Track market-moving stories before they get noisy

, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against FS KKR Capital Corp. ("FSK KRR" or the "Company") (NYSE: FSK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

The class action concerns whether FSK KRR and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

You have July 3, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired FSK KRR securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.

[Click here for information about joining the class action]

On August 6, 2025, the Company reported second quarter 2025 earnings, revealing that the Company's net asset value had declined to $21.93 per share, down $1.44, or 6.2% from the prior quarter, and the total fair value of investments fell $474 million, to $13,648 million. Moreover, the Company report earnings (loss) per share of negative $0.75, down $1.18 or 274.4% from the prior quarter, and a total net realized and unrealized loss per share of negative $1.36, down $1.12 or 466.7% from the prior quarter. Further, investments on non-accrual status rose to 3.0% and 5.3% of the total investment portfolio at fair value and amortized cost, respectively, compared to 2.1% and 3.5% in the prior quarter.

On this news, FS KKR's stock price fell $1.66 per share, or 8.2%, to close at $18.58 per share on August 7, 2025.

Then, on February 25, 2026, the Company announced fourth quarter and full year 2025 earnings, revealing net asset value had continued to decline to $20.89, down $1.10 or 5% from prior quarter, and the total fair value of investments fell another $406 million, to $13,009 million. Moreover, the Company reported earnings (loss) per share of negative $0.41, down $1.17 or 153.9% from the prior quarter, and a total net realized and unrealized loss per share of negative $0.89, down $1.08 or 568.421% from the prior quarter. Further, investments on non-accrual status again rose to 3.4% and 5.5% of the total investment portfolio at fair value and amortized cost, respectively, compared to 2.9% and 5.0% in the prior quarter. The Company also "acknowledge[d] specific challenges" with additional companies and cut its dividend to $0.48 per share (previously $0.70).

On this news, FS KKR's stock price fell $2.03 per share, or 15.24%, to close at $11.29 per share on February 26, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980 

SOURCE Pomerantz LLP

Investors in Sprinklr, Inc. (CXM - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the July 17, 2026 $2.50 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Sprinklr shares, but what is the fundamental picture for the company? Currently, Sprinklr is a Zacks Rank #2 (Buy) in the Technology Services industry that ranks in the Bottom 34% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 13 cents per share to 11 cents in that period.

Given the way analysts feel about Sprinklr right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Key Takeaways MP Materials' first-quarter 2026 revenues rose 49% as NdPr production and sales reached records.MP reported no rare earth oxides sales after discontinuing such sales in July 2025.The Magnetics segment generated $21.1 million in revenues, driven by precursor sales to GM. MP Materials (MP - Free Report) began 2026 on a solid note, reporting first-quarter 2026 revenues of $90.6 million, up 49% from $60.8 million in the prior-year quarter. The company also benefited from a $42.3 million contribution under its price protection agreement (PPA) with the U.S. Department of War (DoW), taking consolidated revenues to $132.9 million for the quarter.

The robust performance was driven by the continued expansion of higher-value neodymium-praseodymium (NdPr) products. MP achieved record NdPr production of 917 metric tons, up 63% year over year, while NdPr sales surged 117% to another record 1,006 metric tons. The company did not generate rare earth oxides (REO) sales during the quarter, reflecting its decision to cease sales into the Chinese market in July 2025. 

The company now processes the concentrate into separate rare earth products or stockpiles it for future use. Despite the absence of concentrate sales, the Materials segment generated revenues of $72.2 million in the first quarter, up 30% year over year, driven by stronger NdPr sales volumes and pricing,

The company’s Magnetics segment has also emerged as an important revenue contributor. It generated $21.1 million of revenues in the first quarter, supported by the sale of magnetic precursor products under the long-term supply agreement with General Motors (GM - Free Report) . The segment had made its first delivery to General Motors in the first quarter of 2025, which led to $5.2 million in revenues. 

As of March 31, 2026, the company had sold $87.9 million of magnetic precursor products to General Motors and expects to complete the remaining $62.1 million commitment within the next year. Following the fulfillment of this agreement, the company anticipates transitioning to sales of finished magnets to General Motors, which are expected to begin in 2026.

Looking ahead, several initiatives could support future revenue growth. The company recently stated that it advanced key growth initiatives, such as expanding operations at Independence and breaking ground on the 10X magnetics facility, its second domestic rare earth magnet manufacturing facility. Meanwhile, scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass.

Among industry peers, Lynas Rare Earths (LYSDY - Free Report) also reported impressive growth, with third-quarter fiscal 2026 (ended March 31, 2026) revenues jumping 115% year over year to AUD 265 million ($183 million), the highest quarterly figure since the fourth quarter of fiscal 2022. This was driven by an increase in the NdPr price and sales volume and higher sales volume of total REO products. 

Lynas Rare Earth reported NdPr production of 1,996 tons, representing a 32% year-over-year increase. The company also produced eight tons of dysprosium and terbium during the quarter. Total REO production for the quarter reached 3,233 tons, up 69% from the prior-year period. Lynas Rare Earth achieved its first production of samarium oxide in March 2026, ahead of its previously announced April 2026 target. 

MP’s Price Performance, Valuation & EstimatesMP Materials’ shares have gained 57% in a year compared with the industry’s 40.1% growth.

Image Source: Zacks Investment Research

MP is trading at a forward 12-month price/sales multiple of 16.37X, a significant premium to the industry’s 1.49X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 16 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.06 per share, indicating a 562.5% year-over-year improvement.

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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

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

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Teradyne (TER - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Teradyne currently has an average brokerage recommendation (ABR) of 1.53, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 17 brokerage firms. An ABR of 1.53 approximates between Strong Buy and Buy.

Of the 17 recommendations that derive the current ABR, 12 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 70.6% and 5.9% of all recommendations.

Brokerage Recommendation Trends for TER

Check price target & stock forecast for Teradyne here>>>

While the ABR calls for buying Teradyne, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is TER Worth Investing In?Looking at the earnings estimate revisions for Teradyne, the Zacks Consensus Estimate for the current year has increased 2% over the past month to $7.23.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Teradyne. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Teradyne may serve as a useful guide for investors.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Landstar System (LSTR - Free Report) Landstar System is an asset-light provider of integrated transportation management solutions, incorporated in 1991. Based in Jacksonville, FL, the company provides services throughout the United States, Canada, Mexico as well as other countries in North America. The company delivers safe, specialized transportation services to a broad range of customers by connecting them with over 101,000 third-party capacity owner partners. Its business model is such that a large part of its operating costs is directly proportional to revenues.

LSTR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Transportation stock. LSTR has a Momentum Style Score of B, and shares are up 3.3% over the past four weeks.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $5.57 per share. LSTR boasts an average earnings surprise of +2.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LSTR should be on investors' short list.

The Zacks Auto Retail and Wholesale industry enters the second half of 2026 navigating a complex landscape. New-vehicle demand has demonstrated notable resilience, supported by stable monthly sales volumes and broadening credit access, even as macro headwinds persist. However, sustained inflationary pressures, elevated vehicle prices and high borrowing costs continue to erode consumer purchasing power, disproportionately impacting mainstream and entry-level buyers. With full-year sales forecast at 15.8 million units— below 2025 levels— the industry faces pressure on volumes and margins.

Despite this backdrop, a few retailers like Lithia Motors (LAD - Free Report) and Sonic Automotive (SAH - Free Report) are better positioned to weather the cycle, backed by strategic acquisitions, ongoing digitization efforts and shareholder-friendly capital allocation.

About the Industry The auto retail and wholesale industry plays a key role in how cars, trucks and auto parts reach consumers. Companies in this space operate through dealership networks and retail chains, selling both new and used vehicles, offering repair and maintenance services, and facilitating customer financing. As a consumer-driven industry, its performance is closely tied to broader economic conditions — disposable income levels, interest rates, and consumer confidence all directly influence vehicle purchase decisions. The industry has also undergone meaningful structural change in recent years, with dealers increasingly investing in digital tools and e-commerce capabilities, a shift that continues to reshape how vehicles are bought and sold.

Key Investing Themes Resilient Demand and Stabilizing Sales Pace: Despite a volatile start to 2026 driven by weather disruptions, policy shifts and the Middle East energy shock, new-vehicle demand has proven surprisingly durable. Per Cox Automotive, the SAAR has held near 16.1 million for four consecutive months, including June, reflecting the underlying strength of consumer commitment to vehicle purchases. Strong equity markets and accumulated household wealth are also providing meaningful support, helping insulate demand despite elevated fuel prices and broader macro uncertainty.

Broadening Credit Access Supporting a Wider Buyer Pool: Per Cox Automotive, while average new vehicle loan rates remain elevated, it is a result of a broader mix of consumers now accessing financing, including lower credit tiers that were previously shut out of the market. Lenders have been expanding approval rates, extending loan terms, financing negative equity, and narrowing yield spreads, collectively widening the pool of eligible buyers. This broadening of credit access, even within a high-rate environment, should continue to support transaction volumes that might otherwise have deteriorated more sharply given current affordability pressures.

Eroding Consumer Purchasing Power: A sustained erosion of household purchasing power remains a key structural headwind for auto retail going into the second half of 2026. Per Cox Automotive, consumer price inflation has compounded at nearly 5% annually over the last five years, and personal expenditure growth continues to outpace income growth. The average consumer's budget is under meaningful pressure. Energy costs remain a persistent drag, and unless inflation trends materially improve, discretionary spending on big-ticket purchases like vehicles will continue to face resistance— particularly in mainstream and entry-level segments where financing dependency is highest and budget sensitivity is most acute.

Elevated Vehicle Prices and High Borrowing Costs Suppressing Volume: Average transaction prices for new vehicles sit at approximately $49,220 — nearly 9% above where they would be had pre-COVID price growth trends continued. Layered on top of that, average new auto loan rates stand at 9.6%, having risen sharply from approximately 6.5% a decade ago. Cox Automotive's Vehicle Affordability Index highlights rising income requirements to purchase a new vehicle, with price-sensitive compact and subcompact segment buyers increasingly trading down to used vehicles or exiting the market entirely.

Year-Over-Year Volume Decline Pressuring Revenue Comps: Full-year new-vehicle sales are forecast at 15.8 million units, a 2.9% decline from 2025. While some of this softness reflects last year's outperformance rather than a fundamental demand collapse, negative unit comps create meaningful headwinds for revenue growth and operating leverage across the industry. In a business with high fixed costs at the dealership level, even modest volume declines can compress margins and pressure earnings comparisons through the remainder of 2026.

Zacks Industry Rank Isn't Encouraging The Zacks Auto Retail & Wholesale industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #167, which places it in the bottom 32% of nearly 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence about this group’s earnings growth potential. Over the past year, the industry's earnings estimate for 2026 has declined roughly 8%.

We will present a couple of stocks that you might consider adding to your watchlist. But before that, let’s discuss the industry’s recent stock market performance and valuation picture.

Industry Lags Sector and S&P 500 The Zacks Auto Retail & Whole Sales industry has lost roughly 4%, underperforming the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year, which grew 26% and 16%, respectively.  

One-Year Price Performance

Industry's Current Valuation Since automotive companies are debt-laden, it makes sense to value them based on the enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio.

On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 9.1X compared with the S&P 500’s 18.23X and the sector’s trailing 12-month EV/EBITDA of 26.76X.

Over the past five years, the industry has traded as high as 9.45X, as low as 4.78X and at a median of 7.21X, as the chart below shows.

EV/EBITDA Ratio (Past 5 Years)

2 Stocks Worth Considering Sonic has grown into one of the most diversified franchised auto retailers in the United States. The 2021 acquisition of RFJ Auto Partners cemented its position among the top five U.S. dealership groups, while its more recent acquisition of four Jaguar and Land Rover dealerships in California made it the largest U.S. retailer of those premium brands— adding meaningful exposure to the higher-end segment that has shown relative resilience in 2026.

Beyond traditional auto retail, Sonic is expanding into powersports through its Sonic Powersports unit, now operating 20 rooftops across 46 franchises following its Harley-Davidson dealership acquisitions, positioning it among the top five U.S. powersports groups. Its EchoPark digital platform further supports an omnichannel retail strategy aligned with evolving consumer preferences. Notably, Sonic has raised its dividend eight times over the last five years, underscoring consistent shareholder returns.

Sonic currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 5% and 8%, respectively. The consensus mark for Sonic’s current and next year EPS has moved north by 13 cents and 10 cents, respectively, over the past 30 days.

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

Price & Consensus: SAH

Lithia stands out as one of the most acquisitive and strategically disciplined auto retailers in the United States. The company added $2.4 billion in annualized revenues through acquisitions in 2025 and continues to target $2-$4 billion in annual acquired revenues in 2026, with a deliberate focus on large, high-performing stores in the high-profitability Southeast and South-Central markets.

Beyond physical expansion, Lithia's digital platforms— Driveway and GreenCars— enable customers to buy, sell and service vehicles online, supporting an omnichannel strategy aligned with shifting consumer preferences. Its North American JV sale to Pinewood AI has further streamlined operations, unified its technology platform and accelerated delivery capabilities. Lithia also maintains a strong shareholder return track record, with a five-year annualized dividend growth rate of 11.56%, reflecting confidence in its long-term earnings trajectory.

Lithia currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 3% and 17%, respectively. The consensus mark for LAD’s current and next year EPS has moved north by 11 cents and 43 cents, respectively, over the past 30 days.

Price & Consensus: LAD

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Owens Corning (OC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Owens Corning currently has an average brokerage recommendation (ABR) of 1.89, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.89 approximates between Strong Buy and Buy.

Of the 19 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 52.6% and 5.3% of all recommendations.

Brokerage Recommendation Trends for OC

Check price target & stock forecast for Owens Corning here>>>

The ABR suggests buying Owens Corning, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in OC?In terms of earnings estimate revisions for Owens Corning, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $9.53.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Owens Corning. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Owens Corning.

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Has Curtiss-Wright (CW - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Curtiss-Wright is one of 67 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Curtiss-Wright is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CW's full-year earnings has moved 0.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CW has returned about 38.4% since the start of the calendar year. Meanwhile, stocks in the Aerospace group have gained about 2.9% on average. This means that Curtiss-Wright is performing better than its sector in terms of year-to-date returns.

One other Aerospace stock that has outperformed the sector so far this year is Outdoor Holding Company (POWW - Free Report) . The stock is up 36.8% year-to-date.

For Outdoor Holding Company, the consensus EPS estimate for the current year has increased 80% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Curtiss-Wright belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual stocks and currently sits at #60 in the Zacks Industry Rank. This group has gained an average of 10.9% so far this year, so CW is performing better in this area. Outdoor Holding Company is also part of the same industry.

Investors with an interest in Aerospace stocks should continue to track Curtiss-Wright and Outdoor Holding Company. These stocks will be looking to continue their solid performance.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is FactSet Research Systems (FDS - Free Report) . FDS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.56, which compares to its industry's average of 18.27. Over the past 52 weeks, FDS's Forward P/E has been as high as 28.30 and as low as 15.56, with a median of 25.38.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FDS has a P/S ratio of 3.28. This compares to its industry's average P/S of 3.4.

Finally, investors will want to recognize that FDS has a P/CF ratio of 14.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FDS's P/CF compares to its industry's average P/CF of 20.37. Over the past year, FDS's P/CF has been as high as 27.56 and as low as 14.04, with a median of 24.72.

These figures are just a handful of the metrics value investors tend to look at, but they help show that FactSet Research Systems is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FDS feels like a great value stock at the moment.

Key Takeaways RKT climbed 9.4% yesterday as the landmark housing bill has moved one step closer to becoming a law.PFSI could benefit from diversified production channels and a sizable mortgage servicing platform.LDI may see operating leverage if purchase mortgage demand boosts, though mortgage rates remain a key factor. A landmark bipartisan affordable housing bill has moved one step closer to becoming a law after the U.S. House of Representatives overwhelmingly approved the legislation and sent it to President Donald Trump for final approval. This has put the spotlight back on the housing market. While home builders may be the most direct beneficiaries, the mortgage finance industry could also see meaningful second-order benefits if the bill helps unlock housing supply and stimulate transaction volumes.

This makes mortgage-focused stocks such as Rocket Companies (RKT - Free Report) , PennyMac Financial Services (PFSI - Free Report) and loanDepot (LDI - Free Report) worth watching. Shares of RKT jumped 9.4% yesterday, while PFSI and LDI gained 3.9% and 5.3%, respectively.

A Closer Look at the Housing Reform BillThe U.S. housing market has faced a persistent shortage of affordable homes for more than a decade. High mortgage rates, rising construction costs, restrictive zoning rules and lengthy permitting processes have made homeownership increasingly difficult.

The 21st Century ROAD to Housing Act is a bipartisan housing reform package designed to boost housing supply, improve affordability, modernize federal housing programs and expand access to homeownership.

It focuses on removing barriers that slow residential construction, encouraging local zoning and land-use reforms, expanding financing for affordable housing and supporting manufactured and modular housing. It also seeks to update long-standing programs such as the HOME Investment Partnerships Program and provide communities with new tools to plan and build more homes. Another key provision aims to curb large institutional investors and private equity firms from buying single-family homes, a trend that has raised concerns about reduced affordability for individual buyers.

RKT, PFSI & LDI: How Mortgage Stocks Could BenefitMortgage companies generate revenues from several key areas, including loan originations, mortgage servicing rights, refinancing activity and related home-financing services. When housing transactions rise, lenders typically benefit from higher application volumes, stronger purchase mortgage demand and improved fee income.

If the proposed housing bill succeeds in increasing housing inventory, improving affordability and encouraging more home purchases, mortgage-focused companies such as Rocket Companies, PennyMac Financial Services and loanDepot could see a meaningful improvement in their financials.

Rocket Companies could be one of the more visible beneficiaries due to its scale, strong consumer brand and digital-first mortgage platform. The company has invested heavily in technology, automation and customer acquisition, which may allow it to capture demand efficiently if homebuying activity improves.

PennyMac Financial Services appears comparatively well-positioned because of its diversified mortgage production channels, strong correspondent lending business and sizable servicing platform. Its servicing operations can provide more stable revenues during periods of origination weakness, while its production business could benefit if purchase activity accelerates. This balanced model may give PennyMac Financial Services more resilience than lenders that rely more heavily on direct-to-consumer originations.

loanDepot, meanwhile, may offer higher upside potential if mortgage volumes rebound. Because the company has been more pressured by weak origination activity, any recovery in purchase demand could create operating leverage and improve profitability.

Still, interest rates remain the key variable for the mortgage stocks. A housing bill may help address supply constraints, but mortgage demand will likely need lower borrowing costs, stable home prices and stronger consumer confidence to recover meaningfully. If rates remain elevated, the benefit from increased housing supply could be limited.

Final Words on Housing Bill ReformThe housing bill should be viewed as a potential structural tailwind rather than an immediate earnings catalyst for mortgage stocks. Its impact will depend on whether housing supply improves meaningfully and whether rate conditions become more favorable.

Overall, the legislation could help set the stage for a gradual recovery in mortgage activity. For investors, RKT, PFSI and LDI remain important stocks to watch as the housing market moves from rate-driven weakness toward possible supply-supported normalization.

 With Google Cloud's agentic defense solutions, Jack Henry bolsters its enterprise security and helps protect community institutions against emerging cyber threats

, /PRNewswire/ -- Jack Henry® (Nasdaq: JKHY) and Google Cloud today announced an expanded collaboration to deliver AI-driven security capabilities for banks and credit unions. Building on their strategic relationship established in 2022, Jack Henry will use Google Cloud's suite of agentic defense products to develop a proprietary AI security platform purpose-built for the financial services ecosystem. This initiative will strengthen cyber resilience for financial institutions and help them defend against emerging threats while improving operational efficiency.

Approximately 7,400 community banks and credit unions across the United States depend on Jack Henry for a wide array of banking, payments, lending, and operational solutions. As modern security threats grow increasingly complex with the rise of adversarial AI, these institutions require leading-edge defense mechanisms layered across their entire technology suite.

Jack Henry's enhanced, security-first platform is explicitly designed to address the strict compliance, regulatory, and security requirements of community financial institutions. By proactively identifying and mitigating emerging, AI-driven cyber threats, its architecture reinforces security across Jack Henry's entire operational environment – spanning Google Cloud, other cloud providers, and on-premises physical infrastructures.

"Combining our financial services expertise with Google Cloud's agentic defense capabilities enables us to help financial institutions proactively strengthen their defense against increasingly sophisticated threats," said Jack Henry President and CEO Greg Adelson. "Security has always been foundational to our platform, and this collaboration extends those capabilities further. By automating the analysis of large volumes of telemetry data, we can identify potential threats earlier and enable faster, coordinated responses before vulnerabilities are exploited."

AI is the top investment priority for financial institutions, according to Jack Henry's Strategy Benchmark survey of bank and credit union CEOs. Institutions are increasingly focused on AI to drive efficiency, improve risk-based decision-making, and enhance client experiences. This trend reinforces the industry's need for practical, secure AI capabilities that deliver value while meeting the requirements of highly regulated environments.

"Agentic AI workflows represent a transformative capability for financial services, but widespread adoption depends on trust," said Francis deSouza, chief operating officer, Google Cloud and president, Security Products. "Jack Henry is combining Google Cloud's agentic defense, Mandiant Consulting's deep cybersecurity expertise, and Gemini Enterprise Agent Platform to deliver secure-by-design AI. This empowers financial institutions to unlock measurable efficiency while strengthening resilience."
In tandem with these security advancements, Jack Henry is leveraging Gemini Enterprise Agent Platform, Google Cloud's AI platform, to develop and deploy a growing set of high-impact operational use cases, enabling its employees and financial services clients to:

Support customer service teams: Leverage AI-assisted tools to improve the speed and consistency of support and issue resolution. Enhance insights and reporting: Utilize advanced analytics to drive more informed, data-driven decision-making. Optimize daily operations: Automate routine administrative tasks, with early adopters reporting time savings of up to 70%. "We are utilizing AI in a bold and balanced way, unlocking its potential while maintaining the strong security, governance, and human oversight required in financial services," said Jack Henry Chief Operating Officer Shanon McLachlan. "We are prioritizing practical, high-impact use cases – from strengthening cyber resilience to automating back-office processes – to enable institutions to operate more efficiently, scale their teams, and continue delivering the high-touch service that sets them apart."

About Jack Henry & Associates, Inc.®

Jack Henry® (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.

About Google Cloud

Google Cloud offers a powerful, optimized AI stack—including AI infrastructure, leading models like Gemini, data management capabilities, multicloud security solutions, developer tools and platform, as well as agents and applications—that enables organizations to transform their business for the Agentic Era. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner.

SOURCE Jack Henry & Associates, Inc.

Key Takeaways CBOE Global Markets and Tutor Perini passed a low-leverage stock screen.CBOE launched Cboe Predicts, while Tutor Perini secured a $114 million Ole Miss project contract.Casey's unveiled a three-year plan targeting 400 added stores through acquisitions and development. Wall Street finished June 24, 2026, on a mixed note, as investors actively rotated out of high-flying technology stocks to find support in cyclical and consumer discretionary sectors. This rotation caused the tech-heavy Nasdaq and the benchmark S&P 500 to pull back, while the broad-based Dow Jones Industrial Average managed to inch higher.

While concerns surrounding overvalued tech companies triggered the localized sell-off, energy investors found unexpected relief in a steady decline in oil prices. Crude benchmarks plummeted to their lowest levels since February-end, before the United States and Israel launched joint airstrikes against Iran. 

However, this newfound stability in energy prices is unlikely to persist for long, given the structural geopolitical tensions still simmering across the globe. 

Against this volatile landscape, turning to financially resilient companies, particularly those with low leverage, is a necessity right now.

These fiscally conservative companies are better positioned to navigate interest rate fluctuations and geopolitical uncertainty. By providing a stable foundation in a shifting market, they can serve as a strategic hedge against a potential energy-driven economic slowdown.

We recommend low-leverage stocks, such as Ternium (TX - Free Report) , CBOE Global Markets (CBOE - Free Report) , Tutor Perini (TPC - Free Report) , Sunstone Hotel Investors (SHO - Free Report) and Casey’s General Stores (CASY - Free Report) . 

Before selecting low-leverage stocks, it is important to understand what leverage is and how investing in low-leverage companies can benefit investors.

What’s the Significance of Low-Leverage Stocks?In finance, leverage refers to the use of borrowed capital to support business operations and drive expansion. Companies typically raise such funds through debt financing, although equity financing remains an alternative. However, firms often prefer debt due to its relatively lower cost and easier availability compared to issuing equity.

Debt financing comes with inherent risks and is beneficial only when it generates returns that exceed the cost of borrowing. To limit downside risk, investors should be cautious of companies that rely excessively on debt. Prudent investing involves selecting businesses with manageable leverage, as completely debt-free companies are rare.

The equity market can be volatile at times. As an investor, if you want to avoid significant losses, we suggest focusing on stocks with low leverage, which are generally deemed less risky.

To identify such stocks, several leverage ratios have historically been developed to measure the amount of debt a company carries. The debt-to-equity ratio is among the most widely used financial ratios.

Analyzing Debt/EquityDebt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity

This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio suggests improved solvency for a company.

With the second-quarter 2026 earnings season ahead of us, investors should focus on stocks that have demonstrated solid earnings growth in recent periods.

If a stock carries a high debt-to-equity ratio during an economic downturn, its seemingly strong earnings could quickly turn into a nightmare.

The Winning StrategyConsidering the aforementioned factors, it would be prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.

Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To select stocks with the potential to provide steady returns, we have expanded our screening criteria to include additional factors.

Other Parameters:

Debt/Equity Less Than X-Industry Median: Stocks that are less leveraged than their industry peers.

Current Price Greater Than or Equal to 10: The stocks must be trading at $10 or higher.

Average 20-day Volume Greater Than or Equal to 50000: A substantial trading volume ensures that the stock is easily tradable.

Percentage Change in EPS F(0)/F(-1) Greater Than X-Industry Median: Earnings growth adds to optimism, leading to a stock’s price appreciation.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.

Estimated One-Year EPS Growth F (1)/F(0) Greater Than 5: This shows earnings growth expectations.

Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.

Excluding stocks that have a negative or a zero debt-to-equity ratio, we present our five picks out of the 12 that made it through the screen.

Ternium: It is the leading producer of flat and long steel products of Latin America and consolidates the operations of the steel companies like Hylsa in Mexico, Siderar in Argentina and Sidor in Venezuela. 

On May 5, 2026, the company announced its first-quarter 2026 results. Its earnings per ADS improved a massive 220.6% to $1.09. Ternium invested $406 million in the first quarter, primarily for the expansion of its industrial center in Pesquería, Mexico.   

The Zacks Consensus Estimate for TX’s 2026 sales indicates an improvement of 6.1% from the prior-year reported level. The stock boasts a long-term (three-to-five year) earnings growth rate of 52.80%. It currently sports a Zacks Rank #1.

CBOE Global Markets: It is the world's go-to derivatives and exchange network, delivering cutting-edge trading, clearing and investment solutions to people around the world. On June 23, 2026, CBOE announced the launch of the first products in its new prediction markets suite, Cboe Predicts. Cboe Predicts represents the latest expansion of CBOE’s S&P 500 Index (SPX) product suite.

The Zacks Consensus Estimate for CBOE’s 2026 revenues indicates an improvement of 13.1% from the prior-year reported actuals. The stock boasts a long-term earnings growth rate of 16.80%. CBOE currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tutor Perini: It is a diversified general contracting, construction management and design-build services provider to private clients and public agencies worldwide. On June 9, 2026, Tutor Perini announced that its subsidiary, Roy Anderson Corp, has won a contract worth approximately $114 million for the Jones Hall Project at the University of Mississippi (Ole Miss) in Oxford, MS. Per the terms of this project, TPC will construct a new four-story, approximately 110,000-square-foot academic facility that will serve as the home of the nationally recognized Patterson School of Accountancy. 

The Zacks Consensus Estimate for TPC’s 2026 revenues indicates an improvement of 12.7% from the prior-year reported number. The Zacks Consensus Estimate for TPC’s 2026 earnings indicates an improvement of 20.8% from the prior-year reported number. It currently holds a Zacks Rank #2.

Sunstone Hotel Investors: It is a lodging real estate company that owns hotels primarily in the upper-upscale and upscale segments, primarily operated under franchises owned nationally-recognized companies, such as Marriott, Hilton, InterContinental and Hyatt. 

On June 23, 2026, Sunstone Hotel Investors reported that it has entered into a definitive agreement to sell the 821-room Hyatt Regency San Francisco hotel to funds affiliated with Blackstone Real Estate for a gross sale price of $279 million. 

The Zacks Consensus Estimate for SHO’s 2026 revenues indicates an improvement of 4.5% from the prior-year reported actuals. The stock boasts a long-term earnings growth rate of 4.90%. It currently sports a Zacks Rank #1.

Casey’s General Stores: It is a chain of convenience stores that operates across 19 states of the United States. On June 24, 2026, the company unveiled its new three-year strategic plan, which focused on expanding CASY’s food business, growing its store base, and leveraging technology to improve efficiency and execution. In particular, the company plans to add at least 400 stores through a combination of strategic acquisitions and new-store development. 

The Zacks Consensus Estimate for CASY’s fiscal 2027 revenues suggests an improvement of 16.2% from the year-ago reported level. The stock boasts a long-term earnings growth rate of 15.80%. It currently sports a Zacks Rank #1.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Reinsurance Group (RGA - Free Report) Formed in 1992 in Timberlake, MO, Reinsurance Group of America Inc. is a leading global provider of traditional life and health reinsurance and financial solutions with operations in the United States, Latin America, Canada, Europe, the Middle East, Africa, Asia and Australia.

RGA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. RGA has a Momentum Style Score of A, and shares are up 0.5% over the past four weeks.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.61 to $26.88 per share. RGA boasts an average earnings surprise of +9.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RGA should be on investors' short list.

, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Helen of Troy Limited ("Helen of Troy" or the "Company") (NASDAQ: HELE). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

The class action concerns whether Helen of Troy and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

You have until August 3, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Helen of Troy securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.

[Click here for information about joining the class action]

On July 9, 2024, Helen of Troy announced its 2025 first quarter results, allegedly reflecting a 49% decrease in earnings per share year-over year and reducing its full year revenue outlook by more than 20%.

On this news, Helen of Troy's stock price fell nearly 28%.

Then, on July 10, 2025, Helen of Troy announced its 2026 first quarter results, allegedly reflecting a net sales decline of 11% year-over-year and a nearly 60% decline in adjusted earnings per share. The Company also announced a $414.4 million goodwill impairment. On this news, Helen of Troy's stock price fell nearly 23%.

Finally, on October 9, 2025, Helen of Troy announced its 2026 second quarter results, allegedly revealing that quarterly sales were down 8.9% year-over-year, adjusted earnings per share fell 51%, and business disruptions and cost headwinds would continue throughout the remainder of the year.

On this news, Helen of Troy's stock price fell 25%.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Doximity, Inc. ("Doximity" or the "Company") (NYSE: DOCS).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Doximity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 13, 2026, Doximity issued a press release announcing its fourth quarter and fiscal year 2026 financial results.  Among other items, Doximity guided for full-year revenue in the range of $664 million to $676 million, compared to estimates of $687.04 million, and adjusted EBITDA of $323 million to $335 million.  Doximity's management highlighted AI cost pressure, with the Company's vice president of investor relations citing gross margin impact "driven by AI compute costs" and CEO Jeff Tangney warning that higher AI investment will "weigh on near-term margins." 

On this news, Doximity's stock price fell $5.38 per share, or 23%, to close at $18.01 per share on May 14, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Key Takeaways HubSpot grew customers 16% year over year to 299,458 after adding 10,800 net new customers in Q1 2026.HUBS saw larger ARR deals rise, more multi-Hub adoption and pricing changes support customer growth.HubSpot expanded Breeze AI, with Core Seat users up 90% and over 25% of Pro customers buying more seats. HubSpot, Inc. (HUBS - Free Report) is witnessing solid customer growth across its customer relationship management platform. The company added 10,800 net new customers during first-quarter 2026, increasing the total customer count 16% year over year to 299,458.

There are several factors driving this customer growth. Larger enterprises are increasingly adopting HubSpot to consolidate customer-facing operations. Deals above $60,000 in annual recurring revenues (“ARR”) increased 37% year over year, while deals above $120,000 ARR surged 64%, reflecting improving traction in the upmarket segment. Instead of buying only Marketing Hub, customers are purchasing multiple Hubs together.

63% of new Pro+ customers purchased multiple Hubs, up 3% year over year. Having one unified connected platform that combines marketing, sales and service data supports AI models with complete information and helps enterprises to streamline workflows and boost their competitive edge. Having one integrated platform instead of several disconnected tools also lowers the total cost of ownership and improves efficiency.

The company’s pricing optimization strategy, implemented in 2024, continues to support customer acquisition. This has lowered entry pricing and removed minimum seat requirements. HUBS strong partner ecosystem is another major client acquisition engine.

HubSpot’s AI strategy is increasingly contributing to customer engagement and monetization. The company continues to expand Breeze AI capabilities across its customer platform through AI assistants, agents and automation tools. Active Core Seat users increased 90% year over year during first-quarter 2026, while more than 25% of Pro+ customers purchased additional Core Seats.

How Are Competitors Faring?In the CRM space, HubSpot faces competition from Salesforce, Inc. (CRM - Free Report) , one of the world’s leading Customer Relationship Management companies. More than 150,000 customers leverage Salesforce solutions to drive results across sales, service and marketing operations. Salesforce’s on-demand model supports standardized deployments, frequent updates and lower ownership costs for customers. The company continues to benefit as enterprises modernize customer-facing processes and reduce vendor sprawl.

Microsoft Corporation (MSFT - Free Report) is also seeing healthy demand trends in the Productivity & Business Processes segment, which includes the Office and Dynamics CRM businesses. The company's artificial intelligence capabilities are translating into tangible commercial success, with Microsoft Copilot now deployed across more than 20 million paid Microsoft 365 Copilot seats and growing adoption across productivity, coding, and security applications. Microsoft 365 Copilot paid seats now exceed 20 million. The number of customers with more than 50,000 seats quadrupled year over year, with Accenture representing the largest Copilot win to date with over 740,000 seats. Bayer, Johnson & Johnson, Mercedes and Roche each committed to 90,000 or more seats.

HUBS’ Price Performance, Valuation and EstimatesHubSpot has declined 66.7% over the past year compared to the industry’s decline of 21.7%.

Image Source: Zacks Investment Research

Going by the price/book ratio, the company's shares currently trade at 4.66 book value, higher than 4.27 of the industry average.

Image Source: Zacks Investment Research

HUBS’ earnings estimates for 2026 and 2027 have improved over the past 60 days.
 

Image Source: Zacks Investment Research

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

Key Takeaways VKTX began a phase I study of VK3019 to assess safety, PK, PD and tolerability in healthy volunteers.Viking Therapeutics says VK3019 targets amylin and calcitonin receptors, expanding its obesity pipeline.VKTX expects SC maintenance data for VK2735 in Q3 2026, with oral maintenance data due in first-half 2027. Shares of Viking Therapeutics (VKTX - Free Report) rose about 9% on Wednesday after the company expanded its obesity pipeline by advancing a second drug candidate into clinical development.

The biotech initiated a phase I single-ascending-dose (SAD) study evaluating VK3019, an investigational dual amylin and calcitonin receptor agonist (DACRA), marking the candidate’s first evaluation in humans. The purpose of the study is to assess the safety, tolerability, pharmacokinetics (PK) and pharmacodynamics (PD) of single subcutaneous doses of VK3019 in healthy individuals.

The study initiation represents a significant milestone for Viking Therapeutics, diversifying its obesity pipeline beyond its lead candidate, VK2735.

Unlike VK2735, which targets GLP-1 and GIP receptors, VK3019 is designed to activate amylin and calcitonin receptors. The company believes therapies targeting these receptors could potentially be used either as standalone treatments or in combination with GLP-1 or GLP-1/GIP-based therapies to improve weight-loss induction and support longer-term weight management.

Viking Therapeutics also highlighted encouraging preclinical data supporting the program, which showed that DACRAs reduced food intake in lean rats within 72 hours of a single dose and lowered body weight by up to 8% compared with controls. The compounds also demonstrated favorable metabolic effects in diet-induced obese mice.

Beyond reducing pipeline concentration risk, the addition of VK3019 could strengthen Viking's strategic value as a potential acquisition or partnership target for larger pharmaceutical/biotech companies looking to expand their obesity portfolios.

VKTX Stock’s PerformanceYear to date, the company’s shares have gained nearly 8% compared with the industry’s 2% growth.

Image Source: Zacks Investment Research

VK2735 Remains VKTX’s Primary FocusWhile VK3019 broadens Viking Therapeutics' obesity pipeline, VK2735 remains the company's lead obesity candidate and primary value driver. This dual GLP-1/GIP receptor agonist has delivered encouraging efficacy across both subcutaneous (SC) and oral formulations, positioning it as one of the more promising late-stage obesity therapies currently under development.

The company is currently evaluating the SC formulation of VK2735 in two pivotal phase III studies. While VANQUISH-1 is enrolling obese or overweight adults with at least one weight-related comorbidity but without type II diabetes (T2D), VANQUISH-2 is assessing the drug in obese or overweight adults with T2D. Viking is on track to initiate late-stage studies of the oral formulation of VK2735 later this year.

However, investors are likely to focus more closely on the upcoming data from the ongoing maintenance dosing study. This study is evaluating multiple regimens — including monthly SC, weekly oral and daily oral dosing — to determine whether the weight loss achieved with weekly SC administration can be maintained over the long term. Viking expects to report SC maintenance data in the third quarter of 2026, followed by oral maintenance data in the first half of 2027.

Competition Intensifies in the Obesity SpaceThe obesity market has garnered significant attention in recent years, as both Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) dominate the space with their respective blockbuster obesity drugs, Zepbound and Wegovy. The obesity market in the United States is expected to reach $100 billion by 2030. To capitalize on this opportunity, both companies have expanded manufacturing capacity while continuing to invest heavily in next-generation obesity therapies.

Although competition initially centered on once-weekly injectable therapies, the focus has increasingly shifted toward more convenient oral alternatives. Earlier this year, Novo Nordisk launched an oral version of Wegovy, while Eli Lilly introduced Foundayo, marking a significant step toward improving patient convenience and broadening access to obesity treatment.

The competitive landscape is now evolving beyond traditional GLP-1 therapies. Both companies are advancing next-generation candidates designed to deliver greater efficacy and improved patient convenience through multi-target mechanisms. Among them, Eli Lilly's retatrutide, a triple agonist targeting the GLP-1, GIP and glucagon receptors, has demonstrated approximately 28% weight loss in late-stage studies—an efficacy level previously associated primarily with bariatric surgery.

Novo Nordisk is advancing its next-generation obesity pipeline. It has submitted a regulatory filing seeking approval of CagriSema injection, a follow-up drug to Wegovy, while another candidate, amycretin, has shown strong weight-loss efficacy in a phase II study and is expected to enter late-stage development soon.

As the competitive landscape shifts toward next-generation obesity therapies with differentiated mechanisms, Viking Therapeutics is broadening its own pipeline. The addition of VK3019 complements VK2735, positioning Viking to compete across multiple therapeutic pathways in the rapidly evolving obesity market.

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

Reddit Inc. (RDDT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +4.2% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Internet - Software industry, to which Reddit Inc. belongs, has lost 5.9% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Reddit Inc. is expected to post earnings of $0.99 per share, indicating a change of +120% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.83 points to a change of +84.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $6.39 indicates a change of +32.2% from what Reddit Inc. is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Reddit Inc..

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Reddit Inc., the consensus sales estimate of $746.89 million for the current quarter points to a year-over-year change of +49.5%. The $3.25 billion and $4.31 billion estimates for the current and next fiscal years indicate changes of +47.6% and +32.5%, respectively.

Last Reported Results and Surprise HistoryReddit Inc. reported revenues of $663.41 million in the last reported quarter, representing a year-over-year change of +69.1%. EPS of $1.01 for the same period compares with $0.13 a year ago.

Compared to the Zacks Consensus Estimate of $614.09 million, the reported revenues represent a surprise of +8.03%. The EPS surprise was +62.9%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Reddit Inc. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Reddit Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Semtech (SMTC - Free Report) closed the last trading session at $158.48, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $205.25 indicates a 29.5% upside potential.

The average comprises 12 short-term price targets ranging from a low of $175.00 to a high of $230.00, with a standard deviation of $16.62. While the lowest estimate indicates an increase of 10.4% from the current price level, the most optimistic estimate points to a 45.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in SMTC. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why SMTC Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 12.9%.

Moreover, SMTC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SMTC could gain, the direction of price movement it implies does appear to be a good guide.

The drug and biotech sector is in a recovery mode, after going through a difficult period between 2022 and 2024, backed by strong quarterly results, surging mergers and acquisitions (M&A) activity and pipeline and regulatory successes.
Innovation remains a key growth driver, with high-interest areas such as obesity treatments, next-gen oncology drugs, immunology, gene editing, cell therapies and RNA-based medicines drawing strong investor focus. However, the sector continues to face challenges, including pipeline setbacks, looming patent expirations, regulatory uncertainty, drug-pricing pressure and broader macro challenges.

Despite these headwinds, accelerating innovation, the expanding use of artificial intelligence in drug discovery and development, encouraging regulatory and clinical pipeline updates and the resurgence of M&A activity point to a constructive growth outlook for 2026.

Amid the improving backdrop, the Zacks Medical-Drugs industry is showing promising trends backed by a focus on innovation and positive pipeline/regulatory developments. In this scenario, Indivior Pharmaceuticals (INDV - Free Report) , Aurinia Pharmaceuticals (AUPH - Free Report) , Ironwood Pharmaceuticals (IRWD - Free Report) , Altimmune (ALT - Free Report) and Marker Therapeutics (MRKR - Free Report) may prove to be good additions to one’s portfolio.

Industry Description The Zacks Medical-Drugs industry comprises small and some medium-sized drug companies that make medicines. We have a separate industry outlook discussion on big drugmakers. Small drugmakers have a limited portfolio of marketed drugs or no commercial drugs at all. Some drugmakers are dependent on just one marketed drug or pipeline candidate. For such companies, upfront or milestone payments from collaboration partners — in most cases, their larger counterparts — are the main sources of revenues. These companies need ample free cash flow to fund their R&D costs.

Factors Shaping the Future of the Medical-Drugs Industry Pipeline Success: The success or failure of key pipeline candidates in clinical studies can significantly drive the stock price of industry players. Successful innovation and product line extensions in important therapeutic areas and strong clinical study results may act as important catalysts for the stocks.

Innovation is at its peak with key spaces like rare diseases, next-generation oncology treatments, obesity, immunology and neuroscience attracting investor attention.

Strong M&A Activity: These companies regularly seek external partners and collaborators for complementary strengths. A partnership deal with a popular drugmaker is a good sign about the potential of small pharma companies, especially when an equity investment is included in the deal. M&A deals are in full swing in the sector, signaling growth. This year has already seen multiple multi-billion-dollar deals. The trend is shifting more toward smaller and mid-size “bolt-on” strategic acquisitions rather than mega-mergers.

Investment in Technology for Innovation: For smaller companies, succeeding in a shifting global market and evolving healthcare landscape requires adopting innovative business models, investing in new technologies and increasing investments in personalized medicines. Over the past few years, scientific and technological advancements have made it possible to develop personalized therapies. Other than that, adoption and information exchange through the meaningful use of health IT, development of therapies that improve overall patient outcomes and investment in developing and emerging markets are some of the key priorities for drug companies. Artificial intelligence and machine learning techniques are being used for the rapid advancement of drug discovery and target identification processes.

Pipeline Setbacks: The smaller companies have their share of risk in the form of unstable cash flows. Also, the failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be huge setbacks for these smaller companies and significantly hurt their share prices.

Zacks Industry Rank Indicates a Short-Term Gloomy Picture The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.

The Zacks Medical-Drugs industry currently carries a Zacks Industry Rank #149, which places it in the bottom 40% of the 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present you with a few top-ranked stocks to capitalize on the  prospects of the small and medium-sized drugmakers’ space, let’s take a look at the industry’s recent stock-market performance and the valuation picture.

Industry Versus S&P 500 and Sector The Zacks Medical-Drugs industry is a huge 133-stock group within the broader Medical sector. The industry has outperformed the S&P 500 but underperformed the Zacks Medical sector so far this year.

Stocks in this industry have collectively declined 0.5% so far this year against the Zacks Medical sector’s increase of 1.9%. The Zacks S&P 500 composite has declined 2% in the said time frame.

YTD Price Performance

Industry's Current Valuation Based on the trailing 12 months price-to-sales ratio (P/S TTM), which is a commonly used multiple for valuing these small drugmakers, the industry is currently trading at 2.26, compared with the S&P 500’s 5.94 and the Zacks Medical sector's 2.45.

Over the last five years, the industry has traded as high as 3.36, as low as 2.05 and at the median of 2.49, as the chart below shows. 

Trailing 12-Month Price-to-Sales (P/S) Ratio

5 Drug Stocks to Bet On Indivior Pharmaceuticals: North Chesterfield, VA-based Indivior’s commercial portfolio is anchored by its flagship product, Sublocade, a first-in-class long-acting injectable treatment for moderate-to-severe opioid use disorder, alongside Suboxone film and tablets, a daily buprenorphine/naloxone formulation for opioid dependence. Sublocade accounts for the majority of Indivior’s revenues.

Indivior remains a leader in opioid use disorder treatment, with Sublocade increasingly driving growth. The product continues to gain traction through record patient starts, growing prescriber adoption, and a leading share of the U.S. long-acting injectable market. The company is also benefiting from a major restructuring program, supporting strong earnings and EBITDA growth. Additionally, the large and persistent opioid addiction market provides a favorable long-term growth opportunity.

However, Indivior's internal pipeline has suffered setbacks. In 2026, the company decided not to advance INDV-6001 into phase III development and also halted the internal development of INDV-2000 for opioid use disorder after disappointing phase II data. 

The stock of Indivior has risen 15.5% so far this year. The consensus estimate for 2026 earnings has risen from $3.33 per share to $4.05 per share over the past 60 days. The company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. .

Price and Consensus: INDV

Aurinia Pharmaceuticals: Canada-based Aurinia Pharmaceuticals makes medicines to treat autoimmune, kidney and rare diseases. It presently markets Lupkynis (voclosporin), the first FDA-approved oral therapy for the treatment of adult patients with active lupus nephritis. The company recorded strong Lupkynis sales growth of 24% in the first quarter of 2026. Management expects total revenues to reach $315-$325 million in 2026, representing double-digit growth over 2025 levels. Lupkynis is emerging as a standard-of-care treatment for lupus nephritis.

Aurinia is also developing aritinercept, a potentially best-in-class dual inhibitor of BAFF and APRIL cytokines. It has the potential to treat a wide range of autoimmune diseases and is now in clinical development for three potential indications.

Aurinia Pharmaceuticals has a Zacks Rank #2 (Buy). The consensus estimate for 2026 earnings has been stable at 86 cents per share over the past 60 days. The stock has risen 16.7% so far this year.

Price and Consensus: AUPH

Altimmune: Gaithersburg, MD-based Altimmune is a late clinical-stage biotech focused on making therapies for liver diseases. Altimmune’s lead pipeline candidate, pemvidutide, a balanced 1:1 glucagon/GLP-1 dual receptor agonist, has a differentiated mechanism of action and “pipeline in a product” potential for treating liver diseases. It is being developed to treat serious liver diseases like metabolic dysfunction-associated steatohepatitis (“MASH”), alcohol use disorder (“AUD”) and alcohol-associated liver disease (“ALD”), which have a significant unmet need. A phase III study for MASH patients with moderate-to-severe liver fibrosis is expected to start in 2026. For the AUD and ALD indications, phase II studies are ongoing. Multiple catalysts are expected in 2026, including phase III initiation for MASH and phase II top-line data for AUD. Its promising pipeline makes it an attractive licensing or takeover target.

The stock of Altimmune has declined 18.3% so far this year. The consensus estimate for 2026 loss has narrowed from $1.00 per share to 69 cents per share over the past 60 days. The company has a Zacks Rank #2.

Price and Consensus: ALT

Ironwood Pharmaceuticals: Cambridge, MA-based Ironwood Pharmaceuticals’ primary asset is Linzess, a leading treatment for irritable bowel syndrome with constipation and chronic idiopathic constipation. The drug continues to demonstrate healthy prescription demand growth and has treated millions of patients since launch. Management expects U.S. Linzess net sales to reach $1.125-$1.175 billion in 2026

Ironwood is also regularly getting approvals to expand Linzess' label, which is also supporting sales growth. Linzess is also well protected by patents and is not expected to face generic competition before March 2029.

Apraglutide, Ironwood's lead pipeline candidate for treating short bowel syndrome with intestinal failure (SBS-IF), represents a potentially game-changing growth opportunity for the company. Ironwood recently reached an agreement with the FDA on the design of a confirmatory phase III study required to support regulatory approval of apraglutide in SBS-IF. Management believes that, if successfully developed and approved, apraglutide has the potential to achieve blockbuster status.

The stock of Ironwood has risen 16% so far this year. The consensus estimate for 2026 earnings has risen from 88 cents per share to $1.04 per share over the past 60 days. The company has a Zacks Rank #2.

Price and Consensus: IRWD

Marker Therapeutics: This Houston, TX-based cancer biotech is making next-generation T cell therapies for hematological malignancies and solid tumors, leveraging its multi-antigen recognizing (MAR) T cell platform. Marker is rapidly progressing a phase I APOLLO study on lead candidate, MT-601, in patients with relapsed or refractory B-cell lymphoma. Updated data from the study reported last August demonstrated encouraging clinical activity with a 66% objective response rate in relapsed non-Hodgkin lymphoma, including durable complete responses, with a favorable safety profile across evaluated doses. A data update from the APOLLO study is expected in the second quarter of 2026. Clinical studies on MT-601 in pancreatic cancer are also expected to begin in the second quarter of 2026.

Marker is also conducting a phase I study on its off-the-shelf candidate, MT-401 and entered into a strategic manufacturing collaboration with Cellipont to scale up production of MT-601. The stock of Marker Therapeutics has declined 12.1% so far this year. The consensus estimate for 2026 loss per share has narrowed from $1.19 to $1.17 over the past 60 days. The company has a Zacks Rank #2. 

Price and Consensus: MRKR

Key Takeaways Petrobras and Finep will fund a R$150 million program to develop industrial-scale electrolyzer technology.PBR-backed project requires industry-research consortia and at least 50% domestic equipment value.Petrobras says the initiative supports Brazil's hydrogen value chain and clean-energy competitiveness. Petrobras (PBR - Free Report) has partnered with Finep to launch a R$150 million program aimed at accelerating the development of domestic electrolyzer technology and strengthening Brazil’s position in the low-carbon hydrogen economy, according to chemanalyst. The initiative will support the creation of industrial-scale electrolyzers designed to produce clean hydrogen, which is increasingly viewed as a critical input for reducing emissions in energy-intensive industries.

During the signing of a cooperation agreement between the two organizations, the declaration was made at Petrobras’ headquarters in Rio de Janeiro. The event underscored the strategic importance of hydrogen within Brazil’s industrial and environmental agenda, bringing together government officials, industry leaders and innovation stakeholders focused on advancing sustainable development.

Closing Brazil’s Electrolyzer Technology GapDespite its strong renewable energy base, Brazil’s electrolyzer manufacturing sector remains at an early stage of development. Only a small number of companies operate in this space and none currently produce electrolyzer stacks, the central component responsible for hydrogen generation through water electrolysis.

This technological gap has limited the development of a fully integrated domestic hydrogen value chain. The new Petrobras-Finep initiative is intended to address this challenge by encouraging local development of advanced electrolyzer systems. The goal is to strengthen domestic expertise, reduce dependence on imported technologies and improve Brazil’s competitiveness in the global clean-energy market.

Collaborative Structure and Innovation RequirementsThe program will be executed through a public call for proposals targeting a single large-scale strategic project. Selected participants must form collaborative consortia that combine industrial capabilities with scientific research, including at least three technology-focused companies and one Science and Technology Institution.

Projects may build on existing technological foundations but must demonstrate clear advancements over current international electrolyzer systems. Improvements in efficiency, performance or cost-effectiveness will be key evaluation criteria. In addition, at least 50% of the value of the equipment developed must originate domestically, reinforcing Brazil’s industrial base.

Full Funding for End-to-End DevelopmentThe initiative will be financed with R$150 million in non-repayable funding, split equally between Petrobras and Finep, with additional contributions expected from participating companies.

The selected project will cover the full development cycle, including engineering design, component development, system integration, testing and the construction of a pre-commercial prototype. This end-to-end structure is intended to ensure that laboratory innovations progress toward real-world industrial applications.

Expanding Demand for Low-Carbon HydrogenHydrogen produced via electrolysis is gaining momentum as industries seek cleaner alternatives to fossil-fuel-based production methods. When powered by renewable electricity, it offers a significantly lower-carbon pathway for hydrogen generation.

In the steel industry, hydrogen can replace carbon-intensive inputs used in production processes, helping reduce emissions. The refining sector, which relies heavily on hydrogen for operational processes, stands to benefit from cleaner supply options without major disruptions. Chemical producers, which use hydrogen as a key feedstock for products such as ammonia and methanol, also represent a major area of demand for low-carbon hydrogen solutions.

Strengthening Brazil’s Innovation EcosystemBeyond its industrial goals, the initiative is expected to strengthen Brazil’s broader innovation ecosystem. By requiring collaboration between companies and research institutions, it promotes knowledge transfer and encourages the commercialization of scientific research.

It is also expected to increase demand for highly skilled professionals in areas such as advanced engineering, materials science, automation, energy systems and industrial design, contributing to the development of a more advanced industrial workforce.

Long-Term Impact on the Chemical SectorThe development of domestic electrolyzer technology could have important implications for Brazil’s chemical industry. As production costs decline and technology matures, low-carbon hydrogen may become more widely available for industrial use.

This could improve the economics of sustainable chemical production, reduce emissions across supply chains and encourage investment in new facilities designed around cleaner feedstocks such as hydrogen-based processes.

Alignment With Brazil’s Energy Transition StrategyThe initiative aligns with broader national efforts to expand industrial capabilities and accelerate the energy transition. Petrobras has committed approximately $4 billion to research, development and innovation under its 2026-2030 business plan, while Finep has invested more than R$12.5 billion in green transition projects between 2023 and 2025.

These investments reflect a long-term strategy focused on building domestic technological capacity and positioning Brazil as a competitive player in emerging clean-energy markets.

ConclusionOverall, the R$150 million Petrobras-Finep electrolyzer program represents a significant step toward closing key technological gaps in Brazil’s hydrogen sector. By fostering collaboration, supporting domestic manufacturing and advancing industrial-scale innovation, the initiative positions the country to play a more active role in the global low-carbon hydrogen value chain while laying the foundation for a more competitive and sustainable industrial future.

PBR's Zacks Rank & Key PicksCurrently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Delek US Holdings (DK - Free Report) and Crescent Energy Company (CRGY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Phillips 66 (PSX - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US is valued at $2.66 billion. It is a U.S.-based downstream energy company that focuses on refining crude oil and distributing petroleum products. Headquartered in Brentwood, TN, Delek US Holdings operates through two main segments: refining and logistics.

Crescent Energy Company is valued at $3.47 billion. It is an independent U.S. energy company engaged in the acquisition, exploration, development and production of crude oil, natural gas, and natural gas liquids. Crescent Energy operates primarily in the Eagle Ford, Permian and Uinta basins.

Phillips 66 is valued at $68.3 billion. It is a diversified energy company that refines crude oil, markets petroleum products, and operates midstream, chemicals, and renewable fuels businesses. Phillips 66 operates across the United States and internationally.

Key Takeaways Hut 8 appears better positioned than Strategy with AI growth, Bitcoin exposure and financial flexibility.HUT shares have surged 152.7% YTD, while Strategy has fallen 38.1% amid Bitcoin losses.Strategy holds 847,363 BTC, but its earnings remain highly tied to Bitcoin price volatility. Strategy (MSTR - Free Report) and Hut 8 Corp. (HUT - Free Report) are two well-known Bitcoin-focused companies that offer investors different ways to gain exposure to the cryptocurrency market. Strategy holds one of the world's largest corporate Bitcoin treasuries, while Hut 8 combines Bitcoin mining, digital infrastructure services, and a sizable Bitcoin treasury.

Both companies are closely linked to Bitcoin price movements. Accumulating and holding BTC is a key part of their long-term strategy, making them popular choices for investors looking for crypto-related stocks. As Bitcoin continues to attract institutional and retail interest, comparing Strategy and Hut 8 can help investors determine which company is better positioned to benefit from the cryptocurrency's long-term growth and deliver stronger returns.

Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which Bitcoin stock offers a more compelling investment case.

The Case for MSTR StockStrategy remains a high-risk investment despite positioning itself as the world's largest Bitcoin Treasury Company. The company's financial performance is overwhelmingly tied to Bitcoin price movements rather than its legacy enterprise analytics software business, making earnings highly volatile.

In the first quarter of 2026, it reported a $14.5 billion operating loss and a $12.8 billion net loss, largely due to a $14.5 billion unrealized fair-value loss on its Bitcoin holdings following the cryptocurrency's sharp decline. While software revenues increased 11.9% year over year to $124.3 million, it remains small relative to its Bitcoin operations, limiting its ability to offset crypto-driven swings. Continued reliance on capital raises, preferred equity issuance and market confidence to fund Bitcoin purchases exposes investors to financing, dilution and cryptocurrency market risks.

However, if Bitcoin use continues to grow, the long-term opportunity associated with Strategy will remain highly attractive. The company currently holds 847,363 BTC, reinforcing its position as the largest corporate Bitcoin holder. Management continues to leverage capital markets through Digital Credit products such as STRC, raising $11.7 billion year to date while targeting continued Bitcoin accumulation and growth in Bitcoin-per-share. MSTR also maintains a profitable enterprise analytics software business that provides recurring operating revenues alongside its Bitcoin strategy.

As Bitcoin appreciates over time, Strategy's massive treasury, disciplined accumulation strategy and expanding digital financing platform could drive significant long-term shareholder value despite the cryptocurrency's inherent volatility.

The Case for HUT StockUnlike Strategy's Bitcoin treasury-centric model, Hut 8 has evolved beyond a pure Bitcoin miner into a diversified digital infrastructure platform while maintaining meaningful Bitcoin exposure through its Bitcoin mining operations and strategic Bitcoin treasury. The company continues to accumulate and hold a substantial Bitcoin reserve, currently totaling 10,278 BTC, while generating new Bitcoin through mining operations, providing shareholders with direct exposure to long-term Bitcoin appreciation. This sizable treasury also strengthens Hut 8's balance sheet and financial flexibility.

Beyond Bitcoin, Hut 8 is leveraging its power-first strategy to diversify revenue streams. The company has secured $16.8 billion in contracted lease revenues across two hyperscale AI campuses under long-term, triple-net agreements with investment-grade counterparties. Its 8,375 MW development pipeline and expected annualized net operating income of approximately $1.1 billion from contracted assets provide strong long-term revenue visibility.
Hut 8 also strengthened its financial flexibility by completing the sale of its 310 MW natural gas power portfolio, refinancing its Bitcoin-backed credit facility at a lower interest rate, unlocking roughly 3,300 BTC from collateral, and securing a first-of-its-kind $3.25 billion investment-grade, non-recourse financing package for its River Bend AI campus. The strategic relationship with American Bitcoin allows Hut 8 to retain exposure to Bitcoin mining while expanding into higher-margin digital infrastructure and AI services, reducing dependence on mining economics alone. Revenues surged to $71 million in the first quarter of 2026 from $21.8 million a year earlier, highlighting strong operational momentum.

Despite these strengths, Hut 8 remains exposed to Bitcoin price volatility, with unrealized digital asset losses contributing to its first-quarter net loss. The company also faces implementation risks in scaling up its AI infrastructure projects; meanwhile, successfully converting projects at various stages of development into contracted revenues is crucial. Furthermore, regulatory uncertainty, growing competition in the AI infrastructure sector and the shifting economics of Bitcoin mining following the future ‘halving’ events could negatively impact profitability and investor sentiment.

Share Price Performance for MSTR & HUTYear to date (YTD), HUT shares have soared 152.7%, immensely outperforming MSTR’s 38.1% decline. Hut 8's rally is supported by its expanding AI data center business, robust development pipeline, stronger balance sheet and continued Bitcoin treasury growth, reinforcing confidence in its diversified growth strategy.

On the other hand, MSTR failed to deliver expected results as it faced massive unrealized losses due to the drop in Bitcoin prices, which overshadowed the modest growth of its enterprise analytics software business.

MSTR vs. HUT YTD Price Performance
Image Source: Zacks Investment Research

Valuation ComparisonBoth MSTR and HUT carry a Value Score of F, suggesting neither stock appears inexpensive. However, MSTR commands a substantially richer valuation, trading at a forward 12-month P/S ratio of 65.84X versus HUT's 27.31X. This suggests investors are paying a much higher premium for MSTR's Bitcoin treasury strategy despite its recent underperformance. Hut 8, in contrast, appears more reasonably valued at current levels.

MSTR vs. HUT: P/S F12M Ratio
Image Source: Zacks Investment Research

MSTR vs. HUT: Which Has the Stronger Growth Estimates?Strategy is witnessing weakening earnings momentum, with the Zacks Consensus Estimate for 2026 declining 14.4% over the past 60 days to $116.70 per share. The company has also delivered an inconsistent earnings performance, missing consensus estimates in two of the last four quarters while beating them in the other two.

MSTR Earnings Estimate trend
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HUT’s 2026 loss is pegged at $3.16 per share; estimate revisions have trended lower over the past 60 days. Despite the projected loss, the company has demonstrated consistent operational execution by beating the Zacks Consensus Estimate in each of the last four quarters.

HUT Earnings Estimate trend
Image Source: Zacks Investment Research

Although both companies have experienced downward estimate revisions, Hut 8's consistent earnings beats reflect stronger operational execution, whereas Strategy's earnings remain more susceptible to Bitcoin-driven accounting volatility.

Conclusion: MSTR vs. HUT — Why HUT Comes Out AheadAlthough both companies provide meaningful Bitcoin exposure, Hut 8 currently offers the stronger investment case. Its diversified digital infrastructure strategy, expanding AI business, improving financial flexibility, consistent operational execution and comparatively reasonable valuation reduce reliance on Bitcoin alone.

While Strategy remains attractive for long-term Bitcoin bulls, Hut 8 appears better positioned to deliver more balanced and sustainable shareholder returns in the near term.

Currently, HUT carries a Zacks Rank #3 (Hold), while MSTR has a Zacks Rank #5 (Strong Sell).

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

Sam Vadas takes us through this morning's biggest movers at the opening bell. She highlights Darden Restaurants (DRI) after the company reported a jump in fourth quarter sales, CoreWeave's (CRWV) new bull in Rosenblatt, and a downgrade in Affirm (AFRM) after Morgan Stanley downgraded the stock to equal weight from overweight.

CAVA stock jumps 37% in six months on strong traffic, expansion and raised guidance, but margin pressures and valuation warrant caution.

OneSpan (OSPN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this internet security company have returned -0.3% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Internet - Software industry, to which OneSpan belongs, has lost 5.9% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, OneSpan is expected to post earnings of $0.25 per share, indicating a change of -26.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $1.23 for the current fiscal year indicates a year-over-year change of -17.5%. This estimate has changed +2.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.33 indicates a change of +8.1% from what OneSpan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, OneSpan is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For OneSpan, the consensus sales estimate for the current quarter of $57.75 million indicates a year-over-year change of -3.5%. For the current and next fiscal years, $246.53 million and $256.09 million estimates indicate +1.4% and +3.9% changes, respectively.

Last Reported Results and Surprise HistoryOneSpan reported revenues of $65.95 million in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.39 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $60.94 million, the reported revenues represent a surprise of +8.22%. The EPS surprise was +8.33%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

OneSpan is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about OneSpan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.