helped convert revenue growth into stronger profitability.

IDXX Guidance Balances Growth With Currency PressureThe company updated 2026 revenue guidance to $4.70-$4.75 billion from $4.68-$4.76 billion. It now expects reported revenue growth of 9.1-10.3% and organic growth of 8.5-9.7%.

The midpoint rose $5 million despite a projected $15-million headwind from updated foreign-exchange assumptions. Currency can therefore weigh on reported growth without changing the underlying demand picture, and management expects about a 70-basis-point currency drag on third-quarter reported revenue growth.

IDXX Innovation Supports the Updated OutlookVetLab consumables revenues increased 13.6% organically, supported by higher utilization, recent launches, net new customers and an 11% increase in the global premium instrument installed base. The inVue Dx installed base topped 9,000 instruments after 1,602 second-quarter placements, while Cancer Dx surpassed 10,000 ordering clinics globally.

International Companion Animal Group Diagnostics recurring revenues advanced nearly 12% organically. IDEXX plans to expand its commercial footprint in four international countries during the remainder of 2026, adding another avenue for customer and product adoption.

Abbott Laboratories (ABT - Free Report) provides a relevant diagnostics comparison through its core laboratory, molecular and point-of-care platforms. Labcorp Holdings Inc. (LH - Free Report) offers another benchmark through its broad laboratory-services and diagnostics capabilities.

IDXX Still Contends With Softer Veterinary TrafficU.S. same-store clinical visits declined an estimated 1.3% in the second quarter, while wellness visits fell 3.4%. Management assumes an approximately 1.5% decline in U.S. clinical visits during the second half of 2026.

Higher diagnostic intensity, broader testing menus and growth among pets aged five years and older are helping offset weaker traffic. Still, prolonged wellness softness could pressure reference laboratory demand because that testing carries greater exposure to wellness activity.

Based on short-term price targets offered by 13 analysts, the average price target for IDEXX comes to $728.31. The average price target represents an increase of 29.55% from the last closing price. 

Image Source: Zacks Investment Research

IDXX Ratings Keep the Earnings Momentum in CheckThe raised outlook and margin expansion support the case for durable operating momentum, but softer veterinary traffic, currency volatility and valuation keep the setup balanced. IDXX trades at 34.7X forward 12-month earnings, above the Zacks sub-industry's 26.1X multiple.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B are favorable, while the Value Score of D points to valuation as a constraint. The VGM Score of B reflects a generally positive blend of growth, momentum and value characteristics, but the #3 Rank supports a measured rather than aggressive stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Marvell Technology (NASDAQ:MRVL) both just delivered post-earnings updates that reset expectations for custom AI silicon and networking.

Broadcom posted a record $22.2 billion quarter powered by hyperscaler XPU deals. Marvell answered with $2.418 billion in revenue and a sharply raised outlook. Same end market, very different scale.

Hyperscaler Deals Carry Broadcom. Optics Carry Marvell. Broadcom’s semiconductor segment reached $15 billion, with AI silicon alone at $10.8 billion, up 143% year on year. Hock Tan said “Demand for XPUs and networking is simply insatiable”, pointing to bookings that exceeded $30 billion in the quarter.

The customer roster now includes multi-generation TPU work with Google, a 1.3 gigawatt deployment tied to OpenAI, and a Meta MTIA program targeting 3 gigawatts through the end of 2028. All of that gigawatt scale has to be powered and cooled by somebody, and we rounded up seven suppliers behind the buildout in a free AI infrastructure report.

Marvell’s story is narrower but sharper. Data center revenue hit $1.83 billion, or 76% of total revenue. Matt Murphy said “Our data center business is on fire”, and lifted fiscal 2028 revenue to roughly $16.5 billion.

The push is optical: 800G and 1.6T interconnects, 51.2T Ethernet switching, and the Celestial AI photonic fabric that a Tier 1 hyperscaler already selected for scale-up XPU networks.

Scale vs. Speed: Two Very Different Bets Lens Broadcom Marvell Market cap $1.72T $194B Next quarter AI/DC growth AI revenue up over 200% YoY to $16B Data center up mid-40% YoY Forward P/E 20 58 Core bet Custom XPUs plus VMware software Optical interconnect and custom silicon Broadcom leans on diversification. VMware added $7.2 billion at a 93% gross margin, and free cash flow reached $10.3 billion.

Marvell is spending to build the future: roughly $1 billion in supplier prepayments this year, plus the Celestial AI, XConn and Polariton deals. Higher risk, higher slope.

What Decides the Next Two Quarters Broadcom’s Q3 earnings report lands Wednesday, September 2, 2026, and visibility already runs all the way to 2028. The AVGO share price is a wrinkle: shares closed at $362.48, down 12.88% in a week, while sentiment sits at a neutral 42.98.

For Marvell, at $237.27 and up 179.61% year to date, the test is execution on the new Tier 1 XPU program and the path to over $10 billion in fiscal 2029 custom revenue.

Durable Cash Flow vs. Maximum AI Torque On the fundamentals, Broadcom screens as the more durable of the two. The mix of VMware cash flow, a $2.54 dividend, and locked-in gigawatt commitments frames the recent pullback as a re-rating. Analysts still carry a target of $527.88, which frames the upside case.

If you want maximum torque to AI networking, Marvell is the sharper instrument. Growth is accelerating, but a 57 forward P/E, 2.246 beta, and a bearish sentiment score of 34 mean any hyperscaler order slip would sting. The setup argues for a smaller position and continued volatility.

Contact [email protected] for any questions or corrections.

Key Takeaways Humana is targeting a return to top-quartile Star Ratings performance by bonus year 2028.Improvement in 11 of 12 selected measures is outpacing historical trends, signaling quality gains.A rebound could lift MA economics and complement plan selection and operating-efficiency efforts. Humana Inc.’s (HUM - Free Report) Star Ratings recovery is emerging as a key catalyst for its Medicare Advantage (MA) turnaround. After facing a significant Stars-related headwind, the company is targeting a return to top-quartile performance by bonus year 2028. This recovery is important to the broader goal of achieving a sustainable pretax margin of at least 3% by 2028.

Early execution signals are encouraging. The rate of improvement across 11 of 12 selected HEDIS and patient-safety measures outpaced historical trends. This suggests that investments in clinical quality and member engagement are gaining traction. Still, we should view this as positive momentum rather than a completed turnaround.

The potential financial benefit is meaningful. The company defines top-quartile performance as Stars revenue per member per month 10% above the peer median. A successful recovery could improve the economics of its MA plans and complement other margin initiatives, including better plan selection and operating efficiencies.

The October Centers for Medicare & Medicaid Services (“CMS”) Stars release will be the key near-term test. A meaningful rebound would validate its quality improvement efforts and provide greater confidence in its earnings trajectory. More importantly, it could strengthen the case that Humana is on a credible path toward its 2028 margin target, giving investors a stronger reason to remain optimistic about the turnaround.

How Are Peers Positioned?Peers like UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) are also focused on strengthening Medicare Advantage quality and profitability.

UnitedHealth Group maintains a strong quality profile, with roughly 75-78% of members in 4+ Star plans. This sustained performance secures Quality Bonus Payments and preserves rebate dollars, giving UNH greater flexibility to fund competitive supplemental benefits while protecting underwriting margins.

Elevance Health operates with a broader commercial and Medicaid presence while working to strengthen its Medicare Advantage Stars profile through focused clinical outcomes and member engagement. Improving these quality scores could support ELV with better MA economics over time.

HUM’s Price Performance, Valuation and EstimatesShares of HUM have gained 47.6% year to date, outperforming the broader industry’s 20.2% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, HUM trades at a forward price-to-earnings ratio of 29.24X, up from the industry average of 15.98X. Humana carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HUM’s 2026 earnings implies a 47% deterioration year over year, followed by a 66.7% improvement next year.

Image Source: Zacks Investment Research

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

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Brent crude traded at $95.40 a barrel in early trading this morning, up from $67.21 a year ago, after the expired US-Iran ceasefire and Strait of Hormuz disruption pushed the oil complex back into crisis mode. That matters for retirees because July CPI came in mild at a 3.4% annual rate with a 0.1% monthly gain, extending a cooling trend after annual CPI ran 4.2% in May 2026. August CPI is not published until September, so this crude spike has not yet shown up in an official inflation print. It remains a threat to the cooldown that has not yet broken the trend. The three names below convert every dollar of Brent strength into cash returns, whether the Fed likes it or not.

Chevron Turns $95 Brent Crude Into Record Cash Chevron (NYSE:CVX | CVX Price Prediction) pays a quarterly dividend of $1.78 per share, raised from $1.71 and declared January 30, 2026, for a forward annualized payout of $7.12 and a current yield of 3.16%. The next check hits accounts on September 10, 2026.

Dividend safety here is the real story. Chevron generated $19.7 billion of cash flow from operations excluding working capital and $15.4 billion of adjusted free cash flow in the second quarter, while cutting debt by more than $8 billion in the quarter alone. Net debt to CFFO ended the period at 0.6 times, interest coverage sits at 13.7x, and the company reached $3 billion of structural cost reductions six months ahead of schedule. The historical dividend record is a long, steady march of quarterly hikes: $1.63 in the 2024 payments, $1.71 through 2025, and $1.78 starting with the February 2026 ex-date.

The bull case is simple. Chevron produced a record 2,077 MBOED in the US upstream and grew worldwide output by 20% year over year to 4,070 MBOED, so every $10 move on Brent lands on a much bigger production base than it did a year ago. Hess synergies of $1.5 billion have been captured within a year, and Guyana pushes high-margin barrels into the 2030s. For color, Berkshire Hathaway’s June 30, 2026 13F disclosed 84,375,856 CVX shares worth $13.99 billion, or 4.67% of the portfolio, held unchanged during the quarter. That disclosure reflects a mid-year position rather than fresh buying.

The caveat: CPC pipeline flows out of Kazakhstan and the Strait of Hormuz situation can flip from tailwind to headwind fast, and higher DD&A from the Hess deal will keep pressure on reported earnings.

Exxon Mobil Has the Balance Sheet, and the Next Raise Is Pending Exxon Mobil (NYSE:XOM) pays a quarterly dividend of $1.03 per share, raised from $0.99 and declared October 31, 2025. All three 2026 payments have held at $1.03, so treat the next hike as still pending. Forward annualized comes to $4.12, a yield of 2.54%, with the next payment on September 10, 2026.

The safety read is arguably the strongest in Big Oil. Exxon’s second quarter delivered industry-leading earnings of $14.5 billion, cash flow from operations of $23.6 billion, more than $17 billion of free cash flow, and a more than $7 billion reduction in net debt, all while absorbing the temporary loss of approximately 10% of upstream production from Middle East disruption. Debt to equity is 0.17, net debt to EBITDA is 0.55, and interest coverage is 56.3x. Cumulative structural cost savings hit $16.3 billion since 2019. The dividend history moved from $0.95 across 2024, to $0.99 in early 2025, to $1.03 starting with the November 2025 ex-date. CEO Darren Woods told investors this is a “fundamentally stronger company than it was just a few years ago.”

The bull case for retirees is that Exxon has decoupled cash returns from crude prices. It returned more than $9 billion to shareholders through dividends and share repurchases in the quarter, is executing a $20 billion share repurchase plan for 2026, and just achieved a Guyana milestone that management called an inflection: Neil Hansen told analysts “we’ve fully recovered the $55 billion of investment along with all the operating costs” and projected two times the level of free cash flow in 2030 than we saw in 2025. Permian output hit a record 1.8 million oil equivalent barrels per day, and Golden Pass LNG Train 1 shipped its first cargo in April 2026.

The caveat: reported Q1 net income of $4.18 billion was dragged by $3.88 billion of mark-to-market timing and $706 million in Middle East disruption losses, so quarterly headlines will remain lumpy while the Strait remains contested.

Enterprise Products Partners Pays You a Toll on Every Barrel Enterprise Products Partners (NYSE:EPD) declared a quarterly distribution of $0.56 per unit, raised from $0.55 on July 7, 2026, for a forward annualized payout of $2.24 per unit. At a unit price near $38.20, that is a high-yield income stream backed by fee-based midstream volumes rather than crude prices themselves. One important structural note for retirement accounts: EPD is a master limited partnership that pays distributions, issues a Schedule K-1 rather than a 1099, and can generate unrelated business taxable income (UBTI) inside an IRA. That is not a reason to avoid it, but it belongs on the checklist before you buy it in a Roth.

Coverage is the headline safety number. Management reported record $2.8 billion of EBITDA, a 17% increase over the second quarter of last year, and adjusted cash flow from operations up 19% to a record $2.5 billion. Distribution coverage from operational distributable cash flow was 1.9x. Consolidated leverage sits at the company’s 3.0 target on a net basis, weighted average cost of debt is 4.7%, and 97% of debt is fixed rate with a 17-year weighted average life. Distributions have climbed steadily from $0.515 in early 2024 to $0.56 in July 2026.

The bull case is that Enterprise gets paid to move the barrels the world is fighting over. Pipeline volumes rose 8% year over year to 14.7 million barrels a day of oil equivalent, marine terminal volumes jumped 33%, and Permian gas processing hit 4.3 billion cubic feet a day, up 14%. The April-May demand surge added roughly $200 million in the quarter. Management returned $1.2 billion in cash distributions plus $159 million in unit buybacks, retaining $1.1 billion for growth and repurchases. Co-CEO Jim Teague said Enterprise posted “record earnings and cash flow in the second quarter of 2026.”

The caveat: growth capex is stepping up to the $3 billion area in 2027, and NGL prices still swing with the commodity cycle, so distribution growth is more likely to keep its slow-and-steady cadence than to accelerate on the oil spike.

Bottom Line for Income Investors Chevron gives you a delivered 2026 raise, record US production, and a fortress balance sheet. Exxon gives you the strongest balance sheet in the industry, a Guyana free cash flow inflection, and a pending raise that its cash generation clearly supports. Enterprise gives you a toll booth on the entire US export machine with 1.9x coverage and a fresh distribution bump. If Brent settles in the mid-$90s, all three keep growing payouts; if oil rolls back to the $80s, coverage on all three still holds, which is exactly the point for a retiree portfolio. Building a lineup like this so you can live off the checks without selling shares is the whole exercise in our free dividend ladder guide.

Contact [email protected] for any questions or corrections.

A month has gone by since the last earnings report for MSCI (MSCI - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MSCI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

MSCI Q2 Earnings Beat Estimates, Revenues Rise Y/YMSCI reported second-quarter 2026 adjusted earnings of $4.94 per share, up 18.5% year over year. The figure beat the Zacks Consensus Estimate by 0.82%.

Revenues increased 12.2% year over year to $867 million and surpassed the consensus mark by 0.90%. Growth reflected higher recurring subscription revenues and asset-based fees. The retention rate improved to 95.3%, while period-end AUM in ETFs linked to MSCI equity indexes reached $2.818 trillion.

Recurring subscription revenues rose 9% year over year to $613.4 million. Asset-based fees advanced 26.6% to $233.1 million, benefiting from higher AUM in ETFs and non-ETF indexed funds linked to MSCI indexes. Non-recurring revenues declined 20.5% to $20.5 million.

MSCI’s Top-Line DetailsIn second-quarter 2026, Index revenues of $511 million increased 17.5% year over year. Recurring subscriptions and asset-based fees rose 11.6% and 26.6% on a year-over-year basis, respectively. Non-recurring revenues slipped 1.3% year over year. Organically, Index’s operating revenue growth was 17.5%.

The segment’s adjusted EBITDA rose 20.5% to $397.8 million, and its margin expanded to 77.8% from 75.9%. Index run rate reached $2.027 billion, up 17.4%, supported by market-cap-weighted and custom index products across client segments and regions.

Analytics’ operating revenues of $189.4 million increased 6.6% year over year, aided by growth in Equity Analytics and Multi-Asset Class products. Recurring subscription revenues jumped 9.5% and non-recurring revenues decreased 55.7% on a year-over-year basis. Organically, Analytics’ operating revenue growth was 7%. However, adjusted EBITDA fell 5% to $88 million as expenses grew faster than revenues. The segment’s margin contracted to 46.5% from 52.1%.

Sustainability and Climate revenues rose 3.4% to $91.9 million, while adjusted EBITDA increased 12.3%. While recurring subscriptions increased 4% year over year, non-recurring revenues declined 26.3% on a year-over-year basis. Organically, Sustainability and Climate operating revenue growth was 3%. The segment’s adjusted EBITDA rose 12.3% to $35.6 million, and its margin expanded to 38.7% from 35.6%.

All Other – Private Assets operating revenues, which primarily comprise the Real Assets operating segment and the Private Capital Solutions, were $74.7 million, up 4.9% year over year. Organic operating revenue growth for All Other – Private Assets was 4.4%. However, adjusted EBITDA fell 14.1% to $17.1 million. The segment’s margin contracted to 22.9% from 28%.

MSCI's Sales Trends Highlight Index StrengthNew recurring subscription sales increased 1.9% year over year to $76.6 million. Subscription cancellations declined 7.3%, helping net new recurring subscription sales grow 8.4% to $47.5 million. Total net sales decreased 1.4% because of weaker non-recurring activity.

Index net new recurring subscription sales surged 40.5% to $28.1 million. All Other – Private Assets also delivered a 57.5% increase. These gains were partly offset by declines in Analytics and Sustainability and Climate, where net new recurring subscription sales fell 24.3% and 62%, respectively.

MSCI’s Q2 Operating DetailsTotal operating expenses increased 9.2% year over year to $379.5 million. The rise reflected higher information technology, market data, professional fees, occupancy and compensation costs. Expenses also included amounts related to the Compass, Vantager and PM Insights acquisitions.

Operating income grew 14.6% to $487.5 million. The operating margin improved 120 basis points to 56.2%, while adjusted EBITDA advanced 13.5% to $538.5 million. The adjusted EBITDA margin widened 70 basis points to 62.1%, reflecting revenue growth that outpaced adjusted costs.

MSCI’s Balance Sheet & Cash FlowAs of June 30, 2026, cash and cash equivalents stood at $356.4 million, while total principal debt was $6.4 billion. The debt-to-adjusted EBITDA ratio was 3.1 times.

Net cash provided by operating activities increased 10.3% year over year to $370.8 million. Free cash flow rose 8.2% to $326.4 million.

MSCI repurchased $145 million of shares during the quarter and paid about $149.2 million in dividends.

MSCI Updates 2026 GuidanceMSCI raised its full-year operating expense outlook to $1.535-$1.575 billion from $1.490-$1.530 billion. Adjusted EBITDA expense guidance increased to $1.340-$1.370 billion from $1.305-$1.335 billion, reflecting acquisitions, stronger index-linked AUM and additional growth investments.

The company now expects net cash provided by operating activities of $1.655-$1.705 billion and free cash flow of $1.485-$1.545 billion. Interest expense is projected to be between $282 million and $286 million, while capital expenditures are anticipated to be in the range of $160-$170 million.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresAt this time, MSCI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MSCI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerMSCI is part of the Zacks Financial - Investment Management industry. Over the past month, Cohen & Steers Inc (CNS - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2026 more than a month ago.

Cohen & Steers reported revenues of $152.73 million in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $0.85 for the same period compares with $0.73 a year ago.

For the current quarter, Cohen & Steers is expected to post earnings of $0.89 per share, indicating a change of +9.9% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cohen & Steers. Also, the stock has a VGM Score of F.

Key Takeaways MP Materials' NdPr production rose 51% in the first half of 2026, while sales volumes surged 122%.Materials segment revenues jumped 80% to $167.8 million in 1H06, with adjusted EBITDA reaching $69.2 million.MP Materials benefited from higher volumes, stronger pricing and $59.8 million in PPA income. MP Materials (MP - Free Report) is gaining momentum in 2026 as its efforts to expand neodymium-praseodymium (NdPr) production translate into stronger operational performance, higher revenues and improved profitability in its Materials segment.

The Materials segment represents the upstream and midstream operations of the company, anchored by Mountain Pass, its fully integrated mining and refining facility producing refined rare earth oxides and related products. The segment now derives its revenues from NdPr oxide and metal sales, reflecting MP Materials’ strategic shift toward higher-value products. 

Historically, rare earth concentrate sales accounted for the bulk of segment revenues. However, after halting shipments to Chinese customers in July 2025, the company began processing the concentrate into separated rare earth products or stockpiling it for future use.

NdPr production was a record 917 metric tons in the first quarter of 2026, followed by 840 metric tons in the second quarter. This brings the total NdPr production for the first half of 2026 to 1,757 metric tons, up 51% year over year. NdPr sales volumes surged 122% to 2,012 metric tons during the period. The company also produced 24,055 MT of rare earth oxides (REO) in concentrate in the first half of 2026.

This robust production and sales growth boosted the Materials segment’s financial performance. First-half revenues increased 80% year over year to $167.8 million, supported by higher sales volumes and stronger market pricing.

The Materials segment reported adjusted EBITDA of $69.2 million in the first half of 2026, a turnaround from the loss of $8.9 million reported in the first half of 2025. This was attributed to higher revenues and Price Protection Agreement (PPA) income of $59.8 million related to the agreement with the Department of War (DoW), despite higher cost of sales.

The performance so far this year builds on the momentum established in 2025. During the year, the segment sold 1,994 metric tons of NdPr, up 75% year over year. The Mountain Pass operations produced a record 2,599 MT of NdPr in 2025, more than double the 1,294 MT produced in 2024. 

Australia-based peer Lynas Rare Earths Limited (LYSDY - Free Report) reported NdPr production of 1,857 tons for fourth-quarter fiscal 2026 (ended June 30, 2026), down 11% year over year. The company also produced 19 tons of dysprosium and terbium during the quarter. Total REO production reached 3,481 tons, up 8% from the prior-year quarter. The company also announced its first production of samarium oxide in March 2026.

Lynas’ revenues jumped 70% year over year to AUD 288.9 million ($204.9 million), marking the company’s highest quarterly revenues since the fourth quarter of fiscal 2022. Growth was driven by higher NdPr prices and increased sales volumes of total REO products. 

MP’s Price Performance, Valuation & EstimatesMP Materials’ shares have declined 21.7% in a year compared with the industry’s 49.8% growth. Peers Lynas Rare Earths and Energy Fuels Inc. (UUUU - Free Report) have gained 30% and 66.2%, respectively. 

Image Source: Zacks Investment Research

MP is trading at a forward 12-month price/sales multiple of 15.29X, a significant premium to the industry’s 1.42X. Energy Fuels and Lynas Rare Earths are trading at 19.27X and 10.34X, respectively. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MP Materials’ 2026 revenues indicates a 102% increase year over year. The consensus estimate for 2026 earnings is currently pegged at 12 cents per share, suggesting a solid improvement from the loss of 24 cents reported in 2025. 

The consensus estimate for MP’s 2027 revenues suggests year-over-year growth of 72%, with earnings expected to surge 658%.

Image Source: Zacks Investment Research

The estimate for both 2026 and 2027 has, however, moved down in the past 60 days, as shown in the chart below.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold).

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