Monthly checks averaging around 20 cents per share against a $33 share price is how the iShares U.S. Large Cap Premium Income Active ETF (CBOE:BALI) builds its roughly 7.7% distribution yield.
The “too good to be true” framing on BALI assumes the cash must be coming from somewhere expensive, usually capped upside or quietly eroding NAV. The actual mechanics are duller and more defensible than that, though they still impose costs you should understand before treating BALI as a yield free lunch.
How BlackRock builds the 7.7% number BlackRock’s systematic team, run by Raffaele Savi, operates a two-engine strategy: own dividend-paying large-cap U.S. stocks, then sell call options on the S&P 500 to harvest premium. BALI charges 0.35%, identical to JPMorgan’s JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), which has gathered nearly $30 billion while BALI remains a fraction of that size since its September 28, 2023 launch.
The call-writing piece is where the magic and the constraint both live. Selling index calls generates cash now in exchange for capping how much you participate when stocks rip higher.
A moderate yield like BALI’s, set against peers writing more aggressive overlays at 10% or beyond, generally signals the manager left more room for the underlying book to appreciate. That trade choice matters more than the headline yield number itself.
The performance test against the S&P 500 Over the past year, BALI returned roughly 13% on price alone, while the SPDR S&P 500 ETF (NYSEARCA:SPY) returned 20%. Layer BALI’s monthly distributions on top of that, and the fund actually outpaced a plain S&P 500 tracker on total return in a year when the index climbed steadily without a melt-up. This is the regime where moderate covered-call overlays work best: positive but not euphoric tape, where premium collected exceeds the upside you forfeit.
Stretch out to since-inception numbers and the picture shifts. BALI’s price gain runs roughly 67% against SPY’s 72% over a comparable window. Add distributions and BALI investors plausibly matched or slightly trailed the index while receiving cash in monthly installments rather than waiting for share-price appreciation to convert to spendable money. For an accumulator, that’s a worse outcome. For a retiree drawing income, it’s the entire point.
The tradeoffs you inherit Three constraints matter. First, distributions swing: 2025 and 2026 payments ranged from $0.17 to $0.38 per share, so anyone budgeting against a flat monthly number will be wrong most months.
Second, the option premium component is generally taxed as ordinary income, making BALI considerably more efficient inside an IRA than a taxable brokerage account.
Third, the underlying book is by design large-cap U.S. equity, so if your core position is Vanguard S&P 500 ETF (NYSEARCA:VOO) or individual mega-caps, BALI doubles up on stocks you already own and effectively turns part of your core into a capped-upside sleeve.
Who BALI actually fits BALI works as a 5% to 15% income sleeve for retirees and near-retirees who have already decided they want monthly cash flow and accept trading some appreciation for it.
It does not work as a core growth holding for a 30-year-old accumulator, where the capped upside compounds against you across decades.
The real failure mode with option-income ETFs is buying the 7.7% yield without understanding that you’re selling the right tail of large-cap returns to BlackRock’s options desk and getting paid in monthly installments. If that trade fits your situation, BALI executes it competently and cheaply. If it doesn’t, no headline yield will fix the mismatch.
PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) earnings outlook was trimmed by Bank of America analysts ahead of the company’s second quarter results, with softer-than-expected performance in its North American snacks business offsetting steadier international trends.
The analysts lowered their fiscal 2026 earnings per share (EPS) estimate to $8.61 from $8.65 and slightly reduced their second quarter forecast to $2.18 from $2.19. The revision reflects weaker performance at PepsiCo Foods North America (PFNA) and expectations that its recovery will take longer to materialize in the second half of the year.
For the quarter, Bank of America now expects consolidated organic sales growth of 2.9%, down from a prior estimate of 3.1%. The full-year organic sales growth outlook was also cut to 3.0% from 3.4%.
Despite the downward revisions, the analysts noted continued strength in international markets, which are now expected to deliver 5.4% organic sales growth in the second quarter, up from a prior forecast of 4.9%. They suggested PepsiCo could still reiterate its full-year guidance when it reports results on July 9, though the underlying mix of performance may be less favorable.
The primary pressure point remains PFNA, where scanner data indicated a sequential deterioration in trends during the quarter. NielsenIQ data showed retail sales growth slowing to a 1.0% decline in the second quarter from 0.6% growth in the first. Bank of America attributed the weakness to macroeconomic pressures, inflation, and unfavorable weather conditions around Memorial Day.
As a result, the analysts now expect flat organic sales growth for PFNA in the second quarter, compared with a previous estimate of 1.5%, and have reduced their full-year forecast to 0.2% from 1.4%. They also pointed to softer sequential performance across major brands including Lay’s, Doritos, Tostitos, Cheetos, and Ruffles.
In contrast, PepsiCo’s beverages division showed modest improvement. Retail sales in North America rose 0.3% year over year in the second quarter, while volumes fell 3.5%, an improvement from the prior quarter. However, analysts noted ongoing challenges for core brands, with Pepsi continuing to lose market share and Mountain Dew underperforming its category.
Bank of America also lowered its price objective on PepsiCo to $164 from $173, based on 18 times estimated 2027 earnings, down from a prior multiple of 19 times. Shares traded hands at about $142 on Friday afternoon.
The firm maintained its ‘Neutral’ rating on the stock.
For decades, The Coca-Cola Co (KO +2.61%) and PepsiCo (PEP +1.23%) have battled for dominance, but their business models are diverging significantly in 2026. Which iconic brand is the better buy for your portfolio?
Coca-Cola remains a pure-play beverage company, relying on global scale and high efficiency. PepsiCo balances its drink portfolio with a massive snacks business, offering broader diversification. While both companies are staples in many retirement accounts, they offer different paths to growth and stability as consumer habits shift globally.
The case for Coca-ColaCoca-Cola is a pure-play beverage giant that markets and sells iconic brands such as Sprite, Fanta, and its namesake cola. The company stands as one of the most recognizable beverage stocks in the world. It operates through a global network of independent bottling partners, including Coca-Cola FEMSA and Swire Coca-Cola Limited, which accounted for nearly 44% of total unit case volume in 2025.
In FY 2025, revenue reached approximately $48.1 billion, representing growth of nearly 2.6% over the previous year. Net income for the period was roughly $13.1 billion, a notable increase from the $10.6 billion reported in the prior fiscal year.
The company carries a debt-to-equity ratio of nearly 1.3x, which measures its total debt relative to the value owned by shareholders. Free cash flow reached about $5.3 billion in 2025, representing the cash remaining after the business covers its operating and equipment expenses.
The case for PepsiCoPepsiCo utilizes a diversified business model that combines a massive beverage portfolio with a global snacks and food division. It serves customers in more than 200 countries, with significant operations in the United States, Mexico, and China. Walmart Inc. (WMT +0.61%) and its affiliates accounted for approximately 14% of consolidated net revenue in 2025, and such customer concentration adds a layer of risk to the business.
In FY 2025, revenue reached approximately $93.9 billion, representing nearly 2.3% year-over-year growth. Net income for the period was approximately $8.2 billion, lower than the $9.6 billion reported in the previous year.
The company carries a debt-to-equity ratio of approximately 2.5x. Free cash flow for the year was close to $7.7 billion, representing the cash generated after capital investments.
Risk profile comparisonCoca-Cola faces risks from economic and geopolitical instability, which can disrupt global supply chains and consumer demand. High competition in the retail sector and the growth of e-commerce create pricing pressure on its core beverage brands. Additionally, the company is managing ongoing tax litigation with the IRS and evolving global regulations regarding plastic packaging and sugar taxes.
PepsiCo is navigating shifting consumer trends, including dietary changes and growing interest in weight-loss medications, which could impact snack demand. The company is also subject to legal risks, including antitrust litigation regarding pricing schemes with Walmart. Furthermore, it must manage volatility in the prices of raw materials such as corn and oil, alongside strict environmental regulations on plastic waste.
Valuation comparisonPepsiCo carries a significantly lower price relative to its Forward P/E and P/S ratio than Coca-Cola.
MetricCoca-ColaPepsiCoSector BenchmarkForward P/E24.6x16.1x292.1xP/S ratio7.2x2.0xSector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Coke versus Pepsi is a classic battle of the titans. Coke stock made baseball legend Ty Cobb a millionaire many times over after his playing career, while Pepsi ruled the 1980s after connecting with youth-appealing stars like Michael Jackson and Michael J. Fox in Back to the Future movies. These days, companies are still battling it out in the beverage aisle, turning to newer drink categories like energy drinks and flavored water for growth. But there are crucial differences too.
Coca-Cola Co., as a business, is just beverages, but its portfolio covers almost every consumer beverage except alcohol. But even there, the company is busily marketing ways to use its soda with Jack Daniel’s and Bacardi. The business is seeing good success with a variety of packaging and sizes, which are helping it appeal to more consumers. Marketing is a huge part of the business, too, and a recent tie-in with the NBA should drive enthusiasm among youth domestically and in the growing Asia-Pacific market.
Pepsi, meanwhile, competes with Coke in most beverages but is mostly a food company. About 40% of PepsiCo’s revenue comes from beverages, with snack brands like Lay’s and Tostitos also very important. The rise of GLP-1s poses a never-before-seen threat to the snack foods market, so long-term growth may be impacted. Pepsi seems to be more affected by rising U.S. consumer caution about spending, given its snack-food exposure, too.
Neither business is a growth stock these days, and both are appreciated by investors for their reliable dividend payments. PepsiCo has the better forward dividend yield at today’s price at 4.24%, while Coca-Cola is still a still-healthy 2.62%.
So which one wins the latest battle of the soda pop giants? Coca-Cola Co.’s much healthier net income margin, estimated to come in close to 29% in fiscal 2026, is far superior to PepsiCo’s expected 11.2% profit margin for 2026. Coca-Cola Co. stock is more expensive on a ratio basis than Pepsi’s, but a strong profit margin like that is worth paying up for, given the long-term strength and flexibility it implies for the business.
Cristiano Amon walked into Qualcomm’s (NASDAQ:QCOM | QCOM Price Prediction) Investor Day on June 24, 2026 with a number designed to be repeated.
Over $15 billion in annual data center AI chip sales by fiscal 2029, up from $5 billion in 2027, alongside a $40 billion non-handset revenue target and adjusted EPS above $18 by that year.
Qualcomm shares rose 13.3% to 15% in after-hours trading. Then they handed most of it back. By the close on June 25, the stock sat at $204.90, down 7.66% from June 22 and off 9.38% over the trailing week. The catch is that the chips powering that $15 billion don’t exist in shipping form yet. Qualcomm’s data center CPUs come online in 2028, with custom AI inference silicon still being designed. Investors are underwriting a roadmap.
The math behind the promise Qualcomm’s actual current business looks like this. Total Q2 FY26 revenue was $10.599 billion, down 3.46% year over year, with handsets still accounting for $6.024 billion of that and falling 13% under memory supply constraints and Chinese OEM weakness.
Data center revenue from the recently closed Alphawave Semi acquisition isn’t separately reported yet. So Amon is telling shareholders that a segment producing roughly nothing in fiscal 2026 will produce around 34% of fiscal 2025’s entire revenue base three years from now.
Moreover, Qualcomm announced a $3.92 billion stock acquisition of AI software firm Modular and a multi-year CPU supply agreement with Meta Platforms (NASDAQ:META). The Dragonfly C1000 is set for 2028 production and a Dragonfly AI300 inference part teased for later. Per the Q2 FY26 filing the hyperscaler engagement is “on track for initial shipments later this calendar year.” Thus, this is language that has not been upgraded to “shipping.”
Nvidia’s moat is the actual variable Bloomberg Tech’s Ed Ludlow laid out the competitive geometry. “NVIDIA absolutely dominates the market and whatever’s left, AMD kind of comes up and gets the rest,” he said, noting that NVIDIA holds what Bloomberg defines as a technical monopoly. NVIDIA (NASDAQ:NVDA) has more than 70% market share and that both it and AMD ship new architectures annually while Qualcomm’s parts are years away.
In addition, NVIDIA put up $75.246 billion in Data Center revenue in a single quarter in Q1 FY27. This grew 92% year over year. Qualcomm’s entire 2029 data center target would equal one quarter at Jensen Huang’s current run rate.
Furthermore, Advanced Micro Devices (NASDAQ:AMD) is cementing the silver medal slot with the Meta-anchored MI450 deployment. Ludlow conceded the technical case for Qualcomm, calling its parts “highly performing, very efficient chips on a dollar per token basis or a dollar per kilowatt basis.” Efficiency narratives win when the cost of power, not silicon, becomes the gating constraint.
Micron’s quarter is the warning Qualcomm should read The same afternoon Amon was selling the future, Micron Technology (NASDAQ:MU) reported the present. Fiscal Q3 revenue of $41.46 billion beat the $35.25 billion consensus by 17.60%. Non-GAAP EPS came in at $25.11 versus $20.28 expected. Additionally, GAAP gross margin hit 84.6% from 37.7% a year earlier.
Per Sanjay Mehrotra, the result is “the strategic value of memory in the AI era”. Plus, the newly signed multi-year Strategic Customer Agreements that lock in HBM4 demand.
Morningstar lifted fair value to $200 from $155, conceding that Qualcomm “is not expected to unseat Nvidia’s dominance in AI” while still capturing meaningful share. What to watch over the next four quarters is whether the hyperscaler customer gets named. You should also watch whether Meta’s CPU order converts into a deposit. Then, whether the Modular software stack starts producing benchmarks.
Moderna Inc. MRNA shares surged nearly 10% on Friday, extending a powerful rally that has lifted the stock about 40% over the past month and significantly outperformed the broader market.
The gains followed the company's Science Day presentation and investor event, where Moderna outlined an ambitious strategy to expand beyond its COVID-19 vaccine business and build a diversified portfolio spanning oncology, autoimmune diseases, and next-generation mRNA therapies.
Among the announcements that attracted the most attention was Moderna's first in vivo CAR-T program, mRNA-6007.
The company plans to begin clinical development of the candidate in 2027, initially targeting B-cell-mediated autoimmune diseases, including systemic lupus erythematosus, a chronic condition in which the immune system attacks healthy tissues and organs.
In vivo CAR-T therapies are designed to genetically engineer patients' T-cells directly inside the body.
The approach is viewed as more efficient and potentially less costly than traditional ex vivo CAR-T therapies, which require cells to be harvested, modified in laboratories, and reinfused into patients.
The technology has drawn growing interest across the pharmaceutical industry.
Eli Lilly has also moved into the field, acquiring Orna Therapeutics earlier this year and gaining access to its in vivo CAR-T platform.
Moderna's investor presentation also highlighted several additional oncology and immunology programs, including T-cell engagers targeting multiple myeloma and ovarian cancer.
The company used its Science Day presentation to provide investors with a broader look at its long-term development strategy.
Moderna outlined a pipeline divided into three distinct "horizons," with the first focused on existing commercial products and late-stage development programs.
Jefferies analyst Andrew Tsai estimates that Moderna could market more than seven products across respiratory, oncology, and rare disease indications within the next two years.
The projection represents a significant expansion from the company's current portfolio of three vaccines and underscores how rapidly Moderna's business model has evolved since launching its first commercial product, the Spikevax COVID-19 vaccine, in 2020.
The company also highlighted its first cancer prevention program, mRNA-4194, which targets patients with Lynch syndrome.
In addition, Moderna discussed progress on mRNA-1195, an Epstein-Barr virus therapeutic vaccine being developed for multiple sclerosis, with early data expected later in 2026.
Investors also welcomed progress in the company's influenza franchise.
Moderna's flu vaccine candidate, mRNA-1010, recently received a unanimous 9-0 vote from an FDA advisory committee for adults aged 50 and older ahead of a regulatory decision scheduled for Aug. 5, 2026.
Analysts remain optimistic despite differing viewsWall Street analysts responded positively to the company's latest updates.
Piper Sandler raised its price target on Moderna shares to $77 from $69 while maintaining an Overweight rating, citing progress showcased during Science Day.
Jefferies analyst Andrew Tsai also expressed optimism about the company's early-stage oncology programs and emerging treatment modalities, noting they "can meaningfully diversify the mRNA pipeline."
However, Tsai views upcoming Phase III melanoma data as an even larger near-term catalyst, calling it "a major event" for the stock. He maintained a Hold rating while raising his price target to $53 from $45.
A congressman has also profited from a stake in Intel stock and may have witnessed a defense stock he owned getting a Trump-related boost as well.
Congressmen Cash Out Intel Stock, General Dynamics StockRep. Dwight Evans (D-Penn.) recently disclosed selling two stocks that may have received a boost from the Trump administration, according to data from Benzinga Government Trades.
The transactions were:
June 10: Sold $1,000 to $15,000 in Intel stock June 10: Sold $1,000 to $15,000 in General Dynamics (NYSE:GD) stock Both stocks have hit new all-time highs in recent months. Intel has been helped by a boost in demand and the government stake.
General Dynamics is part of the defense sector, which has seen higher share prices thanks to ongoing tensions in the Middle East and the Trump administration’s push for a higher defense budget going forward.
Intel stock traded at $111.50 on June 10, 2026. Evans previously bought Intel stock several times since 2022, with a purchase on March 30, 2022, when shares traded as high as $52.51 and a purchase on April 3, 2025, when shares traded as high as $23.90.
This means that Evans sold his Intel stock for a profit of around 112.3% to 366.5%.
General Dynamics stock traded as high as $349.00 on June 10, 2026. Evans previously disclosed buying the stock on March 30, 2022, when shares traded as high as $245.63. This means Evans had a profit of at least 42.1%.
Evans previously reported selling Intel stock on May 7, 2026, which likely came at a large profit, too, based on the price that day and the prices at which the shares were bought in previous days.
Evans Trading HistoryEvans has been in the House since 2016 and will soon leave after deciding not to seek re-election in the 2026 midterm elections.
Over his 10 years in office, Evans has made over 180 trades valued at $2.1 million, according to data from Quiver Quantitative.
Most years, Evans makes around $100,000 in trades.
Image via Shutterstock
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Picking up stocks when they're trading near their 52-week lows is a popular investing strategy. The general idea is that if you buy stocks at cyclical lows, then you can sell them higher when they rebound. That doesn't always work out, because sometimes stocks have lost value for good reasons. What you really need to look for are stocks near their 52-week lows that appear to be mispriced. If you can find a company with a strong core business and a cheap stock price, then you've found a real value stock that's worth buying. I think these two fit that description.
Image source: Getty Images.
Microsoft Microsoft (MSFT +5.29%) has had a rough go as of late; the stock is down by around 30% from its all-time highs. Although it bounced from the 52-week low that it reached in April, this month, it has been sinking back toward that level again.
The sell-off doesn't make a ton of sense because Microsoft's business looks fantastic. In its fiscal 2026 third quarter (which ended March 31), revenue rose 18% year over year.
In addition, Azure cloud revenue increased by 40%, and its AI segment's annual revenue run rate rose 123% to a $37 billion. Looking just at those figures, one would not expect Microsoft's stock to be doing so poorly.
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From a valuation perspective, it also looks like an absolute steal. Because Microsoft's fiscal year ends on June 30, it's best to use next year's earnings projections to gauge the forward valuation of the stock.
MSFT PE Ratio (Forward 1y) data by YCharts
Trading at just over 19 times next year's expected earnings, Microsoft is cheaper than the S&P 500 (^GSPC 0.01%), which trades for 22 times forward earnings. That's a low price to pay for a company that by all accounts is doing quite well.
Adobe Many investors have written off Adobe (NASDAQ: ADBE) as an AI victim. This sentiment makes sense, as a lot of the things that Adobe's creative design software has long helped artists do are things that can, in principle, be handled by AI. However, that hasn't been the case yet. The reality is that AI programs don't offer the level of control that Adobe's products offer, and for graphic designers, control over the final product is everything. Instead of abandoning its current products, Adobe is integrating AI features into its ecosystem to give creators both the enhanced tools they want and the control they demand. This helps explain why Adobe's revenue growth has stayed fairly steady during a period when the pundits were predicting that AI was about to destroy its business.
ADBE Revenue (Quarterly YoY Growth) data by YCharts.
As a result, it's looking like smooth sailing ahead for Adobe, and it continues to be a solid, long-term grower. However, the market isn't valuing the stock highly because it's still worried about how AI will impact this business.
ADBE PE Ratio (Forward) data by YCharts.
Adobe's stock now trades for just 8 times forward earnings. That's incredibly cheap. Few established companies ever trade so low, let alone software companies. Adobe is doing the smart thing by repurchasing shares while they are discounted, which should result in its earnings per share growing faster than revenue over the long term.
For a share price turnaround to occur, the market would first need to change its opinion about the company's prospects, and it could be awhile before that happens. Sometimes, the market adopts a negative mindset about a company and just holds on to it. When that happens, a good company can trade at a cheap valuation for years before the market comes to its senses and sends it higher. Or the pessimism can become a long-term fixture. While Microsoft and Adobe appear to me to be solid values, there is no guarantee that the market will adopt that view.
However, I think turnarounds will eventually come for both stocks, making them solid picks to buy now.
Analyst Ken Hoexter said the less-than-truckload carrier delivered fiscal fourth-quarter adjusted operating income above expectations, driven by stronger pricing, higher revenue per shipment and increased weight per shipment.
Revenue rose 5% year over year to $2.41 billion, while adjusted operating income reached $363 million, topping the firm’s forecast by $27 million.
Transition Outlook ImprovesFedEx Freight also introduced financial targets for its June-to-December 2026 transition period, projecting revenue growth of 4% to 6%, adjusted operating income of $605 million to $645 million, adjusted operating margins of 11.5% to 12.0%, and adjusted earnings of $2.40 to $2.60 per share. Hoexter raised his estimates to reflect the stronger outlook.
The analyst expects earnings growth during the transition period to be driven primarily by pricing, with higher yields expected to add roughly 200 basis points to margins.
Efficiency initiatives are also expected to support profitability, although variable compensation costs, transition service agreement expenses and softer shipment volumes are likely to partially offset those gains.
Margin Expansion Remains Key ThesisBofA increased its 2027 earnings estimate by about 2% to $5.41 per share and said FedEx Freight’s focus on profitable revenue growth and long-term margin improvement supports a higher valuation.
Hoexter said management believes the ongoing unwinding of bundled customer contracts poses limited pricing risk because only about 10% of revenue is tied to those agreements and discounts have averaged just 1% to 3%.
Management also identified retail, healthcare, grocery, data centers and small- to medium-sized businesses as key growth markets.
FDXF Stock Price Activity: FedEx Freight shares were down 4.79% at $150.93 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock
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International Business Machines Corp (NYSE:IBM) unveiled new semiconductor technology featuring a sub-1 nanometer chip architecture, which Wedbush analysts see as a significant step in chip scaling as demand for artificial intelligence computing continues to grow.
IBM said the sub-1 nm design incorporates approximately 100 billion transistors on a chip roughly the size of a fingernail, which the analysts noted is about twice the density of the company’s current 2 nm technology. The architecture is based on a 3D “nanostack” approach that vertically layers and staggers transistors in order to increase density and improve performance efficiency.
According to Wedbush analysts, the new design is intended to deliver up to 50% higher performance or up to 70% better energy efficiency compared with IBM’s 2 nm chips. They wrote that these improvements could support workloads across generative AI, cloud infrastructure, and next-generation electronic devices, where demand for processing power and energy efficiency continues to rise.
The analysts also highlighted that IBM demonstrated a 40% scaling improvement in SRAM using the nanostack architecture, which they wrote could enable chip designers to build more efficient processors capable of handling higher-bandwidth data flows associated with AI applications.
Wedbush analysts wrote that IBM continues to position itself as a key player in advanced semiconductor development, with efforts spanning silicon design, AI-focused hardware, logic systems, and quantum computing. They noted that the company is working with a range of industry partners, including ASML on advanced lithography techniques, as well as Lam Research, Tokyo Electron, and SCREEN Semiconductor Solutions, to support high numerical aperture EUV processes and related tooling.
The analysts wrote that these partnerships have contributed to early-stage working devices and reflect IBM’s ongoing efforts in advanced process development aimed at extending its semiconductor roadmap over the next decade. They added that the company’s progress in lithography and transistor architecture could strengthen its positioning in AI-related hardware markets.
In addition to its semiconductor developments, IBM announced plans to establish a standalone quantum foundry business called Anderon. Wedbush analysts wrote that the entity is intended to leverage IBM’s existing expertise in quantum computing and semiconductor technologies to support domestic quantum wafer manufacturing capabilities.
The analysts added that IBM has outlined a potential timeline for early adoption of its nanostack technology at sub-1 nm nodes, with a possible production pathway for the quantum-focused facility within the next five years.
Wedbush analysts wrote that IBM’s broader quantum strategy remains focused on providing infrastructure and runtime environments for quantum computing applications, positioning the company as a long-term provider of foundational technologies in the sector.
Wedbush maintains an ‘Outperform’ rating on the stock with a $350 price target, implying upside from current levels of about $258.
International Business Machines Corp (NYSE:IBM) unveiled new semiconductor technology featuring a sub-1 nanometer chip architecture, which Wedbush analysts see as a significant step in chip scaling as demand for artificial intelligence computing continues to grow.
IBM said the sub-1 nm design incorporates approximately 100 billion transistors on a chip roughly the size of a fingernail, which the analysts noted is about twice the density of the company’s current 2 nm technology. The architecture is based on a 3D “nanostack” approach that vertically layers and staggers transistors in order to increase density and improve performance efficiency.
According to Wedbush analysts, the new design is intended to deliver up to 50% higher performance or up to 70% better energy efficiency compared with IBM’s 2 nm chips. They wrote that these improvements could support workloads across generative AI, cloud infrastructure, and next-generation electronic devices, where demand for processing power and energy efficiency continues to rise.
The analysts also highlighted that IBM demonstrated a 40% scaling improvement in SRAM using the nanostack architecture, which they wrote could enable chip designers to build more efficient processors capable of handling higher-bandwidth data flows associated with AI applications.
Wedbush analysts wrote that IBM continues to position itself as a key player in advanced semiconductor development, with efforts spanning silicon design, AI-focused hardware, logic systems, and quantum computing. They noted that the company is working with a range of industry partners, including ASML on advanced lithography techniques, as well as Lam Research, Tokyo Electron, and SCREEN Semiconductor Solutions, to support high numerical aperture EUV processes and related tooling.
The analysts wrote that these partnerships have contributed to early-stage working devices and reflect IBM’s ongoing efforts in advanced process development aimed at extending its semiconductor roadmap over the next decade. They added that the company’s progress in lithography and transistor architecture could strengthen its positioning in AI-related hardware markets.
In addition to its semiconductor developments, IBM announced plans to establish a standalone quantum foundry business called Anderon. Wedbush analysts wrote that the entity is intended to leverage IBM’s existing expertise in quantum computing and semiconductor technologies to support domestic quantum wafer manufacturing capabilities.
The analysts added that IBM has outlined a potential timeline for early adoption of its nanostack technology at sub-1 nm nodes, with a possible production pathway for the quantum-focused facility within the next five years.
Wedbush analysts wrote that IBM’s broader quantum strategy remains focused on providing infrastructure and runtime environments for quantum computing applications, positioning the company as a long-term provider of foundational technologies in the sector.
Wedbush maintains an ‘Outperform’ rating on the stock with a $350 price target, implying upside from current levels of about $258.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Dover Corporation (DOV - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Dover Corporation currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for DOV that show why this company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For DOV, shares are up 2.82% over the past week while the Zacks Manufacturing - General Industrial industry is up 3.58% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.57% compares favorably with the industry's 3.76% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Dover Corporation have increased 12.34% over the past quarter, and have gained 26.05% in the last year. On the other hand, the S&P 500 has only moved 11.94% and 22.09%, respectively.
Investors should also take note of DOV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now DOV is averaging 962,409 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with DOV.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DOV's consensus estimate, increasing from $10.60 to $10.61 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that DOV is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Dover Corporation on your short list.
Key Takeaways Parker-Hannifin's Aerospace Systems organic revenues rose 14.2% in fiscal Q3 2026.PH expects aerospace sales growth from air transport demand and strong defense spending.Parker-Hannifin agreed to acquire CIRCOR's aerospace business for $2.55 billion. Parker-Hannifin Corporation (PH - Free Report) is witnessing persistent strength in its Aerospace Systems segment. The segment is benefiting from strength across its commercial and defense end markets across both Original Equipment Manufacturer (OEM) and aftermarket channels. Segmental organic revenues jumped approximately 14.2% year over year in the third quarter of fiscal 2026 (ended March 2026).
The Aerospace Systems segment is expected to capitalize on the strong demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities. Strength in its defense end market, owing to robust U.S. and international defense spending volumes, is also likely to be beneficial. Parker-Hannifin expects the Aerospace Systems segment’s organic sales to increase 12% from the year-ago level in fiscal 2026 (ending June 2026).
In May 2026, the company also entered into a deal with CIRCOR International to acquire the latter’s Commercial and Defense Aerospace business for $2.55 billion. The transaction, anticipated to close in the second half of this year, will add complementary technologies and capabilities, thereby further strengthening its position across aerospace and defense markets.
Driven by strength in its businesses, Parker-Hannifin has issued bullish fiscal 2026 guidance. The company currently expects total sales to increase 7% year over year, while organic sales are projected to grow 5.5%.
Segment Snapshot of PH’s PeersAmong its major peers, Howmet Aerospace Inc.’s (HWM - Free Report) defense aerospace market is playing an important role in driving its overall growth. In the first quarter of 2026, Howmet’s revenues from the defense aerospace market jumped 10% year over year, which accounted for 16% of its total sales. The surge in revenues was fueled by robust demand for Howmet’s engine spares and an increase in orders for new builds and legacy fighter jet parts.
RBC Bearings Incorporated (RBC - Free Report) is gaining from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM and the aftermarket verticals, is driving the Aerospace/Defense segment. The segment’s revenues were up 41.2% year over year in fourth-quarter fiscal 2026 (ended March 2026).
PH's Price Performance, Valuation and EstimatesShares of Parker-Hannifin have gained 11.1% in the past six months compared with the industry’s growth of 6.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, PH is trading at a forward price-to-earnings ratio of 29.13X, above the industry’s average of 22.76X. Parker-Hannifin carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PH’s fiscal 2026 earnings has increased 0.7% over the past 60 days.
Image Source: Zacks Investment Research
Parker-Hannifin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Dow Jones Industrial Average (^DJI 0.07%) is the only major index in the green this week. At midday Friday, it was up about 0.3% for the day and 1% for the week. The S&P 500 (^GSPC 0.01%) hovered near breakeven on the day but was down 1.5% for the week. The Nasdaq Composite (^IXIC 0.18%) index fell 0.5%, extending its weekly loss to 4%.
Friday's session captured the week in miniature. Microsoft (MSFT +5.29%) rose nearly 5%, doing the heavy lifting across all three major indexes. Space Exploration Technologies (SPCX 0.59%) swung from down 2% at the open to up 2.3% by noon on Starlink mobile-service buzz. And Micron Technology (MU 5.08%), fresh off Thursday's 16% earnings rocket, came back to earth with a 4% price drop.
^DJI data by YCharts
Microsoft carries the load Microsoft rose 4.9% on Friday, adding 107 points to the price-weighted Dow index and $136 billion to its own market cap. That gain rippled across all three indexes, since Microsoft ranks among the largest holdings in both the price-weighted Dow and the cap-weighted S&P 500 and Nasdaq Composite indexes.
The Dow needed every bit of that help, as the two largest point movers were bearish. Caterpillar (CAT 4.39%) went from an all-time high on Thursday to a 4.1% drop on Friday, dragging the index down by 270 points. Goldman Sachs (GS 3.34%) fell 2.8% for another 182-point hit. Together, those two stocks nearly erased the Dow's weekly gain in a single session. And neither had substantial news to share; the price drops reflected Caterpillar's and Goldman's sensitivity to macroeconomic affairs, along with their combined Dow weighting of 25.1%.
Image source: Getty Images.
While tech stocks grabbed headlines, oil kept sliding. The United States Oil Fund (USO 4.07%) dropped 4.1% on Friday as Brent crude slipped to around $73 per barrel, approaching levels not seen since before the Iran conflict began in late February.
Traders are betting that more Iranian oil will reach global markets soon. Ship traffic through the Strait picked up to 62 transits in the past 24 hours, still half the normal rate, with 320 vessels waiting their turn. It's progress, albeit slow.
The declining oil price explains some of Caterpillar's reversal. Heavy equipment demand ties closely to energy-sector capital spending, and cheaper crude signals less drilling activity ahead. Goldman Sachs and other major banks fell alongside broader risk-off sentiment, even though the financial sector passed Federal Reserve stress tests earlier in the week.
Gold offered a counterpoint. The SPDR Gold Shares (GLD +1.05%) fund gained 1.6%, a reminder that not everyone is ready to declare the Middle East situation resolved. Safe havens are still tempting.
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The bigger picture That's the end of a dramatic week, with modest Dow gains balanced against a broad sell-off in tech. Micron's big jump was just a recovery from Tuesday's crash, and the Middle East crisis lingers on.
One week doesn't make a trend. The Dow's outperformance may say more about its lack of chip exposure than any renewed appetite for old-economy stocks. Next week brings Alphabet (GOOG 0.09%) (GOOGL 0.40%) joining the Dow on Monday, which will shift the index's tech weighting slightly higher. The Google parent's $344 share price carries more weight than its predecessor, Verizon (VZ +0.57%), at $46.
Whether the divergence between indexes continues or snaps back is anyone's guess. But weeks like this one are why long-term investors try not to check their portfolios too often.
Anders Bylund has positions in Alphabet and Micron Technology. The Motley Fool has positions in and recommends Alphabet, Caterpillar, Goldman Sachs Group, Micron Technology, and Microsoft. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased First Solar, Inc. (âFirst Solarâ or
LyondellBasell (LYB - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for LyondellBasell basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for LyondellBasell imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for LyondellBasellThis oil refiner and chemical company is expected to earn $9.22 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for LyondellBasell. Over the past three months, the Zacks Consensus Estimate for the company has increased 157.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of LyondellBasell to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Memory chips are boring until they aren’t, and Wednesday afternoon they stopped being boring. Micron Technology (NASDAQ:MU | MU Price Prediction) guided fiscal fourth-quarter revenue to $50 billion, plus or minus $1 billion, against a Wall Street consensus parked around $43 billion.
Bloomberg Tech host Ed Ludlow, on Bloomberg Businessweek Daily, summed up the move with a line that did the rounds on every trading desk by Thursday morning. “It’s not about beating the expectations of the street. Micron reset the expectations of the entire industry.” The stock responded accordingly, closing at $1,213.56 on June 25, an all-time high and a 15.74% single-session move. Year to date, Micron is up 275%.
Why Ludlow called it a reset, not a beat Ludlow’s point was about the source of the dollars. The Q4 guide is being driven by tight supply conditions and pricing power, particularly in data center and high-bandwidth memory, with higher prices, not higher unit volumes, driving the gain. Supply is tight “and it’s going to be tight for a long time,” Ludlow noted, which hands Micron something memory companies almost never get to keep for long. Pricing power.
That framing matters because memory is a cyclical commodity business that periodically buries its participants. Ludlow flagged the flip side too. “Everyone wants the thing you’re selling,” but the same dynamic is “not good for the companies who are in the market trying to get hold of those chips.” Translation. Every hyperscaler building out AI infrastructure is paying up, and Micron’s revenue line is their margin compression.
The Q3 results under the hood The numbers Micron reported before the guide stole the show already stood out. Revenue of $41.46 billion against a consensus of $35.25 billion, growing 345.72% year over year. Non-GAAP EPS landed at $25.11, the seventh consecutive EPS beat. GAAP gross margin expanded to 84.6% from 37.7% a year ago, a margin profile software companies would envy. Operating cash flow hit $25.39 billion, free cash flow $18.30 billion, against capex of $7.83 billion.
Segment-wise, Cloud Memory at $13.77 billion overtook Core Data Center at $11.52 billion and Mobile and Client at $11.52 billion. AI accelerators eat HBM, and Micron’s HBM4 is already shipping in volume to its lead customer platform, with HBM4E targeted for calendar 2027 production.
What durability actually looks like CEO Sanjay Mehrotra spent his prepared remarks pushing one phrase, multi-year Strategic Customer Agreements. “We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance,” he said. The unsubtle message to investors who still mark memory stocks as cyclicals. This cycle has contracts attached.
The risks haven’t vanished. Q3 included a $325 million loss on debt prepayments, capex is running at record levels, and the lead HBM customer concentration is real. Reddit’s r/stocks crowd, which lit up at a peak sentiment score of 66 on Wednesday evening, had already cooled to neutral by Friday morning, with the most debated thread asking whether “Micron’s guidance is truly bullish for the overall market.”
Polymarket bettors, for what it’s worth, had already priced this in. The most recent MU earnings prediction market resolved decisively to “Up”. The harder question now is whether $50 billion quarters become the new baseline or the new high-water mark, and Mehrotra is betting his capex budget on the former.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Micron (MU - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this chipmaker is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Micron is 3.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 662.5% this year, crushing the industry average, which calls for EPS growth of 72.1%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Micron is 101.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 23.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 14.7% over the past 3-5 years versus the industry average of 10.2%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Micron have been revising upward. The Zacks Consensus Estimate for the current year has surged 4.8% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Micron a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Micron is a potential outperformer and a solid choice for growth investors.
Listen below or on the go on Apple Podcasts and Spotify
Micron goes volatile on great news (0:20) SpaceX the bellwether (2:45) Fed interest rate commentary (4:40) Light week coming (7:11)
Transcript
Rena Sherbill: Brian Stewart, our director of news. Welcome back to another week of Wall Street Roundup. Are we starting with tech?
Brian Stewart: I think Micron (MU) was the big news this this time around so we should we should jump in there.
Market reaction was interesting, taking it in broad terms. Micron reported better than expected results, revenue more than quadrupled from last year to forty-one billion dollars about.
Strong guidance. They said AI demand is still accelerating, however, supplies remain tight. So basically the exact market you'd want for the company. Stock was up sixteen percent on earnings, but the follow-through through the sector in general was much more muted.
Also you're seeing a situation where Micron has gotten more volatile in recent days. It rallied on Monday, hit a new high, and then we had the general market sell-off, tech worry sell-off on Tuesday, which Micron was down pretty sharply, and then down double digits.
And then you saw the pop back up after the earnings. So you saw Micron set a new high on Monday, beat that new high right after its earnings. But then the stock is down today and is below where it was obviously at its high, but also below the high that it reached on Monday.
Meanwhile, you have other stocks. If you look at the the general tech space this time around, you take the the large cap winners in the past week, you see a very defensive situation. So you see Merck (MRK), J&J (JNJ), Lilly (LLY), Home Depot (HD), Coke (KO). These are the stocks that have been showing strength in the past week.
And then on the downside, you see stocks like (ARM) and Oracle (ORCL) and Palantir (PLTR). So basically your AI set falling behind. And that's despite the fact that you have Micron as a catalyst.
So the overall reaction to Micron, if you could summarize it, is something like this is an A +++ earnings report, could not be better. However, after some reflection, a lot of this was already baked into the style.
Rena Sherbill: So much is priced in. So much is priced in already.
Brian Stewart: That's worrisome if you're a bull, just in the sense that if a super blockbuster quadrupling of revenue earnings report is already priced into the stock, there's not a lot that isn't priced into the stock. So you're looking to a situation where one stumble could make a big downside.
Rena Sherbill: Check out Investing Experts Podcast to see what to do with your money instead of going into those stocks.
Update on SpaceX? Where are we at with it?
Brian Stewart: I remember a while ago we talked about Tesla (TSLA) every week and I think Elon Musk just has a gift for putting his stock top of mind all the time.
I think SpaceX (SPCX) is becoming a proxy for people's opinions about optimistic tech, future tech. The stocks that are more about promise than they are about the current revenue stream, I think SpaceX is becoming the bellwether for that.
Recently they priced IPO at $135 a share, it opened at $150, rallied to around $225, and now it's back down to just over $150. So it's basically back to where it started. Still above its IPO price, but in terms of where it opened, it's pretty much just on a round trip.
The catalyst for the recent dip has been it's selling twenty-five billion dollars in bonds. This is after it made eighty six billion dollars off of its IPO. So $75 billion in the initial, and then the overdraft for that got it up to eighty-six. So the company now has more than a hundred billion dollars in cash from from all these cash raises.
And I just think this played into the narrative of the hyperscalers flooding the market with these bonds. I just think there's a worry that this is all kind of frothy. There's a sign that maybe these companies are getting as much cash as they can at the top of the market. They know something we don't kind of thing.
So that was the initial catalyst for sending it down. If you look at the tech stocks in general, I thought Wedbush had an interesting way of framing it. They called it an air pocket market. So basically the pilot's coming on saying there's turbulence ahead, we're gonna stop beverage delivery or whatever they call it. I think that's the market we're in. Like buckle your seatbelts because we we might hit some pumps.
Rena Sherbill: To wit, OpenAI (OPENAI), I saw a report about them considering delaying their IPO due in part to the pullback in in SpaceX and investor sentiment, etc. Interesting to see various consequences from this frothiness.
We talked about it on this morning's Wall Street Breakfast podcast about Neel Kashkari coming out with some comments.
I don't know if you saw it, it just was released that widespread inflation led him to pencil in one interest rate hike this year in the Fed's June dot plot. So it now expects no reduction in its policy rate in 2026.
Any thoughts there?
Brian Stewart: I think it just highlights that interest rates are going to kind of take over. Well not take over, but I think co-lead for the movie that's going to be the stock market for the next few weeks is going to be AI and then interest rates. I think that's going to be the major debate.
Inflation has been stubbornly high. You see oil prices coming down sharply from their peaks because we've reached at least a temporary end to the Iran situation.
And so the the question is how much damage was done during the time period where the Strait of Hormuz was closed? Was it just a blip? Are we going to heal very quickly and get back to normal and start seeing inflation come down?
Or is that inflation still gonna work its way through the system and it's gonna be stuck high for a long period of time? The Fed has been in a wait and see mode lately though I think in Warsh's first meeting there were some hawkish signs, which is interesting because I think in the initial nomination process, there was hope that he was coming in as a dove.
Warsh seems to favor less communication. He's famously a skeptic of the dot plot. The statement that they issued was the shortest in recent memory. So it'll be interesting for the market to get used to less information from the Fed.
Now they'll still be - you're talking Kashkari, you're still gonna get that individual commentary from it, but you have to weigh those in, Kashkari can't make the decision on his own, right? This is a a team effort.
And so balancing the hawks and the doves and the different forces that go into this decision making, it's gonna get more complicated, or at least there's gonna be a learning curve as we get used to how the Fed is going to do its communications.
Rena Sherbill: What else you got for us this week? Or next?
Brian Stewart: Next week is gonna be pretty light. We got the the holiday at the end of the week. There's really not many earnings. We have Nike (NKE) coming out, so we're gonna get a little bit of information about the consumer.
We have General Mills (GIS), which is another kind of consumer data point coming out, and then not much else.
You have the jobs data coming out. I think that's gonna be a big one. Recent jobs data has pointed to a relatively healthy jobs market. So I think investors are gonna be looking to whether that holds up.
I think the worry there, it's kind of like good news is bad news situation. The the stronger the the job market is, the more of a green light the Fed has to raise rates to fight inflation. So the response, the market response to the jobs data might be counterintuitive in the moment.
We'll have to test what the market sentiment is. And so I think the jobs data will be a good point.
LOS ANGELES, June 26, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 10, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z, ZG) Class A or Class C common stock between February 11, 2025 and May 7, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR ZILLOW INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On September 30, 2025, the Federal Trade Commission announced that it had sued “Zillow and Redfin over an unlawful agreement that eliminates Redfin as a competitor in the market for placing advertising of rental housing on internet listing services (ILSs)-the websites that millions of Americans use to find their next rental home.”
On this news, Zillow’s stock price fell $3.57 per share, 4.63% to close at $73.48 on October 1, 2025, thereby injuring investors.
Then, on February 10, 2026, Zillow announced fourth quarter 2025 earnings. In the earnings call, CFO Jeremy Hofmann stated that legal expenses “[were] higher than we anticipated coming into the quarter and was ultimately 180 basis points of margin drag for Q4.”
On this news, Zillow’s stock price fell $9.05 per share, or 16.5%, to close at $45.66 on February 11, 2026.
Then, on May 7, 2026, Reuters published an article stating that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.”
On this news, Zillow’s stock price fell $0.85, or 1.9%, to close at $43.68 per share on May 7, 2026; the stock continued to fall the next day, declining $2.25 per share, or 5.15%, to close at $41.43 on May 8, 2026, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Zillow’s agreement with Redfin was not a “partnership,” but rather an acquisition of Redfin’s business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Zillow common stock during the Class Period, you may move the Court no later than August 10, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
MercadoLibre (MELI +3.06%) might not be a household name in the U.S., but Foolish investors know the Latin American e-commerce company as a standout on the stock market.
Since its 2007 IPO, MercadoLibre is up more than 5,000%, and it's built an Amazon-like network of businesses as it expands across Latin America, including in logistics, fintech, credit, and asset management. It's also added its Prime-like MELI+ membership program to help lock customers into its ecosystem.
While MercadoLibre has continued to put up strong growth numbers, the stock has struggled over the last year, falling 36% in a steady decline.
MELI data by YCharts
That sell-off isn't unwarranted, as there are several reasons why investors have sold off MercadoLibre stock. Let's take a look at those challenges before discussing whether MercadoLibre is a buy.
Image source: MercadoLibre.
What's ailing MercadoLibre? The biggest reason for MercadoLibre's slide is that its profits are falling. In the first quarter, despite a 49% jump in revenue, operating income slipped from $763 million to $611 million.
The decline in profits has come primarily as the company has faced increased competition in Brazil from Sea Limited's Shopee, PDD Holdings' Temu, Amazon, and others. Brazil is MercadoLibre's biggest market, representing about half of its revenue.
To push back against competition, MercadoLibre lowered its free shipping threshold in Brazil, or the minimum order value to get free shipping, which helped accelerate GMV growth to a currency-neutral 38%.
Management first introduced free shipping in 2016, which had a similar headwind on profit margins, but paid off over the longer run, and it expects the lower free shipping threshold to do the same.
The company is also investing in cross-border trade for merchants in China and the U.S., giving them the option to work with the regional leader rather than Amazon or Temu. It's given sellers easier access to free shipping and other incentives, and it opened its first fulfillment center in China to improve relationships with merchants there.
MercadoLibre's margins are also compressing due to the growth of lower-margin businesses, including its first-party e-commerce business and its credit business, which saw a modest rise in delinquency rates in the first quarter.
The credit business introduces a new risk for MercadoLibre, but management sees it as a key driver for the company's two principal businesses, e-commerce and fintech. Its credit portfolio increased 87% to $14.6 billion in the first quarter, and it issued 2.7 million MercadoPago credit cards.
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It's understandable why falling profits would send MercadoLibre stock lower. After all, this is a stock that has historically traded at a premium valuation priced for growth.
However, the overall picture of the company is that the margin compression is primarily the result of its own decision-making to prioritize long-term growth over short-term profits in a shifting competitive landscape. That's a smart move, and it's similar to the strategy that worked so well for Amazon.
While competition may be impacting MercadoLibre's performance, market share wars don't last forever, as the experience of industries like ridesharing and food delivery has shown. Additionally, MercadoLibre actually gained market share in the first quarter, and its structural advantages, like its MercadoEnvios logistics network, should ensure that it maintains its leadership in Brazil and elsewhere. Management also believes that there's a long runway for growth in Latin American e-commerce as the average Latin American makes just seven online purchases a year, compared to 41 for the average American, so there can be more than one winner here.
The margin pullback is likely temporary, and these investments should pay off. In the meantime, MercadoLibre continues to deliver strong revenue growth, up 49% in the first quarter, a sign of a healthy business despite the bottom-line woes.
With the e-commerce stock down nearly 40% from its peak, MercadoLibre is worth buying here. The long-term growth outlook still looks strong.
Signage is seen outside of the Food and Drug Administration (FDA) headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly Purchase Licensing Rights, opens new tab
CompaniesJune 26 (Reuters) - The U.S. Food and Drug Administration proposed a rule on Friday that would require foreign tobacco product makers to register their facilities and list products sold in the country.
The agency said the move would help it crack down on illegal imports, including e-cigarettes popular with the youth.
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Here are some details:
The rule would apply to both foreign and domestic companies that manufacture, prepare or process tobacco products.
U.S. manufacturers like Philip Morris International (PM.N), opens new tab are already required under federal law to register their facilities and list their products with the FDA, but foreign manufacturers are not subject to those requirements currently.
The proposal could close this loophole and affect major global tobacco companies including British American Tobacco (BATS.L), opens new tab, Japan Tobacco (2914.T), opens new tab, Imperial Brands (IMB.L), opens new tab as well as smaller overseas e-cigarette manufacturers whose products are shipped into the United States.
The health regulator said this would give better information about tobacco products made abroad for the U.S. market and allow it to conduct more effective inspections of foreign facilities.
"All companies selling tobacco products in the United States should play by the same rules," Bret Koplow, acting director of the FDA's Center for Tobacco Products, said in a statement.
If implemented, the rule would require manufacturers to provide identifying details for each tobacco product, including nicotine concentration, nicotine source, flavors, package types and product dimensions.
For e-cigarettes, companies would also have to provide information such as e-liquid volume, battery capacity and wattage.
Manufacturers would need to submit information electronically through the FDA's online system and update facility registrations each year and product listings twice a year.
Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Sarah Kunst of Cleo Capital went on CNBC Friday morning and said what a lot of portfolio managers have been muttering to themselves all week. “People are wondering if putting all of their eggs into the AI, a sort of high growth hyperscaler basket, was maybe not the best idea over the past couple of years.”
The backdrop matters here. The S&P 500 is down 1.8% on the week, while the NASDAQ 100 has dropped 3.27% and is sitting on a roughly 1.9% monthly loss. Equal-weighted names, health care, industrials and financials are catching bids while the hyperscalers bleed. Kunst’s read is that this is a “healthy” rotation, and the names she flagged on weakness include Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction), Apple (NASDAQ:AAPL), Taiwan Semiconductor (NYSE:TSM), Micron (NASDAQ:MU) and SK Hynix.
What actually broke this week The catalyst was earnings anxiety around AI infrastructure costs at Apple and Microsoft (NASDAQ:MSFT). Apple is down 6.2% on the week and 9.4% over the past month, and Thursday’s session alone took the stock 6.12% lower. Microsoft is in worse shape.
It is down 22% year to date and 25.6% over the past year, despite Q3 results that showed TTM EPS up 30%. The disconnect is the capex bill. Microsoft spent $30.88 billion on capex in Q3 alone, up 84% year over year, and Alphabet has guided 2026 capex of $175 billion to $185 billion. Investors are now asking how that math compounds.
Where the money is rotating It is going to the suppliers. Micron reported Tuesday and the $41.456 billion in revenue beat consensus by 17.60%, with non-GAAP EPS of $25.11 versus $20.28 expected. Revenue grew 345.72% year over year and GAAP gross margin expanded from 37.7% to 84.6%.
In addition, MU stock is up 270% year to date. CEO Sanjay Mehrotra called it evidence of “the strategic value of memory in the AI era” and guided Q4 to $50.0 billion ± $1.0 billion with gross margins around 86%. Taiwan Semiconductor is the other beneficiary. May revenue grew 30.1% year over year and CEO C.C. Wei has guided full-year 2026 growth above 30%.
The Alphabet case Kunst keeps making Alphabet is the cheapest mega-cap on her list at a P/E of 15x, well below Apple’s 36x and Microsoft’s 26x. Q1 FY26 revenue grew 21.8% to $109.9 billion and Google Cloud grew 63%, with backlog nearly doubling sequentially to over $460 billion.
Moreover, Sundar Pichai noted on the call that “Waymo surpass[ed] 500,000 fully autonomous rides a week.” Reddit retail is less convinced. The bearish narrative this week has been an AI talent exodus, and posts about Google losing top researchers to OpenAI and Anthropic have peaked at 470 upvotes. Alphabet shares are down 6.61% this week, though still up 101.95% over the past year.
What Kunst is really arguing Her framing rejects sector ETFs as the answer. “You’re not buying a sector. I think you’re buying into individual names that have been a little bit undervalued to begin with, and now are dipping even lower and names that can recover and that have a great sort of business.”
Apple’s tape supports the “undervalued on dip” angle loosely. Q2 FY26 revenue of $111.18 billion grew 16.6%, EPS of $2.01 beat by 3.61%. Furthermore, the board authorized a fresh $100 billion buyback. Kunst’s broader point is that a market in touch with reality should reward the companies actually building the AI plumbing. The week’s tape says it agrees.
Healthcare stocks outperformed the broader market on Friday, with Eli Lilly (LLY), Johnson and Johnson (JNJ) and AbbVie (ABBV) among the major names hitting fresh
Key Takeaways onsemi agreed to acquire Synaptics in a roughly $7B all-stock deal to expand its Physical AI platform.ON expects the deal to be accretive to non-GAAP earnings within 18 months after closing.onsemi says the acquisition could expand its addressable market by $30B to $243B by 2030. onsemi (ON - Free Report) is making its biggest strategic move yet, agreeing to acquire Synaptics Incorporated (SYNA - Free Report) in an all-stock deal valued at roughly $7 billion. The acquisition strengthens onsemi’s transformation from a power and sensing specialist into a provider of intelligent, system-level solutions for the emerging Physical AI market.
The transaction adds Synaptics’ Edge AI compute platform, wireless connectivity technologies and human-machine interface portfolio to onsemi’s leadership in power semiconductors and sensing. Together, the companies aim to deliver integrated solutions spanning power, sensing, connected compute and control for autonomous vehicles, robotics, industrial automation and AR/VR applications. Management believes the combination could expand ON’s total addressable market by $30 billion to $243 billion by 2030.
The deal also aligns with the strategy outlined during onsemi’s first-quarter 2026 earnings call, where management highlighted accelerating AI data center demand, growing adoption of its Treo intelligent mixed-signal platform and increasing traction in software-defined vehicles and industrial automation. Executives emphasized that the company already possessed the technologies to capitalize on AI infrastructure and had remained focused on targeted acquisitions to broaden its technology portfolio.
Financially, the acquisition is expected to become accretive to non-GAAP earnings within 18 months after closing, while generating approximately $200 million in annual cost synergies. Synaptics shareholders will own about 12% of the combined company, with the transaction expected to close in mid-2027, pending shareholder and regulatory approvals.
If successfully integrated, the acquisition could position onsemi as one of the industry's most comprehensive Physical AI semiconductor platforms, extending well beyond its traditional power semiconductor franchise.
onsemi vs. STMicroelectronics vs. Texas Instruments: Who Wins?onsemi is strengthening its competitive position against STMicroelectronics N.V. (STM - Free Report) and Texas Instruments Incorporated (TXN - Free Report) by capitalizing on accelerating AI infrastructure and edge intelligence trends.
ON expects its AI data center revenues to double in 2026, supported by growing adoption across hyperscalers and the entire power delivery chain, while its silicon carbide, GaN and Treo mixed-signal platforms are gaining traction in automotive, industrial automation and robotics. The proposed $7 billion all-stock acquisition of Synaptics further expands onsemi's presence in Edge AI compute, wireless connectivity, and human-machine interfaces, creating a broader Physical AI platform.
STMicroelectronics continues to leverage its strengths in silicon carbide, industrial automation and automotive semiconductors, but remains more exposed to cyclical automotive weakness despite expanding AI-enabled edge processing solutions. Texas Instruments, meanwhile, benefits from its broad analog and embedded processing portfolio, strong industrial customer base and manufacturing scale, but has largely relied on organic innovation rather than transformational acquisitions.
With AI infrastructure demand accelerating and intelligent edge applications proliferating, onsemi's aggressive acquisition strategy and integrated system-level approach could provide a stronger long-term growth catalyst than its peers.
ON Stock’s Price Performance & Valuation TrendShares of this Arizona-based semiconductor company have surged 103.5% in the past three months, outperforming the Zacks Semiconductor - Analog and Mixed industry, but underperforming the Zacks Computer and Technology sector and the S&P 500 index.
Image Source: Zacks Investment Research
ON stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 32.06, as evidenced by the chart below.
Image Source: Zacks Investment Research
EPS Trend of onsemiON’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days to $3.09 and $4.36 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 31.5% and 41.1%, respectively.
Image Source: Zacks Investment Research
onsemi stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Morgan Stanley (MS) and Goldman Sachs (GS) fell Friday after a report said OpenAI may delay its closely watched IPO until 2027.Goldman dropped as much as 4.8%,
Major indexes are working to pivot higher this afternoon, after OpenAI's suggested IPO delay dragged early morning sentiment. The Dow Jones Industrial Average (DJIA) has managed to reverse its early morning losses to climb 204 points, while the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) both sit on a moderate gain. Healthcare stocks are giving Dow a boost, Johnson & Johnson (JNJ) being a major gainer today.
Consumer sentiment showed a lift but remained on the lower end for the month of June. Specifically, the University of Michigan consumer survey posted a reading of 49.5, slightly above estimates of 49.0. The Dow is the only index looking at logging a positive weekly performance.
Continue reading for more on today's market, including:
FedEx stock dragged by spinoff's first earnings defeat. NASA partnership launches space stock higher. Plus, puts pop on rideshare stock; some of the best and worst NYSE names today.
Lyft Inc (NASDAQ:LYFT) is trading 3.2% higher at $14.54 today, seeing an unexpected flood of attention in the options pits. While the catalyst behind the surge in puts is unclear, 71,000 have been traded already today, 20 times the average intraday rate. Most popular are the January 2027 10- and 15-strike puts. Over the past 12 months LYFT has struggled to maintain positive momentum, shedding 8% during this time frame.
One of the top stocks on the New York Stock Exchange (NYSE) today is ServiceNow Inc (NYSE:NOW) up 7.4% at $96.19 at last check. The shares are bucking another day of the tech rout, bouncing off yesterday's pullback to the supportive $90 level. NOW still sports a grim 37% deficit for 2026, however.
Hewlett Packard Enterprises Co (NYSE:HPE) is one of the worst names on the NYSE this afternoon, last seen down 6.8% at $43.53, though the catalyst for the drop is unclear. HPE is headed for a third-straight daily slide, yesterday breaching the long-term support of its 20-day moving average. Regardless, over the past 12 months, HPE has added 135%.
There are a few things you can count on as a growth investor. Volatility will be perpetual. Investing is a marathon, not a sprint. Oh, and Ark Invest co-founder, CEO, and Chief Investment Officer Cathie Wood will publish her daily ETF trades at the end of every trading day.
Wood was particularly busy on Thursday, adding to several stocks and selling a few others. Some of Ark Invest's more intriguing moves included adding to existing ETF positions in Palantir (PLTR +5.00%), Cerebras Systems (CBRS +8.30%), and Coinbase Global (COIN +2.94%). All three stocks moved slightly lower on Wednesday. Wood tends to build up her positions on down days, so that's not a surprise. Let's take a closer look.
Image source: Getty Images.
1. Palantir For a few years, Palantir stock could do no wrong. Shares of the analytics software provider would go on to more than double in each of the last three years, but it has proven mortal since peaking in early November. The stock has now fallen 48% from that all-time high.
Palantir's business is still growing, accelerating at a feverish pace. The same company that saw its revenue increase 17%, 29%, and 56% in the last three years, respectively, continues to step up its productivity. Palantir's top line rose 70% in the fourth quarter of last year, followed by an 85% jump in the first quarter of this year.
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Its AI-propelled automation solutions have been a hit with the government and other public sectors from the start. These days it's also finding growth opportunities in the private sector, helping give commercial businesses a tech advantage.
Palantir has just posted the two strongest quarters of revenue growth since going public six years ago. The story is even better on the bottom line. Earnings have more than doubled for five consecutive quarters, more than quadrupling in its latest report. The shares are heading in the other direction.
Palantir is getting cheaper as the company is getting better, and that could be a smart contrarian bet. It's now trading for 74 times this year's earnings and 52 times next year's adjusted profit target. This might not seem cheap, but these multiples were well into the triple digits just a few months ago. Palantir is currently growing faster than its current multiples.
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2. Cerebras Systems As one of last month's most celebrated IPOs, Cerebras initially timed its market debut well. The AI architecture play had to raise its offering price to $185 for its mid-May debut, and even then, it still wasn't enough. Cerebras would open at $350 on its first day of trading, but it's been largely downhill since then. The stock has surrendered more than half of its May 14 peak value, and this week it officially became a broken IPO.
With Cerebras seemingly out of favor, like Palantir, it could be a good time to view the stock as a contrarian play. The bull case is impressive. Cerebras is pioneering an AI chip architecture that opts for a much larger GPU with a continuous sheet of silicon instead of wiring hundreds, if not thousands, of chips together.
It posted its first quarter as a public company this week, and it didn't go well. Revenue soared 94%, seemingly a blowout, but it came on thinning margins. It also didn't help that nearly three-quarters of its sales for the quarter went to just two clients in the UAE. The concentration risk is real. An order backlog approaching $25 billion is huge for a company with trailing revenue of $604 million, but $20 billion of that is a multiyear deal with OpenAI.
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3. Coinbase This brings us to Coinbase stock. Like Palantir and Cerebras, shares of the leading online trading platform for digital currencies tumbled at least 5% on Thursday. It has also been cut in half from its 52-week high. Coinbase hit another fresh low on Friday.
This is naturally a very different play than the other two AI-propelled tech stocks. Coinbase is struggling as interest in cryptocurrencies wanes. Bitcoin has fallen 45% over the past year. Revenue has declined 22% and 31% in its last two quarters, and as a scalable business, its profitability is taking a bigger hit. The stock bouncing from today's two-year low is a crypto rally away, but that's easier said than done.
• T-Rex 2X Inverse MSTR Daily Target ETF shares are consolidating. What should traders watch with MSTZ?
Why Short Strategy ETFs SoaredStrategy has become one of the market’s most closely watched stocks because of its aggressive Bitcoin accumulation strategy. The company holds hundreds of thousands of bitcoins on its balance sheet, making its shares highly sensitive to moves in the cryptocurrency.
After months of strong gains fueled by Bitcoin’s rally and continued institutional interest in digital assets, Strategy stock reversed course in June, triggering an outsized move in inverse leveraged ETFs.
MSTZ and SMST each seek to deliver 200% of the inverse (-2x) of Strategy’s daily share price performance. Because they reset daily, the funds are primarily designed for short-term tactical trading rather than long-term investing.
June’s Biggest ETF WinnersTheir gains underscore how quickly sentiment can shift in single-stock leveraged ETFs, where daily compounding can amplify returns during sustained directional moves.
A Growing Corner of the ETF MarketUnlike diversified index ETFs, these products are intended for active traders seeking to capitalize on short-term price swings. Their daily reset mechanism means returns over periods longer than one day can differ significantly from simply doubling the inverse of the stock’s cumulative performance, particularly in volatile markets.
June’s leaderboard illustrates that even in a year defined by AI enthusiasm, the market’s biggest ETF winners can emerge from entirely different themes. Rather than riding the semiconductor boom or mega-cap technology rally, investors who correctly anticipated a reversal in Strategy shares captured some of the strongest gains available in the ETF market.
Photo: Shutterstock
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Montreal Quebec, Canadian National (CNI - Free Report) is in the Transportation sector, and so far this year, shares have seen a price change of 21.76%. The railroad is paying out a dividend of $0.67 per share at the moment, with a dividend yield of 2.22% compared to the Transportation - Rail industry's yield of 0.78% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $2.67 is up 5% from last year. Over the last 5 years, Canadian National has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.31%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CN's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CNI for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.75 per share, with earnings expected to increase 5.31% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CNI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Key Takeaways BF.B is expanding its premium portfolio and innovation to strengthen pricing power and long-term growth.Brown-Forman is benefiting from strong emerging-market demand, led by Jack Daniel's brands and New Mix.BF.B expects emerging markets and Travel Retail to remain key growth drivers in fiscal 2027. Brown-Forman Corporation (BF.B - Free Report) leverages its brand strength and premiumization strategy as important drivers for long-term growth. By focusing on well-established, globally recognized labels and expanding premium expressions, the company is reinforcing pricing power, supporting margins and prioritizing value-led growth.
The company is focused on leveraging its iconic brands, expanding its premium portfolio, driving innovation and accelerating global growth. Brown-Forman’s premiumization strategy emphasizes strengthening its portfolio through high-quality, premium brands to capitalize on consumers’ growing preference for authentic spirits. The company is also expanding its premium-plus and super-premium offerings, particularly in emerging markets where consumer demand has remained relatively resilient.
Brown-Forman is strengthening its premium positioning through route-to-consumer initiatives as well. A key priority is portfolio premiumization and innovation, with continued investment in premium-plus brands and new product launches like flavored whiskey variants, which are generating strong consumer engagement and helping drive incremental growth. The company is also advancing its Ready-to-Drink portfolio, expanding offerings such as New Mix and testing launches in new markets.
Brown-Forman has been seeing momentum across its Emerging markets for a while now. In fiscal 2026, net sales in Emerging markets increased 14% on a reported basis and 12% on an organic basis. The increase was driven by growth across the Jack Daniel’s family of brands, led by Türkiye, the United Arab Emirates and Brazil. It was also supported by robust double-digit growth of New Mix in Mexico, an estimated net increase in distributor inventories and favorable foreign exchange.
Brown-Forman’s emerging markets continue to serve as an important growth driver, supported by resilient demand trends. The company is expanding the distribution of super-premium whiskey brands in markets such as Brazil, where it sees long-term opportunity. Overall, emerging markets remain a key pillar of growth, backed by demand resilience, distribution gains, premiumization and targeted investment. In fiscal 2027, management expects continued growth across the emerging international markets and the Travel Retail channel.
BF.B’s Price Performance, Valuation and EstimatesBrown-Forman shares have gained 5.1% in the past six months compared with the industry’s 17.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BF.B trades at a forward price-to-earnings ratio of 16.14X compared with the industry’s average of 15.71X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BF.B’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 11.8% and 1.4%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has increased in the past 30 days.
Image Source: Zacks Investment Research
Brown-Forman currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space The Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
, /PRNewswire/ -- The Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID).
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN LUCID GROUP, INC. (LCID), CONTACT THE LAW OFFICES OF HOWARD G. SMITH BEFORE JULY 28, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Is The Lawsuit About?
The complaint filed alleges that, between February 25, 2026 and April 13, 2026, Defendants failed to disclose to investors that: (1) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (2) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (3) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact:
Howard G. Smith, Esq.,
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Call us at: (215) 638-4847
Email us at: [email protected],
Visit our website at: www.howardsmithlaw.com.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against ZoomInfo Technologies Inc. (NASDAQ: GTM) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired ZoomInfo securities between November 3, 2025 and May 11, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/GTM.
ZoomInfo Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose:
The true state of ZoomInfo's slowing seat-based demand, weakening upsell opportunities, and deteriorating fundamentals across its downmarket and upmarket segments.
That Defendants' optimistic growth narrative, including representations that full-year 2026 revenue guidance of $1.247–$1.267 billion was achievable and that Copilot penetration was on or ahead of schedule. That customers were migrating toward consumption-based models and developing internal AI-driven go-to-market solutions, trends Defendants minimized despite their material adverse impact on ZoomInfo's business.
On May 11, 2026, ZoomInfo reported its first quarter 2026 results and slashed its full-year revenue guidance by approximately $62 million
Following this news, the price of ZoomInfo's common stock declined dramatically, from a closing market price of $6.04 per share on May 11, 2026, ZoomInfo's stock price fell to $4.06 per share on May 12, 2026, a decline of about 33%.
What's Next for ZoomInfo Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/GTM. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in ZoomInfo you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to ZoomInfo Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for ZoomInfo Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In ZoomInfo To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in ZoomInfo between November 3, 2025 and May 11, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against ZoomInfo Technologies, Inc. (“ZoomInfo” or the “Company”) (NASDAQ: GTM) and reminds investors of the August 24, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that the true state of ZoomInfo's slowing growth its legacy seat-based subscription platforms and weakening customer retention in its downmarket segment. Further, the Company minimized concerns that customers were moving towards consumption-based usage models and developing internal AI-driven go-to-market solutions.
On May 11, 2026, after the market closed, ZoomInfo announced its first quarter 2026 financial results, unveiling a sharp decline in growth outlook and accordingly lowered its 2026 full year financial guidance, and announced it was realigning its downmarket business, laying off 20% of its workforce, and expecting to incur approximately $45-60 million in restructuring costs. On this news, ZoomInfo's stock price fell $1.98, or approximately 33%, to close at $4.06 per share on May 12, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding ZoomInfo’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the ZoomInfo class action, go to www.faruqilaw.com/GTM or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the ZoomInfo Securities Class Action Lawsuit:
What is the ZoomInfo securities fraud lawsuit about?
The lawsuit alleges that ZoomInfo Technologies, Inc. (NASDAQ: GTM) and certain of its officers and directors violated federal securities laws by making materially false and misleading statements to investors during the class period. Specifically, the complaint alleges that defendants issued overwhelmingly positive statements while allegedly concealing the true extent of slowing growth in ZoomInfo's legacy seat-based subscription platforms and weakening customer retention in its downmarket segment. The complaint further alleges that defendants minimized concerns that customers were shifting toward consumption-based usage models and developing internal AI-driven go-to-market solutions, which allegedly masked material adverse trends affecting the Company's business. On May 11, 2026, after markets closed, ZoomInfo allegedly disclosed the severity of these conditions when it announced sharply lowered full-year 2026 guidance, a realignment of its downmarket business, a workforce reduction of approximately 20%, and anticipated restructuring costs of approximately $45–60 million — news that allegedly caused the Company's stock to decline approximately 33% the following trading day.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired ZoomInfo Technologies, Inc. (NASDAQ: GTM) securities during the class period — between November 3, 2025 and May 11, 2026, inclusive — may be eligible to participate in this lawsuit. Eligible investors are not limited to those who seek appointment as lead plaintiff; any class member who suffered losses during the class period may potentially share in any recovery obtained on behalf of the class. Investors are encouraged to review their trading records to determine whether their purchases fall within the applicable class period dates. Participation in the litigation does not require that an investor take an active role in the case or incur out-of-pocket legal expenses to be considered a potential class member.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including selecting and overseeing class counsel and making key strategic decisions in the case. Under the Private Securities Litigation Reform Act, any investor who purchased ZoomInfo Technologies securities during the class period and suffered a loss may move the court for appointment as lead plaintiff. The deadline to file a motion seeking lead plaintiff appointment is August 24, 2026. Importantly, investors are not required to serve as lead plaintiff in order to be eligible to share in any recovery that may result from the litigation; the vast majority of class members participate without taking on that representative role.
What should investors do if they purchased ZoomInfo stock during the Class Period?
Investors who purchased ZoomInfo Technologies, Inc. (NASDAQ: GTM) securities between November 3, 2025 and May 11, 2026 should promptly review their brokerage and account records to confirm the dates and prices of any relevant transactions. Investors are strongly encouraged to preserve all documentation related to their ZoomInfo securities purchases, including trade confirmations, account statements, and any communications concerning those investments. Given that the lead plaintiff motion deadline is August 24, 2026, investors who wish to explore their legal options — including the possibility of seeking appointment as lead plaintiff — should act in a timely manner. Investors may wish to consult with Faruqi & Faruqi, LLP or other qualified securities counsel to evaluate their rights and potential claims prior to that deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased ZoomInfo securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f60c456-51b6-4096-a862-d5d3beda6cc5
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a shareholder has filed a securities class action lawsuit on behalf of investors (the “Class”) who purchased or acquired the securities of ZoomInfo Technologies Inc. (“ZoomInfo” or the “Company”) (NASDAQ: GTM) between November 3, 2025 and May 11, 2026, inclusive.
What To Do Next:
Investors are encouraged to act promptly and submit a form at ZoomInfo Technologies Inc. Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected].
If you wish to serve as lead plaintiff for the Class, you must file papers by August 24, 2026. A lead plaintiff is a representative party acting on other class members’ behalf in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About The Lawsuit:
The lawsuit alleges that defendants made materially false and misleading statements and omissions regarding the Company’s business operations, growth prospects, and financial stability. As a result of these alleged misrepresentations, ZoomInfo securities traded at artificially inflated prices during the Class Period. When the truth was disclosed, investors allegedly suffered significant losses.
About Bernstein Liebhard:
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
AI’s most explosive hardware trades are hitting a wall. Why optical and memory stocks are falling.
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HomeIndustriesComputers/ElectronicsTech StocksTech StocksAI spending has been a key engine for the market, and some investors now worry that it could stall out, one expert saysJune 26, 2026, 1:53 p.m. ET
Optical stocks have emerged as a bountiful play on the artificial-intelligence trade, but Friday’s selloff is putting a damper on that momentum.
Shares of Lumentum LITE and Coherent COHR were down about 5% on Friday afternoon — though both stocks have roughly doubled in price so far this year on enthusiasm for optical interconnects that are touted as faster, more efficient solutions in AI data centers than traditional copper.
About the Author
William Gavin is a tech reporter for MarketWatch. He is based in New York.
Britney Nguyen is a tech reporter covering Nvidia, chips and AI. You can find her on X at @britneycath.
Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.
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, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Zoetis Inc. ("Zoetis" or the "Company") (NYSE: ZTS).
IF YOU SUFFERED A LOSS ON YOUR ZOETIS INVESTMENTS, CLICK HERE BEFORE JULY 27, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between January 14, 2025 and May 6, 2026, Defendants failed to disclose to investors that: (1) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
Key Takeaways Elevance Health's Carelon contributes 36.3% of operating revenues, expanding beyond health insurance.ELV said CareBridge cut readmissions 20% and saved over 10% in post-acute care costs.Carelon's Q1 2026 operating gain fell 3.8%, but investments support long-term growth prospects. Carelon is emerging as a key pillar of Elevance Health, Inc.'s (ELV - Free Report) long-term growth strategy as the company expands beyond traditional health insurance. Through its integrated care delivery, pharmacy and care management businesses, Carelon is helping improve clinical outcomes while creating new revenue opportunities. The segment now contributes around 36.3% of Elevance Health's total operating revenues, underscoring its growing role in the company's diversified business model.
The business is also becoming a meaningful driver of operational efficiency. Carelon combines AI, predictive analytics and coordinated care programs to identify high-risk patients earlier and intervene before medical conditions worsen. Its integrated CareBridge and care-at-home platform has reduced hospital readmissions by 20% while generating over 10% savings in post-acute care costs. These capabilities also support higher medication adherence, fewer emergency room visits and improved care coordination, reinforcing Carelon's competitive position.
However, Carelon's first-quarter 2026 operating gain declined 3.8% year over year due to lower affiliated health plan membership and continued investments in expanding risk-based programs. Even so, these investments are laying the foundation for future growth. Specialty pharmacy, CareBridge and integrated medical-pharmacy solutions continue to gain traction, supporting Carelon's long-term growth prospects as employers seek more cost-effective healthcare solutions.
Carelon's growing role complements ELV's broader financial momentum. Operating revenues rose 1.5% year over year in the first quarter of 2026, and the company raised its 2026 adjusted EPS guidance to at least $26.75. As Carelon scales its clinical and pharmacy capabilities, it is well positioned to become a key contributor to Elevance Health's earnings growth and competitive advantage.
How Are Competitors Faring?
Some of ELV’s major competitors in the value-based care space are UnitedHealth Group Incorporated (UNH - Free Report) and Humana Inc. (HUM - Free Report) .
UnitedHealth, through its Optum segment, is scaling AI-driven care management, pharmacy and provider solutions to improve care coordination and operational efficiency. Its integrated care model supports value-based reimbursement while diversifying revenues beyond its insurance business. UnitedHealth’s total revenues rose 2% year over year in the first quarter of 2026.
Humana is strengthening its integrated care strategy through CenterWell, which combines primary care, home health and pharmacy services. The company continues expanding value-based care and home-based services, aiming to improve patient outcomes while controlling medical costs. Humana’s total revenues rose 23.5% year over year in the first quarter of 2026.
Elevance Health’s Price Performance, Valuation & EstimatesShares of ELV have risen 12.1% in the year-to-date period against the industry’s fall of 2.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance Health trades at a forward price-to-earnings ratio of 13.85, below the industry average of 15.70. ELV carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance Health’s 2026 earnings is pegged at $26.92 per share, implying an 11.1% drop from the year-ago period.
Image Source: Zacks Investment Research
ELV stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The memory market is in the grip of what may be its worst supply shortage ever. Contract prices for conventional DRAM soared as much as 95% in the first quarter of 2026, and NAND flash prices have jumped sharply quarter after quarter, all because the artificial intelligence (AI) build-out is devouring every chip the industry can make.
When investors look for a way to play this tailwind, they usually reach for Micron Technology (MU 5.48%). But Micron is far from the only winner.
Three other storage companies -- SanDisk (SNDK 9.46%), Western Digital (WDC 12.72%), and Seagate Technology (STX 10.89%) -- are cashing in too, and their latest results show just how much. But which one has the cleanest exposure to the shortage, and the longest runway, as prices keep climbing?
Image source: Getty Images.
SanDisk: closest to the shortage Of the three, SanDisk has the most direct exposure to the squeeze. It makes NAND flash, the chips inside the solid-state drives whose prices are spiking -- and the numbers it posted in its latest quarter are staggering.
SanDisk's fiscal third-quarter revenue (the period ended April 3, 2026) reached $5.95 billion, up 97% from the prior quarter and 251% from a year earlier. The data center business led the way, with revenue tripling -- up 233% sequentially to $1.47 billion, about a quarter of the company's total. Higher prices fell almost straight to the bottom line, pushing non-GAAP (adjusted) gross margin to about 78%, and SanDisk threw off nearly $3 billion in free cash flow during the quarter.
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What makes the runway unusually durable for a NAND maker is how SanDisk is now selling, locking customers into multiyear deals.
"We are also advancing to a new business model built on multi-year customer engagements backed by firm financial commitments," said SanDisk CEO David Goeckeler in the company's fiscal third-quarter earnings release.
At about 75 times earnings, the stock looks expensive. But trailing earnings barely capture the surge, with management guiding for $30 to $33 in adjusted earnings per share in the fiscal fourth quarter alone -- a huge quarterly figure for a stock that is trading at $2,200 as of this writing.
The catch is that these are cyclical-peak profits, and the stock has already soared more than 800% in 2026 as of this writing.
Western Digital: riding the spillover Western Digital doesn't make memory at all -- it makes hard disk drives (HDDs). But the same shortage is working in its favor. With solid-state drives now prohibitively expensive, cloud and AI customers are buying every high-capacity hard drive they can find, and Western Digital has effectively sold out its 2026 capacity.
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The result was a fiscal third quarter in which revenue rose 45% year over year to $3.34 billion, with adjusted gross margin reaching about 51%.
"Virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs," said Western Digital CEO Irving Tan in the company's fiscal third-quarter earnings release.
The shares are up more than 290% in 2026 as of this writing.
Seagate: record margins and a dividend Seagate's new Mozaic platform, built on a technology that packs more data onto each disk, is lifting margins just as demand outstrips what the industry can supply.
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Seagate's fiscal third-quarter revenue rose 44% year over year (and 10% from the prior quarter) to $3.11 billion, with adjusted gross margin of 47% -- a record for the company. Seagate also produced $953 million in free cash flow, which it used to pay down debt and keep funding its dividend.
The stock trades at nearly 100 times earnings, but that figure reflects profits still climbing out of an industry downturn rather than the earnings power implied by the current boom. Like its peers, Seagate has surged, more than tripling in 2026 as of this writing.
Which has the best exposure? All three are cashing in, and all three now have years of demand locked up. But they aren't equally exposed to the shortage driving all of it.
Western Digital and Seagate are riding a knock-on effect: because memory turned scarce and expensive, buyers flooded back to hard drives. It's a powerful and surprisingly durable tailwind -- but an indirect one. SanDisk, by contrast, makes the very chips whose prices are climbing, so it arguably captures the shortage most directly, and its shift to multiyear contracts gives it unusual visibility for a cyclical business.
I believe this makes SanDisk the purest way to play the memory shortage among the three. Just don't lose sight of the risk that comes with it: SanDisk's profits, and its stock, are riding a cycle that won't keep climbing forever.
Rocket Lab (RKLB) was up 0.77% in premarket after NASA selected the company to provide three dedicated Electron launches for two science missions, PolSIR and TS
MAHIA, New Zealand, June 26, 2026 (GLOBE NEWSWIRE) -- Rocket Lab Corporation (Nasdaq: RKLB), a global leader in launch services and space systems, today announced it has successfully placed another satellite into orbit for Synspective, achieving a significant milestone as the tenth dedicated launch for the Japan-based Earth observation company with 100% mission success.
This latest launch - Rocket Lab’s 12th of the year - drives home the strength of one of the space industry's most enduring commercial partnerships while demonstrating Electron's unmatched reliability for dedicated small satellite missions.
The “Ten Owl Of Ten” mission launched on Electron from Launch Complex 1 in New Zealand at 5:43 a.m. NZST on June 27, 2026 to a 552km low Earth orbit. With this launch, Synspective's StriX constellation - which utilizes synthetic aperture radar (SAR) technology to capture detailed Earth imagery - now includes ten operational satellites, all of which have been deployed to space by Electron. Reflecting Rocket Lab’s customer-centric approach and commercial flexibility, a specially-configured Electron fairing was created for this mission to accommodate the StriX satellite’s specific dimensions: a key feature of Rocket Lab and Synspective’s partnership that has helped to ensure a 100% mission success rate across all StriX deployments.
This latest mission brings Rocket Lab’s overall launch tally to 91 missions, continuing to make Electron the world’s most frequently launched small-lift orbital rocket. Another 17 missions are booked for Synspective to complete the deployment of their constellation by the end of the decade. The next of those 17 upcoming missions is expected to launch in early Q3 this year.
Launch images and video: F91 | Ten Owl Of Ten | Flickr
About Rocket Lab
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the U.S. government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense and national security missions including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB). Learn more at www.rocketlabcorp.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.rocketlabcorp.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
Key Takeaways MSI enhanced its Assist AI platform to improve 911 workflows and emergency response efficiency.MSI's Interpreter Agent detects the caller's language and enables real-time translation and transcription.MSI added live 911 audio, AI summaries and shared data to boost field situational awareness. Motorola Solutions, Inc. (MSI - Free Report) has enhanced its Assist AI agent platform with new features that enable faster response times and better situational awareness for emergency teams. The initiative strengthens the company’s AI capabilities within the 911 workflow, improving the efficiency of instant response operations.
Motorola introduced the Interpreter Agent to help overcome language barriers during 911 calls. The tool can detect a caller’s language in seconds and provide real-time two-way translation and live transcription. This helps dispatchers communicate faster and more clearly, reducing delays and improving communication during emergencies.
The company also added live 911 audio streaming, allowing first responders to access call audio directly in the field. Along with live conversations, the system provides AI-generated insights, including highlighted keywords, concise summaries and full call transcriptions through its dispatch software and mobile applications. This gives responders better real-time context and helps them take timely, more informed decisions before arriving at the scene.
In addition, real-time data is shared with operation centers, helping agencies coordinate resources more effectively and deploy specialized equipment, such as drones carrying medical supplies like EpiPens or automated external defibrillators, more quickly. With these capabilities, Motorola reduces information gaps across public safety workflows and supports better coordination during critical incidents.
How Are Competitors Performing in the Emergency Response Field?Motorola faces stiff competition from Nokia Corporation (NOK - Free Report) and Comtech Telecommunications Corp. (CMTL - Free Report) . Nokia is expanding its critical communication solutions to support faster emergency response. The company is using 5G and AI to improve communication and help first responders get real-time information. Nokia is strengthening its network solutions to improve response during emergencies and disasters.
Comtech is improving its communication technologies for quick mission-critical response. The company is helping emergency teams stay connected and share important information in real time. Comtech’s network solutions also support better coordination during urgent situations.
MSI’s Price Performance, Valuation & EstimatesMotorola shares have lost 5.2% over the past year against the industry’s growth of 40.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Motorola trades at a forward price-to-sales ratio of 5, below the industry tally of 5.02.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 1% to $16.96 over the past 60 days, while the same for 2027 have increased 0.8% to $18.42.
Image Source: Zacks Investment Research
Motorola currently carries 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 Dick's Sporting Goods (DKS - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dick's 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.
DICK'S Sporting Q1 Earnings Miss Estimates, Comparable Sales Up 6%DICK'S Sporting posted first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate and increased year over year. However, earnings missed the consensus mark and declined from the prior-year quarter.
The company delivered a strong fiscal first-quarter fiscal 2026 performance, with net sales rising sharply year over year and beating the Zacks Consensus Estimate, supported by continued momentum in the core DICK’S business and contributions from the Foot Locker acquisition. However, profitability was softer, as non-GAAP earnings declined from the prior-year quarter and missed estimates despite healthy comparable sales growth across the business.
The company reported adjusted earnings of $2.90 per share in the fiscal first quarter, lagging the Zacks Consensus Estimate of $2.91 and declining from $3.37 recorded in the year-ago quarter.
DKS’ Quarterly Performance: Key Metrics & InsightsNet sales of $5.17 billion increased 62.7% year over year and surpassed the consensus estimate of $5.06 billion. The upside was driven by the addition of the Foot Locker business, along with continued strength in the core DICK’S business. Consolidated comps for DICK'S Business grew 6% year over year, on growth in average ticket and transactions and broad-based momentum across footwear, apparel and hardlines.
Results reflected the inclusion of the Foot Locker business and the dilutive impact of shares issued for the acquisition, while core demand stayed healthy. Pro forma consolidated comparable sales increased 4.1% in the quarter.
DKS Records Higher Margins & ExpensesGross profit rose 44.5% year over year to $1.68 billion but the gross margin contracted 411 bps.
The SG&A expense rate of 22.5% fell 220 bps year over year. SG&A expenses, in dollar terms, grew almost 48.2% year over year to $1.16 billion.
DKS’ Financial Health SnapshotDICK’S Sporting ended the fiscal first quarter with cash and cash equivalents of $998.3 million. Inventories totaled $5.42 billion, up 52%, reflecting the addition of Foot Locker inventory, while long-term debt and financing lease obligations stood at $1.91 billion.
This Zacks Rank #3 (Hold) company repurchased 0.7 million shares under its share repurchase program for $141.2 million in the first quarter of fiscal 2026. It had $3 billion remaining under its authorization as of May 2, 2026. DKS also paid $5 million in fiscal 2025 for shares repurchased in the prior fiscal year.
On May 26, 2026, the company’s board of directors announced a quarterly cash dividend of $1.25 per share for holders of its common and Class B common stock. The dividend will be distributed on June 26 to its shareholders recorded as of the close of business on June 12.
What to Expect From DKS in FY26?For full-year fiscal 2026, the company expects net sales of $22.1-$22.4 billion. In its full-year fiscal 2026 segment outlook, the company expects net sales of $14.5-$14.7 billion for the DICK’S business and $7.6-$7.7 billion for the Foot Locker business. Operating income guidance was updated to $1.69-$1.81 billion on a GAAP basis and $1.71-$1.83 billion on a non-GAAP basis, while GAAP earnings are projected at $13.27-$14.27 per diluted share; non-GAAP earnings are still expected at $13.50-$14.50. The company expects planned gross capital spending of about $1.6 billion for fiscal 2026.
At the segment level, DKS raised the low end of its comparable sales outlook to 2.5%-4.0%, while the Foot Locker business raised the low end of its pro forma comparable sales view to 1.5%-3.0%. Management also outlined segment profit expectations of $1.60-$1.68 billion for the DICK’S business and $110-$150 million for Foot Locker.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, Dick's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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, Dick's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Coursera (COUR - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Coursera is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Coursera, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for CourseraThis online learning platform is expected to earn $0.55 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Coursera. Over the past three months, the Zacks Consensus Estimate for the company has increased 106.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Coursera to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Coursera (COUR - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this online learning platform is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Coursera, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $0.10 per share, which is a change of -16.7% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Coursera has increased 25% because three estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $0.55 per share, representing a year-over-year change of +41.0%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Coursera. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 108.89%.
Favorable Zacks RankThanks to promising estimate revisions, Coursera currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineCoursera shares have added 8.5% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Investors looking for stocks in the Waste Removal Services sector might want to consider either Veolia Environnement SA (VEOEY) or Waste Management (WM). But which of these two companies is the best option for those looking for undervalued stocks?
Key Takeaways Western Union partnered with Total Wireless to add one monthly fee-free money transfer.WU embeds remittance services into wireless plans to boost digital engagement and recurring usage.Western Union will promote Total Wireless across its digital channels, expanding reach to shared customers. The Western Union Company (WU - Free Report) has partnered with Total Wireless to introduce a first-of-its-kind benefit in the U.S. telecom industry. Customers on Total Wireless' MAX 5G BYO, MAX 5G and ALL ACCESS plans can now make one fee-free money transfer every month through Western Union. The service enables transfers to more than 200 countries and territories, combining wireless connectivity with cross-border financial services in a single subscription.
The new feature is aimed at customers who regularly send money overseas. Eligible subscribers can redeem one complimentary transfer through the Western Union website or mobile app. Recipients can receive funds through more than 360,000 payout locations or via bank accounts, digital wallets and cards. The benefit complements unlimited 5G data, hotspot access and international calling already included in the plans.
The partnership also extends beyond customer benefits. WU will promote Total Wireless through its app, email campaigns, social channels and in-store digital displays — giving both companies broader access to overlapping customer segments. The collaboration reflects a shared focus on serving communities that rely on affordable communication and dependable cross-border money transfers to support family members abroad.
This partnership is strategically meaningful for Western Union as it embeds the company's services into a recurring consumer subscription rather than relying solely on transaction-driven customer acquisition. Integrating money transfers into everyday products could encourage more consistent usage, strengthen customer loyalty and create new distribution channels through non-financial partners. As digital remittance competition intensifies, expanding through ecosystem partnerships may become an increasingly valuable growth driver.
Western Union continues to diversify beyond its traditional agent-based business by strengthening digital capabilities and pursuing strategic alliances. Partnerships like this could help Western Union increase customer engagement and drive higher digital transaction volumes. If extended to other subscription-based businesses, this strategy could create new revenue opportunities and strengthen its long-term competitive position in the global remittance market.
WU’s Price PerformanceOver the past year, WU shares have declined 13.3% compared with the industry’s fall of 22.2%.
Image Source: Zacks Investment Research
WU’s Zacks Rank & Key PicksWU currently carries a Zacks Rank #4 (Sell).
Some top-ranked stocks in the business services space are Sezzle Inc. (SEZL - Free Report) , Dave Inc. (DAVE - Free Report) and Green Dot Corporation (GDOT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed four upward revisions in the past 60 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.
The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $16.61 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $713.7 million, implying 28.8% year-over-year growth.
The Zacks Consensus Estimate for Green Dot’s current-year earnings is pinned at $1.68 per share and has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Green Dot beat earnings estimates in three of the trailing four quarters. The consensus estimate for current-year revenues is pegged at $2.2 billion, implying 8.3% year-over-year growth.
A month has gone by since the last earnings report for Heico Corporation (HEI - Free Report) . Shares have lost about 0.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Heico due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Heico Corporation before we dive into how investors and analysts have reacted as of late.
HEICO Q2 Earnings Beat Estimates, Sales Increase Year Over Year
HEICO Corporation posted second-quarter fiscal 2026 earnings of $1.66 per share, which beat the Zacks Consensus Estimate of $1.33 by 24.6%. The bottom line also improved 48.2% from the year-ago quarter’s $1.12.
HEI’s Total SalesQuarterly net sales came in at $1.38 billion, up 25.3% year over year and 10.7% above the consensus mark of $1.24 billion. Results were driven by consolidated organic net sales growth of 18% and contributions from acquisitions.
HEICO’s Operational UpdateHEICO’s cost of sales increased 22.1% year over year to $806.2 million.
The company’s selling, general and administrative (SG&A) expenses rose 15.5% to $219.1 million.
Interest expense climbed 3.9% to $34.2 million from $32.9 million in the year-ago quarter.
HEI Posts Record Profit as Margins ExpandOperating income rose 41.2% year over year to $350.4 million, and consolidated operating margin expanded to 25.5% from 22.6% in the prior-year period.
HEI delivered record quarterly net income attributable of $233.8 million, up 49% year over year.
HEI’s Segmental Performance in Q2Flight Support Group: Net sales from this segment rose 21% year over year to $929.4 million. Growth was led by robust organic expansion of 19%, supported by improved demand across the group’s product lines as well as the impact of fiscal 2026 acquisitions.
The segment’s operating income increased 31% year over year to $243.1 million, and operating margin improved to 26.2% from 24.1%, helped by a more favorable product mix and efficiencies in SG&A expenses.
Electronic Technologies Group: The segment’s net sales climbed 34% to $459.5 million. The increase reflected organic growth of 17% plus contributions from acquisitions completed in fiscal 2025 and fiscal 2026, with demand improving across several end markets.
The segment’s operating income rose 56% year over year to $121.8 million, and operating margin expanded to 26.5% from 22.8%, driven by net sales growth, improved gross profit margin and better SG&A leverage.
HEI’s Financial DetailsAs of April 30, 2026, HEI’s cash and cash equivalents totaled $210.3 million compared with $217.8 million as of Oct. 31, 2025.
Cash flow provided by operating activities was $470.6 million during the first six months of fiscal 2026, reflecting a rise of 15.4% from the prior-year period’s level.
HEICO reported a long-term debt (net of current maturities) of $2.58 billion as of April 30, 2026, up from $2.16 billion as of Oct. 31, 2025.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresAt this time, Heico has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Heico has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
