Track market-moving stories before they get noisy

It's been nearly four years since artificial intelligence (AI) became an investing trend that swept over the stock market. The launch of ChatGPT in November 2022 exposed the world to generative AI. Nvidia followed that up in its May 2023 earnings report by announcing "surging demand" for its AI chips, which triggered an explosion in AI stocks that continues today.

AI is still the major theme, but the focus is much broader than which company can make the best chip. Investors also need to consider companies that provide power systems, computing capacity, storage and memory, land, connectivity, and cooling systems that keep AI operational.

There are dozens of ways to invest in AI today, but my three favorite picks each play an important role in the AI ecosystem. And all have significant tailwinds right now that are worth considering.

Image source: Getty Images.

AI stock to buy No. 1: Taiwan Semiconductor Manufacturing Whether it's Nvidia or one of its competitors designing a chip, Taiwan Semiconductor Manufacturing (TSM -1.50%) is likely to be the company fabricating them. TSMC, as the company is best known, is the world's largest chip foundry, with an estimated 73% of the global market.

The company has started selling chips made with its new 2-nanometer process, which offers higher density and energy efficiency. TSMC's 2 nm processing technology accounted for 3% of TSMC's total revenue in the second quarter, but it's expected to become a major moneymaker for TSMC.

TSMC also announced it would invest an additional $100 billion in its Arizona facilities to support advanced packaging fabs and its 2 nm processing technology. The investment brings TSMC's total commitment to its Arizona sites to $265 billion.

"We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain, and support an increasing number of high-tech, high-paying jobs in the United States," CEO C.C. Wei said.

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AI stock to buy No. 2: Micron Technology Micron Technology (MU +3.59%) is one of the biggest winners so far this year, posting a gain of 240%, which is the second highest of any company in the S&P 500.

Micron makes high-performance memory and storage drives that are used in data centers, personal computers, mobile devices, and vehicles. It makes both NAND long-term storage, which allows devices to retain data even when they're powered off, and DRAM, which is semiconductor memory that temporarily stores active data. It's DRAM that is in high demand right now, driven by the growing number of data centers needed to train and run AI programs.

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Micron reported $41.45 billion in revenue for its fiscal 2026's third quarter (ended May 28), a whopping gain of 345% from a year ago. Net income was up 1,400% to $28.24 billion, and earnings per share increased from $1.68 to $24.67 per share.

Micron and other memory and storage stocks have slipped in recent weeks, but Wedbush Securities analyst Matt Bryson points to a catalyst -- the recent solid earnings performance of Dutch company ASML Holding, which makes commercial lithography systems for chipmakers. ASML noted it plans to increase its capacity by 30% in 2027, and Bryson takes that as a positive development for storage and memory stocks.

AI stock to buy No. 3: Nebius Group We've talked about chipmakers, storage and memory, and foundries. But my No. 3 favorite AI stock right now is Nebius Group (NBIS +1.64%), the former Russian internet company (now based in the Netherlands) that rebranded itself as an AI cloud services company.

The company provides cloud computing and GPU capacity for training and running AI workloads, serving as a strategic partner to Nvidia to scale its full-stack AI cloud platform. Nvidia invested $2 billion in Nebius to help the cloud services company deploy more than 5 gigawatts of capacity by the end of 2030. The deal calls for Nvidia and Nebius to collaborate on AI factory designs, the creation of an inference and agentic AI stack, AI infrastructure deployment, and fleet management.

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Nebius also signed an infrastructure agreement with Meta Platforms to provide $12 billion worth of dedicated capacity starting in 2027, and up to $15 billion in additional capacity -- essentially ensuring that Meta will be a backup buyer if Nebius is unable to sell its computing capacity.

Nebius' revenue in the first quarter was $399 million, up 684% from a year ago. The company spent an incredible $2.5 billion in capital expenditures, primarily GPUs and related hardware, in the first quarter. That's a huge number for a company with a market cap of only $53 billion. However, Nebius remains in a solid financial position, having raised $6.3 billion in the first quarter, and has a cash position of $9.3 billion.

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Texas Instruments TXN is experiencing a decline in share price despite surpassing Q2 earnings expectations and providing an optimistic Q3 forecast. The semiconductor company reported a significant year-over-year revenue growth of 22.8%, reaching $5.46 billion, which was well above market predictions. For Q3, TXN anticipates earnings per share (EPS) in the range of $2.23 to $2.57, with revenue projected between $5.65 billion and $6.15 billion, indicating another above-seasonal guidance as demand expands.

Demand Breadth: - Strong performance driven by industrial, data center, and automotive sectors. - Industrial revenue grew approximately 30% year-over-year and about 10% sequentially. - Automotive revenue increased in the mid-teens year-over-year and upper single digits sequentially. - Data center revenue doubled year-over-year and rose around 20% sequentially. Cycle: - TXN perceives customers as being in the early stages of the cycle. - Backlogs have increased for both immediate and longer-term orders, supporting management's outlook for broad, sustained demand growth. Margins & Pricing: - Gross margin expanded by 340 basis points sequentially to 61%, with expectations for further modest growth in Q3. - Pricing remained stable in the first half, contrary to TXN's usual slight declines, with increases starting primarily in Analog. Inventory and Capacity: - TXN's investments in inventory and manufacturing capacity enable quick responses to heightened demand. - The company has sufficient cleanroom infrastructure to support approximately three years of growth and maintains a capital expenditure outlook of $2-3 billion for the year, potentially leaning toward the higher end. Q3 Outlook: - TXN anticipates a stronger and broader demand landscape heading into Q3. - Industrial, data center, and automotive sectors are expected to be the primary growth drivers, with personal electronics also expected to improve. Despite the stock's recent downturn, TXN's Q2 performance was promising, indicating a potential recovery into a broader upcycle. The automotive sector accelerated, and both industrial and data center markets remained robust. The above-seasonal Q3 guidance suggests ongoing strength in core markets. TXN's strategic investments in inventory and manufacturing are yielding benefits, allowing for quick adaptations to increasing customer demands and potential gains from suppliers with longer lead times. The gross margin has improved significantly, and management anticipates further increases in Q3, with pricing expected to contribute more in Q4 and beyond. The stock's decline may reflect high expectations and the possibility that stronger demand could push capital expenditures toward the upper limit of TXN's forecast. It will be crucial for TXN to demonstrate that the overall demand environment continues to foster sustained revenue growth, higher factory utilization, and improved margins as the year progresses into 2027.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Key Takeaways HON beat Q2 estimates as automation strength drove revenue, earnings and orders growth. HON raised 2026 organic sales, segment margin and adjusted EPS outlook despite a lower sales forecast.Honeywell Technologies expects stronger Q3 and Q4 earnings, margins and organic sales growth. Honeywell Technologies (HON - Free Report) reported second-quarter 2026 adjusted earnings of $1.95 per share, which surpassed the Zacks Consensus Estimate of $1.80. The bottom line increased 10% year over year on an adjusted basis. On a reported basis, the company’s earnings were $16.65 per share compared with $1.21 in the year-ago quarter, reflecting the impact of a one-time gain related to the deconsolidation of Quantinuum.

Total revenues of $5.19 billion surpassed the consensus estimate of $4.98 billion. The top line increased 3% from the year-ago quarter, driven by strength in the Building Automation and Industrial Automation segments. Organic sales increased 4% year over year. Orders rose 16%, while backlog increased 9% to approximately $20 billion.

Including the Honeywell Aerospace business, Honeywell International reported total revenues of $9.72 billion in the second quarter of 2026, up 4% year over year from $9.32 billion.

HON’s Q2 Performance by Business SegmentFollowing the separation of Honeywell Aerospace on June 29, 2026, the company operates as a pure-play automation business under the segments discussed below.

Industrial Automation revenues declined 5% year over year to $1.50 billion. However, organic sales grew 4% year over year. Organic sales growth was driven by strength in utilities projects, warehouse backlog conversion, and sensing and industrial measurement businesses.

Building Automation revenues totaled $2 billion, up 10% year over year. Organic sales increased 9% year over year. The upside was driven by continued strength in both the building products and building solutions businesses. While sales from the building products business grew 10%, the same from the building solutions business increased 7%, driven by services.

Process Automation and Technology revenues increased 4% to $1.68 billion. However, organic sales fell 1% year over year. The results were driven by continued strength in LNG and a return to growth in automation projects. However, lower catalyst shipments compared with the year-ago quarter offset the gains.

Costs & Margins of HONIncluding the Honeywell Aerospace business, the company’s total cost of sales, comprising the cost of products and services sold, was about $6.07 billion, up 7.2% year over year. Selling, general and administrative expenses were $1.34 billion, down 1.3% year over year. Interest expenses and other financial charges were $363 million, reflecting an increase of 10.3% year over year.

Operating income was $1.74 billion, down 5.8% year over year. The operating income margin was 17.9% compared with 19.8% in the year-ago period.

Excluding the Honeywell Aerospace business, operating income was $662 million, down 0.6% year over year. The operating income margin was 12.8% compared with 13.3% in the year-ago period.

HON’s Balance Sheet & Cash FlowIncluding the Honeywell Aerospace business, HON had cash and cash equivalents of $8.75 billion at the end of the second quarter of 2026 compared with $12.49 billion at the end of December 2025. Long-term debt was $26.23 billion, lower than $27.14 billion at 2025-end.

Excluding the Honeywell Aerospace business, Honeywell Technologies generated $563 million in cash from continuing operating activities in the second quarter of 2026 compared with $187 million in the prior-year period. Capital expenditures totaled $187 million compared with $108 million in the prior-year quarter. Free cash flow was $456 million compared with $114 million in the year-ago quarter.

Q3 Guidance by HONFor the third quarter of 2026, Honeywell Technologies expects sales to be in the range of $4.9-$5 billion. Organic sales are expected to increase 4-6%.

HON expects a segment margin of 20-20.7%. The metric indicates an increase of 240-310 basis points year over year. Adjusted earnings per share are expected to be between $2.05 and $2.20. The metric indicates an increase of 21-29% on a year-over-year basis.

The adjusted effective tax rate is expected to be approximately 17%.

Q4 Guidance by HONFor the fourth quarter of 2026, Honeywell Technologies expects sales to be in the range of $5-$5.1 billion. Organic sales are expected to increase 4-6%.

HON expects a segment margin of 22-22.7%. The metric indicates an increase of 400-470 basis points year over year. Adjusted earnings per share are expected to be between $2.28 and $2.43. The metric indicates an increase of 25-33% on a year-over-year basis.

The adjusted effective tax rate is expected to be approximately 17%.

Honeywell’s 2026 OutlookFor 2026, Honeywell Technologies raised its organic sales growth, segment margin and adjusted earnings outlook. Excluding the Honeywell Aerospace business, the company expects sales to be in the range of $19.8-$20 billion compared with the previous projection of $19.9-$20.2 billion. The lower sales forecast reflects the earlier-than-expected divestitures of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses.

Organic sales are expected to increase 3-4%, up from the prior projection of 2-3%. HON expects a segment margin of 20.1-20.5%. The metric indicates an increase of 250-290 basis points year over year.

Adjusted earnings per share are expected to be between $8.05 and $8.35, up from the previous projection of $7.90-$8.30. The metric indicates an increase of 25-29% on a year-over-year basis.

Free cash flow is expected to be approximately $2 billion. The outlook includes the projected results of the Johnson Matthey Catalyst Technologies business following the completion of the acquisition on July 17, 2026.

HON’s Zacks Rank & Key PicksThe company currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks are discussed below.

3M Company (MMM - Free Report) currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MMM delivered a trailing four-quarter average earnings surprise of 4.1%. In the past 60 days, the Zacks Consensus Estimate for 3M’s 2026 earnings has increased 0.9%.

Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 4.0%.

The Zacks Consensus Estimate for AIT’s fiscal 2026 (ended June 2026) earnings has improved by a penny in the past 60 days.

Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.3%.

In the past 60 days, the consensus estimate for CR’s 2026 earnings has increased by 0.3%.

Key Takeaways Union Pacific beat Q2 estimates as EPS rose 8.5% and revenue increased 11.5% year over year.UNP grew freight revenues 12%, led by pricing gains, higher fuel surcharge revenue and volume growth.UNP expects high-single digit EPS growth in 2026 with operating ratio improvement and $3.3B capex. Union Pacific Corporation (UNP - Free Report) reported impressive second-quarter 2026 results, wherein both the earnings and revenues beat the Zacks Consensus Estimate.

Quarterly earnings (excluding 5 cents from non-recurring items) of $3.41 per share beat the Zacks Consensus Estimate by 2.8% and increased 8.5% on a year-over-year basis.

Operating revenues of $6.86 billion beat the Zacks Consensus Estimate of $6.65 billion and rose 11.5% on a year-over-year basis, driven by core pricing gains, volume growth and higher fuel surcharge revenues, partially offset by business mix. Revenue carloads declined 1% year over year.

Freight revenues (accounting for 95% of the top line) increased 12% year over year to $6.52 billion. Other revenues increased 11% year over year to $346 million in the second quarter of 2026.

Operating income increased 9% year over year to $2.76 billion. Total operating expenses of $4.10 billion inched up 13% year over year. Fuel expenses rose 63% year over year. Expenses on purchased services and materials increased 10% on a year-over-year basis, while expenses on compensation and benefits decreased 1% year over year.

The operating ratio (operating expenses as a percentage of revenues) in the second quarter of 2026, on an adjusted basis, improved 110 basis points year over year to 59.2%.

UNP’s Segmental HighlightsBulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $2.04 billion, which increased 7% on a year-over-year basis. Segmental revenue carloads decreased 1% year over year to $514 million.

Industrial freight revenues totaled $2.39 billion, up 8% year over year. Segmental revenue carloads increased 3% year over year to $586 million.

Freight revenues in the premium division were $2.08 billion, up 21% year over year. Premium revenue carloads increased 4% year over year to $1.06 billion.

UNP’s LiquidityUnion Pacific exited the second quarter of 2026 with cash and cash equivalents of $1.16 billion compared with $1.27 billion at the quarter's end of 2026. Debt (due after a year) of $29.04 billion was down 4.14% compared with the December-quarter end of 2026 actuals.

UNP’s 2026 OutlookFor 2026, earnings per share are expected to register high-single digit growth, consistent with attaining the three-year CAGR target of high-single digit to low-double digit growth through 2027.

UNP further anticipates operating ratio improvement. Capital expenditure is expected to be approximately $3.3 billion. UNP aims to continue generating strong cash while increasing annual dividend payouts.

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

Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

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SummaryServiceNow delivered strong Q2 results, surpassing revenue and EPS estimates, with subscription revenue up ~25% YoY and growing high-value customer momentum.GAAP subscription gross margins deteriorated sharply in Q2. On paper, this massive deterioration looks threatening.I discuss why looking at the reported GAAP gross margin hides some important details buried deep in the earnings report. After all, the gross margin decline looks worse than it is.The bear argument for ServiceNow is centered on its deteriorating gross margin and technology disruption. JHVEPhoto/iStock Editorial via Getty Images

AI has made life difficult for SaaS companies. Well, at least for the majority of them. Apart from Palantir Technologies Inc. (PLTR), which has increasingly positioned itself as a business transformation solutions provider, not a SaaS company, SaaS stocks have suffered

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NOW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Are momentum stocks on the verge of a major recovery? Consider this: the iShares MSCI USA Momentum Factor ETF (CBOE:MTUM) fell from $345.22 on June 22 to $302.09 on Friday, July 17, and has rebounded since. The fund sits unchanged today at $314.65 and up 24% year to date (YTD). (Note that MTUM is an unleveraged fund that periodically rebalances with volatile, shifting factor exposure.)

If last Friday’s low marked the bottom for the momentum trade, the most beaten-down high-momentum names could see outsized upside. However, a triple from today’s prices remains a very high bar, especially for unprofitable companies. Two of the three names below are unprofitable on a trailing basis, and the third is a large, richly valued software company where tripling is difficult.

Investors can treat the “could triple” idea as a high-risk, speculative, multi-year bull case, not a forecast. It mainly depends on the momentum rebound holding and each individual thesis playing out. Here are three ranked candidates.

3. ServiceNow (NOW) ServiceNow (NYSE:NOW | NOW Price Prediction) stock trades at $94.04, down 39% YTD, giving it a TTM P/E ratio of 59x on TTM EPS of $1.60. The bull case rests on agentic AI orchestration becoming a durable growth pillar, much like cybersecurity software has stayed resilient through broader software-sector weakness.

ServiceNow delivered a strong Q2 FY2026 with revenue of $3.987 billion, up 24% year over year (YoY), and CEO Bill McDermott stated that “agentic deployments of ServiceNow AI increased ninefold in just nine months.” A Wall Street analyst target of $138.84 implies meaningful upside.

The risk is ServiceNow’s size. With a market cap above $98 billion, a triple would require the company to sustain premium AI growth for years while software multiples expand. Reddit’s r/investing community has debated whether AI capex is crowding out software demand.

2. Wolfspeed (WOLF) Wolfspeed (NYSE:WOLF) stock is up 51% YTD to $26.33, with no TTM P/E because Wolfspeed remains unprofitable on TTM EPS of -$13.28. The bull thesis centers on a vertically integrated silicon carbide supply chain that could inflect as SiC adoption ramps in AI data centers, industrial electrification, and grid modernization.

Following Chapter 11 emergence, Wolfspeed cleaned up its balance sheet, cutting total liabilities by 71% YoY and reducing annual interest expense by $62 million. CEO Robert Feurle highlighted the launch of the “first commercially available 10 kV silicon carbide power MOSFET” alongside a next-generation TOLT portfolio and 300mm substrate platform.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ServiceNow didn't make the cut. Grab the names FREE today.

However, the risk profile shouldn’t be overlooked. Wolfspeed stock carries deeply negative EPS, negative gross margins, and bearish Wall Street coverage with a Strong Sell in the mix and analyst target of $30. Reddit sentiment on WOLF was consistently bearish across all tracked periods earlier this month, underscoring how speculative this SiC recovery story remains.

1. Navitas Semiconductor (NVTS) Navitas Semiconductor (NASDAQ:NVTS) stock is up 70% YTD to $12.13, with no TTM P/E (unprofitable) and TTM EPS of -$0.63. Recent showcases include 800V power delivery boards debuted at NVIDIA (NASDAQ:NVDA) GTC and a 250 kW solid-state transformer with EPFL, part of a broader pivot into gallium nitride and high-voltage silicon carbide.

CEO Chris Allexandre stated that Navitas is “continuing to pivot away from mobile and consumer to focus on high-power markets with our GaN and high-voltage SiC solutions.” Navitas’s management targets a $3.5 billion serviceable addressable market by 2030 growing at a 60%+ compound annual growth rate (CAGR) across AI data center, grid, performance computing, and industrial electrification.

Navitas stock fell hard in the recent momentum sell-off, making it the highest-torque rebound candidate with a beta of 3.815. The risk is equally sharp: Navitas has no profits, a price-to-sales ratio above 76x, and revenue that fell 39% YoY in the most recent quarter as management winds down legacy consumer business.

Polymarket currently prices a 76% probability that Navitas beats its upcoming non-GAAP EPS estimate. Yet, even with a favorable setup, Navitas would need years of execution on the AI-power and grid-infrastructure roadmap for a share-price triple to materialize.

The Momentum Rebound Hypothesis The three names tie together under a single hypothesis: if the July 17 momentum low in the MTUM ETF holds, the highest-beta stocks inside the momentum factor could bounce hard from oversold levels. A tripling scenario is enticing as a speculative, multi-year bull case, but it requires both the factor rebound to stick and each company’s road map to execute cleanly.

Should the July 17 low fail, these high-beta names could fall just as fast as they’ve bounced. Cautious, modest position sizing is appropriate given the volatility across NVTS, WOLF, and NOW stocks.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ServiceNow didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Defense prime contractors are ripping higher Thursday on beat-and-raise quarters that underscore resilient demand and record backlogs even as the broader market slides.

iShares U.S. Aerospace & iShares U.S. Aerospace & Defense ETF (BATS:ITA) also rose and both Lockheed and RTX stocks remain up more than 30% over the past year.

Lockheed Martin‘s Record OrdersTHAAD Contract Boosts Long-Term ProspectsImage: Shutterstock

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Item 1 of 3 U.S. Secretary of the Army Christine Wormuth speaks near a Terminal High Altitude Area Defense (THAAD) missile and the Pac-3 Missile Segment Enhancement during the Association of the United States Army annual meeting and exposition at the Walter E. Washington Convention Center in Washington, U.S., October 14, 2024. REUTERS/Nathan Howard/File Photo

[1/3]U.S. Secretary of the Army Christine Wormuth speaks near a Terminal High Altitude Area Defense (THAAD) missile and the Pac-3 Missile Segment Enhancement during the Association of the United States... Purchase Licensing Rights, opens new tab Read more

WASHINGTON, July 23 (Reuters) - The world's two biggest defense contractors, Lockheed Martin and RTX, said on Thursday they expect strong profits going forward because a wave of global conflicts from Iran to Ukraine has depleted Pentagon stockpiles that will need replenishing.

Investors cheered ​the news, pushing shares of Lockheed (LMT.N), opens new tab up 10.6% and boosting RTX (RTX.N), opens new tab 7.7%.

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President Donald Trump has been urging defense contractors to ‌increase production as the U.S.-Israeli war on Iran and a prolonged Russia-Ukraine conflict drain the Pentagon's inventory.

Trump has also proposed a record $1.5 trillion military budget for fiscal 2027. The U.S. House of Representatives this week passed its version of a massive defense policy bill that would authorize an unprecedented $1.15 trillion in spending for the military.

Demand is expected ​to remain strong. The U.S. has used more than 50,000 rockets, missiles and rocket-propelled munitions since the start of the Russia-Ukraine ​conflict in 2022 and throughout the U.S. attack on Iran, which began on February 28, according to Pentagon ⁠data.

Lockheed's missiles and fire control revenue rose nearly 20% to $4.1 billion, driven by a production ramp-up of its PAC-3 and precision strike missiles, ​both of which have been used in the war on Iran in the last few months. The segment was also helped by higher production ​of its THAAD missile interceptors, after the company signed a $35 billion contract with the U.S. government in June to quadruple output.

"The government is giving us a lot more flexibility than they traditionally would have done... so that we can be faster," Lockheed Martin's CEO Jim Taiclet said on the post-earnings call.

"That's what I hear ​from the deputy secretary every time we get together and beyond: faster, faster, faster," he added, referring to U.S. Deputy Secretary of Defense Steve ​Feinberg.

Lockheed's total backlog — orders yet to be produced — grew to $230.4 billion, up 38.3% from $166.5 billion last year.

"We're in active dialogue looking at other potential opportunities. We ‌do see ⁠a real opportunity here for more partnerships to scale production faster, particularly in Europe," Lockheed CFO Evan Scott said on a call with Reuters.

The company now expects 2026 revenue between $79.75 billion and $81.75 billion, up from a prior range of $77.5 billion to $80 billion, and above analyst expectations of $79.14 billion, according to LSEG data.

At RTX, backlog rose 22% from a year earlier to $289 billion, including $170 billion in commercial aerospace orders and $119 billion in defense. ​Demand for aircraft maintenance, repair and ​overhaul services has remained strong ⁠as supply-chain snags and delayed deliveries have forced airlines to keep older, more expensive fleets flying longer.

Sales at Raytheon, RTX's weapons business, rose 18% to $8.27 billion, helped by demand for Patriot, Standard and AMRAAM missile systems.

"About ​half of (Raytheon's) bookings in the first half of the year, $10 billion, came from international customers. Of that $10 ​billion, $7 billion came ⁠from European customers," RTX Chief Financial Officer Neil Mitchill told Reuters.

RTX now expects 2026 adjusted sales of $95 billion to $96 billion, up from $92.5 billion to $93.5 billion, above analyst estimates of $94.08 billion. It raised its adjusted profit forecast to $7.10-$7.25 per share, from $6.70-$6.90 previously.

About two-thirds of the increase in RTX's annual profit guidance ⁠comes from ​Raytheon, and another roughly 25% from Collins, the airplane components business, said Seth Seifman, analyst ​at JPMorgan.

RTX CEO Chris Calio said on the post-earnings call the company saw potential opportunities in the Middle East amid current developments, noting that RTX had strong customer relationships in ​both the Middle East and Europe.

Both companies topped Wall Street's second-quarter estimates.

Reporting by Mike Stone in Washington; editing by Chris Sanders and Nia Williams

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Mike Stone is a Reuters reporter covering the U.S. arms trade and defense industry. Most recently Mike has been focused on the Golden Dome missile defense shield. Mike also spends a lot of his time writing on Ukraine and how industry has adapted, or faltered as it supports that conflict. Mike, a New Yorker, has extensively covered how the U.S. has supplied Ukraine with weapons, the cadence, decisions and milestones that have had battlefield impacts. Before his time in Washington Mike’s coverage focused on mergers and acquisitions for oil and gas companies, financial institutions, defense companies, consumer product makers, retailers, real estate giants, and telecommunications companies.

Lockheed Martin (LMT +10.00%) stock surged ahead 9% through 1:22 p.m. ET Thursday after crushing on earnings this morning.

Analysts expected Lockheed to report $7.23 per share in profit on $19.4 billion in sales for Q2 2026. Instead, Lockheed earned $7.94 per share on $20.1 billion in sales -- and then raised guidance.

Image source: Lockheed Martin.

Lockheed Martin Q2 earnings Lockheed grew its sales 11% year over year, while profits surged an astounding 444%, rebounding from weak profits a year ago that were burdened by losses on "a classified program at Aeronautics" as well as a pair of helicopter programs for foreign customers. Sales increased in all four of the company's main business divisions, and year-ago losses at Aeronautics and Rotary and Mission Systems (those were the helicopter programs) were erased.

Free cash flow flipped from negative $150 million to positive $2.9 billion.

So you can understand why investors were pleased.

Today's Change

(

10.00

%) $

51.42

Current Price

$

565.78

What's next for Lockheed Martin stock Turning next to guidance, Lockheed kept the good news coming.

Full-year sales previously forecast to fall below $80 billion will now more likely approximate $80.8 billion, plus or minus $1 billion. Earnings will similarly be about $0.50 per share better than forecast -- between $29.95 and $30.65. Free cash flow for the year should range from $7 billion to $7.2 billion, also ahead of prior expectations.

All things considered, Lockheed is doing its darnedest to prove out my optimism about the stock. Although the shares still look a little pricey when valued on GAAP profit, the strong cash production has Lockheed stock trading for only about 16.5x free cash flow.

Between its 11% sales growth rate and near-3% dividend yield, I still believe Lockheed stock is cheap enough to buy,

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

Reliance, Inc. (RS) Q2 2026 Earnings Call Transcript

Investors looking for stocks in the Aerospace - Defense sector might want to consider either General Dynamics (GD - Free Report) or GE Aerospace (GE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

General Dynamics and GE Aerospace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that GD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

GD currently has a forward P/E ratio of 22.40, while GE has a forward P/E of 43.63. We also note that GD has a PEG ratio of 2.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GE currently has a PEG ratio of 2.64.

Another notable valuation metric for GD is its P/B ratio of 3.87. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GE has a P/B of 19.81.

Based on these metrics and many more, GD holds a Value grade of B, while GE has a Value grade of D.

GD has seen stronger estimate revision activity and sports more attractive valuation metrics than GE, so it seems like value investors will conclude that GD is the superior option right now.

By PYMNTS  |  July 23, 2026

 | 

A collection of crypto and finance companies have launched a bitcoin-focused security initiative.

The Bitcoin Security Consortium, announced in a news release Thursday (July 22), is backed by $15 million in pledges for its members, and is designed to promote the long-term security and survival of the bitcoin network.

The group’s founding members include Anchorage Digital, ARK Invest, BlackRock, Block, Blockstream, Coinbase, Fidelity Digital Assets, Galaxy and Strategy.

“As long-term holders, we have every incentive to see Bitcoin remain secure for generations,” said Strategy CEO Phong Le. “Funding the people who do this work, and helping inform the conversation around it, is a natural way for us to contribute.”

According to the release, the consortium will help fund and support researchers and developers working on bitcoin security, including the work of getting it ready for quantum computing.

“Large-scale quantum computers capable of threatening Bitcoin’s cryptography do not exist today, and credible estimates place such capability years away,” the release added. “Preparing post-quantum protections is nonetheless a meaningful long-term priority, and one the Bitcoin technical community is already actively working on.”

The consortium says it is modeled on the industry’s support of open-source software, providing resources and awareness without controlling the underlying work.

“It does not develop or direct bitcoin’s protocol, takes no position on specific protocol changes, and does not speak for bitcoin or its developers,” the release added. “Bitcoin’s development is, and will remain, the work of a global, decentralized community of contributors.”

The announcement follows a report earlier this month from Reuters that the cryptocurrency sector was preparing defenses against quantum computing-related threats, out of concerns that the technology could circumvent the cryptography protecting crypto transactions and digital wallets.

As that report noted, the $2 trillion crypto space already has a history of hacks. Quantum computing could aggravate that problem, as it could be used to unscramble the standard digital encryption methods.

Meanwhile, PYMNTS wrote in May that the factors destabilizing digital assets are the same ones affecting a variety of sectors, trucking logistics networks, eCommerce companies, industrial supply chains, financial institutions and enterprise software systems among them.

“The infrastructure designed to establish trust online, from passwords and digital certificates to vendor onboarding systems and payment rails, is increasingly vulnerable to industrialized fraud, AI-enabled impersonation and next-generation cryptographic threats,” that report said.

Key Takeaways V.F. Corp. is expected to post a 4.9% revenue decline and a narrower fiscal Q1 loss.The North Face, Timberland and Altra growth may partly offset continued weakness at Vans.Gross margin gains may be outweighed by higher SG&A, with an operating loss near $100 million. V.F. Corporation (VFC - Free Report) is scheduled to report first-quarter fiscal 2027 results on July 29, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.68 billion, indicating a 4.9% dip from the prior-year quarter’s figure.

The consensus estimate calls for a loss of 22 cents per share, narrowing from a loss of 24 cents in the year-ago quarter. The metric has been stable in the past 30 days.

V.F. Corp. delivered an earnings surprise of 100% in the last reported quarter. In the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate by 47.5%.

Key Factors to Influence VFC’s Q1 ResultsV.F. Corp.’s first-quarter fiscal 2027 results are likely to reflect continued strength in its growth brands, led by The North Face, Timberland and Altra. Management expects these brands to benefit from sustained investments in product innovation, marketing and direct-to-consumer ("DTC") initiatives. The North Face is expected to maintain healthy momentum across categories, while Timberland should continue benefiting from stronger full-price sales and store expansion. Altra is also likely to remain a key growth driver, supported by product launches and increasing brand awareness. These factors are expected to partially offset continued weakness in Vans and support the company's long-term growth strategy.

The quarter is expected to remain pressured by continued softness at Vans. Management projects first-quarter revenues to decline low-single digits, primarily due to wholesale timing shifts that pulled certain orders into the fourth quarter of fiscal 2026. In addition, the company expects the first half of fiscal 2027 to remain weaker than the second half, with wholesale demand still recovering. While Vans' Americas DTC business continues to improve, management believes wholesale recovery will take longer as new product momentum gradually translates into higher sell-in across retail partners.

Investors will also closely watch VFC's profitability trends. The company expects gross margin expansion in the first quarter, supported by pricing actions, improved inventory management, better product mix and operational efficiencies. However, these gains are expected to be more than offset by higher SG&A expenses as VFC continues investing aggressively in marketing, DTC capabilities and Altra to support long-term growth. Consequently, management expects an operating loss of roughly $100 million for the quarter, which is incorporated into its full-year guidance.

Macroeconomic challenges are also expected to remain a headwind during the quarter. Management cited ongoing geopolitical disruptions in the Middle East, softer demand in Europe and uncertainty surrounding tariffs as factors likely to pressure first-half revenue trends. Although VFC has implemented sourcing diversification, pricing actions and supply-chain mitigation initiatives to lessen the tariff impact, these external factors are expected to weigh on near-term performance. Nevertheless, management reiterated confidence in achieving full-year revenue growth, expanding operating margins and progressing toward its medium-term financial targets.

What the Zacks Model Unveils for VFCOur proven model doesn’t conclusively predict an earnings beat for V.F. Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

V.F. Corp. currently has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Valuation Picture of VFC StockGoing by the price/earnings ratio, VFC stock is currently trading at 14.48 on a forward 12-month basis, lower than the Textile - Apparel industry’s 15.67. It is also trading lower than its high of 21.42.

Image Source: Zacks Investment Research

The recent market movements show that VFC’s shares have lost 14.2% in the past six months compared with the industry's 1.5% drop.

Image Source: Zacks Investment Research

Stocks Poised to Beat Earnings EstimatesHere are some companies that, according to our model, have the right combination of elements to post an earnings beat:

SharkNinja, Inc. (SN - Free Report) currently has an Earnings ESP of +1.29% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

SN is likely to register growth in its bottom and top lines when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating a 13.5% increase from the figure reported in the year-ago quarter.

The consensus estimate for SN’s second-quarter earnings is pegged at $1.09 per share, implying 12.4% growth from the year-ago quarter’s actual. The consensus mark has dipped a penny in the past 30 days.

MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +3.32% and a Zacks Rank of 3. MGM is likely to register a top-line increase when it reports second-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.5 billion, indicating a 1.4% rise from the figure reported in the year-ago quarter.

The consensus estimate for MGM Resorts’ second-quarter earnings is pegged at 62 cents a share, implying a 21.5% decrease from the year-earlier quarter. The consensus mark has increased by 2 cents in the past seven days.

Hilton Worldwide, Inc. (HLT - Free Report) currently has an Earnings ESP of +1.54% and a Zacks Rank of 3.

For the to-be-reported quarter, Hilton Worldwide’s earnings are expected to increase 3.6%. Hilton Worldwide reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.6%.

S&P Global is a leaner, higher-margin, and likely higher-growth company post-Mobility spin-off. Ratings and Indices segments are benefiting from robust issuance, record ETF inflows, and index performance, driving expected Q2 acceleration. My Q2 revenue growth estimate of 11.7% outpaces consensus.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at State Street Corporation (STT - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. State Street Corporation currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if STT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For STT, shares are up 1.27% over the past week while the Zacks Banks - Major Regional industry is up 1.31% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.69% compares favorably with the industry's 4.93% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of State Street Corporation have increased 22.92% over the past quarter, and have gained 67.41% in the last year. On the other hand, the S&P 500 has only moved 5.37% and 20.16%, respectively.

Investors should also pay attention to STT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STT is currently averaging 2,512,177 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with STT.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STT's consensus estimate, increasing from $12.35 to $13.68 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that STT is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep State Street Corporation on your short list.

Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB) reported stronger-than-expected second quarter 2026 results on Thursday, with earnings and revenue topping Wall Street expectations, although shares edged about 2% lower as investors weighed a slightly reduced near-term copper sales outlook.

The company reported adjusted earnings per share of $0.74, ahead of analyst estimates of $0.62, while revenue came in at $7.03 billion, exceeding consensus expectations of $6.71 billion.

The company produced 786 million pounds of copper, 192,000 ounces of gold and 23 million pounds of molybdenum during the quarter. Consolidated sales totaled 710 million pounds of copper, 123,000 ounces of gold and 25 million pounds of molybdenum.

Freeport highlighted strong operational performance during the quarter, noting that consolidated copper sales exceeded its April 2026 estimates and average unit net cash costs were better than expected.

Average realized prices during the period were $6.17 per pound for copper, $4,520 per ounce for gold and $28.75 per pound for molybdenum.

Freeport maintained its full-year 2026 copper sales forecast at approximately 3.1 billion pounds, but lowered its third-quarter copper sales outlook to 750 million pounds.

The company expects third-quarter sales of 160,000 ounces of gold and 22 million pounds of molybdenum.

“We achieved strong results in the second quarter, supported by solid execution of our operating plans and favorable pricing for our products,” Freeport CEO Kathleen Quirk said.  

“We made steady progress with our Grasberg ramp-up and our Americas operations delivered excellent performance, which resulted in year-over-year improvements to bottom-line results.”

Jefferies reiterated its ‘Buy’ rating on Freeport-McMoRan following the results, noting that second-quarter EBITDA came in 12% above consensus estimates, supported by higher copper sales and lower-than-expected costs.

The analyst highlighted that copper sales of 710 million pounds exceeded prior guidance of 690 million pounds, while net cash costs of $1.97 per pound were below the previous outlook of $2.24 per pound.

Jefferies noted that full-year copper sales guidance remained unchanged, while cost guidance was reduced by $0.05 per pound following the quarterly performance.

Jefferies wrote that the Grasberg Block Cave ramp-up appears to be progressing in line with expectations, although the timing of planned sales has shifted from the third quarter into the fourth quarter.

The analyst noted that the company’s 2028 production outlook was slightly reduced, but maintained that the key focus remains on delivering the Grasberg recovery plan over the next two years.

“The key for Freeport is to deliver the recovery at the GBC in line with guidance over the next two years,” Jefferies wrote, adding that a successful ramp-up could provide a “double benefit” through higher earnings and a higher valuation multiple for the shares.

The analyst concluded that Freeport remains a higher-risk, higher-reward investment opportunity.

Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB) reported stronger-than-expected second quarter 2026 results on Thursday, with earnings and revenue topping Wall Street expectations, although shares edged about 2% lower as investors weighed a slightly reduced near-term copper sales outlook.

The company reported adjusted earnings per share of $0.74, ahead of analyst estimates of $0.62, while revenue came in at $7.03 billion, exceeding consensus expectations of $6.71 billion.

The company produced 786 million pounds of copper, 192,000 ounces of gold and 23 million pounds of molybdenum during the quarter. Consolidated sales totaled 710 million pounds of copper, 123,000 ounces of gold and 25 million pounds of molybdenum.

Freeport highlighted strong operational performance during the quarter, noting that consolidated copper sales exceeded its April 2026 estimates and average unit net cash costs were better than expected.

Average realized prices during the period were $6.17 per pound for copper, $4,520 per ounce for gold and $28.75 per pound for molybdenum.

Freeport maintained its full-year 2026 copper sales forecast at approximately 3.1 billion pounds, but lowered its third-quarter copper sales outlook to 750 million pounds.

The company expects third-quarter sales of 160,000 ounces of gold and 22 million pounds of molybdenum.

“We achieved strong results in the second quarter, supported by solid execution of our operating plans and favorable pricing for our products,” Freeport CEO Kathleen Quirk said.  

“We made steady progress with our Grasberg ramp-up and our Americas operations delivered excellent performance, which resulted in year-over-year improvements to bottom-line results.”

Jefferies reiterated its ‘Buy’ rating on Freeport-McMoRan following the results, noting that second-quarter EBITDA came in 12% above consensus estimates, supported by higher copper sales and lower-than-expected costs.

The analyst highlighted that copper sales of 710 million pounds exceeded prior guidance of 690 million pounds, while net cash costs of $1.97 per pound were below the previous outlook of $2.24 per pound.

Jefferies noted that full-year copper sales guidance remained unchanged, while cost guidance was reduced by $0.05 per pound following the quarterly performance.

Jefferies wrote that the Grasberg Block Cave ramp-up appears to be progressing in line with expectations, although the timing of planned sales has shifted from the third quarter into the fourth quarter.

The analyst noted that the company’s 2028 production outlook was slightly reduced, but maintained that the key focus remains on delivering the Grasberg recovery plan over the next two years.

“The key for Freeport is to deliver the recovery at the GBC in line with guidance over the next two years,” Jefferies wrote, adding that a successful ramp-up could provide a “double benefit” through higher earnings and a higher valuation multiple for the shares.

The analyst concluded that Freeport remains a higher-risk, higher-reward investment opportunity.

Conventional wisdom says breakfast is the most important meal of the day, but you don't want to be starting your morning off by eating any of the 19 million eggs that are part of a massive recall.

Key Takeaways Cerebras will power Falcon AIDR with wafer-scale inference for real-time threat detection.The deal expands Cerebras into cybersecurity and strengthens its enterprise AI infrastructure position.First-quarter revenues rose 94% to $193.4 million, while 2026 core guidance increased to $855-$865 million. Cerebras Systems (CBRS - Free Report) announced on Thursday (July 22) that it has inked a partnership with CrowdStrike (CRWD - Free Report) , under which the latter will leverage CBRS’ wafer-scale inference technology to help power Falcon AI Detection and Response (AIDR). This will enable larger AI security models to operate at machine speed for real-time threat detection. At the same time, Cerebras has standardized on the CrowdStrike Falcon platform to secure its own operations, underscoring the strategic nature of the collaboration.

Cerebras’ latest partnership with CrowdStrike marks another important validation of its high-speed AI inference platform and expands its presence into one of the fastest-growing enterprise AI markets — cybersecurity. The partnership reinforces Cerebras’ strategy of targeting latency-sensitive AI inference workloads, where response time directly impacts business outcomes. The company has emphasized that “fast tokens are more valuable tokens” because speed improves productivity and enables new AI applications, which are necessary for cybersecurity applications.

The CrowdStrike collaboration broadens Cerebras’ customer base beyond frontier AI model developers into enterprise software. This diversification complements the company’s recently announced multi-year OpenAI agreement worth more than $20 billion and its Amazon Web Services partnership, which are already driving strong commercial momentum. In the first quarter of 2026, revenues increased 94% year over year to $193.4 million, including 178% growth in cloud and other services revenues, reflecting accelerating adoption of Cerebras’ inference platform. CBRS raised its 2026 core revenue guidance to $855-$865 million, indicating 69% year-over-year growth at the midpoint.

The CrowdStrike partnership strengthens Cerebras’ positioning as an enterprise AI infrastructure provider rather than solely a hardware vendor. Cloud and services revenues are becoming an increasingly important growth driver for the company. Remaining performance obligations reached approximately $25 billion at the end of first-quarter, largely supported by long-term AI infrastructure contracts. The addition of cybersecurity to CBRS’ portfolio of inference use cases expands the company’s addressable market, thereby driving top-line growth over the long term.

Cerebras Faces Tough CompetitionCerebras is facing stiff competition from the likes of CoreWeave (CRWV - Free Report) and Broadcom (AVGO - Free Report) in the AI infrastructure domain.

CoreWeave is pursuing one of the industry's largest AI infrastructure expansions. In partnership with NVIDIA, the company plans to build more than 5 gigawatts (GW) of AI factory capacity by 2030 while adopting multiple generations of NVIDIA AI platforms. It also recently expanded its European footprint through new AI cloud deployments in Stockholm, Sweden, powered by renewable energy, and signed a $21 billion long-term AI infrastructure agreement with Meta.

Broadcom has been benefiting from rising AI revenues, driven by strong demand for XPUs. AI semiconductor revenues reached a record $10.8 billion in the fiscal second quarter, suggesting a 143% year-over-year surge. Broadcom expects it to rise to $16 billion in the fiscal third quarter, indicating more than 200% year-over-year growth. AVGO’s management disclosed that AI semiconductor bookings exceeded $30 billion during the fiscal second quarter, nearly three times quarterly AI shipments. Remaining Performance Obligations reached $164.6 billion, including commitments under new custom AI accelerator contracts. These agreements provide exceptional long-term revenue visibility.

CBRS’ Share Price Performance, Valuation & EstimatesCerebras shares have jumped 15.3% in the past month, outperforming the broader Zacks Business Services sector’s return of 2.7%.

CBRS Stock’s Price Performance
Image Source: Zacks Investment Research

Cerebras stock is trading at a forward 12-month price/sales of 24.62X, higher than its median of 24.22X. CBRS has a Value Score of D.

CBRS’ Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 loss is pegged at 89 cents per share, narrower than the loss of $1.14 per share over the past 30 days.
 

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

Pentair investors are reacting to the July 2026 earnings reset after the Company lowered its FY2026 adjusted EPS midpoint from about $5.35 to $4.70. The investigation focuses on the market impact of that earnings miss and whether investors were given a timely view of the reset.

, /PRNewswire/ -- Pentair plc (NYSE: PNR) shares fell in market reaction on July 15, 2026, after the Company cut its FY2026 adjusted EPS midpoint from about $5.35 to $4.70, a $0.65 per-share reduction of approximately 12%. If you bought PNR before the earnings reset and suffered losses, this investigation may affect your rights. To respond while the investigation is active, submit your loss information now.

On April 28, 2026, CEO John L. Stauch told investors: "For the full year, we are increasing our adjusted EPS guidance midpoint to approximately $5.35, with a range of $5.30 to $5.40." In July 2026, Pentair moved that adjusted EPS range to $4.60-$4.80. The revised GAAP EPS range was $3.90-$4.10.

The earnings reset cut the adjusted EPS midpoint by approximately $0.65 per share. Investors who held through the July 2026 disclosure saw the market react to the lower FY2026 outlook.

PNR shareholders who suffered losses may provide trading details for review or call (212) 363-7500.

ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the PNR Investigation

Q: What is the PNR investigation about?A: The investigation concerns Pentair plc (NYSE: PNR) and whether investors received timely and accurate information about the Company's FY2026 earnings outlook before the July 2026 guidance reset.

Q: Who is eligible to participate in the PNR investigation?A: Investors who purchased PNR stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date, transaction records, and documented losses -- not on whether you still hold the shares.

Q: Which statements are being investigated as potentially misleading?A: The investigation concerns statements about Pentair's FY2026 earnings outlook, including prior adjusted EPS guidance of approximately $5.30-$5.40 before the July 2026 reset to $4.60-$4.80.

Q: What documents do I need to participate?A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What is a lead plaintiff and why does it matter?A: If legal action is pursued, a lead plaintiff is the investor selected to represent affected investors. Lead plaintiffs are typically investors with large documented losses and the ability to represent the investor group.

Q: What if I already sold my PNR shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased and whether you suffered losses, not whether you still hold the shares.

Q: What does it cost me to participate?A: There is no upfront cost to participate. Securities investigations and any resulting actions are generally handled on a contingency basis, with no upfront fees, no retainer, and no out-of-pocket costs.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212) 363-7500

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

SOURCE Levi & Korsinsky, LLP

Key Takeaways Roper topped Q2 earnings and revenue estimates as Application Software delivered solid organic growth.ROP benefited from acquisitions and strength across software and technology-enabled product businesses.Roper raised its 2026 earnings outlook and expects revenue growth above 8% with about 6% organic growth. Roper Technologies’ (ROP - Free Report) second-quarter 2026 adjusted earnings of $5.38 per share surpassed the Zacks Consensus Estimate of $5.29. The bottom line increased 10% on a year-over-year basis.

Roper’s net revenues of $2.11 billion beat the consensus estimate of $2.10 billion. The top line increased 9% year over year. Organic revenues grew 5%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 3%.

Roper’s Segmental Performance in Q2The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.

Application Software’s revenues totaled $1.18 billion, representing 56% of the quarter’s top line. The metric came almost in line with the Zacks Consensus Estimate. The segment’s revenues increased 8% on a year-over-year basis. Organic revenues increased 5%. Acquisitions boosted sales by 3%. Solid momentum in the company’s Aderant, Deltek, Vertafore and CentralReach businesses augmented the segment’s performance.

Network Software & Systems generated revenues of $430.9 million, accounting for 20.4% of the quarterly top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $437 million. Segmental revenues grew 12% year over year. Organic revenues increased 4%. Acquisitions boosted sales by 8%. Strong momentum in the ConstructConnect, Foundry and DAT businesses supported the segment’s performance.

The Technology Enabled Products segment generated revenues of $497.2 million, accounting for 23.6% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $475 million. Sales were up 7% year over year. Organic revenues grew 7%. The strong performance of the Verathon and NDI businesses drove the segment’s top-line performance.

ROP’s Margin ProfileRoper’s cost of sales increased 6.8% year over year to $638.7 million. Gross profit increased 9.3% to about $1.47 billion, while the gross margin increased to 69.7% from 69.2% in the year-ago quarter.

Selling, general and administrative expenses increased 11.1% year over year to $885.5 million. Adjusted EBITDA was $815 million, reflecting year-over-year growth of 5%. The margin decreased 130 basis points to 38.6%. Interest expenses (net) increased 40.8% year over year to $111.4 million.

Balance Sheet & Cash Flow of RoperExiting the second quarter of 2026, Roper had cash and cash equivalents of $364.9 million compared with $297.4 million at the end of December 2025. Long-term debt (net of current portion) was $10.60 billion compared with $8.60 billion at the end of 2025.

Roper generated net cash of $1.06 billion from operating activities in the first six months of 2026, reflecting an increase of 13.8% from the year-ago level. Capital expenditure totaled $25.3 million compared with $26 million in the year-ago period.

In the same period, ROP rewarded its shareholders with a dividend payment of $191.4 million, up 8% year over year. It repurchased shares worth $3.2 billion.

Roper’s OutlookFor 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $22.15-$22.30 compared with $21.80-$22.05 projected earlier. Total revenues are expected to increase more than 8%. Organic revenues are anticipated to increase approximately 6% from the year-ago number.

For the third quarter of 2026, Roper anticipates adjusted earnings to be in the band of $5.75-$5.80 per share.

ROP’s Zacks Rank and Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:

Amdocs (DOX - Free Report) carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amdocs’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 1.3%.  In the past 60 days, the Zacks Consensus Estimate for DOX’s fiscal 2026 bottom line has been stable.

CoStar Group (CSGP - Free Report) presently carries a Zacks Rank of 2. CoStar Group’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 23%. In the past 60 days, the Zacks Consensus Estimate for CSGP’s 2026 earnings has been stable.

Nutanix (NTNX - Free Report) currently carries a Zacks Rank of 2. Nutanix’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 19.3%. In the past 60 days, the Zacks Consensus Estimate for NTNX’s fiscal 2026 earnings has increased 5.5%.

Lucid Group (LCID) shares fell about 7% in Thursday morning trading as investors weighed growing legal scrutiny and a fresh Wall Street downgrade.Several law fi

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Key Takeaways Southwest Airlines' Q2 adjusted EPS rose 118.6% and beat estimates by 80.8% on record revenue.Average fares climbed 20.9% as managed business revenue hit a record and unit revenue jumped 20.1%.LUV sees Q3 EPS of 50-75 cents, with unit revenue up 17.5-19.5% and capacity down 1% to flat. Southwest Airlines Co. (LUV - Free Report) reported second-quarter 2026 adjusted earnings of 94 cents per share, up 118.6% year over year and 80.8% above the Zacks Consensus Estimate of 52 cents. Record operating revenues of $8.43 billion rose 16.4% but missed the consensus mark of $8.58 billion by 1.7%.

Results benefited from demand for enhanced products, record managed business revenues and cost discipline despite an $889 million increase in fuel expense. Adjusted unit revenues jumped 20.1%, while adjusted operating margin expanded 3.3 points to 6.7%.

LUV's Passenger Revenues Power Top-Line GrowthPassenger revenues, which accounted for 91.9% of the top line, increased 16.9% year over year to $7.75 billion. The improvement reflected higher fares and strong customer response to Southwest Airlines’ expanded commercial offerings.

Freight revenues rose 13.6% to $50 million. Other operating revenues increased 11.2% to $637 million, providing another source of growth beyond ticket sales.

Southwest Airlines Posts Stronger Revenue ProductivityRevenue passenger miles, a measure of traffic, increased 1.2% year over year to 37.35 billion. Capacity, measured in available seat miles, edged up only 0.2% to 47.09 billion, allowing demand growth to outpace supply.

The load factor improved 0.8 percentage points to 79.3%. Average passenger fare climbed 20.9% to $225.61, while passenger revenue per available seat mile advanced 16.7% to 16.45 cents. Revenue passengers carried declined 3.3% to 34.3 million.

LUV Controls Non-Fuel Costs as Fuel Expense SurgesTotal operating expenses increased 16.1% year over year to $8.15 billion. Aircraft fuel and related taxes surged 67% to $2.22 billion, representing the largest cost headwind during the quarter.

Fuel cost per gallon increased 69% to $3.92. Still, cost per available seat mile, excluding fuel, special items and profit sharing, rose a more moderate 3.4% to 12.45 cents, coming in below the company’s prior guidance.

Adjusted operating income climbed 138.8% to $585 million. Reported operating income increased 26.7% to $285 million despite the sharp rise in fuel costs.

Southwest Airlines' Commercial Initiatives Gain TractionManaged business revenues reached a quarterly record and increased 30% year over year. The performance highlighted stronger demand from corporate customers and broadened the company’s revenue mix.

Rapid Rewards enrollment rose 35%, while the loyalty program reached nearly 100 million members and posted record tier qualifiers. Acquisitions for the Chase co-branded credit card accelerated 28%, with double-digit growth in every month of the quarter.

Southwest Airlines also completed service rollouts to five new destinations and added Air Premia as its ninth airline partner. The carrier operated its first aircraft equipped with Starlink connectivity during the quarter.

LUV Generates Higher Operating Cash FlowSouthwest Airlines ended June with cash and cash equivalents of $3.79 billion, up from $3.23 billion at the end of 2025. Total liquidity was $5.3 billion, including a $1.5 billion revolving credit facility.

Net cash provided by operating activities rose to $530 million from $401 million a year earlier. Capital expenditures totaled $818 million, while proceeds from property and equipment sales reached $258 million.

The company paid $88 million in dividends during the quarter. It ended the period with $3.79 billion of long-term debt, excluding current maturities, and reported gross leverage of 2.1 times.

Southwest Airlines Issues Q3 and 2026 GuidanceFor third-quarter 2026, Southwest Airlines expects adjusted earnings of 50-75 cents per share. The Zacks Consensus Estimate is pegged at 77 cents per share. Capacity is projected to decline 1% to remain flat, while unit revenues are forecasted to increase 17.5-19.5% year over year.

Third-quarter cost per available seat mile, excluding fuel, special items and profit sharing, is expected to rise 3.5-4%. Fuel cost per gallon is projected to be between $3.70 and $3.75.

For 2026, management expects adjusted earnings of $3.25-$4.25 per share, replacing its prior expectation of at least $4. The Zacks Consensus Estimate is currently pegged at $3.23. Capacity growth is now forecasted to be roughly 1.5%, down from 2%. Net capital spending is expected near the low end of, or below, the previously announced $3-$3.5 billion range.

Currently, LUV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.