But what are some key traits that drive market outperformance?

Let’s take a closer look at a few common traits among companies delivering outsized gains over the past year.

Robust Sales Growth

Sales growth is vital for a company’s shares to outperform, as it’s the foundation of generating profits. Strong revenue generation enables companies to achieve scaling efficiencies, deliver sustained shareholder value, and realize many other clear benefits.

A clear-cut example of this has been NVIDIA NVDA over the last several years, whose shares have seen a historical move thanks to the AI frenzy. Below is a chart illustrating the company’s sales on a quarterly basis over the last decade.

Image Source: Zacks Investment Research

Margin Expansion

Margin expansion pleases the market, essentially signaling that a company is extracting more value from each dollar of sales. It indicates that a company is operating more efficiently, with better cost controls and other operational processes driving improved financial health.

Bottom Line

All investors look to reap outsized gains. When it comes to outperformance, robust sales growth, margin expansion, and innovation are all contributing factors.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Prior to today's trading, shares of the real estate investment trust had lost 6.15% lagged the Finance sector's gain of 1.34% and the S&P 500's gain of 1.92%.

The upcoming earnings release of Annaly Capital Management will be of great interest to investors. The company's upcoming EPS is projected at $0.74, signifying a 1.37% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $488 million, up 78.62% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.98 per share and a revenue of $1.93 billion, signifying shifts of +2.05% and +69.62%, respectively, from the last year.

Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Annaly Capital Management has a Forward P/E ratio of 7.13 right now. This expresses a discount compared to the average Forward P/E of 8.55 of its industry.

We can also see that NLY currently has a PEG ratio of 6.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust industry had an average PEG ratio of 1.46 as trading concluded yesterday.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The reported revenue compares to the Zacks Consensus Estimate of $1.21 billion, representing a surprise of -0.01%. The company delivered an EPS surprise of -1.82%, with the consensus EPS estimate being $8.97.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

• Mountain - Total skier visits: 7.28 thousand compared to the 7.43 thousand average estimate based on three analysts.
• Lodging - Managed condominium statistics - RevPAR: $174.87 versus $208.83 estimated by three analysts on average.
• Lodging - Owned hotel statistics - RevPAR: $137.95 versus $168.57 estimated by three analysts on average.
• Mountain - ETP: $100.24 versus the three-analyst average estimate of $98.88.
• Net Revenue- Mountain net revenue: $1.13 billion versus $1.13 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.8% change.
• Net Revenue- Resort net revenue: $1.21 billion versus $1.22 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -7% change.
• Net Revenue- Lodging net revenue: $75.32 million versus $82.91 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.1% change.
• Net Revenue- Mountain net revenue- Retail/rental: $104.21 million versus the three-analyst average estimate of $100.99 million. The reported number represents a year-over-year change of -8.3%.
• Net Revenue- Mountain net revenue- Other: $55.29 million compared to the $53.66 million average estimate based on three analysts. The reported number represents a change of -3.7% year over year.
• Net Revenue- Lodging net revenue- Managed condominium rooms: $28.35 million versus $32.85 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -13.1% change.
• Net Revenue- Mountain net revenue- Dining: $99.14 million versus the three-analyst average estimate of $96.28 million. The reported number represents a year-over-year change of -10.7%.
• Net Revenue- Mountain net revenue- Ski school: $141.76 million versus $137.6 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.5% change.

View all Key Company Metrics for Vail Resorts here>>>

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock of money transfer company has fallen by 17.53% in the past month, lagging the Business Services sector's loss of 0.74% and the S&P 500's gain of 1.92%.

Analysts and investors alike will be keeping a close eye on the performance of Western Union in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 2.38% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, up 1.51% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $4.26 billion. These totals would mark changes of +0.57% and +5.21%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Western Union. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. Currently, Western Union is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Western Union is currently exchanging hands at a Forward P/E ratio of 4.26. This signifies a discount in comparison to the average Forward P/E of 9.44 for its industry.

Investors should also note that WU has a PEG ratio of 0.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WU's industry had an average PEG ratio of 0.8 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The company's stock has dropped by 11.15% in the past month, falling short of the Medical sector's gain of 3.12% and the S&P 500's gain of 1.92%.

The investment community will be paying close attention to the earnings performance of Tilray Brands, Inc. in its upcoming release. The company is forecasted to report an EPS of -$0.01, showcasing a 105% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $268.17 million, indicating a 19.43% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.58 per share and a revenue of $885.3 million, representing changes of -680% and +7.79%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Tilray Brands, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Tilray Brands, Inc. currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 40% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock of oil and natural gas pipeline and storage company has risen by 0.86% in the past month, leading the Oils-Energy sector's loss of 5.56% and undershooting the S&P 500's gain of 1.92%.

The upcoming earnings release of Kinder Morgan will be of great interest to investors. It is anticipated that the company will report an EPS of $0.31, marking a 10.71% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, up 6.16% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.49 per share and a revenue of $18.17 billion, demonstrating changes of +14.62% and +7.27%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Kinder Morgan. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Kinder Morgan possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Kinder Morgan is at present trading with a Forward P/E ratio of 21.26. This expresses a premium compared to the average Forward P/E of 21.09 of its industry.

Also, we should mention that KMI has a PEG ratio of 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. KMI's industry had an average PEG ratio of 1.78 as of yesterday's close.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Coming into today, shares of the an aerospace and defense company had gained 2.78% in the past month. In that same time, the Aerospace sector gained 5.67%, while the S&P 500 gained 1.92%.

The investment community will be closely monitoring the performance of RTX in its forthcoming earnings report. The company's upcoming EPS is projected at $1.66, signifying a 6.41% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.89 billion, up 6.07% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.91 per share and a revenue of $93.68 billion, representing changes of +9.86% and +5.73%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for RTX. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, RTX holds a Zacks Rank of #3 (Hold).

From a valuation perspective, RTX is currently exchanging hands at a Forward P/E ratio of 26.2. This valuation marks a premium compared to its industry average Forward P/E of 22.6.

Investors should also note that RTX has a PEG ratio of 2.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.55 at the close of the market yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The regional airline's shares have seen a decrease of 4.28% over the last month, not keeping up with the Transportation sector's gain of 4.42% and the S&P 500's gain of 1.92%.

Analysts and investors alike will be keeping a close eye on the performance of SkyWest in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.85, signifying a 2.06% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.11 billion, up 7.62% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.95 per share and revenue of $4.36 billion, indicating changes of +5.8% and +7.49%, respectively, compared to the previous year.

Any recent changes to analyst estimates for SkyWest should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, SkyWest holds a Zacks Rank of #3 (Hold).

In terms of valuation, SkyWest is currently trading at a Forward P/E ratio of 7.71. For comparison, its industry has an average Forward P/E of 11.17, which means SkyWest is trading at a discount to the group.

One should further note that SKYW currently holds a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Airline industry currently had an average PEG ratio of 0.98 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The consulting company's shares have seen a decrease of 1.2% over the last month, not keeping up with the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

The upcoming earnings release of Accenture will be of great interest to investors. The company's earnings report is expected on June 18, 2026. The company's earnings per share (EPS) are projected to be $3.72, reflecting a 6.59% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $18.82 billion, up 6.15% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.88 per share and revenue of $74.25 billion, indicating changes of +7.35% and +6.58%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Accenture should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Accenture is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Accenture currently has a Forward P/E ratio of 12.84. This valuation marks a discount compared to its industry average Forward P/E of 14.18.

Also, we should mention that ACN has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.11 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock of maker of Ugg footwear has risen by 7.68% in the past month, leading the Retail-Wholesale sector's loss of 7.18% and the S&P 500's gain of 1.92%.

Investors will be eagerly watching for the performance of Deckers in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.94, indicating a 1.08% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.02 billion, indicating a 5.88% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.41 per share and revenue of $5.9 billion. These totals would mark changes of +5.56% and +7.84%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Deckers. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.8% increase. Deckers is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Deckers currently has a Forward P/E ratio of 14.59. This represents a discount compared to its industry average Forward P/E of 16.68.

It is also worth noting that DECK currently has a PEG ratio of 2.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.35.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The poultry producer's shares have seen an increase of 2.68% over the last month, surpassing the Consumer Staples sector's loss of 0.2% and the S&P 500's gain of 1.92%.

The upcoming earnings release of Pilgrim's Pride will be of great interest to investors. In that report, analysts expect Pilgrim's Pride to post earnings of $0.97 per share. This would mark a year-over-year decline of 42.94%. Alongside, our most recent consensus estimate is anticipating revenue of $4.9 billion, indicating a 3% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.52 per share and a revenue of $18.7 billion, demonstrating changes of -31.91% and +1.09%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Pilgrim's Pride. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.06% decrease. As of now, Pilgrim's Pride holds a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Pilgrim's Pride is currently being traded at a Forward P/E ratio of 8.5. This signifies a discount in comparison to the average Forward P/E of 11.89 for its industry.

The Food - Meat Products industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock of internet search leader has fallen by 8.05% in the past month, lagging the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

The upcoming earnings release of Alphabet will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.85, reflecting a 23.38% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $101 billion, indicating a 23.59% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.29 per share and a revenue of $422.05 billion, indicating changes of +32.19% and +23.08%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Alphabet is currently being traded at a Forward P/E ratio of 25.78. For comparison, its industry has an average Forward P/E of 16.38, which means Alphabet is trading at a premium to the group.

Investors should also note that GOOGL has a PEG ratio of 1.58 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Shares of the technology and consulting company have appreciated by 23.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.7%, and the S&P 500's gain of 1.92%.

The upcoming earnings release of IBM will be of great interest to investors. On that day, IBM is projected to report earnings of $2.95 per share, which would represent year-over-year growth of 5.36%. Alongside, our most recent consensus estimate is anticipating revenue of $17.86 billion, indicating a 5.2% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.4 per share and revenue of $71.56 billion, which would represent changes of +6.99% and +5.97%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, IBM possesses a Zacks Rank of #3 (Hold).

With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 22.98. Its industry sports an average Forward P/E of 26.94, so one might conclude that IBM is trading at a discount comparatively.

Also, we should mention that IBM has a PEG ratio of 2.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.9 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The high-end coat maker's stock has dropped by 17.95% in the past month, falling short of the Retail-Wholesale sector's loss of 7.18% and the S&P 500's gain of 1.92%.

The investment community will be closely monitoring the performance of Canada Goose in its forthcoming earnings report. The company is expected to report EPS of -$0.65, up 1.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $80.3 million, up 3.07% from the year-ago period.

GOOS's full-year Zacks Consensus Estimates are calling for earnings of $0.83 per share and revenue of $1.15 billion. These results would represent year-over-year changes of +48.21% and +4.43%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Canada Goose. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 12.16% higher. Right now, Canada Goose possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Canada Goose is currently exchanging hands at a Forward P/E ratio of 11.78. This expresses a discount compared to the average Forward P/E of 16.68 of its industry.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The cruise operator's stock has climbed by 3.9% in the past month, exceeding the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 1.92%.

Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 2.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.63 billion, up 4.72% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $27.83 billion. These totals would mark changes of -1.78% and +4.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.97% lower within the past month. At present, Carnival boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 12.4. This signifies a discount in comparison to the average Forward P/E of 15.82 for its industry.

It's also important to note that CCL currently trades at a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services was holding an average PEG ratio of 1.3 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 186, this industry ranks in the bottom 24% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The company's stock has dropped by 7.88% in the past month, falling short of the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

Analysts and investors alike will be keeping a close eye on the performance of Alphabet Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.85, marking a 23.38% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $101 billion, reflecting a 23.59% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.29 per share and a revenue of $422.05 billion, signifying shifts of +32.19% and +23.08%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Currently, Alphabet Inc. is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Alphabet Inc. is currently exchanging hands at a Forward P/E ratio of 25.59. This denotes a premium relative to the industry average Forward P/E of 16.38.

It is also worth noting that GOOG currently has a PEG ratio of 1.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.76.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock of industrial conglomerate has risen by 10.38% in the past month, leading the Aerospace sector's gain of 5.67% and the S&P 500's gain of 1.92%.

The investment community will be closely monitoring the performance of GE Aerospace in its forthcoming earnings report. The company is expected to report EPS of $1.87, up 12.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.84 billion, up 16.64% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $48.41 billion, which would represent changes of +17.43% and +14.38%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for GE Aerospace. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. GE Aerospace is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, GE Aerospace currently has a Forward P/E ratio of 43.86. This indicates a premium in contrast to its industry's Forward P/E of 22.6.

One should further note that GE currently holds a PEG ratio of 2.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Heading into today, shares of the parent company of Florida Power & Light Co. had lost 7.8% over the past month, lagging the Utilities sector's loss of 4.28% and the S&P 500's gain of 1.92%.

Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. On that day, NextEra Energy is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 7.62%. In the meantime, our current consensus estimate forecasts the revenue to be $7.97 billion, indicating a 18.96% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.01 per share and a revenue of $31.87 billion, signifying shifts of +8.09% and +16.27%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).

In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 21.41. Its industry sports an average Forward P/E of 18.2, so one might conclude that NextEra Energy is trading at a premium comparatively.

Investors should also note that NEE has a PEG ratio of 2.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.65 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Prior to today's trading, shares of the airline had gained 8.3% outpaced the Transportation sector's gain of 4.42% and the S&P 500's gain of 1.92%.

The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.49, marking a 29.05% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.42 billion, up 4.65% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.37 per share and a revenue of $65.37 billion, indicating changes of -7.73% and +3.17%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Delta Air Lines. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. At present, Delta Air Lines boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Delta Air Lines has a Forward P/E ratio of 14.78 right now. Its industry sports an average Forward P/E of 11.17, so one might conclude that Delta Air Lines is trading at a premium comparatively.

Investors should also note that DAL has a PEG ratio of 1.12 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.98.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The maker of software that automates companies' technology operations's shares have seen an increase of 23.33% over the last month, surpassing the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 4.88% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.92 billion, up 22% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.14 per share and a revenue of $16.18 billion, signifying shifts of +17.95% and +21.88%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, ServiceNow is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, ServiceNow is presently trading at a Forward P/E ratio of 27.18. This represents a premium compared to its industry average Forward P/E of 14.18.

Also, we should mention that NOW has a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Coming into today, shares of the insurer had gained 3.69% in the past month. In that same time, the Finance sector gained 1.34%, while the S&P 500 gained 1.92%.

Market participants will be closely following the financial results of Allstate in its upcoming release. It is anticipated that the company will report an EPS of $4.66, marking a 21.55% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.72 billion, reflecting a 5.65% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $29.43 per share and a revenue of $71.4 billion, representing changes of -15.5% and +5.23%, respectively, from the prior year.

Any recent changes to analyst estimates for Allstate should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.98% upward. Allstate is currently a Zacks Rank #3 (Hold).

In terms of valuation, Allstate is presently being traded at a Forward P/E ratio of 7.51. This valuation marks a discount compared to its industry average Forward P/E of 10.8.

Meanwhile, ALL's PEG ratio is currently 0.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Insurance - Property and Casualty industry stood at 2.38 at the close of the market yesterday.

The Insurance - Property and Casualty industry is part of the Finance sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Prior to today's trading, shares of the insurer had gained 2.07% outpaced the Finance sector's gain of 1.34% and the S&P 500's gain of 1.92%.

Market participants will be closely following the financial results of Chubb in its upcoming release. On that day, Chubb is projected to report earnings of $6.56 per share, which would represent year-over-year growth of 6.84%. Meanwhile, the latest consensus estimate predicts the revenue to be $15.89 billion, indicating a 7.26% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $26.8 per share and a revenue of $64.4 billion, demonstrating changes of +8.11% and +7.4%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Chubb. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Currently, Chubb is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Chubb is at present trading with a Forward P/E ratio of 12.17. For comparison, its industry has an average Forward P/E of 10.8, which means Chubb is trading at a premium to the group.

Investors should also note that CB has a PEG ratio of 1.67 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 2.38 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CB in the coming trading sessions, be sure to utilize Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The chip company's stock has climbed by 0.85% in the past month, falling short of the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. On that day, TSMC is projected to report earnings of $3.69 per share, which would represent year-over-year growth of 49.39%. Simultaneously, our latest consensus estimate expects the revenue to be $39.76 billion, showing a 32.23% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $15.29 per share and a revenue of $161.84 billion, demonstrating changes of +43.57% and +32.19%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. Currently, TSMC is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, TSMC is at present trading with a Forward P/E ratio of 27.15. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 27.15.

We can also see that TSM currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 1.21 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 45% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The telecommunications company's shares have seen a decrease of 9.58% over the last month, not keeping up with the Computer and Technology sector's gain of 3.7% and the S&P 500's gain of 1.92%.

Analysts and investors alike will be keeping a close eye on the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to go public on July 22, 2026. The company is forecasted to report an EPS of $0.59, showcasing a 9.26% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $31.99 billion, indicating a 3.71% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.3 per share and a revenue of $129.78 billion, demonstrating changes of +8.49% and +3.29%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for AT&T. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. AT&T is currently a Zacks Rank #3 (Hold).

Looking at valuation, AT&T is presently trading at a Forward P/E ratio of 9.88. Its industry sports an average Forward P/E of 13.06, so one might conclude that AT&T is trading at a discount comparatively.

It is also worth noting that T currently has a PEG ratio of 0.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Wireless National stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow T in the coming trading sessions, be sure to utilize Zacks.com.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The biggest U.S. mortgage lender's stock has climbed by 8.33% in the past month, exceeding the Finance sector's gain of 1.34% and the S&P 500's gain of 1.92%.

The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is scheduled to release its earnings on July 14, 2026. The company is forecasted to report an EPS of $1.71, showcasing a 11.04% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $21.65 billion, reflecting a 3.98% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.84 per share and revenue of $87.56 billion, which would represent changes of +8.92% and +4.62%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Wells Fargo is currently a Zacks Rank #3 (Hold).

Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 11.97. For comparison, its industry has an average Forward P/E of 13.39, which means Wells Fargo is trading at a discount to the group.

We can additionally observe that WFC currently boasts a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 0.96 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

This quarterly report represents an earnings surprise of +66.67%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.05, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Mama's Creations, Inc., which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $52.77 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.87%. This compares to year-ago revenues of $35.26 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Mama's Creations, Inc. shares have added about 12.3% since the beginning of the year versus the S&P 500's gain of 7.9%.

What's Next for Mama's Creations, Inc.?

While Mama's Creations, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Mama's Creations, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $54.9 million in revenues for the coming quarter and $0.25 on $222.9 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 22% of the 250 plus 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.

One other stock from the same industry, General Mills (GIS), is yet to report results for the quarter ended May 2026. The results are expected to be released on July 1.

This maker of Cheerios cereal, Yoplait yogurt and other packaged foods is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +10.8%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level.

General Mills' revenues are expected to be $4.61 billion, up 1.3% from the year-ago quarter.

Should You Invest in Mama's Creations, Inc. (MAMA)?

Before you invest in Mama's Creations, Inc. (MAMA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.

Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

This quarterly report represents an earnings surprise of -85.71%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.1, delivering a surprise of +42.86%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Mission Produce, which belongs to the Zacks Agriculture - Operations industry, posted revenues of $290.9 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 8.02%. This compares to year-ago revenues of $380.3 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Mission Produce shares have lost about 11.9% since the beginning of the year versus the S&P 500's gain of 7.9%.

What's Next for Mission Produce?

While Mission Produce has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Mission Produce was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $303.4 million in revenues for the coming quarter and $0.67 on $1.17 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Agriculture - Operations is currently in the top 45% of the 250 plus 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.

Limoneira (LMNR), another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 9.

This agribusiness company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -52.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Limoneira's revenues are expected to be $23 million, down 34.5% from the year-ago quarter.

Should You Invest in Mission Produce, Inc. (AVO)?

Before you invest in Mission Produce, Inc. (AVO), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.

Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

This quarterly report represents an earnings surprise of -1.82%. A quarter ago, it was expected that this ski resort operator would post earnings of $6.06 per share when it actually produced earnings of $5.87, delivering a surprise of -3.14%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Vail Resorts, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $1.21 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $1.3 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Vail Resorts shares have added about 1.9% since the beginning of the year versus the S&P 500's gain of 7.9%.

What's Next for Vail Resorts?

While Vail Resorts has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Vail Resorts was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$5.02 on $274.76 million in revenues for the coming quarter and $4.76 on $2.84 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 24% of the 250 plus 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.

Carnival (CCL), another stock in the same industry, has yet to report results for the quarter ended May 2026.

This cruise operator is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Carnival's revenues are expected to be $6.63 billion, up 4.7% from the year-ago quarter.

Should You Invest in Vail Resorts, Inc. (MTN)?

Before you invest in Vail Resorts, Inc. (MTN), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.

Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Today's Must Read

Amazon (AMZN) Rides on Prime & AWS Amid Rising Competition

Expansion Efforts, Loan Growth Aids Bank of America (BAC), Costs Ail

Ocrevus, Hemlibra Fuel Roche (RHHBY), Decline in Legacy Drugs a Woe

Featured Reports

MetLife's (MET) Strong Investment Income & Expense Discipline Aid
Per the Zacks analyst, strong investment income, underwriting gains, and solid volume growth fueled earnings and profitability. However, volatile variable investment income remains a concern.

Investments & Clean Energy Initiatives Aid PG&E Corp. (PCG)
According to the Zacks analyst, PG&E's planned investments of $73 billion during 2026-2030 period, which should further strengthen its infrastructure and expand its renewable portfolio.

Chipotle (CMG) Banks on Strategic Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion and Zipline pilot bode well. However, the uncertain macro environment and high costs pose concerns.

Acquisitions Aid Teledyne Technologies (TDY) Amid Labor Shortage
Per the Zacks analyst, Teledyne Technologies is likely to benefit from profitable strategic acquisitions. Yet labor shortage result in delays and likely impact operating results.

Acquisitions & Pricing to Aid Lincoln Electric (LECO) as Volumes Ail
Per the Zacks analyst, Lincoln Electric's strategic acquisitions to expand capabilities and geographic reach as well as pricing actions will help mitigate the impact of low volumes on its results.

Celsius Holdings (CELH) Benefits From Strong Alani Nu Brand
Per the Zacks analyst, Celsius Holdings is likely to continue benefiting from the Alani Nu brand. Alani Nu gives Celsius Holdings a differentiated consumer base, particularly younger female consumers.

Bath & Body Works (BBWI) Boosts Engagement With Digital Innovations
Per the Zacks analyst, Bath & Body Works benefits from improving online conversion, Amazon channel growth and enhanced digital experiences, helping attract new shoppers and boost engagement.

New Upgrades

Chord Energy (CHRD) Continues to Bank on Oil-Rich Williston Basin
The Zacks analyst likes Chord Energy as it has a solid footprint in the prolific Williston Basin, which brightens its oil and natural gas production outlook.

H&R Block (HRB) Benefits From Assisted Tax Preparation and Spruce
Per the Zacks analyst, H&R Block drives long-term success from assisted tax preparation. Its mobile banking platform, Spruce, enables effective client acquisition and sustains user engagement.

Avanos (AVNS) Navigates Growth Initiatives Amid Margin Headwinds
Per the Zacks analyst, Avanos is gaining from SNS growth and the Nexus Medical acquisition, while margin pressures, forex impacts and weakness in parts of PM&R remain factors to monitor.

New Downgrades

Drilling Tools (DTI) Faces Soft U.S. Market Headwinds
The Zacks analyst believes that Drilling Tools International faces continued pressure from weak North American activity and pricing, which could delay earnings recovery.

Declining Backlog & Margin Pressure in Europe to Ail THOR (THO)
Per the Zacks analyst, THOR's declining backlog in the North American Towables segment remains a key constraint for volume recovery. Pressures in the European RVs segment margins are also concerning.

Rising Expenses & Stiff Competition Hurt Badger Meter (BMI)
Per the Zacks analyst, Badger Meter faces higher costs mainly due to the SmartCover acquisition, including amortization of intangible assets that may drag margins. Stiff competition remains a concern.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Investors are increasingly searching for the next AI-driven stocks to replicate NVIDIA’s notable success. Among the names drawing attention are AI memory stock, Sandisk Corporation SNDK and AI networking chipmaker Marvell Technology, Inc. MRVL. Over the past year, shares of Sandisk and Marvell surged 3628.6% and 281%, respectively, far outpacing NVIDIA’s gain of 43.8%. 

With growth momentum behind these companies, it’s worth exploring their growth drivers, which could position them as the next major winners in the AI space. 

Sandisk Growth Boosted by AI Data Center Demand and Partnerships 

Sandisk saw a significant improvement in revenue growth as it shifted its focus toward high-value customers in the expanding data center segment. For the fiscal third quarter of 2026, Sandisk reported revenues of $5.95 billion, representing a 97% sequential increase and way more than its own guidance, according to investor.sandisk.com.  

Sandisk expects revenues to further improve to $7.75 billion and $8.25 billion for the fiscal fourth quarter of 2026, as strong pricing power across its product portfolio is likely to boost the top-line performance. Incessant demand for memory products in AI-driven data centers amid tight supply is expected to remain a key near-term growth driver for Sandisk. 

Sandisk’s high-value, multi-year partnerships under its New Business Model agreements are expected to strengthen customer retention, improve revenue visibility and boost profitability. Consequently, the company expects non-GAAP earnings per share (EPS) of $30 to $33 in the fiscal fourth quarter of 2026, up from $23.41 in the fiscal third quarter of 2026, signaling continued sequential growth momentum.

Sandisk’s expected earnings growth rate for the current year is 2067.9%. The Zacks Consensus Estimate of $64.82 for SNDK’s EPS is up 1057.5% year over year.

Image Source: Zacks Investment Research

Marvell’s AI Networking Strength Drives Growth 

Marvell’s products are key to AI networking, with its connectivity and networking chips powering data centers, where workloads are distributed across thousands of interconnected processors that need to exchange data quickly and efficiently. This is the reason why Jensen Huang, CEO of NVIDIA, expects Marvell to be the “next trillion-dollar company”.  

For the second quarter of fiscal 2027, Marvell expects revenues of around $2.7 billion at the midpoint of its guidance, representing 35% year-over-year growth, according to investor.marvell.com. This follows stronger-than-expected first-quarter fiscal 2027 revenues of $2.418 billion that exceeded expectations, driven primarily by robust demand in AI-related infrastructure. 

Marvell has increased its revenue outlook for 2027 and 2028, indicating strong customer demand and improved revenue visibility. The company’s record $638.8 million in operating cash flow in the first quarter of fiscal 2027 also provides support for research and development, and future growth. 

Marvell’s expected earnings growth rate for the current year is 41.2%. The Zacks Consensus Estimate of $4.01 for MRVL’s EPS is up 12.3% year over year.

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

More specifically, inflation is currently above the Federal Reserve's long-term target. Consumer prices were running at an annual rate of 3.8% in April, nearly double the Fed's 2% objective, showing persistent price pressures across the economy.

In such circumstances, the market's reaction reflects a shift in focus from economic growth to monetary policy. A resilient labor market suggests that consumer spending and overall economic activity remain healthy. At the same time, it raises concerns that inflationary pressures could prove more persistent than policymakers had hoped. If inflation remains above the Federal Reserve's target, the central bank may have less urgency to ease policy.

As a result, investors have been reassessing the "higher-for-longer" interest-rate scenario. The Federal Reserve left its benchmark federal funds rate unchanged at a target range of 3.50%-3.75% at its most recent meeting, maintaining a restrictive policy stance as policymakers monitor inflation risks.

Why Quality Growth Stocks Stand Out

This shift has created a challenging backdrop for highly valued and speculative growth stocks, particularly those whose valuations depend heavily on distant future earnings. As Treasury yields move higher and expectations for monetary easing are pushed out, investors have become increasingly selective.

In this environment, capital is gravitating toward companies that combine growth with strong fundamentals. Businesses with durable earnings growth, healthy balance sheets and consistent cash flow generation are generally better positioned to navigate market volatility than companies whose valuations rely primarily on future promises.

Here are two stocks from two of 2026's fastest-growing sectors that investors may want to consider as markets adapt to a higher-for-longer interest-rate environment.

Zscaler: Benefiting From the Shift to AI-Driven Cybersecurity

Cybersecurity remains one of the most resilient areas of enterprise technology spending in 2026 and Zscaler ZS is well-positioned to capitalize on that trend. ZS recently reported fiscal 2026 third-quarter results that topped the Zacks Consensus Estimate on both fronts. Management also raised its fiscal 2026 guidance, reflecting healthy customer demand and continued momentum across its Zero Trust security platform.

Zscaler is benefiting from rising demand for zero trust security as enterprises expand cloud, hybrid work and AI initiatives. The company continues to broaden its platform through metered usage offerings, AI-focused controls and the Z-Flex program, which supports larger multi-year commitments and improves revenue visibility. Portfolio expansion through acquisitions with the likes of SquareX, SPLX and Red Canary adds capabilities in security operations, browser security and AI security and governance capabilities.

This Zacks Rank #2 (Buy) stock is expected to report fiscal 2026 earnings growth of 23.2% on revenue growth of 24.5%. Based on short-term price targets offered by 42 analysts, the average price target represents an increase of 47.9% from Zscaler’s last closing price of $130.78.

Image Source: Zacks Investment Research

Palantir: Turning AI Adoption Into Real Revenues

Palantir PLTR continues to emerge as one of the biggest beneficiaries of enterprise and government AI adoption. The company recently expanded its commercial AI ecosystem through new partnerships announced at AIPCon 10, including a collaboration with Google Cloud that integrates Google's Gemini models into Palantir's platform. Management also announced new customer wins across legal, construction and insurance markets, further broadening its commercial footprint.

Beyond the commercial market, Palantir remains deeply entrenched in government AI initiatives. The company continues to benefit from large public-sector contracts, including a recently awarded $1 billion Department of Homeland Security agreement and ongoing expansion of AI-driven decision platforms across government agencies. Palantir reported triple-digit U.S. revenue growth in its latest quarter, demonstrating that AI demand is translating into tangible business results rather than speculative future opportunities.

This Zacks Rank #2 stock is expected to report 2026 earnings growth of 98.7% on revenue growth of 78.7%. Based on short-term price targets offered by 26 analysts, the average price target represents an increase of 43.7% from Zscaler’s last closing price of $135.53. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Image Source: Zacks Investment Research

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

That backdrop makes modality and technology choices more than a clinical conversation. They can shape market share, utilization, and the durability of volume trends as the industry absorbs more patients.

FMS Demand Tailwind: Kidney Disease Growth Drivers

Kidney disease prevalence is rising alongside chronic health drivers such as obesity, diabetes and hypertension, widening the funnel of patients who progress into dialysis over time. The expectation is for global dialysis demand to keep expanding at an annual pace of roughly 4% to 5%, with the treated population projected to approach about 7 million people by 2035.

When a market grows at that rate, the limiting factor can shift from demand to capacity and cost. That is why shifts toward home therapies and higher-performing in-center modalities matter. They influence where growth lands, how efficiently it is served, and which providers can scale without destabilizing quality.

Image Source: Zacks Investment Research

Fresenius Modality Shift: Home Dialysis Gains Importance

Home dialysis is positioned as a structural lever as patient growth raises cost pressure and tightens in-center capacity. FMS already supports more than 85,000 home patients globally across home hemodialysis and peritoneal dialysis programs.

In the United States, home penetration is still a minority of treatments, but it is moving higher. FMS cites about 16% of U.S. dialysis treatments performed at home in 2025, with an expectation for roughly 25% by 2027. If that progression holds, it changes how the company allocates capital and staff, and it can defend share by meeting patients where growth is flowing.

FMS Technology Inflection: High-Volume HDF Opportunity

The more disruptive catalyst is the push toward high-volume hemodiafiltration (HDF) as a potential new standard of care in the United States. FMS frames high-volume HDF as a sizable opportunity, building on its traction in international markets and pairing it with a differentiated platform strategy.

The underlying logic is operational as much as clinical. If higher-volume HDF can improve treatment quality and outcomes, it may reduce missed treatments and slow patient outflows, two variables that can quietly erode reported volume trends. In that setup, technology is not only about premium positioning. It is about stabilizing the base.

Fresenius 5008X Rollout: Early Scale and 2026 Milestones

FMS is using the 5008X system as the delivery vehicle for high-volume HDF, and management describes the transition as the largest infrastructure rollout in the company’s history. The system is already scaling. Management noted availability in around 100 U.S. clinics and reported passing 100,000 treatments in April 2026.

Timing is the key nuance. The rollout is cost-intensive early, with training and transition spending elevated, but management expects operational and clinical benefits to begin contributing later in 2026. The bigger step-up is framed as a 2027-and-beyond story, once the converted base is larger and execution friction fades.

Image Source: Zacks Investment Research

FMS Quality Flywheel: Infection Reduction and Retention

The strategy is reinforced by quality initiatives that aim to convert better outcomes into better retention. FMS highlights broad efforts to reduce bloodstream infections and drive treatment reliability, which can translate into incremental financial benefit when fewer complications disrupt care.

A concrete example is the scale-up of antimicrobial catheter lock solutions. Management pointed to around 90% penetration among eligible patients, with infection-reduction initiatives contributing to improved outcomes and incremental financial benefit in 2025. In a volume-sensitive model, reducing avoidable clinical disruptions can be an underappreciated lever for steadier utilization.

Fresenius Value-Based Care: Scale With Accounting Noise

Value-Based Care is increasingly central to the narrative because it adds growth vectors beyond the in-center chair. The segment generated more than €2 billion of revenue in 2025 and reached breakeven profitability for the first time, supported by contract expansion, member-month growth, and a broader provider network.

The potential confusion is optical. Management expects Value-Based Care revenue growth to turn negative over the course of 2026 due to a change in accounting treatment for a large contract, even as earnings remain supported by a higher savings rate. In other words, reported revenue can move the “wrong” way while underlying economics remain intact.

FMS What Could Break the Trend: Volumes and Reimbursement

The near-term risk is that early signals stay noisy. U.S. volume trends are described as uneven, pressured by missed treatments and above-trend mortality, with severe weather cited as a driver of missed treatments in early 2026. In the first quarter of 2026, U.S. same-market treatment growth was -0.4%, and management still assumes flat same-market growth for full-year 2026.

At the same time, reimbursement tailwinds are fading. The phosphate binder Transitional Drug Add-on Payment Adjustment contribution is expected to fall to about €100 million in 2026 from €220 million in 2025, with a heavier impact in the second half. Layer on regulatory and inflation pressures, including management’s framing of total regulatory effects of €150 million to €200 million for 2026 and inflation headwinds of €200 million to €300 million, and near-term trend lines can be obscured.

Fresenius Medical Care AG & Co. KGaA Price and Consensus

Fresenius Medical Care AG & Co. KGaA price-consensus-chart | Fresenius Medical Care AG & Co. KGaA Quote

Fresenius The Longer Arc: 2027+ Benefits vs. 2026 Drag

The market tension is that 2026 can look like a year of investment drag while the payoff sits just ahead. The 5008X transition, broader information technology platform investments, and restructuring costs tied to footprint optimization can pressure margins before efficiencies and clinical benefits fully show up.

That is where the longer arc matters. Management’s framing implies that the operational and clinical impact from the 5008X-enabled high-volume HDF strategy is expected to be more meaningful in 2027 and beyond, after benefits begin contributing later in 2026. For investors, the setup becomes a timing question: separating near-term noise from whether modality mix, quality, and technology can reset the stability of demand and retention once the transition matures.

Bigger-picture, peers underscore how strategic this competitive lane has become. DaVita DVA remains a key U.S. dialysis operator competing for the same patient flows, while Baxter International BAX is another healthcare name tied to renal and hospital-care workflows and currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The asset management industry has been facing pressure from rising technology and artificial intelligence (AI)-related expenses, which may weigh on near-term profitability despite long-term efficiency gains. The ongoing shift toward low-cost passive products continues to compress fees and intensify competition, prompting firms to pursue mergers and partnerships to gain scale. In addition, recent private credit concerns could moderate near-term flows into higher-fee alternative strategies. Nevertheless, steady inflows are supporting growth in assets under management (AUM).

Against this backdrop, investors naturally ask: Which firm, TROW or LAZ, has better potential? To answer that, we need to examine their fundamentals more closely.

The Case for TROW

T. Rowe Price has been strengthening its platform through strategic partnerships and acquisitions. In September 2025, the company partnered with Goldman Sachs GS to develop public and private market solutions tailored for retirement and wealth investors, with additional retirement-focused offerings expected to launch later in 2026. Earlier in 2025, it partnered with Aspida to manage public and private assets, expanding the company’s presence in insurance asset management. Together, these initiatives have strengthened the company's investment platform and diversified its revenue streams, supporting long-term growth prospects.

Meanwhile, T. Rowe Price’s diversified AUM across various asset classes, client bases and geographies provides stability and supports sustainable earnings. The company's efforts to expand its retirement, insurance and alternative investment capabilities have contributed to favorable asset flows and asset growth over the years. Market appreciation and continued strength in multi-asset and fixed-income products have further supported this trend. A strong brand, consistent investment track record and solid business volumes are expected to keep supporting AUM growth in the upcoming period.

At T. Rowe Price, organic growth remains a key contributor to revenue momentum. The company's efforts to enhance investment capabilities, broaden distribution reach and introduce new products are expected to support client engagement and asset gathering. As TROW continues to expand its alternative investment and retirement offerings, its revenue base is likely to remain supported by a diversified mix of fee-generating assets.

Further, T. Rowe Price exhibits a strong liquidity position. As of March 31, 2026, the company held $6.89 billion in liquid assets, including cash and cash equivalents as well as investments, compared with total liabilities of $2.52 billion. The company's solid liquidity profile is expected to support strategic investments and business growth initiatives going forward.

The Case for LAZ

Lazard has also been expanding its platform through acquisitions and partnerships. In May 2026, the company announced the acquisition of Campbell Lutyens, strengthening its private capital advisory capabilities and expanding its reach across institutional investors and financial sponsors. Earlier in 2025, Lazard formed an alliance with Arini Capital Management, enhancing its private credit capabilities.

Building on these initiatives, Lazard has witnessed steady growth in its AUM balance over the years. The company's efforts to expand its asset-management platform through acquisitions and private-market initiatives have supported asset growth, while strong client engagement and demand across investment strategies have remained encouraging. Driven by these factors and favorable industry dynamics, the company's AUM balance is expected to continue growing in the coming quarters.

Organic growth also remains a key strength at Lazard, as reflected in its revenue growth trend. The company's diversified asset-management and advisory businesses provide multiple avenues for revenue generation. Continued strength in asset management, supported by a growing AUM base, and a recovery in deal-making activity are expected to drive top-line growth. Further, management's ongoing efforts to expand its private capital and advisory businesses are expected to support revenue momentum and long-term earnings growth.

However, despite benefiting from investment-grade credit ratings and a well-laddered debt maturity profile that provides access to funding at favorable rates, Lazard's liquidity position appears relatively constrained. As of March 31, 2026, the company held cash and cash equivalents of $1.02 billion against senior debt of $1.69 billion.

How Do Estimates Compare for TROW & LAZ?

The Zacks Consensus Estimate for TROW’s 2026 and 2027 revenue suggests year-over-year increases of 3.2% and 2.2%, respectively. Meanwhile, the consensus estimate for earnings suggests declines of 0.9% in 2026 and 0.3% in 2027. Over the past month, earnings estimates for both 2026 and 2027 have been revised upward.

Estimates Revision Trend

Image Source: Zacks Investment Research

The consensus mark for LAZ’s 2026 and 2027 sales suggests year-over-year increases of 11.7% and 22.2%, respectively. Also, the consensus estimate for earnings indicates a 16.8% and 67.8% rise for 2026 and 2027, respectively. Earnings estimates for both years have remained unchanged over the past 30 days.

Estimates Revision Trend

Image Source: Zacks Investment Research

TROW & LAZ: Price Performance & Valuation

Over the past three months, TROW and LAZ shares gained 17.1% and 7.4%, respectively, compared with the S&P 500 Index’s growth of 9.1%.

Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, TROW is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.02X, while LAZ is currently trading at a forward 12-month P/E multiple of 12.57X. Here, TROW stock is cheaper than LAZ.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

TROW or LAZ: Which Stock Has Better Potential?

Both T. Rowe Price and Lazard are established asset managers with diversified business models, growing alternative-investment capabilities and expanding private-market franchises. Each company benefits from solid asset-management operations, broad client relationships and strategic initiatives aimed at supporting long-term growth across traditional and alternative asset classes.

However, TROW benefits from a stronger liquidity profile and a more diversified and steadily growing AUM base. The company's expansion across retirement, insurance and alternative-investment solutions, coupled with its strong investment performance and disciplined capital-return strategy, positions it well for sustainable growth.

Although Lazard's earnings and revenue growth estimates appear stronger on paper, much of that growth depends on the successful execution of acquisitions and a sustained recovery in advisory activity, which can be more cyclical and market-dependent.

Additionally, T. Rowe Price trades at a discount to Lazard, offering investors a more attractive valuation while maintaining a stronger balance sheet and established organic-growth drivers. Given its financial strength, diversified business model, expanding retirement and alternatives platform, and compelling valuation, T. Rowe Price appears better positioned to deliver sustainable long-term shareholder value.

At present, T. Rowe Price carries a Zacks Rank #3 (Hold), while Lazard has a Zacks Rank #5 (Strong Sell).

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The stock has a forward 12-month P/S-F12M of 1.54X compared with 2.87X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive.

Knight-Swift P/S Ratio (Forward 12 Months) Vs. Industry

Image Source: Zacks Investment Research

Now, the question is whether it is worth buying, holding, or selling the Knight-Swift stock at current prices. Let us delve deeper to find out.

Tailwinds Working in Favor of Knight-Swift Stock

Knight-Swift has been active on the acquisition front to strengthen its revenue stream, which is likely to drive growth and margin expansion.

Knight-Swift has proactively reduced its tractor fleet to better align with demand, which helps improve asset utilization and profitability as market conditions improve. To this end, Knight-Swift announced (on March 16, 2026) that it has inked a deal with TRANSTEX, a cleantech leader in emission-reducing solutions for the transportation sector. Per the deal, TRANSTEX will be purchasing FleetAero assets from Knight-Swift. The capacity discipline is a major tailwind for this trucking company.

Additionally, Knight-Swift’s shareholder-friendly initiatives in the form of dividend payments and share buybacks make it a good investor choice. As a reflection of its shareholder-friendly instance, in 2022, 2023 and 2024, KNX paid dividends of $78.30 million, $91.14 million and $104.15 million, respectively. During 2025, KNX paid dividends of $117.44 million. Knight-Swift has raised its quarterly dividend annually for seven consecutive years for a 233% overall increase. Consistent and rising dividend paymentsmay encourage investors to stay invested, thus stemming price declines.

KNX Stock’s Price Performance

Shares of KNX stock have gained 36.1% over the past three months, outperforming the transportation-truck industry’s 25.7% surge, as well as that of other industry players, Old Dominion Freight Line, Inc. (ODFL) and J.B. Hunt Transport Services (JBHT) within the same time frame.

KNX Stock’s Three-Month Price Comparison

Image Source: Zacks Investment Research

What Do Earnings Estimates Say for KNX?

The positive sentiment surrounding KNX stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and fourth-quarter 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected northward in the past 60 days.

Image Source: Zacks Investment Research

The favorable estimate revisions indicate brokers’ confidence in the stock.

Time to Buy KNX Stock

It is understood that KNX stock is currently attractively valued. Consistent shareholder-friendly initiatives boost investor confidence and positively impact the bottom line. Knight-Swift has raised its quarterly dividend annually for seven consecutive years for a 233% overall increase. Apart from being shareholder-friendly, Knight-Swift has been active on the acquisition front to strengthen its revenue stream, which is likely to drive growth and margin expansion. Knight-Swift has proactively reduced its tractor fleet to better align with demand, which helps improve asset utilization and profitability as market conditions improve.

We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding rising expenses related to salaries, wages, and benefits, equipment, maintenance, fuel, and other expenses and driver shortage issues. We, therefore, suggest investors add Knight-Swift stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Village reported third-quarter fiscal 2026 earnings per Class A share of 61 cents, which declined from 75 cents.

Sales of $572.6 million indicated a 1.6% rise from $563.7 million in the prior-year quarter. Net income declined to $9 million from $11.2 million a year earlier.

Same-store sales slipped 0.2%, although management said they would have increased 1.3% excluding the estimated impact of Winter Storm Fern. Same-store digital sales rose 9% year over year.

Village Super Market, Inc. Price, Consensus and EPS Surprise

Village Super Market, Inc. price-consensus-eps-surprise-chart | Village Super Market, Inc. Quote

Other Key Business Metrics

Gross profit margin narrowed to 28.08% from 28.77% in the prior-year period. Operating and administrative expenses increased to 25.11% of sales from 24.78%, reflecting higher utility, repair and weather-related maintenance costs, increased professional-service expenses, higher insurance costs and increased employee-related expenses. Operating income fell to $8.4 million from $13.7 million a year earlier.

Management Commentary

Management highlighted the impact of Winter Storm Fern, which caused store closures at the beginning of the quarter and shifted some customer demand into the final week of the second quarter as shoppers stocked up ahead of the storm. The company noted that, excluding the storm’s estimated impact, same-store sales would have increased 1.3% in the quarter. Management also pointed to continued digital sales growth, strength in recently replaced or remodeled stores and higher sales in fresh-food departments as positive contributors.

Factors Influencing Quarterly Performance

Sales growth was driven primarily by the opening of the Watchung replacement store, while comparable-store performance was pressured by storm-related disruptions, deflation in egg prices and sales cannibalization from the new location. Pharmacy sales contributed positively despite lower pricing associated with the Inflation Reduction Act.

Margin performance was affected by lower patronage dividends and rebates received from Wakefern, increased warehouse assessment charges, an unfavorable product mix and higher promotional spending. On the expense side, operating leverage weakened because of weather-related store closures and demand shifts, while utilities, repairs, maintenance, professional fees and insurance costs all increased.

The quarter also benefited from a lower effective tax rate of 16.2% compared with 30.6% a year earlier, primarily due to excess tax benefits from vested stock-based compensation. Even so, net income declined because of weaker operating performance.

Other Developments

Village disclosed that fiscal 2026 included pension settlement charges related to the termination of a company-sponsored plan. For the first 39 weeks of fiscal 2026, adjusted net income was $39.1 million compared with reported net income of $38.8 million. 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The agreement aligns with E’s strategy of building a geographically diversified exploration portfolio by targeting both established and underexplored regions. By entering The Gambia, Eni strengthens its presence in West Africa and gains access to a frontier exploration opportunity that could complement its existing portfolio of exploration assets across the continent.

This agreement strengthens E’s long-term growth prospects by expanding its exploration portfolio, supporting the future production outlook and enhancing cash-flow potential and investor appeal.

Eni currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector with a presence in upstream operations are Vista Energy, S.A.B. de C.V. VIST, Chevron Corporation CVX and YPF Sociedad Anónima YPF.

With West Texas Intermediate (“WTI”) crude prices trading above the $90-per-barrel mark, according to oilprice.com, VIST, CVX, YPF and E are benefiting from the positive pricing environment. VIST and CVX currently has a Zacks Rank #2 (Buy) while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vista is an independent oil and gas producer focused on Argentina's prolific Vaca Muerta basin, where it has a footprint of roughly 257,000 net acres. VIST achieved total production of 134,741 barrels of oil equivalent per day (Boe/d) in first-quarter 2026, representing a 67% increase from the prior-year period. Driven by this strong performance, Vista increased its full-year 2026 production target to 143,000 Boe/d from 140,000 Boe/d.

Chevron is a leading integrated energy giant with a strong presence in the Permian Basin. Supported by strong upstream performance and continued growth across its resource base, CVX achieved first-quarter 2026 international net oil-equivalent production of 1.8 million barrels of oil equivalent per day, up from the prior-year period.

YPF is driving production growth by maximizing its core assets in Argentina’s Vaca Muerta. YPF plans to scale up operational activities in the coming quarters to increase oil and gas output in the second half of 2026.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The market is now debating how long operating discipline can carry the story, especially as tariffs and portfolio simplification create cross-currents.

The Setup for a 2026 to 2027 Margin Story

The core setup is a multi-year operating discipline narrative that can extend into 2027. Solventum’s Transform for the Future initiative and ongoing separation execution are positioned to support margin expansion over time, even as near-term pressure points remain.

Separation progress is a key part of that foundation. The company has exited just over half of its transition service agreements and expects to exceed 90% by the end of 2026. Management also expects the final large enterprise resource planning cutover in the United States and Canada in the third quarter of 2026, which can reduce disruption risk and free up resources for efficiency work.

Image Source: Zacks Investment Research

Solventum AI Coding Could Reshape HIS Growth

Health Information Systems is increasingly tied to customer demand for automation, and that includes rising interest in AI-enabled autonomous coding. Solventum points to its reimbursement data sets, proprietary workflows, and deep coding expertise as advantages in building tools that improve accuracy, compliance, and scalability for providers.

That positioning connects directly to what showed up in the first quarter. Health Information Systems posted 4.7% organic growth, with strength in revenue cycle management and performance management solutions. Management highlighted traction in autonomous coding offerings across inpatient and outpatient settings, supported by retention, backlog conversion and international expansion.

SOLV’s Transform for the Future Cost Savings Path

Transform for the Future targets about $500 million of annual cost savings through operational efficiencies, system streamlining and automation. The timing matters: most of the benefits are expected in 2027 and beyond, which is why investors are framing 2026 as a bridge year rather than the destination.

Even so, management is still targeting 50 to 100 basis points of operating margin expansion in 2026. That goal reflects sales leverage, programmatic savings, and portfolio actions, and it is being maintained despite higher tariff costs.

SOLV 3M Supply Agreement Risk in 2027

Another margin debate sits beyond 2026. Under Solventum’s long-term supply agreement with 3M Company MMM, 3M holds a contractual option in 2027 to raise the cost of certain raw materials supplied to Solventum. If exercised, that step-up could create a 100-basis-point margin headwind.

Mitigation is already part of the plan. Solventum has said it is working with 3M to explore alternatives, and it also owns the intellectual property rights for these materials within its field of use. That structure gives Solventum the option to source the materials from other chemical manufacturers if needed.

Solventum SKU Exits Create a 2026 Growth Trade-Off

Portfolio simplification is also creating a measurable growth trade-off in 2026. Solventum is continuing a multi-year SKU rationalization program, and management said SKU exits reduced first-quarter organic sales growth by about 100 basis points. The company expects the same 100-basis-point reduction to full-year 2026 organic sales growth from continued exits.

The impact is most pronounced in MedSurg, particularly within Infection Prevention and Surgical Solutions. Investors may still view this as an investment in simplification that can improve execution and efficiency over time, even if it makes the 2026 growth comparison less clean.

SOLV What Would Change the Narrative

The upside markers are tied to execution and cadence. Solventum, currently carrying a Zacks Rank #3 (Hold), expects to launch nearly 20 new products over the next two years, with a meaningful portion in key growth-driver categories. Sustained commercial execution, selective tuck-in acquisitions, and share repurchases also sit on the list of potential narrative shifters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The downside markers are clearer and easier to model. Tariffs remain a watch point, SKU exits are a known 2026 headwind, and the 2027 raw material step-up under the 3M agreement is a defined risk if not mitigated.

In the broader healthcare landscape, peers such as Stryker SYK are also judged on mix, operational discipline and procedure-driven demand. For Solventum, the near-term debate is whether efficiency and product momentum can outlast the policy and portfolio noise, and whether the 2027 setup improves as execution milestones are cleared.

SOLV’s Sales & EPS Picture

In 2026, SOLV is expected to experience a 1.5% decline in revenues. On the profitability front, earnings per share are expected to improve 7.7% year over year.

Image Source: Zacks Investment Research

SOLV’s Valuation Picture

SOLV currently trades at a price-to-book ratio of 2.83X, well below its median level of 3.44X over the past five years.

Image Source: Zacks Investment Research

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

How Target Compares With Walmart and Costco’s Comp Sales

While Target is showing signs of improving category momentum, peer performance provides additional context on how consumer demand is trending across the retail landscape.

Walmart Inc. WMT posted U.S. comparable sales growth of 4.1% in the first quarter of fiscal 2027, driven by higher customer transactions, increased unit volumes and strong e-commerce performance. Walmart continued to gain market share across income groups while benefiting from growth in advertising, marketplace sales and Walmart+ membership revenues. Walmart’s results reflected steady demand for both grocery and general merchandise offerings.

Costco Wholesale Corporation’s COST third-quarter fiscal 2026 comparable sales rose 9.8%, helped by fuel inflation and foreign exchange. Costco’s adjusted comparable sales increased 6.6%, reflecting broad-based demand, with traffic up 2.4% and adjusted ticket growth of 4.2%. Costco also posted healthy regional adjusted comps of 6.8% in the United States, 6.2% in Canada and 5.9% internationally.

What the Latest Metrics Say About Target

Target has seen its shares jump 1.2% over the past three months against the industry’s decline of 1.5%.
 

Image Source: Zacks Investment Research

From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 14.35, lower than the industry’s ratio of 31.29. However, it is trading above its 12-month median level of 13.25, suggesting that while the stock remains discounted versus the industry, part of the recent operating improvement may already be priced in. 
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 10.3%, respectively. The consensus mark for earnings has risen 33 cents to $8.35 per share over the past 30 days.
 

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The study showed that participants using Dexcom G7 achieved clinically and statistically significant reductions in HbA1c levels and improvements in timing range compared with those using routine blood glucose monitoring. Management believes the results could help expand CGM adoption and support a new standard of care for the large Type 2 non-insulin diabetes population.

Likely Trend of DXCM Stock Following the News

Shares of DXCM have traded flat since the announcement of the news. In the year-to-date period, shares of the company have gained 9.8% against the industry’s 15.8% decline. However, the S&P 500 has risen 8.1% during the same timeframe.

The CONNECT study strengthens DexCom’s long-term growth prospects by providing high-quality clinical evidence supporting the use of CGM in people with Type 2 diabetes who do not use insulin — one of the largest and least penetrated segments of the diabetes market.

The positive results could support future updates to treatment guidelines, improve payer reimbursement decisions and encourage broader physician adoption of Dexcom G7. Expanded access and utilization within this sizable patient population could significantly increase DexCom’s addressable market and drive sustained revenue growth over the long term.

DXCM currently has a market capitalization of $28.11 billion.

Image Source: Zacks Investment Research

More on the News

The CONNECT study is the first randomized controlled trial to provide Level A evidence — the highest evidence classification recognized by the American Diabetes Association — supporting continuous glucose monitoring (CGM) use in adults with Type 2 diabetes who do not use insulin. The trial enrolled 283 eligible participants across 22 U.S. primary care practices, with 265 completing the 26-week study. Participants were randomized to either Dexcom G7 or routine self-monitoring of blood glucose, while continuing their existing diabetes medications and receiving standardized diet and exercise education.

Results showed that participants using Dexcom G7 achieved an average HbA1c reduction of 1.6% from a baseline level of 8.8%, representing a 0.9% greater reduction than the control group. The benefit was even more pronounced among participants with baseline HbA1c levels above 10%, who experienced an average 3.1% reduction.

Notably, 82% of Dexcom G7 users achieved at least a 0.5% reduction in HbA1c, while 68% reached HbA1c levels below 7.5% and 46% achieved levels below 7.0% by week 26. The study also demonstrated that Dexcom G7 delivered meaningful glycemic improvements both as a standalone intervention and when used alongside commonly prescribed diabetes therapies.

Beyond HbA1c improvements, Dexcom G7 users experienced substantial gains in overall glucose management. Time in the target glucose range of 70-180 mg/dL was approximately five hours per day higher than that of the control group, with benefits emerging within the first four weeks and persisting throughout the study period. Participants using Dexcom G7 also reported greater treatment satisfaction, lower diabetes-related distress and reduced disease burden.

Device engagement also remained exceptionally high, with median daily usage of 97% during the study. Dexcom is currently conducting a six-month extension phase to evaluate the durability of these benefits over a full 12-month period.

Industry Prospects Favoring the Market

Going by the data provided by Grand View Research, the CGM devices market was valued at $15.47 billion in 2026 and is expected to witness a CAGR of 15.1% through 2033.

Factors like the growing cases of diabetes, the increasing adoption of CGM devices, growing clinical needs, technological innovation and shifting care models are boosting the market’s growth.

Other News

At the recent Investor Day event, DexCom unveiled its next-generation CGM, the Dexcom G8 system, which is expected to launch in late 2027 or early 2028. Features include step change improvement in glucose performance, a 50% smaller form factor than Dexcom G7 and advanced sensing capabilities.

DXCM’s Zacks Rank & Key Picks

Currently, DXCM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and Intuitive Surgical ISRG.

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

About the Industry

The Zacks REIT and Equity Trust - Residential category includes companies that own, develop and manage various residential properties, such as apartment buildings, student housing, manufactured homes and single-family homes. These REITs generate revenues by renting spaces to tenants. While most residential REITs lease properties like apartments and single-family homes to a broad range of tenants, student housing is exclusively leased to students. As a result, student housing properties are typically located near colleges and universities to serve their target demographic. The demand for student housing is closely tied to enrollment growth at educational institutions, making it a key driver for this market segment. Some residential REITs may focus on specific regions or types of housing to better address local market dynamics or serve particular tenant demographics.

What's Shaping the REIT & Equity Trust - Residential Industry's Future?

Heavy New Supply Is Still Holding Back Rent Growth: A major issue affecting the sector is the significant wave of new apartment supply delivered in many high-growth markets. While renter demand is still solid, recently completed communities are competing for the same residents. This competition is weighing on lease rates and pushing landlords to provide concessions to maintain occupancy. For residential REITs, near-term revenue growth could remain limited. Many operators are prioritizing stable occupancy over aggressive rent increases, which keeps properties filled but reduces pricing flexibility. In markets where new units are still being absorbed, concessions are likely to remain necessary to draw renters. The problem is not weak rental demand, but rather an excess of available units arriving at once in select regions. Until this supply is absorbed, some REIT portfolios may face slower rent improvement and softer new lease growth. The recently announced merger of equals between AvalonBay Communities and Equity Residential also highlights how major apartment REITs are seeking greater scale, stronger market concentration and operating efficiencies to better navigate a slower-growth and supply-heavy environment.

Demand Is Healthy but No Longer Exceptional: Rental housing demand remains solid, but it is no longer unusually strong. Net absorption has moved closer to historical norms, suggesting a more balanced and normalized operating environment. This does not signal a major demand downturn, but it does mean residential REITs may receive less support from renter activity than they did in recent years. A softer economy adds further pressure, as slower hiring, weaker population growth and stretched household finances can make renters more selective. Some may postpone moves, trade down to smaller apartments or search for better value, limiting landlords’ ability to push rents, especially in assets lacking strong locations, amenities or quality. Renter preferences are also becoming more divided. Newer, higher-quality properties are performing better, while older or lower-tier communities face more pressure. As a result, portfolio quality may become a key driver of REIT performance.

Slower Construction Could Create a Better Long-Term Setup: A positive development is that the supply outlook is beginning to improve. New construction has slowed as financing costs remain high, building expenses stay elevated, and investors become more selective with capital. While this will not immediately ease today’s supply pressure, it indicates the market may gradually shift toward a better balance. For residential REITs, fewer future apartment deliveries could become an important advantage. As competition from newly built properties declines, existing communities are likely to gain more ability to restore pricing power. Strong occupancy and resident retention could also help support steadier revenue growth. Meanwhile, limited affordability in the for-sale housing market is likely to keep many households renting for longer. REITs best positioned for the future are likely to have strong balance sheets, disciplined capital spending and exposure to markets where new supply is slowing. Student housing leasing remains healthy for Fall 2026, supported by steady demand and stronger interest in properties located closest to campus.

Zacks Industry Rank Indicates Bleak Prospects

The REIT and Equity Trust - Residential industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #178, which places it in the bottom 28% of around 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dim 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 two to one.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the downward funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are losing confidence in this group’s growth potential. Over the past year, the industry’s FFO per share estimates for 2026 have moved 6.9% south, and the same for 2027 have declined 8.6%.  

However, before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and valuation picture first.

Industry Underperforms Sector and S&P 500

The Zacks REIT and Equity Trust - Residential industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year.

The industry has declined 9.5% during this period against the S&P 500’s increase of 26.7%. The broader Finance sector has risen 11.7%.

1-Year Price Performance

Industry's Current Valuation

On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing residential REITs, we see that the industry is currently trading at 15.44 compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 21.48. The industry is also trading below the Finance sector’s forward 12-month P/E of 15.83. This is shown in the chart below.

Forward 12-Month Price-to-FFO (P/FFO) Ratio

Over the last five years, the industry has traded as high as 26.64 and as low as 12.99, with a median of 16.81.

3 Residential REITs to Consider

Invitation Homes Inc.: This is a leading single-family home leasing and management company, offering professionally managed homes in high-growth U.S. markets. As of March 31, 2026, it owned 85,970 homes and owned or managed 109,745 homes, with its same-store portfolio representing 78,141 homes.

The residential REIT is poised to benefit from its scale, resilient demand and improving momentum. First-quarter 2026 revenues rose 8.8% to $734 million, while average same-store occupancy was 96.3% and improved to 97.2% in April-May. Leasing remains attractive, with nearly $1,000 monthly savings versus owning in INVH markets. The company also had $1.3 billion of liquidity, no final debt maturities before June 2027, and a new $500 million repurchase authorization.

Invitation Homes currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its 2026 FFO per share suggests a year-over-year increase of 2.09%. The consensus mark for 2027 FFO per share calls for 3.81% year-over-year growth. The company’s shares have rallied 15.7% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Equity LifeStyle Properties: This is a residential REIT specializing in manufactured housing communities, recreational vehicle resorts, campgrounds and marinas across North America. The company owns 453 properties with more than 173,000 sites spread across 35 U.S. states and one Canadian province as of March 31, 2026. Its portfolio is concentrated in high-demand retirement and vacation destinations, benefiting from favorable demographic trends and limited housing supply.

ELS continues to benefit from strong demand for affordable housing and lifestyle-oriented communities. Manufactured housing occupancy remains near 94%. The company has delivered average long-term NOI growth of 4.5% and maintains a conservative balance sheet with low leverage. ELS has also consistently increased dividends, including a 5.3% hike for 2026, supporting its appeal as a stable long-term real estate investment.

The Zacks Consensus Estimate for 2026 FFO per share of $3.18 indicates a 3.92% increase year over year. The consensus mark for 2027 FFO per share of $3.35 implies a 5.46% year-over-year rise. The company’s shares have risen 3% so far in the year. Equity Lifestyle currently carries a Zacks Rank of 3 (Hold).  

 
American Homes 4 Rent: This internally managed Maryland residential REIT is focused on developing, renovating, leasing and managing single-family rental homes. As of March 31, 2026, AMH owned more than 61,000 properties across the Southeast, Midwest, Southwest and Mountain West, combining scale, local operations and a development platform serving housing demand.

Its large, diversified portfolio benefits from steady demand for single-family rentals, while its in-house development program adds modern, energy-efficient homes to support future growth. AMH’s first-quarter 2026 rents and other single-family property revenues rose 2.8% year over year to $472.0 million. Core FFO grew 4.6%, Same-Home Core NOI rose 3.7%, occupancy reached 95.1%, and the development program delivered 539 energy-efficient new homes, supporting resilient growth and quality within a disciplined, customer-focused rental platform for long-term value creation.

The Zacks Consensus Estimate for 2026 FFO per share of $1.93 indicates a 3.21% increase year over year. The consensus mark for 2027 FFO per share has been revised upward over the past month to $2.01, implying a 4.11% year-over-year rise. The company’s shares have risen 12.9% over the past three months. American Homes 4 Rent currently carries a Zacks Rank of 3.



Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

How Sterling Compares With Key Infrastructure Rivals

Sterling operates in highly attractive end markets such as data centers, advanced manufacturing and semiconductor facilities, but it is not alone in pursuing these opportunities. Two notable competitors are EMCOR Group EME and Quanta Services PWR.

EMCOR has built a strong position in mission-critical construction and electrical services. The company benefits from rising investments in data centers, industrial facilities and technology infrastructure. Like Sterling, EMCOR is leveraging the growing demand for complex projects that require specialized engineering and construction expertise.

However, EMCOR remains more diversified across mechanical and electrical contracting, whereas Sterling is increasingly emphasizing large-scale site development tied to data centers and semiconductor campuses. As semiconductor investments expand, EMCOR is likely to remain a significant competitor for related infrastructure work. EMCOR’s extensive customer relationships and nationwide footprint further strengthen its competitive position.

Quanta is another major infrastructure player benefiting from long-term capital spending trends. The company has deep expertise in power, utility and industrial infrastructure, areas that are becoming increasingly important as semiconductor fabs and AI-driven data centers require massive power capacity. Quanta is also expanding its exposure to advanced manufacturing projects, placing it in direct competition with Sterling for certain large-scale developments.

While Quanta possesses broader utility and energy capabilities, Sterling’s specialized site-development expertise could help it carve out a differentiated position in the emerging semiconductor construction market. Quanta remains one of the most formidable competitors in this rapidly growing infrastructure space.

STRL Stock’s Price Performance & Valuation Trend

Shares of this Texas-based infrastructure services provider have gained 188.1% year to date, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.

STRL Price Performance (YTD)

Image Source: Zacks Investment Research

STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 43.73, as shown in the chart below.

STRL's P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Earnings Estimate Revision of STRL

STRL’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $17.95 and $23.07 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 65% and 28.5%, respectively.
 

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

IDT’s Earnings Snapshot

IDT delivered higher revenues and earnings in the third quarter of fiscal 2026, driven by continued growth in its higher-margin businesses. Revenues increased 4.5% year over year to $315.7 million, while gross profit rose 9.4% to a record $122.5 million. Gross margin expanded 170 basis points to 38.8% from 37.1%. Income from operations climbed 12% to $29.8 million, and GAAP earnings per share (EPS) improved to $0.87 from $0.86 a year earlier. Non-GAAP EPS increased 4.4% to $0.94 from $0.90. Adjusted EBITDA grew 13% to $37.5 million.

Segment performance was led by National Retail Solutions (NRS), where revenue rose 22% and operating income increased 33%; the Fintech segment, where revenue grew 17% and operating income advanced 29%; and net2phone, which posted 11% revenue growth and a 76% increase in operating income. Traditional Communications revenue declined 1%, although adjusted EBITDA edged up 1%.

IDT’s Segment Growth Drives Profit Expansion

Management attributed the quarter’s performance to the expanding contribution of NRS, Fintech and net2phone, which collectively accounted for 34% of consolidated revenue, up from 30% a year ago. These businesses generated 67% of consolidated gross profit compared with 61% in the prior-year period. Combined adjusted EBITDA from the three growth segments increased 27% year over year to $20.5 million.

At NRS, recurring revenue increased 22% to $36 million, supported by a 31% increase in Merchant Services and Other revenue and a 17% rise in SaaS Fees. Active POS terminals reached 39,300, up 10.4%, while payment processing accounts increased 14.5% to 29,200. Revenue climbed 22% to $38 million and adjusted EBITDA rose 25% to $9.8 million.

The Fintech segment benefited from strong BOSS Money performance. Total segment revenue increased 17% to $45 million, while gross profit rose 25% to $28.3 million. BOSS Money transactions increased 15% to 6.9 million, and digital channel transactions rose 20%. Digital channel revenue jumped 27% to $31 million. Digital channel send volume jumped 40%, reflecting growth in both transaction activity and average remittance amounts. Adjusted EBITDA increased 30% to $6.6 million.

At net2phone, subscription revenue grew 12% to $24 million as seats served increased 6.3% to 441,000. The business benefited from growth in higher-value CCaaS seats, helping operating income rise 76% to $2.4 million and adjusted EBITDA increase 30% to $4.1 million.

IDT’s Other Key Business Metrics

NRS reported a Rule of 40 score of 50, reflecting a balance between growth and profitability. Monthly average recurring revenue per terminal increased 10% to $307. Management noted that payment processing accounts surpassed 29,000, and recurring revenue growth continued to be driven by merchant services and software fees.

IDT ended the quarter with $251.4 million in cash, cash equivalents and current debt and equity securities, excluding restricted cash, and had no outstanding debt. During the quarter, IDT repurchased approximately 84,000 Class B shares for $4 million.

IDT’s Management Commentary

Chief executive officer Shmuel Jonas said that growth continued to be fueled by IDT’s higher-margin businesses alongside steady cash generation from Traditional Communications. Jonas highlighted market-share gains at BOSS Money following implementation of a federal remittance tax and pointed to growing traction for net2phone’s AI offerings, which management expects to become accretive growth drivers in fiscal 2027. Management also emphasized broader adoption of AI and machine-learning tools across operations, including customer service, pricing, marketing and product development. 

IDT’s Guidance Raised

Reflecting strong results through the first nine months of fiscal 2026 and visibility into the fiscal fourth quarter, IDT raised its full-year consolidated adjusted EBITDA guidance to a range of $150 million to $152 million from its previous outlook of $147 million to $149 million. At the midpoint, the revised forecast implies 15% growth over fiscal 2025 adjusted EBITDA of $131.7 million.

IDT’s Other Developments

Following the quarter’s close, IDT acquired an 80% controlling stake in OnCore Digital, a digital media brokerage. Management said the acquisition will allow NRS to integrate OnCore’s advertising technology, demand relationships and publisher network with its existing screen network and first-party transaction data. During the earnings call, management described the deal as a small tuck-in acquisition valued at roughly $6 million, excluding earn-outs, and said it is expected to enhance monetization of NRS advertising assets.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While many retailers continue to navigate tariff uncertainty and shifting consumer shopping habits, a handful of companies reported Q1 results that easily surpassed Wall Street’s expectations last week.

Among the biggest winners were Ulta Beauty ULTA), Victoria's Secret VSXY), and Five Below FIVE). Each company not only beat earnings expectations but also demonstrated business momentum that could support further gains in the months ahead.

ULTA – Zacks Rank #3 (Hold)

Demand for Ulta Beauty Products Remains Resilient

Ulta Beauty delivered an impressive Q1 performance that highlighted the strength of the beauty category and the company's dominant market position.

Quarterly sales climbed 11% year over year to $3.16 billion and edged estimates of $3.11 billion, with comparable sales increasing 5%. More impressive, adjusted earnings per share jumped 15% YoY to $7.74, and comfortably exceeded Q1 EPS expectations of $6.90 by 12%.

The ability to grow sales and earnings at a double-digit pace in a mature retail category demonstrates the power of Ulta’s omnichannel strategy and brand partnerships. Management also raised its full-year EPS outlook following the strong quarter, as the results were broad-based, with growth across cosmetics, skincare, fragrance, haircare, and wellness. 

Ulta benefited from higher customer spending, increased traffic, new store openings, and contributions from its Space NK acquisition, a leading British beauty retailer it acquired as part of its strategy to expand into the UK market. Furthermore, membership in the company's loyalty program continues to expand, approaching 47 million members.

With management increasing guidance and beauty demand remaining healthy, Ulta’s stock could be attractive for investors looking for a high-quality retail leader with durable growth prospects.

Image Source: Zacks Investment Research

VSXY – Zacks Rank #1 (Strong Buy)

Victoria's Secret’s Turnaround Strategy Is Delivering Results

Victoria's Secret delivered one of the biggest earnings surprises last week, with Q1 EPS of $0.60 coming in at more than double the consensus estimate of $0.29.

Turnaround efforts continue to gain traction under CEO Hillary Super, highlighted by the company also raising its full-year outlook after Q1 revenue of $1.55 billion beat expectations as well ($1.52 billion Consensus).

Refocused on its core categories while improving product assortments and marketing effectiveness, Victoria's Secret’s initiatives have helped reignite demand in its bra business, increased customer engagement, and improved shopping frequency. Investors responded enthusiastically, sending shares sharply higher following its earnings release last Tuesday, with VSXY hitting an all-time high of $81 a share.

For investors seeking a retail turnaround story with improving fundamentals and earnings revisions moving higher, Victoria's Secret stock is worth a closer look. As shown below, EPS estimates for Victoria’s Secret’s current FY27 (F1) and FY28 (F2) have spiked well over 15% in the last 60 days, respectively.

Image Source: Zacks Investment Research

FIVE – Zacks Rank #1 (Strong Buy)

Five Below’s Growth Engine is Still Running Strong

Five Below once again demonstrated why it remains one of the fastest-growing retailers in the market. The discount retailer reported Q1 EPS of $2.22, which soared 158% from $0.86 per share a year ago and crushed expectations of $1.70 by 30%.

This came as Q1 sales surged more than 30% to $1.28 billion and surpassed estimates of 1.2 billion. The provider of trendy merchandise for $5 or less saw comparable sales surge over 20%, highlighting exceptionally strong customer demand across its value-oriented merchandise assortment.

Joining Ulta and Victoria’s Secret in raising its full-year guidance, Five Below is reflecting confidence in its growth trajectory despite concerns about tariffs and consumer spending trends. To that point, Five Below continues to benefit from new store openings, merchandising improvements, and its ability to attract shoppers seeking affordable discretionary purchases.

Although Five Below’s stock experienced volatility after earnings as investors debated whether comparable-sales growth could remain at such elevated levels, its underlying business performance is hard to ignore. Revenue growth exceeding 30%, significant earnings upside, and increased guidance suggest that Five Below's expansion strategy remains firmly on track.

For growth-oriented investors looking for retail exposure, Five Below remains one of the most compelling stories in the sector.

Image Source: Zacks Investment Research

Bottom Line

The retail earnings season has revealed a clear theme: companies with strong brands, differentiated customer experiences, and disciplined execution are still thriving. Ulta Beauty benefited from resilient demand for beauty products, Victoria's Secret continued its successful turnaround, and Five Below delivered another quarter of exceptional growth.

With all three companies beating earnings expectations and providing encouraging guidance, investors may want to consider these retail leaders as potential opportunities for the second half of the year.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

How Shopify Compares With Key E-Commerce Rivals

Two of Shopify’s most relevant competitors are Amazon AMZN and eBay EBAY, though their business models differ meaningfully. While Amazon primarily operates as a marketplace where merchants sell within Amazon’s ecosystem, Shopify enables merchants to build and control their own branded storefronts across multiple channels. This distinction has become increasingly important as brands seek greater ownership of customer relationships and data.

Amazon remains a formidable competitor due to its vast logistics network, fulfillment capabilities and massive consumer reach. However, Amazon’s marketplace structure gives sellers less control over branding and customer engagement than Shopify’s platform. As AI-powered commerce and omnichannel retail expand, Shopify’s merchant-first approach may appeal to businesses seeking independence.

eBay also competes for online merchant activity, particularly among small and mid-sized sellers. However, eBay remains largely marketplace-centric, whereas Shopify provides a comprehensive commerce operating system that includes payments, point-of-sale, B2B tools and AI-driven solutions. As merchants increasingly adopt unified commerce strategies, Shopify’s broader platform capabilities could offer a competitive edge.

While Amazon and eBay remain major players in digital commerce, Shopify’s ability to generate more than $100 billion in quarterly GMV, combined with its growing AI ecosystem, positions it strongly in the evolving e-commerce landscape.

SHOP Stock’s Price Performance & Valuation Trend

Shares of SHOP have trended 31.9% downward year to date (YTD), underperforming the Zacks Internet - Services industry, as shown below.

SHOP’s YTD Price Performance

Image Source: Zacks Investment Research

SHOP stock is currently trading slightly at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 55.89, as evidenced by the chart below.

SHOP’s P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

EPS Trend of SHOP Stock

Over the past 60 days, expectations for the company’s 2026 earnings per share increased to $1.80. The estimate indicates 53.9% growth from the year-ago level.
 

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

TER Stock Performance

Image Source: Zacks Investment Research

TER Benefits From Growing AI Infrastructure Demand

Teradyne is benefiting from the growing demand for AI infrastructure, which is driving robust growth across its semiconductor test and robotics divisions. Growth is largely attributed to the accelerating demand for AI and data center technologies, with AI-related demand accounting for nearly 70% of Teradyne’s revenues in the first quarter of 2026, up from about 60% in the previous quarter. 

The company’s product innovation is supporting its growth. The company’s introduction, like the Photon 100 platform for silicon photonics and co-packaged optics testing and the Omnyx production board test platform, addresses critical needs in AI data center build-outs. The Photon 100 is expected to contribute to a TAM expansion opportunity that could reach $300 million to $700 million per year over the midterm.

Strategic acquisitions and joint ventures, such as the MultiLane Test Products JV and the acquisition of TestInsight, are enhancing Teradyne’s capabilities in high-speed I/O, data center interconnect testing and design-to-test software.

Teradyne’s SemiTest segment broke the $1 billion revenue threshold for the first time, with compute-related products making up roughly 75% of SoC product revenue. Memory test demand, especially for HBM and DRAM, remains robust, and the company is seeing early indicators of growth in HDD testing driven by AI-fueled data center storage needs. Robotics revenue also saw strong year-over-year growth, with AI-related applications in e-commerce, electronics manufacturing and data centers.

Teradyne Drives Robotics Growth With AI

Teradyne’s Robotics division delivered its fourth consecutive quarter of sequential growth, with first-quarter 2026 robotics revenues up 32% year over year to $91 million. This growth is notable because the first quarter is typically a seasonally weaker quarter. The company’s “one sales team” approach is driving results across verticals, and AI revenue now represents 15% of robotics sales.

The company’s robots are now used in environmental sensing within data centers, and Teradyne recently showcased a complex physical AI work cell in partnership with Generalist at NVIDIA’s GTC event. This demonstrates Teradyne’s ability to innovate and integrate AI-driven robotics into high-growth markets such as e-commerce, electronics manufacturing and semiconductors. 

Further expanding its portfolio via partnership, in April 2026, Teradyne Robotics and Flex expanded their collaboration, with Flex both deploying Universal Robots cobots and MiR autonomous mobile robots in its own facilities and manufacturing key robotics components for Teradyne’s customers worldwide.

Teradyne continues to expect its large e-commerce customer to triple its revenue contribution in 2026 compared with 2025, which, if executed, would improve scale and utilization in the Robotics segment.

TER Initiates Positive Q2 Guidance

Teradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth.

For the second quarter of 2026, Teradyne expects revenues in the range of $1.150-$1.250 billion. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.22 billion, suggesting an 86.43% year-over-year increase. 

Non-GAAP earnings are projected to be in the range of $1.86-$2.15. The consensus mark for earnings is pegged at $1.99 per share, unchanged over the past 30 days. This indicates growth of 249.12% on a year-over-year basis.

Teradyne, Inc. Price and Consensus

Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote

TER Trades at a Premium

Teradyne shares are currently overvalued, as suggested by its Value Score of F.

Teradyne stock is trading at a premium with a forward 12-month Price/Sales of 11.38X compared with the Electronics - Miscellaneous Products industry’s 10.29X.

TER Valuation

Image Source: Zacks Investment Research

What Should Investors Do With TER Stock?

Teradyne’s robust, diversified portfolio, which meets the rising demand for AI-driven technologies, is consistently contributing to its growth prospects, driving top-line growth. These factors have justified its premium valuation.

TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 Ladder Capital Corp share, but what is the fundamental picture for the company? Currently, Ladder Capital Corp is a Zacks Rank #5 (Strong Sell) in the REIT and Equity Trust Industry that ranks in the Bottom 14% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased his estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from 25 cents per share to 24 cents per share in the same time period.

Given the way analysts feel about Ladder Capital Corp right now, this huge implied volatility could mean there’s a trade developing. Often times, 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The rally underscores investor enthusiasm around AI infrastructure, especially the key role of high-speed connectivity solutions in scaling next-generation data centers.

Yet, sharp price appreciation often raises a familiar question: has the easy money already been made? For investors evaluating CRDO today, the investment debate centers on whether its momentum is supported by durable fundamentals or if expectations have simply run ahead.

Let’s dig deeper to find out.

The Bull Case: Riding the AI Cycle

Credo’s extraordinary growth, tied to the rapid buildout of AI infrastructure, remains the most compelling investment argument.

Credo is a leading provider of high-speed connectivity solutions for the AI infrastructure. At the core of Credo’s business is its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technology stack. Leveraging this foundation, Credo offers a diversified suite of solutions, including integrated circuits (ICs), retimers, optical DSPs, Active Electrical Cables (AECs), SerDes chiplets and SerDes IP licensing.

CRDO’s focus on high-performance, energy-efficient connectivity solutions gives it strategic relevance as hyperscalers and cloud service providers overhaul their network architectures.

Image Source: Zacks Investment Research

Fiscal 2026 was a breakout year, with revenues surpassing $1.3 billion, more than tripling year over year. Non-GAAP net income increased more than fivefold.

AECs: Core Growth Driver

AECs are the primary growth engine for CRDO as they now play an increasingly critical role in AI-driven networking deployments. According to Credo, the adoption of zero-flap AECs is accelerating because they deliver up to 1,000x higher reliability while consuming roughly 50% less power compared with optical alternatives. These advantages are particularly valuable in large XPU clusters, where network failures can disrupt operations and lead to high costs.

Credo’s hyperscaler traction is central to its AEC strength. Four hyperscalers each contributed more than 10% of total revenues in the last reported quarter, reflecting strong adoption of Credo’s high-reliability AEC solutions. Beyond the traditional hyperscalers, Credo is also seeing increasing demand from emerging Neocloud providers.

Optical Business: Inflection Ahead

In addition to AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs). The company expects mid-single-digit sequential growth in the first half of fiscal 2027, followed by a stronger second-half acceleration buoyed by its optical portfolio. Management projects more than $600 million in optical revenue, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million. This is expected to support more than 80% year-over-year revenue growth for the full year.

The acquisition of Dust Photonics strengthens Credo’s high-speed optical connectivity portfolio with silicon photonics PIC technology. The deal adds advanced technology, including 800G and 1.6T solutions, and would aid in developing upcoming 3.2T solutions.

Operating Leverage Impressive

As revenue scales, Credo is beginning to show signs of operating leverage. Gross margins have been improving, and the company is moving closer to sustained profitability.

For fiscal 2026, the company reported a non-GAAP gross margin of 68.1%, improving by 310 basis points year over year, while operating margins expanded significantly to 47.8%.

Non-GAAP net margin reached 51.9% in the fiscal fourth quarter, underscoring the company’s ability to convert top-line growth into bottom-line profitability. 
For fiscal 2027, gross margins are projected to stay in line with fiscal 2026 levels, while non-GAAP net margins are expected to remain around 50%, even as the company continues to invest in R&D.

CRDO’s Cash Profile

The company remains “well capitalized” to continue to fuel the next leg of growth, while maintaining a considerable cash buffer. Credo’s $1.4 billion strong cash position enables it to continue investments in product innovation and pursue accretive M&A. This also continues to help CRDO deepen its technology moat and broaden the addressable market amid increasing competitive pressure.

No Investment Case Is Without Risks

Macroeconomic uncertainties and exposure to the AI investment cycle amid increasing market competition from the likes of Broadcom AVGO, Marvell Technology MRVL and Astera Labs ALAB may impact CRDO’s growth trajectory. Customer concentration is also a concern as it exposes the company to shifts in customer spending decisions.

Credo noted ongoing tightness in the supply chain. While the company has taken steps to secure capacity, disruptions could still affect its ability to meet demand.

Image Source: Zacks Investment Research

Analysts have marginally revised estimates downward for the current quarter.

CRDO Stock vs. Peers

Investor enthusiasm around AI buildout has benefited the semiconductor stocks greatly.

Price Performance

Image Source: Zacks Investment Research

Both Marvell and Astera Labs have registered triple-digit gains. Marvell has been in the news of late, especially as the NVIDIA chief publicly called it the next trillion-dollar company.  

On the other hand, AVGO is up 11.6%. The company reported second-quarter fiscal 2026 on June 3, following which shares tanked. Management reiterated expectations for more than $100 billion in AI revenues in fiscal 2027.

What to Make of CRDO’s Premium Valuation?

In terms of the forward 12-month price/earnings ratio, CRDO is trading at 15.48, higher than the Electronic-Semiconductors sector’s multiple of 9.14. 

Image Source: Zacks Investment Research

The premium appears justified given the company’s explosive revenue growth, strong profitability, expanding hyperscaler relationships and growing exposure to the rapidly scaling AI data center market.

In comparison, Broadcom trades at a forward 12-month P/S multiple of 13.35, while Astera Labs and Marvell are trading at a multiple of 30.21and 17.58, respectively.

Why CRDO Still is a Buying Opportunity

At present, CRDO flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is aligned with one of the most powerful and durable trends in technology, the rise of AI-driven infrastructure. While risks around competition, customer concentration and valuation persist, the long-term growth story seems compelling.

Despite near-term challenges, the stock still appears to offer attractive upside for those willing to ride the volatility. 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 LKQ, but what is the fundamental picture for the company? Currently, LKQ is a Zacks Rank #3 (Hold) in the Automotive - Replacement Parts Industry that ranks in the Top 27% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased his earnings estimate for the current quarter, while four have dropped their estimate. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from 78 cents per share to 73 cents per share in the same time period.

Given the way analysts feel about LKQ 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The core problem they're solving is: lenders often get stuck on legacy systems, patching broken integrations, doing manual underwriting and losing deals because they simply couldn't move fast enough. Under the alliance, Fuse's platform integrates with FIS Asset Finance and FIS AutoSuite, while open API tools simplify connections to dealer systems and third-party data providers. Lenders can now change pricing and policies on their own, no hard-coding required.

Slower speed kills deals in lending. Many lenders face growing pressure to improve decision speed and dealer experience as competition across the lending market intensifies. This alliance gives them a credible path to modernization without ripping out everything they already have.

Financial Implications

The math is straightforward. Faster decisions mean more funded loans. Fewer manual steps mean lower operational costs. Built-in automation is designed to reduce manual underwriting activity, improve efficiency, and deliver quicker lending decisions. Stronger dealer relationships follow naturally when approvals stop stalling.

A stronger origination offering can make FIS more competitive when lenders evaluate technology vendors, helping the company attract new customers and deepen existing relationships. The partnership can also create opportunities to sell additional products across the lending workflow, increasing the value of each client relationship. Over time, broader adoption could support recurring software revenue, improve customer retention and strengthen FIS' standing in the market.

FIS’ Price Performance

Shares of Fidelity National have declined 39.6% year to date, underperforming the 17.5% fall of the industry.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

FIS currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Business Services space are Klarna Group plc KLAR, Paymentus Holdings, Inc. PAY and Repay Holdings Corporation RPAY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past month against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.

The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.

The consensus estimate for Repay Holdings’ current-year earnings indicates an 11% year-over-year increase. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RPAY’s current-year revenues is pegged at $342.39 million, implying 10.7% year-over-year growth.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Growth has been supported by solid demand across the Nordics as well as Southern and Eastern Europe. At the same time, the company remains focused on expanding opportunities in the United States, the world’s largest outdoor and workwear market, which supports its broader ambitions to grow within the category.

To strengthen its position, Kontoor Brands continues to invest in geographic expansion, with particular emphasis on the United States and the ALPS region of Europe. Within the Workwear segment, management is accelerating growth initiatives through dedicated organizational resources, enhanced commercial efforts and increased demand-generation activities. The company believes demand for premium workwear is rising globally and is supported by long-term structural trends that can sustain category growth. These investments are intended to expand market presence and support profitable growth over time.

Within the Workwear segment, Wrangler and Helly Hansen complement one another by covering a broad range of consumer price points from value to premium, with limited overlap. Wrangler’s function-based value positioning, combined with its year-round replenishment model, benefits from longer product life cycles that support product consistency and operational efficiencies. These characteristics help strengthen the brand’s competitive position while contributing to product and margin efficiencies.

Overall, Kontoor Brands appears well-positioned to gain market share within the premium workwear category. Supported by complementary brand positioning, expanding geographic reach, targeted investments and favorable industry demand trends, the company has a solid foundation to drive sustainable long-term growth and profitability.

The Zacks Rundown for KTB

Shares of KTB have lost 3.9% in the past three months compared with the industry’s decline of 8%. KTB currently carries a Zacks Rank #4 (Sell).

Image Source: Zacks Investment Research

From a valuation standpoint, KTB trades at a forward price-to-earnings ratio of 12.84X, lower than the industry’s average of 17.31X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KTB’s current fiscal year earnings implies a year-over-year decline of 7%, while the same for the next fiscal year earnings implies an 11.4% year-over-year increase.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

Vince Holding Corp. VNCE provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 4.5% and 25% from the year-ago figures. VNCE has delivered a trailing four-quarter earnings surprise of 647.2%, on average.

Columbia Sportswear Company COLM engages in the design, development, marketing, and distribution of outdoor, active, and lifestyle products in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. At present, COLM sports a Zacks Rank of 1.

The Zacks Consensus Estimate for COLM’s current fiscal-year sales and earnings implies growth of 2.6% and 4.6% from the year-ago figures. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.

Superior Group of Companies, Inc. SGC produces, manufactures, and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The rally was driven by record quarterly tons sold, strong earnings growth and continued market-share gains, with shipments outperforming industry trends.  

Image Source: Zacks Investment Research

Let’s take a look at the factors that are driving RS stock.

Growth Investments Strengthen Market Position for RS

Reliance reported tons sold of 1.673 million tons in the first quarter of 2026, up 9.4% sequentially and 2.7% year over year. The company stated that it has now outperformed industry shipment trends for 13 consecutive quarters, underscoring the strength of its operating model and customer relationships. 

Reliance is benefiting from strong demand in the non-residential construction market, its largest end market by volume. Demand improved in the first quarter of 2026, driven by public infrastructure projects, heavy civil construction, data centers, energy infrastructure and manufacturing activity. 

Through its AMI Metals subsidiary, the company also secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. In addition, demand for its toll processing services in the automotive sector has remained steady, supported by recent capacity investments and operational flexibility. The company is also seeing improving demand from semiconductor, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those linked to small modular reactor programs.

Reliance continues to strengthen its growth profile through acquisitions aimed at expanding its geographic reach, product offerings and value-added processing capabilities. Major acquisitions, including Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, have enhanced its service center network, diversified its end markets and broadened its exposure to higher-margin products.

More recent acquisitions such as Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy further support the company’s strategy of investing in high-quality businesses, expanding its processing capabilities and increasing its presence in attractive growth markets across the United States.

RS ended the first quarter of 2026 with cash and cash equivalents of $249.7 million, up from $216.6 million sequentially. The increase was supported by record shipment volumes and healthy profitability during the quarter. 

RS’s Zacks Rank & Other Key Picks

RS currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Basic Materials space are Nexa Resources S.A. NEXA, DPM Metals Inc. DPMLF and Avino Silver & Gold Mines Ltd. ASM.

At present, NEXA sports a Zacks Rank #1 (Strong Buy), while DPMLF and ASM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NEXA’s current fiscal-year earnings is pinned at $2.67 per share, indicating a 214.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 59.9%. Its shares have surged 78.6% year to date. 

The Zacks Consensus Estimate for DPMLF’s current-year earnings is pegged at $3.53 per share, indicating a year-over-year rise of 47.7%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 8.8%. DPMLF shares have plunged 15.2% year to date. 

The Zacks Consensus Estimate for ASM’s current-year earnings stands at 39 cents per share, reflecting a 34.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise of 125%. ASM’s shares have rallied roughly 9.9% year to date. 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

TTM Technologies (TTMI) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this printed circuit board maker is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for TTM is 17.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 67.8% this year, crushing the industry average, which calls for EPS growth of 20%.

Cash Flow Growth

Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for TTM is 23.5%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.7%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 9.5% over the past 3-5 years versus the industry average of 6.7%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for TTM have been revising upward. The Zacks Consensus Estimate for the current year has surged 16.6% over the past month.

Bottom Line

TTM has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

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

This combination positions TTM well for outperformance, so growth investors may want to bet on it.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Dillard's (DDS) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this department store operator is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Dillard's is 0.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.3% this year, crushing the industry average, which calls for EPS growth of -0.6%.

Impressive Asset Utilization Ratio

Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Dillard's has an S/TA ratio of 1.7, which means that the company gets $1.7 in sales for each dollar in assets. Comparing this to the industry average of 1.14, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Dillard's looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.1% this year versus the industry average of 0%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Dillard's. The Zacks Consensus Estimate for the current year has surged 8.4% over the past month.

Bottom Line

Dillard's has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

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

This combination indicates that Dillard's is a potential outperformer and a solid choice for growth investors.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Aramark (ARMK) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this provider of food, facilities and uniform services is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Aramark is 33.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 18.8% this year, crushing the industry average, which calls for EPS growth of 6%.

Impressive Asset Utilization Ratio

Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Aramark has an S/TA ratio of 1.44, which means that the company gets $1.44 in sales for each dollar in assets. Comparing this to the industry average of 0.99, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Aramark looks attractive from a sales growth perspective as well. The company's sales are expected to grow 7.9% this year versus the industry average of 2.8%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Aramark. The Zacks Consensus Estimate for the current year has surged 1.3% over the past month.

Bottom Line

Aramark has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

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

This combination indicates that Aramark is a potential outperformer and a solid choice for growth investors.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Cimpress (CMPR) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this marketing materials maker a great growth pick right now.

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Cimpress is 28.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 556% this year, crushing the industry average, which calls for EPS growth of 11.1%.

Impressive Asset Utilization Ratio

Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Cimpress has an S/TA ratio of 1.81, which means that the company gets $1.81 in sales for each dollar in assets. Comparing this to the industry average of 1.6, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Cimpress looks attractive from a sales growth perspective as well. The company's sales are expected to grow 9.3% this year versus the industry average of 0%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Cimpress. The Zacks Consensus Estimate for the current year has surged 5.3% over the past month.

Bottom Line

While the overall earnings estimate revisions have made Cimpress a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

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

This combination indicates that Cimpress is a potential outperformer and a solid choice for growth investors.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Burlington Stores (BURL) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this discount retailer is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Burlington Stores is 11.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 18.9% this year, crushing the industry average, which calls for EPS growth of 13.3%.

Cash Flow Growth

Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Burlington Stores is 19.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 10.7%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 80% over the past 3-5 years versus the industry average of 12.2%.

Promising Earnings Estimate Revisions

Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Burlington Stores. The Zacks Consensus Estimate for the current year has surged 3.8% over the past month.

Bottom Line

Burlington Stores has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

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

This combination indicates that Burlington Stores is a potential outperformer and a solid choice for growth investors.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Ezcorp (EZPW) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this consumer financial services company a great growth pick right now.

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Ezcorp is 35%, investors should actually focus on the projected growth. The company's EPS is expected to grow 39.9% this year, crushing the industry average, which calls for EPS growth of 19.7%.

Impressive Asset Utilization Ratio

Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Ezcorp has an S/TA ratio of 0.74, which means that the company gets $0.74 in sales for each dollar in assets. Comparing this to the industry average of 0.3, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Ezcorp is well positioned from a sales growth perspective too. The company's sales are expected to grow 31% this year versus the industry average of 0%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Ezcorp have been revising upward. The Zacks Consensus Estimate for the current year has surged 11.1% over the past month.

Bottom Line

Ezcorp has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

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

This combination positions Ezcorp well for outperformance, so growth investors may want to bet on it.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The company is prioritizing product innovation, which the management views as a core strength and a key competitive advantage. Investments remain focused on livable luxury, heirloom-quality and artisan-crafted products designed for long-term durability. Management emphasized that its assortment and quality are exclusive to the brand and cannot be purchased or replicated elsewhere. This differentiated product offering helps reinforce the uniqueness of the brand while strengthening the emotional connection customers have with its products and overall brand experience.

Additionally, the company continues to leverage its broad design assortment across traditional, transitional and modern styles, supported by meaningful customization capabilities. Management highlighted custom upholstery as a key competitive advantage, with most sourcing conducted domestically, providing greater control over quality, costs, lead times and the customer experience. The company believes it is experiencing one of the strongest periods of product innovation in its history and remains well-positioned to capitalize on evolving consumer preferences toward richer colors, patterns, layered textures and more expressive designs.

Despite a soft housing backdrop, Arhaus’ focus on the affluent customers, differentiated product innovation, customization capabilities and strong luxury positioning should support continued market share gains and resilient growth.

The Zacks Rundown for ARHS

Shares of ARHS have lost 14.1% in the past three months compared with the industry’s decline of 21.3%. ARHS currently carries a Zacks Rank #4 (Sell).

Image Source: Zacks Investment Research

From a valuation standpoint, ARHS trades at a forward price-to-earnings ratio of 12.7X, lower than the industry’s average of 14.28X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ARHS’ current fiscal year earnings implies a 2.1% year-over-year decline, while the same for next fiscal year earnings implies a 13.3% year-over-year increase.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks have been discussed below:

Five Below, Inc. FIVE operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 13.8% and 30.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

Victoria’s Secret & Co. VSXY operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY carries a Zacks Rank of 1.

The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings implies growth of 7.7% and 35.7%, respectively, from the year-ago figures. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.

Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1.

The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The properties are corporate-operated under a long-term triple-net lease. The transaction was priced at a cap rate in line with previous FCPT transactions.

More on FCPT

This real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has a track record of acquisitions.

In May 2026, FCPT announced the signing of a definitive agreement to acquire up to 102 Mission Pet Health veterinary properties for up to $268 million from Shore Capital Real Estate Partners Fund I. Subject to the completion of due diligence and the satisfaction of customary closing conditions, the deal is expected to close in the early third quarter of 2026.

In the first quarter of 2026, FCPT acquired 10 properties for a combined price of $26.2 million with a weighted-average remaining lease term of 10.0 years. The acquired properties belonged to diverse industries, boosting stability in revenue generation. By purchase price, 28% were auto service, 26% were medical retail, 23% were casual dining restaurants and 23% were quick service restaurants.

FCPT’s recent acquisitions reflect its continued focus on expanding its portfolio. With long-term triple-net leases and exposure to multiple service-oriented industries, the company remains well-positioned to generate stable cash flows and support steady portfolio growth.

In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 3.8% against the industry's 4.1% growth.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties CUZ and Lamar Advertising LAMR, each carrying a Zacks Rank of #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CUZ’s 2026 FFO per share is pegged at $2.93, which indicates year-over-year growth of 3.17%.

The Zacks Consensus Estimate for LAMR’s full-year FFO per share is pinned at $8.81, which suggests an increase of 6.66% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

With this nod, Sarclisa becomes the first anticancer treatment to be administered through an OBI. It is also the first MM therapy to offer the flexibility of both SC OBI and manual injection administration in the European Union (EU).

This approval was expected after the EMA’s Committee for Medicinal Products for Human Use (“CHMP”) issued a positive opinion recommending the approval of the SC formulation in March. Both the EC and CHMP decisions are supported by data from the phase III IRAKLIA study, which showed that treatment with Sarclisa SC was at least as effective as the IV version.

Sanofi is also seeking approval for the SC version in the United States, where a regulatory filing supported by the IRAKLIA study is currently under FDA review. A final decision is expected next month.

The SC formulation could provide a meaningful advantage over the IV version by reducing treatment administration time. Per Sanofi, the SC version can be delivered in approximately 13 minutes compared with up to several hours for the IV infusion. The shorter administration time may improve patient convenience, reduce the burden on healthcare providers and infusion centers, and potentially support broader adoption of the therapy.

SNY’s Stock Performance

Year to date, shares of Sanofi have declined 7% against the industry’s 4.4% growth.

Image Source: Zacks Investment Research

More on Sanofi’s Sarclisa

Sarclisa is approved in the EU across four multiple myeloma indications. In combination with Bristol Myers' BMY Pomalyst (pomalidomide) and dexamethasone, the drug is approved for adults with relapsed or refractory MM who have received at least two prior therapies, including Revlimid (lenalidomide) and a proteasome inhibitor. Sarclisa is also approved in combination with Amgen’s AMGN Kyprolis (carfilzomib) and dexamethasone for treating patients with relapsed/refractory MM (RRMM) who have received at least one prior therapy.

The SNY drug is also approved in combination with Velcade (bortezomib), Bristol Myers’ Revlimid and dexamethasone for adults with newly diagnosed MM who are ineligible for autologous stem cell transplant. This combination regimen is approved for adults with newly diagnosed MM who are eligible for autologous stem cell transplant.

Sarclisa is approved for similar indications in the United States.

Both Pomalyst and Revlimid are approved therapies in the MM space. Kyprolis is approved in combination with other drugs to treat certain RRMM patients.

Sanofi Price

 

Sanofi price | Sanofi Quote

SNY’s Zacks Ranks

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Image Source: Zacks Investment Research

Given the impressive price performance, let's take a deeper look at the factors driving growth at this global freight rail and passenger transit player, which currently carries a Zacks Rank #2 (Buy), and assess its potential for continued gains.

Wabtec continues to strengthen its growth profile through a steadily expanding backlog that provides strong revenue visibility. The company increased its 12-month backlog by 12.8% year over year to $1.05 billion at the end of the first quarter of 2026, reflecting healthy customer demand and solid order momentum. Wabtec also maintained a multi-year backlog of $8.50 billion, which reinforces its long-term growth prospects and provides a substantial pipeline of future business.

The expanding backlog highlights customers’ confidence in Wabtec’s products and technologies while improving the company’s ability to generate predictable revenues. By growing both its short-term and long-term backlog, Wabtec strengthens revenue stability and positions itself to benefit from favorable rail industry trends and sustained demand across its markets.

Wabtec also enhances shareholder value through disciplined capital allocation. The company returned $111 million in dividends and $473 million through share repurchases in 2022, followed by $123 million in dividends and $409 million in buybacks in 2023. In 2024, Wabtec returned a record $1.2 billion to shareholders and approved a 25% dividend increase. The company maintained this momentum in the first quarter of 2026 by repurchasing $242 million of its shares and paying $53 million in dividends, actions that support earnings growth and demonstrate confidence in its financial outlook.

Wabtec complements these strengths with a solid liquidity position. The company ended the first quarter of 2026 with a current ratio of 1.02, indicating that it possesses sufficient resources to meet its near-term obligations. By maintaining financial flexibility, expanding its backlog and consistently returning capital to shareholders, Wabtec reinforces its ability to drive sustainable growth and deliver long-term value.

Estimate Revisions to Head North

Driven by the positives discussed above, the Zacks Consensus Estimate for the full-year 2026 and 2027 earnings has been revised 1.9% and 3.5%, respectively, upward over the past 60 days.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and International Seaways INSW. 

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

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

AXON Stock’s Price Performance

Image Source: Zacks Investment Research

Closing at $486.12 yesterday, the stock is trading below its 52-week high of $885.92 but higher than its 52-week low of $339.01. Although the stock is hovering above its 50-day moving average, it is trading below its 200-day moving average.

AXON Shares’ 50-Day and 200-Day SMA

Image Source: Zacks Investment Research

What’s Behind AXON Stock’s Momentum?

The strongest driver of Axon’s business at the moment is the solid momentum in its Connected Devices segment. The company continues to witness solid demand for its next-generation TASER 10 products, whose shipment began in 2023. Growth in cartridge revenues, driven by higher adoption of the TASER products, has been driving the segment’s performance.

Solid demand for its next-generation body-worn camera, Axon Body 4, virtual reality training services and counter-drone equipment also supports its growth. Segmental revenues surged 32.8% year over year in the first quarter of 2026, following an increase of 29.1% in 2025.

The company is also witnessing persistent strength in its Software & Services segment, driven by an increase in the aggregate number of users to the Axon network. Continued momentum in digital evidence management and increased adoption of its latest software offerings are driving the segment’s growth.

Existing customers are consistently returning to purchase additional services, reflecting strong customer satisfaction and engagement. This ongoing expansion supports a growing base of annual recurring revenue (ARR). After witnessing a year-over-year 39.6% jump in 2025 revenues, the metric increased 35% in the first quarter of 2026.

AXON remains focused on strategic collaborations with other companies to expand its product offerings and customer base. In October 2025, Axon’s Dedrone business announced its partnership with TYTAN (a leading provider of interceptor systems for Group 3 drones) to boost detection, identification and mitigation capabilities of counter drone equipment. The integration of TYTAN’s kinetic interceptor technology enhanced Dedrone’s Counter-Unmanned Aircraft Systems (CUAS) mitigation capability, making it suitable to deploy against Group 3 threats.

Axon’s acquisition of Carbyne (in February 2026) also enabled it to come up with Axon 911, a state-of-the-art, fully integrated solution that is designed to connect callers and responders instantly. Growing popularity for its Dedrone platform across several sectors also bodes well. The company currently expects revenues to increase approximately 30-32% year over year, higher than 27-30% predicted earlier.

AXON’s Earnings Estimate Revision

The company’s earnings estimates for 2026 have inched down 0.4% to $8.09 per share over the past 60 days. However. the figure indicates year-over-year growth of 18.1%. 

Earnings estimates for 2027 have moved up 0.1% to $10.68 per share. The figure also indicates year-over-year growth of 32%.

Image Source: Zacks Investment Research

Valuation Remains an Overhang

The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 52.75X, higher than the industry average of 47.30X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. 

While its peer, Teledyne Technologies, is trading cheaper compared with AXON, Kratos Defense is trading at a premium. Notably, Teledyne Technologies and Kratos Defense are trading at 24.23X and 67.72X, respectively.

Image Source: Zacks Investment Research

Should You Buy AXON Stock Now?

Robust momentum across Axon’s TASER and Software & Sensors segments, along with its investments in AI products, drones and robotics, positions it favorably for impressive growth in the quarters ahead. The company’s strategic acquisitions and collaborations with other companies to expand product offerings should also support its top-line performance.

Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Still, the next few quarters are not set up for a clean, straight-line recovery. Buy-rate inflation has been resetting faster than sell rates, volume recovery remains gradual, and early-year cash generation is weak. That leaves the shares in a more balanced setup into the back half of 2026.

RXO’s Near-Term Setup: Even Risk-Reward Case

The near-term case rests on two forces moving at once. The freight environment is showing supply-driven recovery signals, and RXO has company-specific initiatives that can improve productivity and cost-to-serve. Those are real tailwinds.

At the same time, execution and timing matter. Contract rate improvements do not translate instantly into margin, and demand is not snapping back quickly. “Evenly matched” means investors may see improving indicators without immediate, proportional profit capture over the next few quarters.

RXO’s Short-Term Signal: A Hold-Level View

RXO carries a Zacks Rank #3 (Hold) at present, which fits a setup where upside exists, but near-term outcomes depend on margin timing and operational follow-through. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

In practical terms, the short-term signal reflects a gap between improving pricing conditions and when those gains fully land in profitability. With contract resets still catching up to higher buy rates, the stock can move with cycle headlines, but fundamental confirmation may arrive later than the market expects.

RXO’s Valuation Through Price-to-Sales

On a forward 12-month price-to-sales basis, RXO trades at 0.69X. That is well below the Zacks sub-industry at 1.56X, the Zacks Transportation sector at 1.49x, and the S&P 500 at 5.1X.

Image Source: Zacks Investment Research

RXO’s own five-year range frames what the market is discounting. The stock has traded as high as 0.96x and as low as 0.29x, with a five-year median of 0.52x. At today’s level, investors are paying above the median but still far below broader benchmarks, suggesting the market expects improvement but is not pricing in a full-cycle margin outcome yet.

Within the Zacks Transportation – Services industry, peers such as C.H. Robinson Worldwide CHRW and J.B. Hunt Transport Services JBHT sit in the same competitive arena, but with different business mixes and scale. Comparing RXO’s multiple to industry and sector levels underscores that the valuation still embeds meaningful caution on timing and execution.

RXO’s $29 Target: What Must Go Right

The $29 price target is tied to a 0.75x forward 12-month sales multiple. That valuation implies the market gives RXO some credit for a better freight cycle and internal efficiency gains, but it also requires clearer evidence that the earnings ramp is taking hold.

Operationally, the path depends on contract-rate realization and improving unit economics. Management’s framework points to better gross profit per load as pricing actions mature and operational improvements compound. A key part of the setup is improving profitability into the second half of 2026, when rate implementation and cost leverage are expected to be more visible.

RXO’s Catalysts: Contract Rates, Spot Mix, Productivity

Contract rates are the central lever. Management raised the current year brokerage contract rate outlook to high single digits, supported by low double-digit award wins late in bid season, with the full run-rate expected by the September quarter.

Gross profit per load is another near-term marker. Truckload gross profit per load improved sequentially in the first quarter of 2026 and was expected to improve again in the second quarter, helped by a higher spot mix. A late-May brokerage update also pointed to May performance tracking at least in line with April, aided by tighter conditions and spot-market opportunities.

Productivity is the structural catalyst. Over the last 12 months, loads per person per day improved about 15%, and agentic AI automated more than 500,000 calls in the first quarter of 2026. Digital quotes rose roughly 30% sequentially, and management cited a more than 10x improvement in time-to-bid on RXO Connect, alongside double-digit year-over-year reductions in brokerage headcount.

RXO's  Risks: Margins, Volumes and Cash

The bear-case checklist starts with margin pressure. In the first quarter of 2026, brokerage gross margin was 11.4%, and transportation costs rose as capacity tightened, pushing buy rates higher ahead of contractual sell-rate realization. Fuel also added a modest headwind. If buy-rate inflation persists, the margin catch-up can stay delayed.

Volumes are the second risk. Brokerage volume declined year over year in the first quarter, and management expected truckload and less-than-truckload brokerage volumes to be approximately flat year over year in the June quarter. A higher spot share can lift revenue per load, but it can also increase margin variability around seasonal tightness.

Cash and leverage round out the downside. Adjusted free cash flow was negative $15 million in the first quarter of 2026, and net leverage was 3.7x on a last-12-month bank-adjusted EBITDA basis. With net interest expense guided at $32-$36 million for the current year, deleveraging depends on the planned step-up in profitability in the second half of 2026.

RXO’s Practical Investor Playbook

For a Zacks Rank #3 name, monitoring matters more than predicting. Start with the adjusted EBITDA trajectory versus management’s second-quarter 2026 guide of $27-$37 million, since that bridges toward the expected second-half improvement.

Next, track brokerage gross margin and gross profit per load. Watch how spot share affects results as conditions tighten, and whether contract pricing shows up as expected by the September quarter.

Finally, keep an eye on implementation timing in Managed Transportation, where wins were slated for the second half of 2026, and on the pace of volume normalization versus the broader market. If profitability improves while volumes stabilize, RXO can earn a higher multiple. If not, the valuation discount may persist.  

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Let’s delve deeper.

HRI: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for the June-end quarter earnings has moved 53.6% south over the past 60 days. For 2026, the consensus mark for earnings has been revised 25.5% downward on a year-over-year basis. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Dim Price Performance: A look at the company’s price trend reveals that its shares have declined 7.8% over the year-to-date period, surpassing the  Zacks Transportation - Equipment and Leasing industry’s 12.1% growth.

Image Source: Zacks Investment Research

Weak Zacks Rank: HRI currently has a Zacks Rank #5 (Strong Sell).

Headwinds: HRI’s decline in dollar utilization to 36.4% from 37.6% indicates that the company generated less rental revenues from each dollar invested in its fleet. The fleet acquired through H&E Equipment Services has not yet reached the productivity levels of the existing fleet, which may pressure margins and reduce returns on invested capital.

The company continues to face pressure on its financial stability amid elevated operating expenses. In the first quarter of 2026, total operating expenses rose 38.5% year over year to $453 million. Selling, general and administrative expenses of $146 million, which accounted for 12.8% of the total revenues, surged 23.7% year over year.

Economic uncertainty, high fuel costs due to the war in the Middle East, and evolving tariff policies are affecting operations and elevating compliance risks for HRI. Under these conditions, the company is delaying investments, reassessing forecasts and demanding greater agility, adding further uncertainty to its performance in the current year.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and International Seaways INSW. 

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

Expeditors has an expected earnings growth rate of 11.9% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

AEE & LNT’s Earnings Growth Projections

The Zacks Consensus Estimate for AEE’s earnings per share (EPS) is pegged at $5.36 in 2026 and $5.77 in 2027, suggesting year-over-year growth of 6.56% and 7.63%, respectively. AEE’s long-term (three to five years) earnings growth is currently pinned at 9.27%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for LNT’s EPS is pegged at $3.43 in 2026 and $3.68 in 2027, suggesting year-over-year growth of 6.52% and 7.29%, respectively. LNT’s long-term earnings growth is currently pinned at 7.15%.

Image Source: Zacks Investment Research

AEE & LNT’s Return on Equity

Return on Equity (“ROE”) measures how effectively a company uses shareholders’ funds to generate profit, with a higher ROE indicating stronger operational efficiency and value creation. ROE is an important indicator of management effectiveness and financial strength, reflecting a company's ability to generate growth from its available resources.

Alliant Energy’s current ROE is 11.37%, higher than Ameren's 10.94% and the industry’s average of 11.09%. LNT utilizes shareholders’ capital more efficiently and generates a higher return.

Image Source: Zacks Investment Research

AEE & LNT’s Dividend Yield

Utility companies reward shareholders through regular dividend payments, reflecting their commitment to providing steady returns on invested capital. It highlights the company’s earnings stability and strong cash flow.

Currently, the dividend yield for LNT is 2.94%, while that for AEE 2.75%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.45%.

AEE & LNT’s Capital Investment Plans

Utilities require significant capital expenditure for infrastructure development, enhancing system reliability and maintaining their extensive asset base. Electric utilities engaged in power generation and distribution regularly invest in renewable expansion, energy storage, replacement of outdated equipment and grid modernization. These investments enhance reliability by reducing outages even during extreme weather conditions.

Ameren plans to invest $31.8 billion during 2026-2030 in infrastructure development, grid modernization and renewable energy expansion to enhance service reliability and ensure safe operations for customers. Alliant Energy aims to invest $13.4 billion during 2026-2029 for infrastructure upgradation, support cleaner energy generation and drive 12% rate-based growth.

AEE & LNT’s Price Performance

Alliant Energy’s shares have gained 20.5% over the past year compared with Ameren’s rally of 13.9%.

Image Source: Zacks Investment Research

Overall Assessment

Alliant Energy and Ameren both benefit from rising electricity demand driven by economic growth within their service territories, increasing data center activity and substantial infrastructure investments aimed at reliably serving millions of customers across the United States.

However, our choice at the moment is LNT, given its strong ROE, higher dividend yield and better price performance than AEE.  Both AEE and LNT carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

For years, Ouster built its business around lidar sensors— critical hardware for robotics, autonomous systems, and industrial automation. But lidar alone is a narrow competitive position. The physical AI market doesn't just need sensors. It needs sensors, cameras, compute, fusion software, and AI models working together. Ouster is now building toward owning that entire stack.

Ouster Builds a Complete Perception Platform

The StereoLabs acquisition has enabled Ouster to offer a more complete solution. Ouster now combines digital lidar, stereo cameras, AI compute, perception software, and AI models under one platform.

The technologies are complementary. Lidar measures distance accurately in difficult environments. Cameras deliver rich visual detail. Together, they produce a more complete picture of the physical world than either achieves alone. Customers get pre-synchronized, pre-calibrated outputs out of the box— removing weeks of integration work and making switching costs real.

As robotics and autonomous systems become more sophisticated, customers want integrated solutions rather than piecing together technologies from multiple providers. Ouster is now better positioned to meet that demand.

StereoLabs Buyout Expands OUST Beyond Lidar

StereoLabs has shipped more than 90,000 cameras to more than 10,000 customers across robotics, industrial automation and smart infrastructure. The company also brings an established developer ecosystem that actively builds applications using its technology. This gives Ouster access to new customer relationships while expanding its presence in fast-growing areas such as humanoid robotics, AI-powered industrial automation, and machine vision.

Many of these applications require both vision and lidar. Instead of competing only for lidar budget, Ouster can now capture a larger share of what customers spend— increasing average deal sizes and creating cross-sell opportunities across the combined installed base.

How the Deal Boosts OUST’s Software Capabilities

The acquisition has broadened Ouster's software exposure. Hardware remains essential, but software typically carries higher margins and can create stronger customer relationships. StereoLabs brings perception software, AI vision expertise, and years of investment in AI model development. These capabilities should help Ouster accelerate product development while enhancing the value of its hardware offerings.

Supporting OUST’s Path to Profitability

StereoLabs was already generating revenue and operating profitably before the deal closed. The company generated approximately $16 million in revenues during 2025 and was EBITDA positive. That matters because Ouster is focused on improving profitability while maintaining growth. Adding a profitable business helps strengthen the company's financial profile rather than creating another cash-consuming investment.

How Peers Are Playing It Differently

Ouster isn't the only lidar company chasing the physical AI opportunity — but it's the only one that's moved to own the full stack through acquisition.

Aeva Technologies AEVA is doubling down on its hardware edge, securing automotive production contracts and landing a reference design win with NVIDIA’s DRIVE Hyperion platform. Its bet is that superior 4D lidar technology — which detects velocity and position simultaneously— wins on specs alone. Innoviz Technologies INVZ is taking a partnership route, integrating its sensors into third-party AI software platforms like Vueron's rather than building perception software in-house.

While both Aeva and Innoviz are riding on their strategies, neither gives those companies the pricing power, switching costs, or cross-sell leverage that a unified platform creates. With the StereoLabs buyout, Ouster has evolved into a broader sensing and perception platform company. In a market that is fast-moving from simple automation toward physical AI, that positioning is worth paying attention to.

OUST’s Price Performance, Valuation and Estimates

Shares of Ouster have surged nearly 83% year to date.

Image Source: Zacks Investment Research

From a valuation standpoint, Ouster trades at a forward price-to-sales ratio of more than 9.63, well above the industry average. OUST carries a Value Score of F.

Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for Ouster’s loss per share has been revised over the past 60 days.

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Industry Description

The Zacks Agriculture – Products industry comprises companies that are either involved in storing agricultural commodities, distributing ingredients to others or engaged in farming crops, livestock and poultry products. Some are associated with purchasing, storing, transporting, processing and selling agricultural commodities or products derived from the same. They operate grain elevators, wherein income is generated from commodities bought and sold using these elevators or held as inventory. Some companies provide nutrients, advanced indoor and greenhouse lighting, environmental control systems, and accessories for hydroponic gardening — the method of growing plants using mineral nutrient solutions in a water solvent instead of soil. A few players offer innovative, plant-based health and wellness products. Companies producing lumber also fall under this industry.

Trends Shaping the Future of the Agriculture - Products Industry

Solid Demand to Support Industry: The demand for food is directly influenced by population, demographic shifts and income growth. To capitalize on this, several agricultural and food-based companies are investing in innovation and augmenting their product and market strategies to bring new quality and healthy food ingredients to the market. Ongoing improvements in grain-handling techniques and investment in larger storage spaces will likely support the industry. Given that food remains an essential commodity regardless of the condition of the economy, the industry benefits from stable earnings across economic cycles.

Hydroponics & Cannabis Act as Key Catalysts: Hydroponics is gaining popularity as it gives growers the ability to regulate and manage nutrient delivery, light, air, water, humidity, pests and temperature in an indoor setting. This method enables faster crop growth, with higher yields than traditional soil-based cultivation. It is being utilized in new and emerging industries, including the cultivation of cannabis and hemp. Vertical farms producing organic fruits and vegetables also utilize hydroponics due to the shortage of farmland and environmental vulnerabilities. Vertical farming is the latest agricultural technology, wherein shelves and artificial lighting systems are used to grow produce, thereby minimizing land and water usage. While the cannabis industry has faced short-term challenges from pricing pressure, oversupply and regulatory uncertainties in some markets, its long-term outlook remains favorable as legalization expands, consumer acceptance grows and regulated markets continue to mature. 

Cost-Saving Actions to Aid Margins: Players in the industry are facing rising labor, packaging and distribution costs, among others. The U.S. Department of Agriculture (USDA) expects total production expenses, including those associated with operator dwellings, to rise 1% to $477.7 billion in 2026. Livestock and poultry purchases, feed and labor are likely to remain the largest expense categories. While spending on livestock and poultry purchases is projected to record the steepest increase, rising 9.7%, feed expenses are expected to decline 6.8% in 2026. The industry, however, continues to navigate a tight labor market with a spike in wages and higher distribution costs. They have been making efforts to bolster their financial conditions, conserve cash and improve profitability by implementing pricing and cost-reduction actions to sustain margins. However, the economic uncertainty stemming from tariffs poses challenges for industry players. 

Zacks Industry Rank Indicates Bright Prospects

The Zacks Agriculture - Products industry is part of the broader Zacks Basic Materials sector. The industry currently carries a Zacks Industry Rank #51, which places it in the top 21% of the 246 Zacks industries.

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

Before we present a few stocks worth considering for your portfolio, let us look at the industry’s recent stock market performance and valuation.

Industry Versus Broader Market

The Zacks Agriculture – Products industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have moved up 40.6% in the past 12 months compared with the S&P 500’s 26.7% growth. The Basic Materials sector has gained 30.1% in the same timeframe.

One-Year Price Performance

Industry's Current Valuation

On the basis of the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Agriculture - Products stocks, we see that the industry is currently trading at 8.76X compared with the S&P 500’s 18.40X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 13.25X. This is shown in the charts below.

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)

Over the last five years, the industry traded as high as 11.00 and as low as 3.68X, the median being 5.33X.

 

2 Agriculture - Products Stocks to Keep an Eye on

Bunge: The company completed the acquisition of Viterra in July 2025, which created a premier global agribusiness solutions company for food, feed and fuel, well-positioned to meet the demands of increasingly complex markets and better serve farmers and end customers.  Bunge is positioning itself as a scaled, pure-play global agribusiness solutions platform with an integrated “origin-to-customer” footprint across oilseeds and grains, supported by a global value-chain operating model and centralized risk management designed to optimize logistics, capture arbitrage and manage exposures through volatile markets. Management also highlights an expected increase to at least $15 in earnings per share by the end of 2030 (from the $8.50 in 2025), supported by the ramp-up of inflight capital projects, Viterra integration, alongside ongoing cost synergies and productivity work. For shareholders, Bunge emphasizes cash generation through the cycle, a commitment to return at least 50% of discretionary cash flow via dividends and buybacks, and maintaining an investment-grade balance sheet (to support both growth and shareholder returns). 

Bunge is an integrated global agribusiness and food company covering the farm-to-consumer food chain. The Zacks Consensus Estimate for the St. Louis, MO-based company’s earnings for 2026 suggests year-over-year growth of 26.4%. The estimate has moved up 17% over the past 60 days. BG has a trailing four-quarter earnings surprise of 27.5%, on average. BG currently sports a Zacks Rank #1 (Strong Buy).

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

Price & Consensus: BG

GrowGeneration:  The company delivered the second consecutive quarter of year-over-year revenue growth in the first quarter of 2026, driven by continued strength in its commercial B2B division and the benefits of a more focused operating footprint. Cost-reduction initiatives are also yielding tangible results, contributing to a $2.4 million improvement in adjusted EBITDA and a reduction in net loss in the quarter. The company is also advancing its strategy to expand higher-margin proprietary brand sales, which accounted for 37% of Cultivation and Gardening net sales during the quarter, and remains on track to reach its 40% year-end goal. Looking ahead, GrowGeneration expects further gains in gross margin and operating efficiency throughout 2026. Supported by inventory optimization efforts, full-year gross margins are projected to range between 27% and 29%. The company also expects to reach breakeven adjusted EBITDA for the full year, with profitability improving as the year progresses. Profitable second and third quarters are anticipated, driven by the outdoor cultivation season, stronger margins and a leaner operating cost structure compared with 2025. The company’s acquisition strategy focused on acquiring well-established, profitable hydroponic garden centers and proprietary brands, and private-label brands bode well.

Greenwood Village, CO-based GrowGeneration owns and operates retail hydroponic and organic gardening stores in the United States. The Zacks Consensus Estimate for the company’s fiscal 2026 bottom line is pegged at a loss of 22 cents per share, suggesting a narrower loss from the 40 cents incurred in fiscal 2025. The estimate has moved up from a loss of 23 cents 60 days ago to the current projected loss of 22 cents. GRWG currently carries a Zacks Rank #3 (Hold).

Price & Consensus: GRWG

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Image Source: Zacks Investment Research

ORCL’s Earnings Surprise History

In the last reported quarter, Oracle delivered an earnings surprise of 5.29%. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 11.9%.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

Earnings Whispers

Our proven model does not predict an earnings beat for Oracle 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Oracle has an Earnings ESP of -0.04% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape Oracle’s Fiscal Q4 Results

Oracle's cloud application business is likely to have experienced solid momentum in the to-be-reported quarter. In the fiscal third quarter, cloud applications revenues grew 11% in constant currency to a $16.1 billion annualized run rate, with Fusion ERP up 14%, Fusion SCM and HCM each up 15%, and NetSuite up 11%. Deferred cloud applications revenues had outpaced recognized revenues in the fiscal third quarter, signaling potential acceleration into fiscal fourth quarter.
During the quarter, Oracle launched Fusion Agentic Applications across finance, supply chain, HR and customer experience workflows. Oracle also expanded the NetSuite AI Connector Service in April 2026, enabling customers to connect AI models directly to NetSuite data, aimed at increasing platform stickiness.

Oracle entered the fiscal fourth quarter targeting 22 live AWS regions for its multicloud database service, up from eight at the third quarter's close. In April 2026, Oracle and AWS announced plans to expand multicloud networking by establishing private, high-performance connectivity between Oracle Interconnect and AWS Interconnect. This broadening coverage across Microsoft Azure, Google Cloud and AWS was expected to support continued strong multicloud database revenue growth.

In the to-be-reported quarter, Oracle secured a $30 billion cloud infrastructure agreement with the U.S. government, positioning itself as a key provider for national security and defense workloads. On the healthcare side, Oracle Health faced ongoing competitive pressure from Epic Systems, with its EHR market share declining from approximately 25% to 22.9%, which might have weighed on vertical SaaS performance.

On the non-operating side, Oracle's 15% equity stake in TikTok US is expected to have contributed to non-operating income in the fiscal fourth quarter for the first time, accounting for the period from the late-January investment close through March 31 under the equity method.

Partially offsetting these developments, legacy software revenues had grown only 3% in USD and declined 1% in constant currency in the fiscal third quarter, with similar pressure expected to persist in the to-be-reported quarter amid continued migration toward cloud subscription models.

Price Performance & Valuation

It is also important to consider whether the stock's current valuation accurately reflects the company's long-term growth potential and ability to navigate the competitive landscape.

The stock currently trades at a forward twelve-month price-to-earnings ratio of 26.57 times, notably above the Zacks Computer-Software industry average of 22.25 times and substantially elevated compared to Oracle's own five-year median of 23.72 times.

ORCL’s P/E F12M Ratio Depicts Stretched Valuation

Image Source: Zacks Investment Research

Shares of ORCL have lost 3.2% in the past six-month period compared with the Zacks Computer and Technology sector’s return. 

While Oracle has a strong foothold in the database management and ERP software markets, its competitors are making significant inroads in the cloud space. Oracle continues to rank No. 5 for the global cloud infrastructure services market share quarter after quarter. The company had 3% share of the global cloud market in the fourth quarter of 2025.

In terms of competitive positioning, Amazon AMZN maintains a strong lead in the market, though Microsoft MSFT and Alphabet GOOGL-owned Google continue to achieve higher growth rates. Amazon, Microsoft and Alphabet’s first-quarter 2026 worldwide market shares were 28%, 21% and 14%, respectively, according to new data from Synergy Research Group.

ORCL’s 6-Month Performance

Image Source: Zacks Investment Research

Investment Considerations: Balancing Risk and Reward

Oracle's accelerating cloud momentum — reflected in expanding multicloud database coverage, a wave of Fusion Agentic Application launches and a $30 billion U.S. government cloud agreement — underscores the company's strengthening competitive positioning heading into fourth-quarter fiscal 2026 results. However, persistent legacy software declines, Oracle Health's shrinking EHR market share and intensifying cloud competition warrant caution. Coupled with a premium valuation that already prices in substantial execution, investors may find it prudent to hold existing positions or await a more attractive entry point until fiscal fourth-quarter results provide greater clarity on cloud revenue conversion and margin trajectory.

Conclusion

Oracle's expanding cloud portfolio, multicloud database momentum, and significant government contract wins present a compelling growth narrative. However, premium valuation, legacy software headwinds and Oracle Health's declining market share introduce meaningful uncertainty ahead of the fourth quarter of fiscal 2026 print. Investors may be better served holding existing positions or awaiting the results before committing fresh capital at current levels.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Robust conditions in the U.S. labor market, supported by recent economic data and optimism surrounding artificial intelligence, have provided a strong boost to investor sentiment. However, the resulting market turbulence has made it increasingly challenging for individual investors to build a consistently successful stock portfolio. Selecting the wrong stocks can affect returns and undermine the primary goal of investing hard-earned money in an inherently volatile market.

How should investors proceed in such an environment? One approach is to rely on broker recommendations and keep broker-favored stocks such as Alto Ingredients ALTO, Arrow Electronics ARW, Green Plains GPRE, American Airlines AAL and Air Canada ACDVF on their watchlists.

To identify promising opportunities, we have developed a screening strategy that focuses on stocks benefiting from improved analyst ratings and upward earnings estimate revisions over the past four weeks. In addition, the price-to-sales (P/S) ratio has been incorporated as a complementary valuation measure, given its effectiveness alongside broker insights. By emphasizing a company’s revenue performance, the P/S ratio helps create a more balanced and comprehensive investment approach.

Screening Parameters    

# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).

% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).

Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).

Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).

Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).

Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).

Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).

Here are five of the 10 stocks that made it through the screen:

Alto is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients in the United States. It is poised to gain from its compelling portfolio, its focus on customer relationships, and its leveraging of technologies. The company is undergoing a strategic transformation, shifting away from its legacy role as a traditional fuel ethanol producer toward a more diversified model centered on specialty alcohols and essential ingredients. 

Alto beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. The average beat is 361.5%. The company, which is targeting higher-value end markets that offer more stable demand and improved margins, currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here

Arrow Electronics benefits from continued operational momentum across Global Components and ECS, with first-quarter 2026 consolidated sales of $9.47 billion, up 39% year over year and above guidance. 

ARW’s diverse customer portfolio of thousands of leading manufacturers and service providers offers revenue stability and reduces concentration risk. Strong cash flow generation from its asset-light model supports share buybacks and strategic investments. For the second quarter of 2026, Arrow expects consolidated sales of $9.15 billion to $9.75 billion.

Arrow Electronics has an expected revenue and earnings growth rate of 20.1% and 73.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 44.6% over the last 60 days. The company currently sports a Zacks Rank #1. 

Green Plains has been expanding its focus beyond ethanol through investments in high-protein feed ingredients and renewable corn oil. Green Plains continues to commercialize its Ultra-High Protein platform, which is designed to extract greater value from every bushel processed. As a result, GPRE has increasingly positioned ingredients and co-products as an important complement to its fuel business.

Green Plains’ earnings surpassed estimates in three of the last four quarters and missed the mark once. The average beat was 16%. Green Plains currently flaunts a Zacks Rank #1. 

American Airlines is based in Fort Worth, TX. Strong air travel demand, particularly on the leisure front, despite high fuel costs, is aiding AAL. Efforts to broaden its network are also praiseworthy.

The company’s high debt levels are worrisome. The carrier’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the other quarter). The average beat is 2.6%. American Airlines currently carries a Zacks Rank #3 (Hold).

Air Canada has been benefiting from the impressive scenario in air travel demand. High fuel costs represent a headwind. The Zacks Consensus Estimate for 2026 sales has increased 13.1% on a year-over-year basis. 

ACDVF surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters, missing the mark on the other occasions. The average beat was 51.4%. ACDVF currently carries a Zacks Rank #3.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

AbbVie's immunology franchise sales are now being driven by two blockbuster drugs, Skyrizi and Rinvoq, which are more than offsetting Humira's ongoing erosion. Investors also welcomed several positive pipeline and regulatory updates.

However, though the stock’s recent price increase will impress investors, those with a long-term investment horizon should make a decision based on the company’s fundamentals after carefully analyzing its strengths and weaknesses.

ABBV’s Successful Immunology Drugs — Skyrizi and Rinvoq

Sales of Humira are declining due to loss of exclusivity (LOE) and biosimilar erosion. However, AbbVie has successfully navigated the LOE of Humira, a drug that once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.

Skyrizi and Rinvoq generated combined sales of $6.6 billion in the first quarter of 2026, reflecting strong demand for all approved indications. In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion. Combined, Skyrizi and Rinvoq are expected to deliver more than 20% growth in 2026.

Strong immunology market growth, market share gains and momentum from new indications, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive Skyrizi and Rinvoq’s growth. Rinvoq could be approved for two indications — vitiligo and alopecia areata in 2026/early 2027. In addition, phase III data with Rinvoq in hidradenitis suppurativa and systemic lupus erythematosus are expected in 2026. AbbVie believes that the next wave of potential approvals in Rinvoq could add roughly $2 billion to peak-year sales for the product.

However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Moreover, the launch of J&J’s JNJ new oral pill for moderate-to-severe plaque psoriasis, Icotyde, has increased competitive pressure for Skyrizi, which can impact the product’s prescription trends. However, AbbVie seems confident that it can navigate competition from Icotyde.

ABBV’s Oncology and Neuroscience Drug Contributions

AbbVie’s neuroscience portfolio is also contributing to top-line growth. Sales of its neuroscience drugs increased 24.3% to $2.88 billion in the first quarter of 2026, driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta and new Parkinson’s disease drug, Vyalev.

The initial international launch uptake of Vyalev, a transformative therapy for treating advanced Parkinson’s disease, approved in late 2024, has been encouraging. AbbVie expects Vyalev to achieve blockbuster status in 2026. AbbVie’s Parkinson’s disease franchise, comprising Vyalev and once-daily oral treatment tavapadon (under review in the United States; FDA decision expected in the third quarter of 2026), is viewed as a key driver of growth in neuroscience. AbbVie believes that the Parkinson’s disease franchise has a more than $5 billion peak sales potential.

AbbVie has built a substantial oncology franchise with Imbruvica and Venclexta. However, its oncology sales have slightly slowed down. Its oncology sales declined 3% to $1.63 billion in the first quarter, as higher Venclexta sales and contributions from new drugs, Elahere, Epkinly and Emrelis, were offset by an expected decline in Imbruvica sales. However, AbbVie believes the oncology pipeline is robust with several study readouts and initiations expected this year.

AbbVie’s Robust Pipeline & M&A Spree

AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals throughout 2026

Over the next couple of years, AbbVie expects new product approvals for tavapadon and pivotal data readouts for key pipeline candidates, lutikizumab (hidradenitis suppurativa
), Temab-A (metastatic colorectal cancer) and etentamig (third-line-plus multiple myeloma). Last month, the FDA approved AbbVie’s key pipeline candidate, Decnupaz/pivekimab sunirine for blastic plasmacytoid dendritic cell neoplasm in the United States. These new products/pipeline programs have the potential to drive long-term growth for AbbVie, while Skyrizi and Rinvoq should boost near-term growth.

AbbVie is also evaluating Skyrizi-based combination regimens with candidates like ABBV-382 (anti-α4β7) and ABBV-701 (anti-TL1A) to create best-in-class, durable remission therapies in inflammatory bowel disease.

AbbVie has been on an acquisition spree over the past couple of years to bolster the early-stage pipeline that should drive long-term growth. It is signing several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience.

On the first-quarter conference call, CEO Robert Michael said the company still has significant financial capacity to pursue both early and late-stage opportunities.

ABBV’s Struggling Aesthetics Segment & Humira Erosion

Sales of Humira are declining due to biosimilar erosion. The launch of Humira biosimilars in the United States in 2023 significantly eroded the drug’s sales in 2024 and 2025. Humira sales declined around 50% in 2025. Humira sales are expected to continue to decline in 2026 as more plans exclude branded Humira and move to exclusive biosimilar contracts.

AbbVie has been seeing soft sales of its Aesthetics unit for the past couple of years. Continued macro challenges and economic headwinds are hurting Aesthetics 'sales. Global aesthetics sales are projected to be $5 billion in 2026, flat from 2025 levels, as moderate growth in Botox Cosmetic is likely to be offset by continued decline in Juvederm sales due to continued headwinds in key dermal filler markets. In line with this trend, Botox Cosmetic sales rose 17% while Juvederm sales declined 2.9% in the first quarter.

Approval of trenibotE, a fast-acting short-duration toxin, has been delayed in the United States, with the FDA issuing a complete response letter to its regulatory filing due to manufacturing concerns.

ABBV Stock Price, Valuation and Estimate Revision

ABBV stock has risen 20.1% in the past year compared with an appreciation of 24.7% for the industry.

ABBV Stock Underperforms Industry

Image Source: Zacks Investment Research

From a valuation standpoint, AbbVie is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 14.99 forward earnings, lower than 17.68 for the industry. However, the stock is trading above its five-year mean of 13.90.  The stock is cheaper than other large drugmakers like AstraZeneca AZN, Eli Lilly LLY and J&J.

ABBV Stock Valuation

Image Source: Zacks Investment Research

Earnings estimates for 2026 have risen from $14.28 to $14.30 over the past 30 days, while those for 2027 have risen from $16.25 to $16.30 over the same time frame.

ABBV Estimate Movement

Image Source: Zacks Investment Research

Stay Invested in ABBV Stock

AbbVie combats its share of headwinds, including the impact of Humira LOE, slowing oncology sales, evolving competitive dynamics for Skyrizi and continued macro woes for Aesthetics. However, the company has faced its biggest challenge — Humira’s patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead.

ABBV delivered robust net sales growth in 2025, which was just the second full year following the Humira LOE in the United States. AbbVie expects another year of robust growth in 2026. It expects total revenues to rise around 10% in 2026, backed mainly by significant momentum in immunology and neuroscience products, which are demonstrating significant growth and delivering share gains in growing markets.

It expects high single-digit revenue growth through 2029, as the company has no significant LOE events for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. AbbVie also has the flexibility to invest more in R&D and continue acquiring external innovations.

Long-term investors can continue to retain this Zacks Rank #3 (Hold) stock in their portfolio as the company enjoys strong fundamentals, a solid pipeline and growth outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 S&P Global shares, but what is the fundamental picture for the company? Currently, S&P Global is a Zacks Rank #3 (Hold) in the Securities and Exchanges industry that ranks in the Top 21% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while six have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $4.95 per share to $4.92 in that period.

Given the way analysts feel about S&P Global 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The company’s recent long-term capacity agreement with one of its strategic data center customers is expected to generate more than $4 billion in sales between 2027 and 2029. The agreement covers Modine’s Airedale cooling solutions, which are designed to handle the demanding thermal requirements of modern AI infrastructure.

A Strong Vote of Confidence for MOD

The agreement is notable not just for its size but also for its structure.

The AI data center industry is expanding so quickly that many suppliers are struggling to keep up with demand. Instead of waiting for new capacity to come online, hyperscale customers are increasingly helping critical suppliers fund their expansion plans. That is exactly what happened here.

As part of the agreement, Modine received a $165 million upfront payment to support manufacturing investments needed to fulfill future orders. It suggests that the buyer views Modine's cooling technology as important enough to help finance its growth.

Modine can expand production without taking on the full financial burden itself. That reduces execution risk, improves cash flow visibility, and allows management to invest aggressively while preserving balance sheet flexibility.

This agreement is more than a one-time sales win. It serves as validation of Modine's growing importance in the AI ecosystem. For investors, the deal strengthens the case that Modine is evolving beyond its traditional industrial roots. The company is increasingly becoming an infrastructure play on AI data center growth. If demand for AI computing continues to expand as expected, this agreement could mark the beginning of Modine's next phase of growth rather than the peak of its success.

Modine’s AI Cooling Business Accelerating

In the fourth quarter of fiscal 2026, data center cooling revenues surged 158% year over year to more than $400 million. For the full year, data center sales climbed 73% and exceeded $1.1 billion, making it the company's primary growth engine.

Management expects data center revenues to grow another 60% to 80% in fiscal 2027 and believes growth can remain between 50% and 70% beyond that. To support this demand, Modine is expanding its U.S. manufacturing footprint and expects chiller production capacity to double by the end of fiscal 2027.

The company's latest quarterly results were encouraging. Revenues increased 47% year over year to $954.4 million, while adjusted earnings per share jumped 53% to $1.71, both ahead of expectations.

Modine Manufacturing Company Price, Consensus and EPS Surprise

Modine Manufacturing Company price-consensus-eps-surprise-chart | Modine Manufacturing Company Quote

Peer Check: How are JCI & TT Benefitting From AI Push

Johnson Controls JCI is a major beneficiary of data center cooling and building solutions. Rising demand from AI-driven data center projects helped fuel a 30% organic increase in orders in the last reported quarter and lifted the company's backlog to a record $20 billion. As AI facilities become larger and more power-dense, customers are increasingly demanding advanced thermal management systems, creating opportunities across Johnson Controls’ portfolio of chillers, air handling units, cooling distribution systems and controls. Johnson Controls is also strengthening its competitive position through the acquisition of Alloy Enterprises and its collaboration with NVIDIA, which supports next-generation AI-focused data center infrastructure.

Trane Technologies TT is also emerging as a key player in the AI data center cooling market. Demand for large-scale cooling systems has fueled exceptional growth in its commercial HVAC business, with applied systems orders rising more than 100% year over year and helping lift backlog to a record $10.7 billion. The acquisition of Stellar Energy Americas further strengthens Trane Technologies’ ability to deliver prefabricated cooling solutions, enabling faster deployment of data center projects. Trane Technologies is also expanding its liquid cooling portfolio and collaborating with NVIDIA on thermal management designs for next-generation AI factories, positioning it to benefit from growing AI infrastructure spending.

Modine’s Price Performance, Valuation & Estimates

Shares of Modine have rallied 107% year to date, handily outperforming the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Modine trades at a forward price-to-earnings ratio of 33.23, above the industry. 

Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for MOD’s earnings has been revised over the past 60 days.

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Snapshot of USA Rare Earth’s Peers

Among its major peers, NioCorp Developments Ltd. NB is working to move its Elk Creek Project in Nebraska closer to production. In August 2025, NioCorp completed its first drilling program at the Elk Creek Project on schedule and within budget. In February 2026, NioCorp started construction of the main underground access for its Elk Creek Critical Minerals Project in southeast Nebraska.

USAR’s other peer, Trilogy Metals Inc. TMQ, continues to make steady progress at the Ambler mining district. Although Trilogy is not yet in production, it is taking a step ahead with Ambler Metals LLC, which is a joint venture with South32 Limited. In July 2025, Trilogy began a multi-year core re-boxing program to protect drill core for long-term future use.

USAR’s Price Performance, Valuation & Estimates

Shares of USAR have gained 71.8% in the past year compared with the industry’s growth of 41.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, USAR is trading at a forward price-to-earnings ratio of negative 66.69X against the industry’s average of 14.69X. USA Rare Earth carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for USAR’s 2026 earnings has decreased over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #4 (Sell). 

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 Merit Medical Systems shares, but what is the fundamental picture for the company? Currently, Merit Medical Systems is a Zacks Rank #3 (Hold) in the Medical - Dental Supplies industry that ranks in the Top 26% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased the earnings estimates for the current quarter, while one has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 97 cents per share to 96 cents in that period.

Given the way analysts feel about Merit Medical Systems 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Image Source: Zacks Investment Research

The partnership owns and operates a midstream asset network that transports crude oil, natural gas, natural gas liquids and refined products across North America. It generates stable, fee-based revenues backed by long-term contracts that provide predictable cash flows.

While price performance demonstrates the attractiveness of a stock to some extent, it is prudent to closely assess the stock’s fundamentals before arriving at an investment decision.

Enterprise’s Pipeline of Major Capital Projects

In its latest earnings presentation, Enterprise highlighted that it has major capital projects worth $5.3 billion under construction, which are expected to begin operations through 2026 and 2027. These growth projects are backed by favorable energy market fundamentals, including increased hydrocarbon production from the Permian Basin and higher natural gas demand from rising LNG exports and the rapid expansion of AI infrastructure.

The partnership anticipates U.S. oil production to reach 14.5 million barrels per day (BPD), while NGLs and natural gas production are expected to grow to 9.1 million BPD and 130.8 billion cubic feet per day (Bcf/d) by 2030, with the Permian Basin becoming one of the largest drivers of future volume growth. EPD has several growth projects under construction to capitalize on this trend, such as the Mentone West 2 processing plant and gas processing plants in Midland and Delaware, among others. Additionally, EPD has expansion projects under construction, which increase its ability to collect, transport and export hydrocarbons.

Since many of these projects are expected to enter service in 2026 and 2027, they should contribute to EPD’s earnings and cash flows, supporting increased profitability. The partnership generates stable, fee-based revenues that result in predictable cash flows across business cycles.

Image Source: Enterprise Products Partners L.P.

EPD’s Strong Financial Position Supports Returns to Unitholders

Enterprise has a strong balance sheet with nearly $3.3 billion in consolidated liquidity, which is comprised of liquidity available under its credit facilities and unrestricted cash on hand. The strong liquidity position enhances its financial flexibility and supports sustainable distribution growth. In the first quarter of 2026, the partnership announced a distribution of 55 cents per common unit, an increase of 2.8% year over year. This marks the partnership’s 27^th consecutive year of distribution growth.

Additionally, Enterprise believes that its discretionary free cash flow could reach up to $1 billion in 2026 despite an increase in its growth capex. In the near term, the partnership plans to allocate free cash flows toward growing distributions, unit buybacks and debt reduction. EPD's robust liquidity and healthy free cash flow generation should enable it to capitalize on growth opportunities while prioritizing returns to unitholders and debt reduction, strengthening its balance sheet.

Valuation Snapshot

Considering the valuation snapshot, EPD is currently considered cheap on a relative basis. The stock is trading at a trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) of 11.5x, which is a discount compared with the broader industry average of 13.64x. Notably, Kinder Morgan and Enbridge currently trade at a trailing 12-month EV/EBITDA of 14.07x and 17.3x, respectively.

Image Source: Zacks Investment Research

Final Verdict: Time to Buy or Hold?

Enterprise is expected to generate stable earnings and cash flows backed by its long-term contracts. The partnership’s pipeline of growth projects, backed by strong energy market fundamentals, should support higher earnings and cash flows in the coming years. Additionally, the partnership’s free cash flow growth should support sustainable distribution growth and opportunistic unit buybacks.

The EPD stock offers a compelling mix of stable returns and long-term growth potential. Given that the stock is currently undervalued, investors should consider buying the EPD stock, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 KKR Real Estate shares, but what is the fundamental picture for the company? Currently, KKR Real Estate is a Zacks Rank #5 (Strong Sell) in the REIT and Equity Trust industry that ranks in the Bottom 14% 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 earnings of 8 cents per share to a loss of 65 cents in that period.

Given the way analysts feel about KKR Real Estate 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Marsh — with a market capitalization of $79.9 billion — is a global professional services firm focused on risk, reinsurance, people-related consulting and management consulting services. In the year-to-date period, the stock has fallen 10.9% compared with the industry’s 16.6% decline.

Courtesy of solid prospects, MRSH currently carries a Zacks Rank #3 (Hold).

Where Do Estimates for MRSH Stand?

The Zacks Consensus Estimate for Marsh’s 2026 earnings is pegged at $10.38 per share, indicating a 6.5% year-over-year rise, which has been revised upward over the past 30 days. Furthermore, the consensus mark for revenues is pegged at $28.3 billion for 2026, implying a 4.9% year-over-year gain. It beat earnings estimates in each of the past four quarters, with an average surprise of 3.9%.

Marsh Price, Consensus and EPS Surprise

Marsh price-consensus-eps-surprise-chart | Marsh Quote

MRSH’s Growth Drivers

Marsh continues to benefit from strong demand across its Risk & Insurance Services, and Consulting businesses despite softer insurance pricing and lower fiduciary interest income. In the first quarter of 2026, its total revenues rose 7.6% year over year, supported by solid new business generation, improving momentum at Marsh Risk, continued expansion in Mercer’s health and wealth segments, and healthy demand for management consulting services.

AI remains a key pillar of Marsh’s strategy. The company is expanding AI-powered products and analytics tools to enhance client insights, improve service delivery and create new revenue opportunities. Alongside this, the Thrive program is driving operational improvements through automation, process simplification and technology modernization, with savings being reinvested in talent, innovation and growth-focused initiatives.

Marsh continues to use acquisitions as a complement to organic growth, focusing on opportunities that expand capabilities and strengthen its market position. The company maintains an active M&A pipeline and recently announced an agreement to acquire AltamarCAM to increase and expand its capabilities in the private markets platform. Alongside larger strategic opportunities, Marsh remains focused on its disciplined “string of pearls” approach, pursuing targeted acquisitions that enhance capabilities, deepen client relationships and broaden its service offerings. In June 2026, it completed the acquisition of TriBridge Partners, expanding its presence in the DC-Baltimore market.

MRSH remains committed to enhancing shareholder value through dividends and share buybacks. Its current dividend yield is 2.2%, higher than the industry average of 1.8%. In the first quarter of 2026, the company rewarded its shareholders with share buybacks worth $750 million.

Risk Factors

However, there are some factors that investors should keep a careful eye on.

Marsh is facing rising costs due to higher wages, talent retention efforts and acquisition-related expenses, with total expenses increasing 15.6% year over year in the first quarter of 2026. These pressures could limit margin expansion and weigh on earnings growth.

The company also carried a significant debt burden of $18.9 billion at the end of March 2026, compared with cash and cash equivalents of $1.6 billion. Its total debt-to-capital of 56.1% is higher than the industry average of 49.9%.

The company’s valuation remains stretched at the current level. Marsh currently has a forward 12-month P/E of 15.38X, higher than the industry’s average of 13.46X.

Better-Ranked Players

Some better-ranked stocks in the business services space are Sezzle Inc. SEZL, Dave Inc. DAVE and Green Dot Corporation GDOT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.

The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $16.17 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $713.7 million, implying 28.8% year-over-year growth.

The Zacks Consensus Estimate for Green Dot’s current-year earnings is pinned at $1.68 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Green Dot beat earnings estimates in three of the trailing four quarters. The consensus estimate for current-year revenues is pegged at $2.2 billion, implying 8.3% year-over-year growth.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Inside the Headlines

Honeywell plans to allocate all outstanding shares of Honeywell Aerospace common stock to its shareholders on June 29, 2026. Shareholders of record as of June 15, 2026, will receive one share of Honeywell Aerospace for every two shares of Honeywell common stock they hold. The separation will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.

At the first instance, Honeywell Aerospace shares are likely to commence trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on or about June 15, 2026. However, regular-way trading under the ticker "HONA" is expected to start on June 29, 2026. Honeywell shares are expected to trade in two markets, under the regular ticker "HON" with the right to receive Honeywell Aerospace shares and under the ticker "HONIV" without that right.

Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions are expected to restructure Honeywell's portfolio, enhance strategic focus and support long-term value creation for shareholders.

HON’s Zacks Rank

Solid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects bode well for it.

In the past six months, this Zacks Rank #3 (Hold) company’s shares have risen 12.5% against the industry’s 3.6% decline.

Image Source: Zacks Investment Research

However, weakness in the Process Automation and Technology segment, due to lower petrochemical catalyst shipments, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability.

Stocks to Consider

Better-ranked companies are discussed below.

GPGI, Inc. GPGI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.

ITT Inc. ITT presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.

The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 8.1% in the past 60 days.

Griffon Corporation GFF presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.

In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Investment portfolio losses, lower premium volume and earnings estimate cuts are pushing the stock down. Markel’s first-quarter 2026 earnings missed expectations, which has weighed on the insurer. However, strong underwriting discipline, strategic acquisitions, international diversification and its niche insurance expertise position the company for sustainable growth ahead.

Some other insurers, like Assurant, Inc. AIZ, CNO Financial Group, Inc. CNO and MetLife, Inc. MET, have risen 6.9%, 12.8% and 7.1%, respectively, in the said time frame.

YTD Price Performance – MKL, AIZ, CNO, MET, Industry & S&P 500

Image Source: Zacks Investment Research

Average Target Price for MKL Suggests Upside

Based on short-term price targets offered by four analysts, the Zacks average price target is $2,036.75 per share. The average suggests a potential 14.5% upside from the last closing price.

Image Source: Zacks Investment Research

MKL’s Valuation

MKL shares are trading at a discount to the industry. Its price-to-book value of 1.26X is lower than the industry average of 2.51X.

Image Source: Zacks Investment Research

MKL’s Favorable ROIC

Return on invested capital (ROIC) in the trailing-12 months was 5.8%, better than the industry average of 2.2%, reflecting MKL’s efficiency in utilizing funds to generate income.

What Aids MKL's Performance?

Markel’s operational results are primarily driven by better performance at its Insurance, Industrial, Financial, Consumer and Other segments. The performance can be attributed to its niche focus, improved pricing and effective risk management. The company expects its specialty insurance operations to remain the primary source of capital generation, supporting expansion and future investments.

MKL looks to double the size of its insurance operations and targets $10 billion of annual insurance premiums in five years. This should lead to $1 billion of annual underwriting profit. The company expects to achieve this goal primarily through organic growth of its existing profitable operations. Investment income should continue to benefit from fixed maturity securities, higher yield and higher average holdings.

Markel strives to grow via acquisitions and organic initiatives to diversify its portfolio and expand its international footprint. Acquisitions have helped the company enhance its surety capabilities. Acquisitions like Valor Environmental and EPI continue to contribute significantly to its top line, highlighting the company's ability to drive growth through this strategy. Markel's acquisition of MECO expands its marine insurance capabilities and strengthens its presence in key international markets such as London, Dubai, Shanghai and Hamburg.

Markel has partnered with hyperexponential to modernize rating, underwriting workflows and integration architecture across its Canadian business. This partnership highlights management's focus on AI-powered underwriting, which could improve risk selection, operational efficiency and long-term profitability.

Markel boasts strong liquidity levels. We expect to see an improvement moving ahead, owing to a robust capital position. MKL exited the first quarter with investments, cash and cash equivalents of $36 billion as of March 31, 2026. The company engages in share buybacks, a prudent way to distribute wealth to its shareholders.

Estimates for MKL

The Zacks Consensus Estimate for Markel’s 2026 earnings per share (EPS) is pegged at $113.55, indicating a year-over-year increase of 17.4%. However, it has witnessed three downward movements and one upward revision over the past 60 days. During this time, the earnings estimate declined 3.4%.

The estimate for 2026 revenues is pegged at $16.88 billion, implying a year-over-year improvement of 10.3%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 8.4% and 2.9%, respectively, from the corresponding 2026 estimates.

Earnings have grown 18.3% in the past five years, better than the industry average of 10.4%.

Risks for MKL

Markel is exposed to catastrophe losses, inducing volatility in underwriting results. Exposure to catastrophe losses always remains a concern, given its unprecedented nature.

Markel has been experiencing an increase in operating expenses due to higher losses and loss adjustment expenses, underwriting, acquisition and insurance expenses.

Markel’s debt levels have increased over the past few years. Senior long-term debt and other debt balance increased 1.8% to $4.4 billion, as of March 31, 2026.

Conclusion

Markel's niche focus, improved pricing, effective management of insurance risk, and focus on developing and maintaining underwriting as well as pricing guidelines should drive growth. However, exposure to catastrophic losses, a rise in debt levels and an increase in operating expenses are concerns.

Coupled with the favourable ROIC, strategic acquisitions and impressive wealth distribution, but recent earnings estimate cuts, it is wise to retain this Zacks Rank #3 (Hold) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The next year matters because it puts this strategy into real-world execution. With pivotal planning in MASH and readouts approaching in alcohol-related conditions, 2026 will help determine whether multi-mechanism liver therapies can translate into durable, clinically meaningful outcomes.

ALT’s Thesis Fits a Shift Toward Multi-Pathway Therapies

Liver diseases such as metabolic dysfunction-associated steatohepatitis (MASH) are not single-driver problems. They involve fat accumulation, inflammatory signaling, and progressive fibrosis. That biology has pushed drug development toward combinations and multi-mechanism assets, including dual and even triple agonist designs.

Pemvidutide is Altimmune’s entry into this shift. The company’s core claim is that balanced glucagon plus GLP-1 activity in one molecule can address liver biology directly while also improving metabolic factors that contribute to disease progression.

Altimmune, Inc. Price and Consensus

Altimmune, Inc. price-consensus-chart | Altimmune, Inc. Quote

Altimmune’s Differentiation Claim vs GLP-1 Alone

Altimmune’s differentiation argument starts with the liver’s central role in glucagon signaling. In its framing, glucagon works directly on the liver and may help reduce liver fat, inflammation, and scarring. GLP-1, by contrast, is primarily tied to appetite reduction and weight loss, with potential anti-inflammatory benefits as well.

The point is not that GLP-1-driven weight loss is irrelevant. Instead, Altimmune is positioning glucagon activity as additive, aiming to push beyond weight loss alone and more directly influence hepatic fat and fibrosis-related pathways that matter for long-term disease modification.

ALT’s Data That Supports “Differentiated” Positioning

The company’s 48-week phase IIb MASH dataset is the backbone of that positioning. Pemvidutide showed statistically significant MASH resolution without worsening of fibrosis at 24 weeks, and the effect was sustained through 48 weeks.

More importantly for the “differentiated” narrative, multiple non-invasive markers associated with fibrosis and liver stiffness improved versus placebo, and the benefits deepened from 24 to 48 weeks, which Altimmune frames as evidence of sustained antifibrotic activity over time.

Safety and tolerability were also described as favorable, with low discontinuation rates and no serious treatment-related adverse events reported. The higher 1.8 mg dose group continued to lose weight through 48 weeks without plateauing, supporting a profile that could keep improving with longer treatment.

Altimmune’s 2026 Milestones as Trend Validation Points

The next major test is the planned global phase III registrational PERFORMA study in MASH patients with moderate-to-severe liver fibrosis. Altimmune expects to initiate the study in the second half of 2026, following alignment with the FDA on key parameters for late-stage development.

In parallel, pemvidutide is being evaluated in alcohol use disorder (AUD), with top-line phase II data from the RECLAIM study expected in the third quarter of 2026. Enrollment was completed in November 2025, ahead of schedule, which reduces one common source of timeline slippage.

If these milestones land cleanly, they would reinforce investor interest in dual-agonist liver programs that can credibly claim multi-pathway impact, not just metabolic improvements.

ALT’s Alcohol-Related Disease Expansion Could Broaden the Story

Altimmune is also building a second leg to the story in alcohol-related conditions. The company is running a phase II program in alcohol-associated liver disease (ALD) as well as the phase II AUD trial, framing both as areas of significant unmet need with commercial potential.

Operationally, the ALD RESTORE phase II study began in July 2025, and enrollment is expected to be completed by the third quarter of 2026. Together with the AUD readout, these programs support the “pipeline in a product” strategy by extending the same mechanism into adjacent, liver-relevant indications.

Altimmune’s Partnering Takeover Angle in a Crowded Field

The competitive landscape is crowded. In MASH, Altimmune is up against GLP-1 leaders such as Novo Nordisk NVO and Eli Lilly LLY, as well as a wide range of mechanisms and combination strategies from large pharma and MASH-focused players. NVO and LLY currently carry a Zacks Rank #3 (Hold).

Against that backdrop, the company is framed as an attractive licensing or takeover candidate if it keeps executing and the differentiated profile holds up in larger studies. The counterweight is concentration risk: Altimmune remains heavily dependent on pemvidutide, and a phase III failure in MASH would be a major blow.

ALT’s Key Watch Items for Trend Investors

For investors following the growing shift toward multi-pathway liver therapies, several key milestones will be important to watch. These include the timing of Phase III initiation and the outcome of FDA interactions as Altimmune finalizes the PERFORMA study design. Investors will also be focused on enrollment progress across ongoing trials, including the completion of ALD enrollment and the timely release of top-line data from the AUD study. Another area of attention is manufacturing preparedness, as Altimmune has already secured clinical supply and expects its production process to be scalable to support potential global Phase III needs. Finally, the competitive landscape remains an important consideration, particularly as rapidly advancing GLP-1 combination therapies and other novel mechanisms could narrow pemvidutide’s differentiation and increase the standard required to support best-in-class positioning.Bottom of Form

In a field where narrative advantage can disappear quickly, execution and durability of effect will decide whether ALT’s dual-agonist thesis becomes a template or just another crowded contender.

Altimmune’s Zacks Rank

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

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Kingsway, formerly known as Kingsway Financial Services Inc. and currently operating from Chicago, IL, is a holding company that employs the Search Fund model to acquire and build asset-light businesses with recurring revenues in the United States. KWY operates through two reportable segments: Kingsway Search Xcelerator or KSX (which includes service-oriented businesses such as CSuite Financial Partners and Ravix Group, among others) and Extended Warranty (which includes IWS Acquisition Corporation and Geminus Holding Company, among others).

Kingsway’s first-quarter 2026 results highlighted the progress of its transformation into an operator-led acquisition platform. The company delivered strong revenue and earnings growth, driven by contributions from recent acquisitions and solid performance across several portfolio businesses. The quarter also marked an important milestone as KSX became the largest contributor to consolidated revenue and profitability, underscoring the increasing importance of KWY’s higher-growth services platform. Management continued to report broad-based strength across the portfolio, suggesting that growth is becoming more diversified as the platform scales.

The research report highlights several factors that could support Kingsway’s future growth. Management has demonstrated strong execution of its public search-fund model, successfully acquiring and scaling small, profitable service businesses. KWY also benefits from a large and fragmented acquisition market, favorable demographics among retiring business owners and an acquisition framework focused on businesses with recurring revenue and attractive return profiles. In addition, broad-based strength across multiple subsidiaries suggests that growth is becoming increasingly diversified.

However, investors should also consider several risks outlined in the report. Kingsway’s investment thesis remains highly dependent on successful acquisition execution, integration and operator recruitment. The company is managing an expanding portfolio of businesses across multiple industries, increasing operational complexity. Continued growth will likely require ongoing access to debt and equity capital, which could increase financial risk in a higher-rate environment. Furthermore, as KWY becomes more closely associated with the search-fund model, any deterioration in acquisition economics, competitive pressures, or investor sentiment toward the strategy could weigh on the stock’s valuation.

Kingsway stock has significantly underperformed its industry peers and the broader market over the past year. The current valuation reflects confidence in the company’s evolving business model and growth prospects, leaving room for upside if execution remains strong but also exposing the shares to downside if growth slows.

For a comprehensive analysis of Kingsway’s financial health, strategic initiatives, and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.

Read the full Research Report on Kingsway here>>>
 

Note: Our initiation of coverage on Kingsway, which has a modest market capitalization of $289.7 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

ANF’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 12.7% in the past three months, underperforming the industry’s decline of 0.9% and the broader Retail-Wholesale sector’s rise of 0.9%.

ANF Stock's Past Three-Month Performance

Image Source: Zacks Investment Research

Is ANF a Value Play Stock?

ANF currently trades at a forward 12-month P/E ratio of 6.87X, which is lower than the industry average of 14.88X and notably below the sector average of 23.04X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

ANF P/E Ratio (Forward 12 Months)

Image Source: Zacks Investment Research

Stocks to Consider

Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

Fossil Group, Inc. FOSL designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.

Urban Outfitters, Inc. URBN offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2.

The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.5% and 9.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average. 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

GPRE & MGPI: Different Drivers of Profitability

Green Plains Inc. GPRE delivered a strong first-quarter 2026 turnaround, largely supported by robust market dynamics. Green Plains benefited significantly from a steady, sustainable pull in U.S. ethanol export demand, which helped balance inventories and provide critical margin support. Management highlighted that overseas blending mandates and international supply deficits continue to fuel this momentum, with Green Plains underscoring the importance of international demand in supporting margins during the quarter.

MGP Ingredients, Inc. MGPI emphasized inventory optimization, cost management and balance-sheet stewardship during the first quarter of 2026. MGP Ingredients also added more than 20 new customers, reflecting continued demand for its differentiated spirits offerings. By focusing on premium products and customer acquisition, MGP Ingredients strengthened profitability despite ongoing challenges across the broader spirits industry.

ALTO Stock Price Performance, Valuation & Estimates

Shares of Alto Ingredients have surged 427.1% over the past year against the industry’s decline of 2.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.42, lower than the industry’s average of 2.83.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ current fiscal-year earnings per share (EPS) implies a year-over-year surge of 671.4%, while the consensus mark for the next fiscal year’s EPS suggests growth of 53.7%.

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

For investors, the story is simple: execution on the next wave of clinical milestones, paired with enough capital to reach them, can define the stock’s setup into 2026 and beyond.

ALT’s Liver Disease Focus and Why It Matters

Altimmune is a late clinical-stage biotechnology company focused on therapies for liver diseases. The company is incorporated in Delaware and headquartered in Gaithersburg, MD.

It has not generated product sales revenue to date. Operations have been funded through equity, debt and grants, leaving the business reliant on external capital while it advances clinical development.

That funding model matters because the value of the equity is closely tied to clinical progress, particularly progress tied to pemvidutide. With revenues still minimal and inconsistent, the stock can be sensitive to trial outcomes and timelines.

Altimmune’s Pemvidutide Is a “Pipeline in a Product”

Pemvidutide is Altimmune’s lead candidate and the company’s core value driver. It is being developed across three serious liver-related indications: metabolic dysfunction-associated steatohepatitis, alcohol use disorder, and alcohol-associated liver disease.

Management has positioned pemvidutide as a “pipeline in a product” because the same molecule is intended to address multiple disease settings that share metabolic and hepatic injury pathways. The company has also indicated it may evaluate additional indications that leverage pemvidutide’s profile.

This concentration creates leverage both ways. A successful pivotal program in metabolic dysfunction-associated steatohepatitis can expand strategic options, including partnering interest, but the company is also heavily dependent on one drug.

Altimmune, Inc. Price and Consensus

Altimmune, Inc. price-consensus-chart | Altimmune, Inc. Quote

ALT’s Dual Glucagon and GLP-1 Design in Plain English

Pemvidutide is designed as a balanced 1:1 dual agonist that activates both glucagon and glucagon-like peptide-1 receptors. Altimmune’s thesis is that combining these two pathways in a single molecule can improve liver and metabolic outcomes more broadly than a single-pathway approach.

In plain terms, glucagon activity is intended to work directly on the liver and may help reduce liver fat, inflammation, and scarring. The glucagon-like peptide-1 component is intended to support weight loss by reducing appetite, with potential anti-inflammatory benefits as well.

Altimmune believes that pairing these effects can address multiple aspects of liver disease at once, while also driving weight loss that can matter clinically for patients with metabolic dysfunction-associated steatohepatitis.

Altimmune’s EuPort Tech and Tolerability Angle

Pemvidutide uses Altimmune’s proprietary EuPort technology, which is designed to slow how the drug is absorbed. The company’s rationale is that slower absorption may improve tolerability.

Altimmune has highlighted the potential for reduced gastrointestinal side effects, a common challenge with therapies that act on glucagon-like peptide-1 biology. Better tolerability can support persistence on therapy, which can be important for longer-duration liver endpoints.

The company has also pointed to simple dosing as a potential adherence advantage versus more complex injectable regimens, which could matter if pemvidutide moves into larger, global trials.

ALT’s MASH Data Readout and the Phase III Path

In its phase IIb IMPACT study, pemvidutide achieved statistically significant metabolic dysfunction-associated steatohepatitis resolution without worsening of fibrosis at 24 weeks, and the response was sustained through 48 weeks.

By 48 weeks, Altimmune reported signs consistent with antifibrotic activity, alongside continued improvement in markers tied to liver damage and inflammation, with the added benefit of weight loss.

Altimmune has stated it reached alignment with the Food and Drug Administration on key parameters for a late-stage study. The company expects to initiate the global phase III registrational PERFORMA study in the second half of 2026, with 52-week data anticipated in 2029.

Altimmune’s AUD and ALD Catalysts for 2026

Beyond metabolic dysfunction-associated steatohepatitis, pemvidutide is being evaluated in separate phase II programs in alcohol-related disease, which Altimmune views as significant unmet-need markets.

For alcohol use disorder, the RECLAIM phase II study completed enrollment in November 2025. Altimmune expects top-line data in the third quarter of 2026, setting up a clear catalyst window next year.

For alcohol-associated liver disease, the RESTORE phase II study began in July 2025, and enrollment is expected to be completed by the third quarter of 2026. Together, these readouts broaden the 2026 news flow beyond the metabolic dysfunction-associated steatohepatitis pivotal setup.

ALT’s Regulatory Tailwinds and What They Signal

The Food and Drug Administration granted Fast Track designation to pemvidutide for metabolic dysfunction-associated steatohepatitis and alcohol use disorder, and Breakthrough Therapy Designation for metabolic dysfunction-associated steatohepatitis.

These designations generally reflect the seriousness of the conditions and the unmet medical need, while also signaling that regulators see enough potential benefit to support development efficiency. They do not remove execution risk, but they can help keep timelines clearer as trials scale.

Competition remains intense, including large players such as Novo Nordisk NVO and Eli Lilly LLY, both currently carrying Zacks Rank #3 (Hold). For ALT, the near-term focus is whether pemvidutide’s multi-indication strategy translates into durable, registrational-quality outcomes across liver disease.

Altimmune’s Zacks Rank

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

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Last month, the company announced that it would resubmit the new drug application (NDA) for relacorilant in Cushing’s syndrome. Last December, the FDA issued a complete response letter (“CRL”) to the NDA for relacorilant for the given indication.

The company is planning to resubmit the NDA for relacorilant for treating Cushing’s syndrome shortly. The FDA has informed that the Prescription Drug User Fee Act (PDUFA) date would be approximately six months after the resubmission of the NDA.

Year to date, shares of Corcept have rallied 113.3% against the industry’s decline of 9.2%.

Image Source: Zacks Investment Research

CORT’s Relacorilant Approved for Ovarian Cancer

In March 2026, the FDA approved Lifyorli (relacorilant) in combination with nab-paclitaxel for the treatment of adult patients with platinum-resistant ovarian cancer. Following the nod, Lifyorli became the first FDA-approved selective glucocorticoid receptor antagonist for the given indication.

Corcept has also submitted a marketing authorization application to the European Medicines Agency, seeking approval for relacorilant plus nab-paclitaxel to treat patients with platinum-resistant ovarian cancer. A final decision in Europe is expected by the end of 2026.

The FDA nod for Lifyorli was a significant milestone for Corcept, as it is expected to diversify the company’s revenue stream beyond Korlym, which is approved for treating Cushing's syndrome. The company is likely to record Lifyorli sales from the second quarter of 2026.

CORT Aims to Diversify With Lifyorli

The approval of Lifyorli should help diversify the company’s revenue base and reduce its reliance on Korlym, which has been its sole source of revenues.

Korlym recorded sales of $164.9 million, up around 5% year over year, driven by rising demand.

Reflecting the growing momentum with Korlym and other business activities, Corcept raised its full-year 2026 revenue guidance to $950 million-$1.05 billion during the first quarter of 2026. The company previously expected total revenues in the range of $900 million to $1 billion in 2026.

Relacorilant, in combination with other anticancer therapies, is also being studied for treating other solid tumors, including platinum-sensitive ovarian, prostate, endometrial, cervical and pancreatic cancers.

The consistent growth of Korlym revenues, coupled with the upcoming first sales of Lifyorli and the promising advancement of relacorilant in Cushing’s syndrome, positions Corcept for continued growth. These catalysts are likely to support the company’s long-term growth prospects and should maintain positive momentum in the stock.

CORT's Zacks Rank & Stocks to Consider

Corcept currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Indivior Pharmaceuticals INDV, Liquidia Corporation LQDA and Immunocore IMCR, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share (EPS) have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.66 to $4.27. INDV shares have risen 4.8% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased to $2.97 from $1.50. Over the same period, EPS estimates for 2027 have risen to $4.81 from $2.91. LQDA shares have surged 79.3% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

Over the past 60 days, estimates for Immunocore’s 2026 have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR shares have lost 18.5% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 46.66%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Independent Bank is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Independent Bank imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Independent Bank

This bank holding company is expected to earn $3.54 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Independent Bank. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.8%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Independent Bank to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Bionano Genomics basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Bionano Genomics imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Bionano Genomics

This company is expected to earn -$2.49 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Bionano Genomics. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.6%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Bionano Genomics to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Sarepta Therapeutics basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Sarepta Therapeutics imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Sarepta Therapeutics

This biopharmaceutical company is expected to earn $4.82 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Sarepta Therapeutics. Over the past three months, the Zacks Consensus Estimate for the company has increased 49.9%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Sarepta Therapeutics to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Brink's is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Brink's, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Brink's

For the fiscal year ending December 2026, this armored car company is expected to earn $9.14 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Brink's. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.8%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Brink's to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Helen of Troy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Helen of Troy, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Helen of Troy

This personal and household products company is expected to earn $3.44 per share for the fiscal year ending February 2027, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Helen of Troy. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.5%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Helen of Troy to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Gilat basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Gilat, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Gilat

This satellite broadband communications company is expected to earn $0.70 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Gilat. Over the past three months, the Zacks Consensus Estimate for the company has increased 48.9%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Gilat to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Industria de Diseno Textil basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Industria de Diseno Textil imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Industria de Diseno Textil

For the fiscal year ending January 2027, this company is expected to earn $0.63 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Industria de Diseno Textil. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.8%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Industria de Diseno Textil to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Ultra Clean basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Ultra Clean imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Ultra Clean

For the fiscal year ending December 2026, this chipmaking equipment services company is expected to earn $2.35 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Ultra Clean. Over the past three months, the Zacks Consensus Estimate for the company has increased 29.9%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Ultra Clean to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Chain Bridge Bancorp, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Chain Bridge Bancorp, Inc. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Chain Bridge Bancorp, Inc.

For the fiscal year ending December 2026, this company is expected to earn $4.93 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Chain Bridge Bancorp, Inc.. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.8%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Chain Bridge Bancorp, Inc. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 Curbline Properties (CURB), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

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. Curbline Properties currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

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

Set to Beat the Market?

Let's discuss some of the components of the Momentum Style Score for CURB that show why this convenience store real estate investment trust shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. 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 CURB, shares are up 0.48% over the past week while the Zacks REIT and Equity Trust - Retail industry is up 0.66% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.99% compares favorably with the industry's 2.59% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Curbline Properties have increased 10.37% over the past quarter, and have gained 28.43% in the last year. In comparison, the S&P 500 has only moved 8.51% and 25.67%, respectively.

Investors should also take note of CURB's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CURB is averaging 711,569 shares for the last 20 days..

Earnings Outlook

The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CURB.

Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CURB's consensus estimate, increasing from $1.19 to $1.21 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Taking into account all of these elements, it should come as no surprise that CURB is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Curbline Properties on your short list.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Acurx Pharmaceuticals is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Acurx Pharmaceuticals, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Acurx Pharmaceuticals

For the fiscal year ending December 2026, this company is expected to earn -$1.94 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Acurx Pharmaceuticals. Over the past three months, the Zacks Consensus Estimate for the company has increased 58.4%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Acurx Pharmaceuticals to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Dell’s AI Infrastructure Push Faces Tough Rivals

Dell Technologies is a major player in the AI infrastructure market but faces stiff competition from Super Micro Computer SMCI and Hewlett Packard Enterprise HPE.

Super Micro Computer is strengthening its AI infrastructure business through its Data Center Building Block Solutions (“DCBBS”), which provides end-to-end data center solutions, including liquid cooling, networking, power systems, software and services. The company highlighted its industry-leading time-to-online capabilities, helping customers deploy AI factories faster and more efficiently. Strong engineering expertise, design-for-manufacturing initiatives and factory automation are improving production speed, quality and margins. Super Micro Computer continues to expand partnerships with NVIDIA, AMD, Intel and Arm while increasing manufacturing capacity globally. Management believes DCBBS, software and services will become significant profit drivers as demand for AI infrastructure continues to grow.

HPE is benefiting from strong AI and networking demand, with AI systems orders reaching $1.8 billion and expanding into orchestration, data movement and agentic AI workloads. Record backlog and a pipeline multiple times larger than the backlog support growth visibility. HPE is seeing rising demand for high-memory servers and AI inference, while the Juniper integration is driving networking momentum and cross-selling opportunities. Management expects durable demand, sustained AI adoption and continued growth across its Cloud & AI and Networking businesses through fiscal 2027.

DELL’s Share Price Performance, Valuation & Estimates

Shares of Dell have gained 213.3% year to date, outperforming the broader Computer & Technology sector and the Zacks Computer - Micro Computers industry’s growth of 16.1% and 17.2%, respectively.

                                         DELL’s YTD Price Performance   

Image Source: Zacks Investment Research

From a valuation standpoint, its forward price-to-earnings ratio of 26.25 is significantly below the industry’s average of 32.4.

                                               DELL’s Valuation  

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $14.54 per share, increasing 9.9% over the past 30 days. This suggests 41.17% year-over-year growth.  

                                 Dell Technologies Inc. Price and Consensus

Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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 The Bancorp shares, but what is the fundamental picture for the company? Currently, The Bancorp is a Zacks Rank #3 (Hold) in the Banks - Northeast industry that ranks in the Top 40% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimates for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.35 per share to $1.37 in that period.

Given the way analysts feel about The Bancorp 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.

Looking to Trade Options?

Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

TJX, ROST and BURL Show Traffic Strength

Ross Stores, Inc. ROST also delivered strong traffic-led growth in the first quarter of fiscal 2026. Ross Stores reported a 17% comparable sales increase, driven primarily by higher transactions and customer-count growth across income levels, age groups and ethnicities. Management noted that Ross Stores has now posted transaction-driven comparable sales growth for three consecutive quarters, supported by customer acquisition efforts, marketing initiatives and compelling merchandise assortments. 

Burlington Stores, Inc. BURL also demonstrated solid customer demand trends in the first quarter of fiscal 2026. Burlington Stores reported 6% comparable sales growth, with management highlighting positive customer metrics across demographics and income bands. Despite macroeconomic uncertainty, Burlington Stores continued to see resilient shopper engagement, supported by its value-focused merchandise offering and improved store experience initiatives.

TJX’s Price Performance, Valuation and Estimates

Shares of The TJX Companies have gained 4.8% in the past month against the industry’s decline of 0.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 30.15X, down from the industry’s average of 31.29X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

SATS has also outperformed its peers, Gilat Satellite Networks Ltd. GILT, Planet Labs PBC PL and Iridium Communications IRDM. GILT, PL and IRDM have climbed 140.8%, 452.7% and 70.5%, respectively, in the past year.

Image Source: Zacks Investment Research

However, shares of EchoStar lost 10% in the past month. The company recently reported first-quarter 2026 results, wherein it posted a diluted net loss of 51 cents. The company’s first-quarter revenues declined 5.2% year over year.

Following the company’s results, investors may wonder whether SATS has upside or if expectations have outpaced fundamentals. Let’s unpack the company’s fundamentals and challenges to ascertain the best course of action.

Key Growth Catalysts for EchoStar

EchoStar is advancing from strategic transactions involving spectrum assets that are expected to strengthen its financial position. The company has agreements to sell certain spectrum licenses to AT&T for $22.65 billion in cash, subject to conditions and adjustments, and has also entered into transactions with SpaceX valued at approximately $20 billion, including cash and SpaceX equity consideration. These transactions also contemplate debt repayment and additional commercial arrangements related to Starlink services and customer referral programs.

EchoStar's existing portfolio spans Pay-TV, Wireless, Broadband and Satellite Services, and enterprise and government connectivity businesses. The company provides services through brands including Boost Mobile, Sling TV, DISH TV, Hughes and HughesNet, serving consumer, enterprise, operator and government customers worldwide.

Notably, the company is gaining from improvements in its Wireless and Broadband and Satellite Services businesses, which supported overall operating performance during the first quarter of 2026. The company’s Wireless segment generated OIBDA of $13.7 million compared with a loss of $73.7 million in the prior-year quarter, while Broadband and Satellite Services OIBDA increased to $94.1 million from $85.7 million a year earlier. Consolidated OIBDA rose to $559.4 million from $400.2 million, and adjusted OIBDA increased to $493.3 million from $400.2 million in the prior-year period. Net loss attributable to EchoStar also narrowed to $146.9 million from $202.7 million in the first quarter of 2025.

EchoStar is also gaining from continued growth and retention efforts in its Wireless business. The company ended the quarter with 7.53 million wireless subscribers, reflecting a net increase of approximately 16,000 subscribers during the first quarter. Wireless subscriber performance was supported by the company’s focus on acquiring higher-quality subscribers, retention initiatives, competitive offers and promotions, and increased sales of value-added services, which also contributed to higher wireless average revenue per user.

Image Source: Zacks Investment Research

However, continued pressure on the company’s subscriber bases in Pay-TV and broadband services remains a concern. During the first quarter of 2026, the company lost approximately 366,000 pay-TV subscribers and 58,000 broadband subscribers, reflecting the impact of competitive pressures, cord-cutting trends, evolving consumer preferences and competition from streaming platforms. Moreover, increased competition from satellite-based and alternative broadband technologies poses additional challenges.

SATS’ Valuation

SATS trades at a forward 12-month price-to-sales (P/S) of 2.35X, below the industry’s 3.28X. GILT, PL and IRDM trade at a forward 12-month P/S of 2X, 23.36X and 5.52X, respectively.

Image Source: Zacks Investment Research

SATS’ Estimates

The Zacks Consensus Estimate for SATS’ earnings for 2026 has been unchanged over the past 30 days.

Image Source: Zacks Investment Research

Should You Buy or Hold SATS Stock Now?

Currently carrying a Zacks Rank #2 (Buy), EchoStar appears to be a compelling investment opportunity at the moment.

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Such breadth is translating into powerful financial performance. Quarterly revenues crossed $5 billion for the first time in the quarter, rising 42% year over year. At the same time, gross profit surged to $1.9 billion, up 27% year over year. While many U.S. fintech peers continue to burn cash, Nu Holdings reported $871 million in net income in the quarter, climbing 41% year over year.

The interplay is clear: rapid customer adoption feeds top-line growth, credit drives gross profit, and disciplined execution ensures bottom-line strength. Brazil is the anchor, but Mexico and Colombia are adding meaningful momentum. Nu Holdings isn’t merely scaling; it’s scaling profitably and at a pace that places it well ahead of many fintech rivals.

By demonstrating that growth and profitability don’t have to be mutually exclusive, NU is carving out a rare position in digital banking: a fintech giant that’s already highly profitable, yet still in the middle of a steep growth curve.

Peer Pressure?

While Nu Holdings continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies SOFI and Block XYZ are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square.

While both SoFi and Block are evolving steadily, NU’s pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape.

NU’s Price Performance, Valuation, Estimates

The stock has declined 28.5% year to date against the industry’s 5% decline.

                                                             Image Source: Zacks Investment Research

From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 12.28, which is well above the industry’s 10.54. It carries a Value Score of C.

<                                                              Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NU’s 2026 earnings has stayed unchanged over the past 30 days.

                                                                 Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

NKE’s Competition in the Global Arena

adidas AG ADDYY and lululemon athletica inc. LULU are NKE’s key competitors in the global market.

adidas is seeing encouraging signs of stability in its footwear business as strong demand for running, football and Originals continues to support growth across key markets. Management has emphasized product visibility, franchise strength and disciplined inventory management as drivers of healthier marketplace dynamics. Improved full-price sell-through and sustained consumer interest in both performance and lifestyle offerings suggest that adidas’ footwear segment is benefiting from stronger brand momentum and a more balanced product portfolio.

lululemon is steadily strengthening its footwear business through innovation and expansion across targeted categories. While footwear remains a smaller contributor compared with apparel, the company continues to broaden its product assortment and deepen consumer engagement through a premium, performance-focused approach. Supported by its loyal customer base, direct-to-consumer model and growing brand awareness, lululemon is positioning footwear as an important long-term growth opportunity while maintaining disciplined inventory and pricing strategies.

NKE’s Price Performance, Valuation & Estimates

Shares of NIKE have lost 24% in the past three months compared with the industry’s decline of 18.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, NKE trades at a forward 12-month price-to-earnings ratio of 23.03X compared with the industry’s average of 20.22X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NKE’s fiscal 2026 earnings implies a year-over-year decline of 31%, while that for fiscal 2027 indicates growth of 24.3%. The company’s EPS estimates for fiscal 2026 and 2027 have been stable in the past 30 days.
 

Image Source: Zacks Investment Research

NIKE stock currently carries a Zacks Rank #4 (Sell).

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

That concentration can create outsized upside on good news and sharp downside on missteps.

ALT’s Near-Term Setup Centers on Two 2026 Events

The first key milestone is the planned start of a global phase III registrational study in metabolic dysfunction-associated steatohepatitis in the second half of 2026, targeting patients with moderate-to-severe liver fibrosis. Management expects 52-week data in 2029, but the 2026 start is the gating event that moves pemvidutide into a pivotal setting.

The second 2026 catalyst is top-line phase II data from the RECLAIM study in alcohol use disorder, expected in the third quarter of 2026. Enrollment for RECLAIM was completed in November 2025, ahead of schedule, which keeps the timeline intact heading into next year.

Altimmune, Inc. Price and Consensus

Altimmune, Inc. price-consensus-chart | Altimmune, Inc. Quote

A third marker investors may watch is enrollment progress in the RESTORE phase II study in alcohol-associated liver disease. Enrollment is expected to be completed by the third quarter of 2026, providing another read on execution even before efficacy data is available.

Altimmune’s MASH Thesis Depends on Pivotal Execution

The phase III PERFORMA start matters because it is the step that turns phase II signals into a program designed for registration. Altimmune has highlighted alignment with the Food and Drug Administration on key late-stage parameters, which helps reduce design uncertainty as the company moves into PERFORMA.

The stakes are high because the company’s value proposition is heavily tied to pemvidutide across multiple indications. That dependence cuts both ways: success can validate a “pipeline in a product” narrative, while failure in a pivotal metabolic dysfunction-associated steatohepatitis program would likely be a major downside catalyst given how central pemvidutide is to the investment case.

That binary profile is also why 2026 is so important. Even without clinical readouts from PERFORMA in 2026, simply initiating the study on time can support confidence that the timeline toward 2029 data remains credible.

ALT’s Phase II Evidence Investors Are Leaning On

In the phase IIb IMPACT study, pemvidutide delivered statistically significant metabolic dysfunction-associated steatohepatitis resolution without worsening fibrosis at 24 weeks, and that response was sustained through 48 weeks. The company also pointed to clear signs of reducing liver scarring by 48 weeks, alongside continued improvement in markers of liver damage and inflammation.

Top-line 48-week results highlighted statistically significant reductions versus placebo in non-invasive markers of liver fibrosis, including Enhanced Liver Fibrosis and liver stiffness, with improvements that deepened from the 24-week mark.

The dataset also included metabolic benefits, reductions in liver fat and inflammation markers, and meaningful weight loss. Notably, the higher-dose group (1.8 mg) showed weight reduction through 48 weeks without plateauing, while tolerability remained favorable with low discontinuation rates and no serious treatment-related adverse events reported.

Altimmune’s Cash Runway Into 2029 Lowers Timing Risk

Altimmune’s financial position improved into the first quarter of 2026, with cash, cash equivalents and short-term investments of $332 million as of March 31, 2026 versus $274 million as of Dec. 31, 2025.

The company raised $75 million in a registered direct offering and $8 million via an at-the-market program in January to February 2026 and then completed an oversubscribed public offering in April 2026 with $225 million in gross proceeds. Pro forma cash was roughly $535 million as of April 30, 2026.

Management expects that cash runway to support operations into 2029, which can lower timing risk by reducing near-term funding pressure as the company advances phase III plans in metabolic dysfunction-associated steatohepatitis and continues its phase II alcohol use disorder and alcohol-associated liver disease trials.

ALT’s Dilution and Financing Overhang Still Exists

Even with a strengthened balance sheet, Altimmune remains a pre-revenue clinical-stage biotech with no marketed products, which keeps external financing central to its operating model.

That reality can translate into dilution risk over time. The company has indicated it may still raise additional funds if market conditions are favorable, a reminder that opportunistic capital raises can remain part of the story even with a longer runway.

Altimmune’s Competition Checklist for Buyers

Competition is a key constraint on upside across all three target areas. In metabolic dysfunction-associated steatohepatitis, pemvidutide faces a crowded field spanning GLP-1 drugs and combination incretins, FGF-21 therapies, thyroid hormone receptor beta agonists, and other emerging mechanisms. Major competitors include Novo Nordisk NVO and Eli Lilly LLY, alongside metabolic dysfunction-associated steatohepatitis-focused developers such as Madrigal Pharmaceuticals MDGL and Viking Therapeutics (VKTX).

In alcohol-associated liver disease, large pharmaceutical companies are pursuing multiple approaches, including FGF-21, GLP-1 and RNA-based programs. In alcohol use disorder, pemvidutide would compete with approved options like Vivitrol as well as generic therapies including naltrexone and acamprosate. The net effect is that even strong data may not automatically translate into clear commercial leadership.

ALT’s Valuation Snapshot and What It Implies

On a relative basis, the stock has been framed through trailing 12-month book value per share. ALT recently traded at 1.24 times trailing book value, compared with 1.39 times for the Zacks sub-industry, 3.71 times for the Zacks sector, and 8.01 times for the S&P 500.

Over the past five years, the book value multiple has ranged from 0.71 times to 5.25 times, with a five-year median of 2.34 times. That context suggests the current multiple sits below the longer-term midpoint, but still within a historical band.

The stated $3 price target approach is tied to a 1.4 times trailing 12-month book value multiple. In practical terms, that framework implies expectations for performance that tracks more “in-line” outcomes than a high-conviction upside scenario, placing even more emphasis on 2026 execution as the driver of sentiment.

Altimmune’s Zacks Rank

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

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

This Zacks Rank #3 (Hold) company’s shares have declined 26.9% in the year-to-date period compared with the industry’s 6.5% drop. However, the S&P 500 has risen 8.1% during the same time frame.

The renowned medical device provider has a market capitalization of $3.85 billion. The company projects 8.9% growth for the next five years and expects to maintain its strong performance going forward. It delivered an average earnings surprise of 12.5% for the past four quarters.

Image Source: Zacks Investment Research

Let’s delve deeper.

MMSI’s Growth Drivers

Strength in Therapeutic Products and Core Platforms: Merit Medical delivered first-quarter 2026 constant-currency revenue growth above management’s expectations, supported by strong performance across its therapeutic product portfolio. Therapeutic product sales increased 7% year over year, driven by robust growth in cardiac therapies and endoscopy, along with solid contributions from vascular intervention and oncology products.

The company’s therapeutic business continues to be an important growth engine, representing roughly one-third of total revenues while growing faster than foundational products. Management highlighted that therapeutic products have delivered an 11% organic compound annual growth rate over the past three years, reflecting increasing physician adoption of products focused on disease treatment and intervention.

Oncology Expansion Through View Point Medical Acquisition: A major strategic development during the first quarter was Merit Medical’s acquisition of View Point Medical. The transaction expands the company’s oncology platform and strengthens its position in breast cancer localization procedures.

View Point Medical’s OneMark Detection Imaging System and tissue markers complement Merit Medical’s existing SCOUT platform. Management believes the acquisition expands the company’s addressable oncology procedure opportunity, targeting an estimated 1.3 million additional biopsy-related procedures annually in the United States.

The company expects the acquisition to contribute between $2 million and $4 million in revenues during 2026 and projects long-term annual sales growth of at least 20% for the OneMark platform.

Product Innovation Supporting Growth: Merit Medical continued to invest in product innovation across its therapeutic platforms. During the first quarter, the company commercially launched the Resilience Through-the-Scope Esophageal Stent, indicated for the treatment of esophageal fistulas and strictures caused by malignant tumors, in the United States. Management views the product as a differentiated offering that can support future growth.

The endoscopy business also benefited from the integration of the C2 CryoBalloon acquisition, which exceeded expectations during the quarter. Combined with the Resilience launch, these initiatives position the platform for continued growth.

Key Challenges for MMSI Stock

Tariff-Related Cost Pressures: Despite strong operational execution, tariffs continue to pressure profitability. During the first quarter of 2026, tariffs reduced gross margin by 120 basis points and created a $4.6 million financial impact. While Merit Medical mitigated much of this pressure through pricing discipline, product mix improvements and operational efficiencies, management expects tariffs to remain a significant challenge throughout 2026.

Current guidance assumes a full-year tariff impact of approximately $15 million, or 19 cents per share, compared with a $9 million impact recorded during the final eight months of 2025. Although the company has begun seeking reimbursement for certain tariff payments, the outcome remains uncertain.

OEM Weakness & China Macro Pressure: The company’s OEM segment remained a drag on overall growth during the first-quarter 2026. OEM revenues declined 14% year over year due to inventory destocking by certain U.S. customers and continued demand softness in the Asia-Pacific region. Management characterized the weakness as largely temporary and timing-related rather than a loss of market share.

China also remains a challenging market due to the impact of volume-based procurement programs, which continue to pressure pricing across medical device categories. Although first-quarter performance in China was modestly better than expected, management continues to forecast only low-single-digit growth from the region in 2026.

Competitive Pressure Across Multiple Markets: Merit Medical faces competition from both large medical device companies and specialized niche players across its product portfolio. As the company expands through acquisitions and new product launches, it must continue driving innovation, maintaining market share and managing pricing pressures. Increased competition or slower integration of acquired businesses could create challenges for future growth and margin expansion.

Merit Medical Systems, Inc. Price

Merit Medical Systems, Inc. price | Merit Medical Systems, Inc. Quote

Estimate Trend

MMSI is witnessing a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has moved 0.2% north to $4.07.

The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $404.7 million, suggesting a 6.81% rise from the year-ago reported number. The consensus mark for EPS is pegged at 96 cents, implying a 4.9% decline from the prior-year reported figure.

Stocks to Consider

Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, Globus Medical GMED and Biodesix BDSX.

West Pharmaceutical, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical’s shares have gained 14.3% against the industry’s 6.5% decline in the year-to-date period.

Globus Medical, currently sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.2%. GMED’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

Globus Medical’s shares have lost 8.4% compared with the industry’s 15.8% decline in the year-to-date period.

Biodesix, currently carrying a Zacks Rank of 2 (Buy), has an estimated earnings growth rate of 36% for 2026. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.5%.

Biodesix’s shares have jumped 127.4% against the industry’s 8.1% decline in the year-to-date period.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

During the first quarter, QCi completed the acquisition of Luminar Semiconductor, Inc. in an all-cash transaction valued at $110 million. LSI manufactures and sells a portfolio of photonic components and brings established capabilities in lasers, detectors, advanced packaging and manufacturing, complementing QCi’s position in thin film lithium niobate (“TFLN”) integrated photonics. 

QCi also completed the acquisition of NuCrypt, LLC, a quantum communications technology company, in a transaction valued at $5 million. By integrating NuCrypt’s suite of quantum communications systems and products, QCi expects to advance its technology roadmap while extending its portfolio of quantum communications and quantum photonics solutions.

QCi announced the placement of a QCi Dirac-3 quantum optimization machine on Quantum Corridor’s network, a multi-state quantum-safe commercial communication network in North America. The partnership with Quantum Corridor will allow for enhanced, secure and on-demand Dirac-3 access for institutions and commercial customers on Quantum Corridor’s network.

QCi’s Fab 1 facility, which is currently dedicated to research, development and prototyping, has been ramping up small-batch manufacturing and is beginning to generate revenues.

Peer Update

Rigetti RGTI continued to demonstrate progress in gate performance across its superconducting quantum platforms during the first quarter. RGTI achieved a median 99.8% two-qubit gate fidelity with 40-nanosecond gate speeds on its 9-qubit system by using a proprietary adiabatic CZ gate scheme. 

Throughout the quarter, Rigetti continued to improve system-level performance through refinements across the stack, including innovations in materials and fabrication techniques and upgraded control electronics. It continued its collaboration with ecosystem partners, including Riverlane, to advance error mitigation and error correction research on Rigetti’s superconducting quantum systems. 

During the first quarter, IonQ IONQ was awarded a $39 million contract to advance next-generation tactical space communications under the Space Development Agency’s (“SDA”) HALO Program, paving the way for mission-ready, quantum-space systems in national security. 

IonQ signed a memorandum of understanding (MoU) with KISTI to explore the advancement of hybrid quantum-HPC technologies incorporating NVIDIA-accelerated computing, representing a powerful convergence of quantum computing, AI and classical supercomputing. The company also sold its first sixth-generation, chip-based 256-qubit system to the University of Cambridge. The agreement is anchored by a secure quantum network and a broad intellectual property (IP) generation partnership spanning quantum computing, networking, sensing and security.

QUBT’s Stock Price Performance

Over the past year, QCi’s shares have plunged 30.6% compared with the industry’s 16.4% decline. 

Image Source: Zacks Investment Research

QUBT’s Expensive Valuation

QUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 84.56X compared with the industry median of 4.97X.

Image Source: Zacks Investment Research

QUBT Stock Estimate Trend

In the past 30 days, QCi’s loss per share estimate for 2026 has moved north to 14 cents. 

Image Source: Zacks Investment Research

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Factors Acting in Favor of CMS

Demand from commercial and industrial customers remains a multi-year growth driver, supported by manufacturing and data center activity in the service territory. CMS has signed roughly 110 megawatts (MW) of new-load contracts year to date after connecting about 450 MW in 2025. 

CMS Energy is making significant investments in infrastructure upgrades, replacement of aging assets and clean power generation to enhance customer reliability and improve system resiliency. To support these efforts, the company plans to invest nearly $24 billion in capital expenditures during 2026-2030. Backed by these strong investment plans, CMS Energy expects annual earnings per share to grow toward the high end of its long-term guided range of 6-8%.

The company has also secured contract to purchase 850 MW of battery storage capacity in Michigan that is expected to be operational by 2028. The company expects that its upcoming Integrated Resource Plan will include more than 13 GW of renewables and clean resources supported by about 1.5 GW of new natural gas capacity on existing sites.

Challenges Faced by CMS

Environmental compliance remains a cost risk as CMS Energy continues to manage coal combustion residuals and related disposal facilities. Consumers previously estimated $245 million in capital expenditures for coal ash solid waste disposal facilities during 2026-2030. Any additional permitting or remediation requirements could increase these costs, putting pressure on cash flows and complicating efforts to consistently expand margins.

CMS’ Share Price Performance

In the past six months, shares of the company have risen 2.3% compared with the industry’s 6% growth.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the same sector are Pampa Energia PAM, sporting a Zacks Rank #1 (Strong Buy), and American States Water AWR and Clean Energy Fuels CLNE, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PAM’s long-term (three to five years) earnings growth rate is 2.92%. The company delivered an average earnings surprise of 80.9% in the last four quarters.

AWR’s long-term earnings growth rate is 6.93%. The Zacks Consensus Estimate for AWR’s 2026 earnings per share (EPS) implies an improvement of 10.1% year over year. 

The Zacks Consensus Estimate for CLNE’s 2026 EPS implies a decline of 400% year over year. The company delivered an average earnings surprise of 87.5% in the last four quarters.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Chicago, IL – June 8, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Micron MU, Chevron CVX and Quanta Services PWR.

Here are highlights from Friday’s Analyst Blog:

A Steady U.S. Economy, Strong EPS Growth: Zacks JUNE Strategy

The following is an excerpt from Zacks Chief Strategist John Blank's full Jun Market Strategy report To access the full PDF, click here.

I. Underlying U.S. macro fundamentals?

The month of May was kind to the U.S. labor markets, whether you studied Federal nonfarm payrolls, which were up +172K in May, or the ADP report.

In June, 2026 – Private sector employment increased by +122K jobs in May and pay was up +4.4% year-over-year according to the May ADP National Employment Report® produced by ADP in collaboration with the Stanford Digital Economy Lab.

"Hiring was more broad-based in May than we've seen in the last few years. The labor market continues to show sustained momentum going into the summer hiring season." – Dr. Nela Richardson, Chief Economist, ADP

From our May 22nd, 2026 research --

Zacks estimates on S&P500 stocks offer solid 2026 EPS growth – An EPS lift gets noted across Q1, Q2, Q3 & Q4.

Lifted impressively by "AI" capital expenditures, done largely by the "Mag 7" monster tech companies, and then, a host of others...

A. Zacks quarterly EPS and Revenue growth rates across 2026.

·         For Q1-26, S&P500 EPS growth looks for +25.0%; revenue should grow +11.2%

·         For Q2-26, S&P500 EPS growth looks for +21.0%; revenue should grow +10.3%

·         For Q3-26, S&P500 EPS growth looks for +18.1%; revenue should grow +9.1%

·         For Q4-26, S&P500 EPS growth looks for +20.0%; revenue should grow +8.8%

B. Zacks quarterly EPS and Revenue growths rates for 2025.

·         For Q1-25, S&P500 EPS grew +12.8%; revenue grew +4.9%

·         For Q2-25, S&P500 EPS grew +12.7%; revenue grew +6.3%

·         For Q3-25, S&P500 EPS grew +15.8%; revenue grew +8.2%

·         For Q4-25, S&P500 EPS grew +14.1%; revenue grew +9.0%

C. Annual EPS growth

Zacks expects S&P500 EPS growth from +13% to +17% annually, over three years.

·         Zacks expects +16.0% y/y EPS growth in 2028 (as of May 22nd, 2026)

·         Zacks expects +16.7% y/y EPS growth in 2027

·         Zacks expects +19.5% y/y EPS growth in 2026 for S&P500 companies

·         Zacks marked +13.4% y/y EPS growth in 2025 for S&P500 companies

II. Zacks June 2026 Sector/Industry/Company Telescope

May 29th, 2026 data showed Info Tech stayed dominant at Very Attractive.

Computer-Office Equipment and Electronics led, though. Semis ranked just OK this month.

Energy stayed Very Attractive rating; Iran remains a major oil price catalyst.
Industrials rose to Very Attractive from Market Weight.

Communication Services fell to Attractive from Very Attractive. "AI" Telco Equipment group rank high, again.

Financials stayed Market Weight. Consumer Staples stayed Market Weight.

Consumer Discretionary stayed at Market Weight. Health Care stayed on a Market Weight group too.

Utilities fell to Unattractive. Materials remain Unattractive.

(1) Info Techstays Very Attractive. Computer-Office Equipment and Electronics led.

Zacks #1 Rank (STRONG BUY): Micron

(2) Energy stayed Very Attractive. Oil & Gas Miscellaneous, Oil Integrated, and Energy-Alternates led.

Zacks #1 Rank (STRONG BUY): Chevron

(3) Industrials rose to Very Attractive from Market Weight. Construction-Building Services, Machinery, and Pollution Control look best.

Zacks #1 Rank (STRONG BUY): Quanta Services

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Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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Given that the integrated energy giant is trading at a premium, what should investors do now? Before getting into it, let’s delve into the company’s fundamentals and overall business environment.

XOM's Permian Advantage: Low Breakeven, Rising Production

ExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.

Let’s delve a little deeper into why operating in the Permian, the most prolific basin in the United States, is going to be the game-changer for the integrated energy giant. According to the data from the Federal Reserve Bank of Dallas, the breakeven price for new wells in the Midland, a sub-basin of the Permian, is $69 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $63 per barrel.

With West Texas Intermediate (“WTI”) crude trading at more than $90 per barrel, XOM’s operations in the Permian are likely going to be lucrative as the breakeven costs are lower. Investors should note that on the first-quarter earnings call, XOM mentioned that it is staying aligned with its plan to grow production in its most prolific basin to 1.8 million oil-equivalent barrels this year. Thus, high price and increased production are expected to aid XOM’s top and bottom lines.

Robust Balance & Dividend Commitment of XOM

Investors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is 15.4%, which is significantly lower than 29.6% of the industry’s composite stocks.

Image Source: Zacks Investment Research

Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.

What Should Investors Do Now?

The positive developments are getting reflected in the price chart. In the past year, XOM has jumped 42.8%, outpacing the industry’s 42.1% growth. BP and CVX, two other integrated players in the same space, have gained 45.9% and 33.1%, respectively.

Price Chart

Image Source: Zacks Investment Research

Given this backdrop, although the company’s overall business outlook remains favorable, it may not be ideal for investors to buy the stock at an overvalued price. Hence, investors should wait for a more attractive entry point. However, those who have already invested may continue to retain the stock, which carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Over the past year, this Zacks Rank #3 (Hold) stock has gained 21.5%, outpacing the industry’s decline of 29%. The S&P 500 composite has grown 26.8% in the same time frame.

The leading optical retailer has a market capitalization of $4.08 billion. The company’s earnings yield of 6.1% is well ahead of the industry’s 3.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.4%.

Tailwinds for NVST

International Reach and Channel Expansion: Developed markets were the key growth engine in first-quarter 2026, with North America and Europe both delivering double-digit gains. Developing markets are growing in the high single digits, excluding softness in China tied to policy uncertainty. 

The Spark launch in Japan adds a new growth vector in a sizable aligner market where the company already has strong orthodontic relationships, creating a cross-sell opportunity into clear aligners. 

Management also highlighted continued progress with dental support organizations (DSOs) and clinician education initiatives as key drivers of deeper market penetration. Envista’s broad geographic footprint and extensive channel presence, combined with targeted investments in customer support and clinical training, position the company to continue gaining market share as conditions normalize across its end markets.

Progress With Strategic Priorities: Envista’s strategy is centered on three priorities: growth, operations and people. The company’s growth agenda is supported by four key pillars. In the first quarter of 2026, all major businesses delivered positive growth, with core revenue increasing 8.4% in the Specialty Products & Technologies segment and 11.5% in the Equipment & Consumables segment.

To sustain market-share gains, Envista has continued to invest in sales and marketing as well as research and development, with spending in both areas rising at a double-digit rate. New product introductions remain a key growth driver. Recent launches include the Nobel S Series implant system, the introduction of Spark clear aligners in Japan and enhancements to DEXIS software that incorporate AI-powered workflow and diagnostic capabilities.

The Envista Business System (“EBS”) continued to deliver broad-based operational benefits, supporting gross margin expansion of 100 basis points and adjusted EBITDA margin growth of 120 basis points. Tariff costs increased $11 million from the prior year but were offset by supply chain, G&A and pricing initiatives.

With respect to its third strategic priority, people, Envista continues to strengthen its culture of continuous improvement, supported by ongoing gains in employee engagement and talent development. The company also extended its social impact through the Envista Smile Project, serving approximately 3,700 patients.

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Concerns for NVST

Macro and Policy Headwinds: Management continues to flag global economic uncertainty alongside geopolitical volatility, which can weigh on dental utilization and purchasing cycles. China remains a source of uncertainty for the implants business as channel partners continue to adjust inventory levels ahead of the anticipated volume-based procurement (VBP) process, which management expects to begin between the second and third quarters.

Tariffs also remain a cost headwind. First-quarter 2026 adjusted EBITDA reflected an $11 million year-over-year increase in tariff costs, with similar quarterly levels anticipated through 2026. While first-quarter profitability improved, these external pressures could limit operating leverage and introduce variability across quarters.

Foreign Exchange and Global Exposure: Envista's international footprint is not only a growth asset but also a risk factor. In the first quarter of 2026, 52.7% of revenues came from customers outside the United States, exposing sales, margins, and cash flow to currency fluctuations and regional demand variability. 

While balance-sheet hedging has reduced quarter-to-quarter volatility compared with the prior year, foreign exchange movements continue to affect performance and can influence reported results. In addition, regional disruptions, including conflicts in the Middle East and evolving conditions in China, add complexity to planning and may at times offset strength in developed markets.

NVST Stock Estimate Trend

The Zacks Consensus Estimate for 2026 earnings per share (EPS) has moved north at $1.42 over the past 30 days.

The Zacks Consensus Estimate for 2026 revenues is pegged at $2.86 billion, suggesting a 5.2% increase from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Integra LifeSciences IART and Phibro Animal Health PAHC. 

Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.

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

Integra LifeSciences, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Companies Benefiting From Electrification Trends

Alongside GE Vernova, several other companies positioned to benefit from rising electricity demand and power infrastructure investments are discussed below.

Eaton Corporation ETN continues to benefit from growing demand for electrical equipment, power management systems and data center infrastructure as utilities and industrial customers expand capacity.

NextEra Energy, Inc. NEE is investing heavily in transmission infrastructure, renewable generation and grid expansion projects to support growing electricity demand across its service territories and renewable energy business.

GEV Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2026 EPS indicates an increase of 72.81% and that for 2027 EPS implies a decline of 20.27% year over year.

Image Source: Zacks Investment Research

GEV Stock Trading at a Premium

GEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 33.48X compared with the industry average of 21.04X.

Image Source: Zacks Investment Research

GEV Stock’s Price Performance

In the past six months, the company’s shares have risen 49.3% compared with the industry’s 3% growth.

Image Source: Zacks Investment Research

GEV’s Zacks Rank

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

That changes this week. SpaceX is targeting a Nasdaq debut on June 12^th under the ticker SPCX, with pricing expected after the close on June 11^th, an offering of roughly 557 million shares at about $135 each, aiming to raise around $75 billion at a $1.75 trillion valuation.

That would make it the largest IPO in history by a wide margin. Whatever one thinks of the valuation, the event is a genuine milestone, and it's worth thinking carefully about what it means for the public companies that have been quietly building this industry alongside Elon Musk's juggernaut.

Here's the part that matters most for investors who can't get a meaningful allocation in the SpaceX deal itself: a listing of this magnitude gives the entire commercial space sector its first true large-cap benchmark.

Until now, public market investors have had no clean reference point for how to value a vertically integrated space business. Once SPCX is trading and analysts are publishing models, every other space stock gets repriced relative to it — and the early evidence suggests that repricing tends to run in one direction. Pure-play names have already been climbing in anticipation.

Space Stocks to Watch

The clearest beneficiary is Rocket Lab RKLB, which has matured from a scrappy small-satellite launcher into something approaching a vertically integrated space prime. Its first-quarter 2026 results were genuinely impressive: record revenue of $200.3 million, up 63.5% year over year, a record GAAP gross margin of 38.2%, and a record backlog of $2.2 billion.

Image Source: StockCharts

The more telling shift is beneath the headline — Space Systems has now overtaken Launch Services as the larger revenue contributor, which speaks to a more diversified, higher-margin business than the "rocket company" label implies. The real catalyst ahead is Neutron, Rocket Lab's medium-lift reusable rocket targeted for a late-2026 debut, which would let the company compete for the larger payloads and constellation contracts that have historically gone to SpaceX.

The company signed its largest launch contract ever during the quarter — five dedicated Neutron missions with a confidential customer — alongside 31 new Electron and HASTE bookings. The caveat, and it's an important one, is valuation: at roughly 94 times sales, RKLB prices in a great deal of future success, and any slip in Neutron's schedule would sting.

A very different kind of bet is AST SpaceMobile ASTS, which is attempting something audacious — a space-based cellular network that connects directly to ordinary, unmodified smartphones, eliminating dead zones anywhere on Earth.

The company has assembled nearly 60 mobile network operator partners covering more than 3 billion subscribers and reaffirmed full-year 2026 revenue guidance of $150 million to $200 million. Backed by AT&T and Vodafone, with a fortified balance sheet, AST represents the "new category" thesis in its purest form: if direct-to-device connectivity works at scale, the addressable market is staggering.

Image Source: StockCharts

The flip side is execution risk on a knife's edge — the company needs to launch dozens of its second-generation satellites this year, and every delay pushes the revenue ramp further out. It also faces the uncomfortable reality of competing with Starlink's own direct-to-cell ambitions. This is a high-conviction, high-volatility name; the stock's roughly 265% gain over the past year tells you the market is already dreaming big.

For investors who want exposure with a slightly clearer line of sight to profitability, Intuitive Machines LUNR deserves a look. The lunar lander and space-infrastructure company guided 2026 revenue of up to roughly $1 billion against a backlog approaching $1.1 billion anchored by NASA and defense contracts, and stands closest to profitability among the major pure plays.

Image Source: StockCharts

NASA's Artemis program is creating entirely new commercial categories — lunar landers, surface communications, even lunar positioning — with a government spending pipeline that runs well into the next decade. The risk here is timing: lunar missions have a long history of slipping, and guidance tends to follow the launch cadence. Successful landings have been the right moments to lean in; slippage has been the time to step back.

There are other ways to play the theme, too. Earth-observation specialist Planet Labs PL has seen its remaining performance obligations surge on defense and intelligence contracts with agencies including the NRO and NATO. And for those who'd rather not pick a single winner in a field this young, the established defense primes with deep space franchises — names like Lockheed Martin LMT and L3Harris LHX — offer space exposure wrapped in real earnings and dividends.

Bottom Line

Of course, most of the pure-play names are not yet consistently profitable and trade at multiples that assume years of flawless execution. And they are exquisitely sensitive to sentiment — a recent Blue Origin launch failure knocked the group down sharply in a single session, a reminder that one bad headline can erase weeks of gains.

There's also a real "buy the rumor, sell the news" risk around the IPO itself; it would not be surprising to see space stocks give back some of their pre-listing enthusiasm once SPCX actually begins trading. None of this invalidates the long-term thesis, but it does argue for discipline, position sizing, and a genuine tolerance for volatility.

Still, the space economy is transitioning from a government-funded curiosity into a genuine commercial industry, and the SpaceX IPO is the clearest signal yet that public markets are ready to fund the next chapter.

For investors willing to accept the turbulence that comes with frontier industries, this week may be remembered as the moment the sector grew up — and the moment a handful of well-positioned public companies finally got the benchmark they needed to be taken seriously.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Under the collaboration, Natera will analyze clinical samples from CytoDyn’s CLOVER Phase 2 trial, which is evaluating leronlimab in patients with mCRC. Using its Signatera personalized molecular residual disease test, Natera will assess ctDNA changes and molecular response patterns associated with leronlimab treatment.

Management stated that the company is pleased to collaborate with CytoDyn and leverage its extensive real-world molecular oncology database to generate meaningful insights. Natera’s platform helps biopharmaceutical companies to better understand disease biology, treatment response and patient outcomes, supporting informed decision-making across various stages of drug development.

Likely Trend of NTRA Stock Following the News

Shares of NTRA have gained 4.4% since the announcement on Thursday. In the year-to-date period, shares of the company have fallen 6% compared with the industry’s 8.1% decline. However, the S&P 500 has risen 8.1% in the same timeframe.

The agreement expands the application of Natera’s Signatera in clinical-stage oncology programs. The partnership highlights the growing importance of Natera’s oncology database, which combines molecular testing data with clinical and imaging records to generate actionable insights. In the long run, the collaboration strengthens Natera’s position in precision oncology and biopharma research.

NTRA currently has a market capitalization of $30.84 billion.

Image Source: Zacks Investment Research

More on the News

Natera will provide customized real-world data analyses using its oncology database, which combines more than two million plasma timepoints with clinical and imaging records. By combining molecular response data from Signatera with electronic medical records, the platform can generate insights into treatment response, disease progression and patient outcomes, supporting future clinical development and biomarker-driven strategies for leronlimab.

The collaboration follows the completion of patient enrollment in the CLOVER study, which is investigating leronlimab in combination with trifluridine/tipiracil (TAS-102) and bevacizumab for previously treated mCRC patients. The partnership is expected to complement ongoing biomarker and translational research from the study to further characterize treatment response and guide future development plans.

Industry Prospects Favoring the Market

Going by the data provided by Precedence Research, the minimal residual disease testing market was valued at $1.70 billion in 2025 and is expected to witness a CAGR of 12% through 2034.

Factors like the demand for highly sensitive technologies like next-generation sequencing and digital PCR, which accurately detect minimal residual cancer cells to guide treatment decisions and predict patient outcomes, are boosting the market’s growth.

Other News

Natera recently announced a collaboration with Diakonos Oncology to incorporate its Signatera molecular residual disease test into Diakonos’ DOC-RM Phase I/II investigational immunotherapy trial for patients with refractory melanoma.

In May, Natera announced the FDA approval of Signatera CDx as a companion diagnostic (CDx) for use with adjuvant atezolizumab immunotherapy in patients with muscle-invasive bladder cancer. The approval marks the first companion diagnostic approval in the blood-based minimal residual disease testing space and represents a major milestone in personalized oncology care.

Natera, Inc. Price

Natera, Inc. price | Natera, Inc. Quote

NTRA’s Zacks Rank & Key Picks

Natera currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, Globus Medical GMED and Biodesix BDSX.

West Pharmaceutical, sporting a Zacks Rank #1 (Strong Buy) at present, reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Globus Medical, currently sporting a Zacks Rank #1, reported first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

Globus Medical has an estimated long-term earnings growth rate of 10.2%. GMED’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

Biodesix, currently carrying a Zacks Rank of 2 (Buy), reported a first-quarter 2026 adjusted loss per share of 81 cents, which came narrower than the Zacks Consensus Estimate by 35.71%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.

BDSX has an estimated earnings growth rate of 36% for 2026. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.5%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Against its benchmarks, the setup is mixed. The Zacks sub-industry and Zacks Medical sector are down 11.2% and 7.5% year to date, and down 3.2% and up 0.8% over the past year, respectively. That dispersion matters because it shapes whether the stock’s multiple is truly “cheap” or simply reflecting a shifting earnings backdrop.

ICON’s Forward Multiple vs Benchmarks

On the surface, the valuation case is straightforward. ICON trades at 14.7X forward 12-month earnings, below 15.0X for the Zacks sub-industry, 19.5X for the Zacks Medical sector and 22.0X for the S&P 500. 

That discount is not subtle, and it is also below the company’s own five-year median multiple of 18.3X (with a five-year range of 6.3X to 33.6X). The market is already paying less for each dollar of expected earnings than it does for peers and the broader index. The key question is whether that gap compensates investors for near-term uncertainty.

Image Source: Zacks Investment Research

ICLR’s Price Target Logic and What It Assumes

The price target is explicitly multiple-driven. ICON’s $145 target is based on 12.2X forward 12-month earnings, which sits close to the current trading multiple. That construction frames the call as one where upside is not dependent on a re-rating. It is largely about whether earnings execution stabilizes while the multiple remains restrained.

The multiple choice also matches a view that the stock is likely to lag the market over the next 6 to 12 months. With a cautious outlook already embedded, investors are left weighing whether incremental proof points can lift confidence enough to expand the valuation, or whether the reset keeps a lid on what the market is willing to pay.

ICON’s 2026 Guidance Creates a Multiple Trap Risk

A lower forward multiple can look attractive, but the “E” in the ratio is where the tension sits for ICON. Management guided to 2026 revenue of $7.85-$8.15 billion and adjusted earnings per share of $10.00-$11.00. That implies a down year versus 2025 revenue of $8.25 billion and adjusted earnings per share of $12.53. 

The guidance is tied to prior-year cancellations and a weaker bookings environment that persisted from 2024 through the first three quarters of 2025, with elevated cancellation activity weighing on 2026 conversion. Pass-through revenue is expected to remain broadly in line with 2025 levels, which implies a steeper decline in direct fee revenue and can limit growth visibility even as commercial indicators improve. In that context, a “cheap” multiple can become a trap if estimates keep resetting lower.

ICON’s Margin Path Is the Real Catalyst or Warning

Margins are where the next leg likely gets decided. Fourth-quarter 2025 results showed how quickly profitability can swing when mix and estimates move. Pass-through revenue exceeded expectations by more than $150 million, and a portfolio review drove cost-to-complete and realizable value adjustments that management said reduced quarterly earnings by more than $50 million. Adjusted EBITDA margin fell to 15.5%, and adjusted earnings per share dropped to $2.52 from $3.86 a year ago. 

Management expects first-quarter 2026 results to start near that fourth-quarter run rate and to improve through 2026, but the weaker starting point increases sensitivity to mix, pass-through timing and operational efficiency initiatives. Management also flagged that 2026 margins will be shaped by mix and sustained pass-through levels, with automation and technology deployment targeted to support margin progression. Execution risk is high because even small deviations in portfolio assumptions can flow directly into profitability.

Based on short-term price targets offered by 14 analysts, the average price target of $151.57 represents an decrease of 0.8% from the last closing price.

Image Source: Zacks Investment Research

ICLR’s Decision Lens for Investors

For investors with a transaction mindset, the valuation discount is real, but it is not the only variable. The stock carries Zacks Rank #5 (Strong Sell). That rating keeps the burden of proof on the company to demonstrate that remediation is fully embedded and that operational performance can stabilize through the reset year.

The “cheap enough” question hinges on credibility around remediation, evidence that bookings and cancellations are stabilizing, and signs that margins can climb from the lower early-2026 starting level. In the peer set, IQVIA Holdings Inc. IQV and Thermo Fisher Scientific Inc. TMO both carry Zacks Rank #3 (Hold), underscoring how differently the market is treating near-term visibility and execution risk across the group. 

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Reuters recently reported that technology shares sold off sharply as investors reassessed lofty AI-related valuations amid changing interest-rate expectations. Market participants cited elevated earnings multiples, concentration of capital in a handful of AI leaders and growing speculative activity in private AI companies as key sources of vulnerability. Reuters also noted that concerns are rising over whether massive AI spending can generate returns quickly enough to justify current valuations.

Skepticism is not centered on AI's ability to reshape the global economy, but on whether equity markets have already priced in much of the anticipated growth. Against this backdrop, companies with a proven track record of returning cash to shareholders may offer greater resilience.

Stocks with strong shareholder yield not only provide income through dividends but also support valuations through buybacks and disciplined capital allocation. As geopolitical risks and AI volatility persist in 2026, these companies may serve as an important anchor for investor portfolios navigating turbulent markets.

Among companies offering attractive shareholder yields are H&R Block HRB, Global Partners GLP, CrossAmerica Partners CAPL and B&G Foods BGS. These stocks also carry favorable Zacks Ranks and Style Scores, suggesting potential upside in their share prices this year and enhancing their ability to generate long-term shareholder value.

What Is Driving Premium AI Valuations?

The premium valuations assigned to AI-related companies are being fueled by an unprecedented surge in capital spending. Leading technology firms are investing heavily in semiconductors, cloud infrastructure, data centers and AI models as they compete to establish long-term leadership positions.

Reuters reported that major technology companies are engaged in an escalating competition for AI talent, computing power and infrastructure. The race has prompted record investment commitments from companies such as Microsoft, Alphabet, Meta Platforms, Amazon and Nvidia. At the same time, AI-related private companies continue to command extraordinary valuations as investors chase exposure to the sector’s growth potential.

Demand forecasts remain compelling. The U.S. Energy Information Administration projects power consumption to reach new records in 2026 and 2027, driven in part by surging demand from AI data centers. Reuters also reported that AI, robotics and defense applications are expected to drive a 50% increase in global copper demand by 2040, highlighting the scale of infrastructure required to support the AI revolution.

Rising Input Costs and Geopolitical Risks Add Pressure

While AI growth prospects remain attractive, the sector faces mounting cost pressures.

Copper, rare earth elements and other critical minerals are becoming increasingly important inputs for AI infrastructure. Reuters reported that demand for strategic minerals is accelerating as governments and corporations compete to secure supply chains for advanced technologies and defense systems. Industry analysts continue to warn about potential shortages of critical materials required for data centers, power infrastructure and semiconductor production.

Geopolitical risks are creating additional uncertainty. Competition for critical minerals, export controls, supply-chain realignment and regional conflicts continue to threaten the stability of global technology supply chains. These risks could lead to higher operating costs and lower returns on massive AI infrastructure investments.

Why Shareholder Yield Matters in This Environment

As valuation concerns grow, investors may increasingly favor companies with strong shareholder yield rather than firms relying solely on future growth expectations.

Shareholder yield combines dividend payments, share repurchases and debt reduction to measure the total capital returned to investors. Companies with strong shareholder yield typically generate substantial free cash flow, maintain healthy balance sheets and demonstrate disciplined capital allocation.

These characteristics become particularly valuable when market leadership is concentrated and valuation risk is high. Dividend income can help cushion portfolio volatility, while buybacks support earnings per share and provide a degree of downside protection. Debt reduction further strengthens financial flexibility during uncertain periods.

In contrast to highly valued growth stocks whose returns depend heavily on future expectations, shareholder-yield companies provide investors with a tangible source of return.

A More Balanced Approach to 2026

The long-term AI opportunity remains significant, but rising valuation concerns, increasing infrastructure costs and growing geopolitical risks suggest investors should remain selective. As markets become more sensitive to earnings delivery and return on investment, companies with strong shareholder yield may offer a useful counterbalance to expensive growth stocks.

By combining dividends, buybacks and balance-sheet strength, shareholder-yield companies provide a measure of stability that can help investors weather volatility while still participating in long-term wealth creation.

Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

4 Stocks With Strong Shareholders’ Yield

H&R Block stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a good dividend yield of around 4.41%.

HRB has increased its dividend payout five times in the past five years, reflecting an annualized dividend growth rate of 11.2%. The payout ratio of 32% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.

H&R Block has also repurchased shares worth $400.1 million in the first nine months of fiscal 2026, preceded by another $400.1 million worth of repurchase in fiscal 2025. The company currently has remaining authorization of $700 million. It also reduced its long-term debt from $1.98 billion (in 2021) to $1.49 billion (as of March 2026-end).

H&R Block’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.

HRB currently sports a Zacks Rank #1 (Strong Buy) and a Zacks VGM Score of A, implying strong potential for continued uptrend. You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

General Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The company can offer stability to investors’ portfolios through its strong shareholder yield. It offers a dividend yield of around 6.23%.

GLP has increased its dividend payout 17 times in the past five years, reflecting an annualized dividend growth rate of 7.1%. The payout ratio of 84% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that GLP is keeping funds for better investment opportunities.

The company has repurchased 1,734,658 common units since launching its repurchase program in May 2009 through Dec. 31, 2025. As of Feb. 27, 2026, it remained authorized to repurchase up to an additional 865,929 common units. The company has also strengthened its balance sheet, reducing long-term debt from $1.68 billion in 2024 to $1.65 billion as of March 31, 2026.

General Partners’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.

GLP currently flaunts a Zacks Rank of 1 and a Zacks VGM Score of B, implying strong upside potential.

Image Source: Zacks Investment Research

CrossAmerica Partners engages in the wholesale distribution of motor fuels, with the potential to offer stability amid rising volatility through its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 9.5%.

It has also reduced its long-term debt from $1.62 billion in 2021 to $726 million as of March 2026-end.

CAPL’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.

CrossAmerica Partners currently sports a Zacks Rank #1 and a Zacks VGM Score of A, implying continued upside potential.

Image Source: Zacks Investment Research

B&G Foods is another strong candidate for high shareholder yield due to its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 19.49%.

It has also reduced its long-term debt from $2.34 billion in 2022 to $2 billion as of March 2026-end.

B&G Foods’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.

BGS currently carries a Zacks Rank of 2 and a Zacks VGM Score of A, implying moderate upside potential for the stock.

Image Source: Zacks Investment Research

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

City Holding (CHCO) is headquartered in Charleston, and is in the Finance sector. The stock has seen a price change of 6.36% since the start of the year. The bank holding company for City National Bank of West Virginia is currently shelling out a dividend of $0.87 per share, with a dividend yield of 2.74%. This compares to the Banks - Southeast industry's yield of 2.03% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $3.48 is up 7.4% from last year. Over the last 5 years, City Holding has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.86%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. City Holding's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.

CHCO is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $9.00 per share, representing a year-over-year earnings growth rate of 0.78%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CHCO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Santa Ana, First American Financial (FAF) is a Finance stock that has seen a price change of 9.08% so far this year. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 3.28%. In comparison, the Insurance - Property and Casualty industry's yield is 0.78%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $2.20 is up 0.9% from last year. Over the last 5 years, First American Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First American Financial's current payout ratio is 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for FAF for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.81 per share, with earnings expected to increase 12.56% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that FAF is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Warsaw, Lakeland Financial (LKFN) is a Finance stock that has seen a price change of 5.13% so far this year. The holding company for Lake City Bank is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.47% compared to the Banks - Midwest industry's yield of 2.66% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $2.08 is up 4% from last year. Over the last 5 years, Lakeland Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Lakeland Financial's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, LKFN expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $4.30 per share, representing a year-over-year earnings growth rate of 7.23%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, LKFN is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Muncie, First Merchants (FRME) is in the Finance sector, and so far this year, shares have seen a price change of 6.54%. The bank is currently shelling out a dividend of $0.37 per share, with a dividend yield of 3.71%. This compares to the Banks - Midwest industry's yield of 2.66% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.48 is up 3.5% from last year. Over the last 5 years, First Merchants has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.24%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First Merchants's current payout ratio is 36%, meaning it paid out 36% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FRME expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $4.24 per share, representing a year-over-year earnings growth rate of 9.00%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, FRME is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Jackson, Trustmark (TRMK) is a Finance stock that has seen a price change of 13.35% so far this year. Currently paying a dividend of $0.25 per share, the company has a dividend yield of 2.27%. In comparison, the Banks - Southeast industry's yield is 2.03%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.00 is up 4.2% from last year. Over the last 5 years, Trustmark has increased its dividend 1 times on a year-over-year basis for an average annual increase of 0.46%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Trustmark's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for TRMK for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.92 per share, which represents a year-over-year growth rate of 5.95%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, TRMK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Chesapeake Utilities (CPK) is headquartered in Dover, and is in the Utilities sector. The stock has seen a price change of -0.79% since the start of the year. Currently paying a dividend of $0.69 per share, the company has a dividend yield of 2.21%. In comparison, the Utility - Gas Distribution industry's yield is 3.22%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $2.74 is up 1.7% from last year. Over the last 5 years, Chesapeake Utilities has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.90%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Chesapeake Utilities's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, CPK expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.51 per share, with earnings expected to increase 8.32% from the year ago period.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CPK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Helena, Eagle Bancorp Montana, Inc. (EBMT) is a Finance stock that has seen a price change of 15.58% so far this year. The company is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 2.52% compared to the Banks - Midwest industry's yield of 2.66% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $0.58 is up 0.9% from last year. Over the last 5 years, Eagle Bancorp Montana, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.76%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Eagle Bancorp Montana's current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for EBMT for this fiscal year. The Zacks Consensus Estimate for 2026 is $2.08 per share, which represents a year-over-year growth rate of 9.47%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that EBMT is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

First BanCorp (FBP) is headquartered in San Juan, and is in the Finance sector. The stock has seen a price change of 17.32% since the start of the year. The holding company for FirstBank Puerto Rico is paying out a dividend of $0.20 per share at the moment, with a dividend yield of 3.29% compared to the Banks - Foreign industry's yield of 2.74% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $0.80 is up 11.1% from last year. Over the last 5 years, First BanCorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 29.65%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First BanCorp's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.

FBP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $2.25 per share, which represents a year-over-year growth rate of 10.84%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, FBP presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS) is in the Finance sector, and so far this year, shares have seen a price change of 9.32%. Currently paying a dividend of $0.79 per share, the company has a dividend yield of 3.93%. In comparison, the Banks - Foreign industry's yield is 2.74%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 55%, meaning it paid out 55% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BNS for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.05 per share, with earnings expected to increase 19.57% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BNS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Honesdale, Norwood Financial Corp. (NWFL) is a Finance stock that has seen a price change of 9.77% so far this year. The company is currently shelling out a dividend of $0.32 per share, with a dividend yield of 4.16%. This compares to the Banks - Northeast industry's yield of 2.29% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.28 is up 3.2% from last year. Over the last 5 years, Norwood Financial Corp. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.67%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Norwood Financial's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, NWFL expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.45 per share, which represents a year-over-year growth rate of 10.93%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, NWFL is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Pittsburgh, The PNC Financial Services Group, Inc (PNC) is a Finance stock that has seen a price change of 9.41% so far this year. Currently paying a dividend of $1.70 per share, the company has a dividend yield of 2.98%. In comparison, the Financial - Investment Bank industry's yield is 0.96%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $6.80 is up 3% from last year. Over the last 5 years, The PNC Financial Services Group, Inc has increased its dividend 3 times on a year-over-year basis for an average annual increase of 8.49%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. The PNC Financial Services Group's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, PNC expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $18.93 per share, which represents a year-over-year growth rate of 14.10%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PNC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

American States Water (AWR) is headquartered in San Dimas, and is in the Utilities sector. The stock has seen a price change of 8.13% since the start of the year. The water and electric utility is currently shelling out a dividend of $0.50 per share, with a dividend yield of 2.57%. This compares to the Utility - Water Supply industry's yield of 2.82% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $2.02 is up 4.2% from last year. Over the last 5 years, American States Water has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.23%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American States Water's current payout ratio is 59%, meaning it paid out 59% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, AWR expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.71 per share, representing a year-over-year earnings growth rate of 10.09%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that AWR is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

CNB Financial (CCNE) is headquartered in Clearfield, and is in the Finance sector. The stock has seen a price change of 18.65% since the start of the year. Currently paying a dividend of $0.19 per share, the company has a dividend yield of 2.45%. In comparison, the Banks - Northeast industry's yield is 2.29%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $0.76 is up 5.6% from last year. Over the last 5 years, CNB Financial has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.20%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CNB's current payout ratio is 24%, meaning it paid out 24% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for CCNE for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.53 per share, which represents a year-over-year growth rate of 19.26%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CCNE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

ACNB (ACNB) is headquartered in Gettysburg, and is in the Finance sector. The stock has seen a price change of 13.51% since the start of the year. Currently paying a dividend of $0.92 per share, the company has a dividend yield of 3.06%. In comparison, the Banks - Southwest industry's yield is 1.66%, while the S&P 500's yield is 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.68 is up 21.7% from last year. Over the last 5 years, ACNB has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.02%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. ACNB's current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for ACNB for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.49 per share, which represents a year-over-year growth rate of 7.86%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ACNB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Opendoor’s Competitor Landscape

Zillow Group, Inc. ZG provides a relevant benchmark for AI-led operating efficiency, although its model is less exposed to inventory ownership and resale-cost risk than OPEN’s. Zillow is embedding AI across consumer search, agent workflows, loan officer tools and rentals, while also noting that engineers are shipping 40% more code per engineer at the same or higher quality. This highlights how AI can improve productivity across a housing platform, even though Zillow’s margin profile is less tied to renovation costs, resale timing and home-level execution.

Offerpad Solutions Inc. OPAD provides a closer comparison for OPEN’s margin-focused AI opportunity. Offerpad is using SCOUT to improve seller intake, routing and acquisition accuracy, while HENRY is being expanded to support renovation estimates, listing prices, holding-time decisions and disposition strategy. The company also said cost per qualified lead declined 37% year over year, underscoring the role of AI-enabled workflows in improving conversion efficiency and cost discipline in a weak housing market.

Against this backdrop, OPEN’s AI strategy will be most relevant if it improves the economics of the resale process. Zillow shows how AI can support platform productivity at scale, while Offerpad highlights the use of AI in seller routing, renovation and asset-level decisions. For OPEN, automation’s contribution-margin impact will depend on whether it can consistently reduce repair costs, limit transaction leakage and improve operating productivity as acquisition volumes recover.

OPEN’s Stock Price Performance, Valuation & Estimates

Shares of Opendoor have skyrocketed 680.5% in the past year against the industry’s 16.4% decline.

OPEN One-Year Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.80, significantly below the industry’s average of 3.80.

OPEN’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for OPEN's 2026 loss per share suggests a 61.5% year-over-year improvement. Loss per share estimates for 2026 have narrowed in the past 30 days.

EPS Trend of OPEN Stock

Image Source: Zacks Investment Research

OPEN stock currently has a Zacks Rank #4 (Sell). 

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The Qingdao facility is making three grades — ECORAX Circular 200, 210 and 215 — using tire pyrolysis oil (TPO). ECORAX Circular 200 is mainly used in tires, while ECORAX Circular 210 and 215 can be used in both tires and other rubber products.

Orion had previously expanded its circular carbon black capacity in Europe. The company launched large-volume production of ECORAX Circular 200 and 210 through a commercial reactor in Jaslo, Poland, last year. Both TPO-based grades are ISCC PLUS certified, verifying the sourcing of sustainable raw materials.

ECORAX Circular 200 and 210 can replace the ASTM grades N326 and N330, respectively. These grades help tire makers increase the use of sustainable materials while maintaining product performance.

Orion uses dedicated infrastructure in China and Poland to store and process TPO and carbon black oil separately. This setup helps the company better manage feedstock ratios and measure TPO content more accurately.

Orion was the first carbon black producer to make carbon black using 100% TPO and launch several ISCC PLUS-certified grades made from different feedstocks. The company has also invested in TPO production in Europe and continues to look for opportunities that support its global strategy.

Shares of Orion have lost 42.1% over the past year against the industry’s 1.3% growth.

Image Source: Zacks Investment Research

OEC’s Zacks Rank & Key Picks

OEC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Orla Mining Ltd. ORLA, LyondellBasell Industries N.V. LYB and Franco-Nevada Corporation FNV.

While ORLA and LYB sport a Zacks Rank #1 (Strong Buy) each at present, FNV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ORLA’s 2026 earnings is pegged at $1.64 per share, indicating a rise of 82.2% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.16%.

The Zacks Consensus Estimate for LYB’s 2026 earnings is pinned at $8.73 per share, implying a 413.5% year-over-year surge. Its earnings outpaced the Zacks Consensus Estimate in two of the four trailing quarters, while missing in the remaining two.

The Zacks Consensus Estimate for FNV’s 2026 earnings is pinned at $8.85 per share, suggesting a 58.6% year-over-year increase. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.28%.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Chicago, IL – June 8, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Caterpillar Inc. CAT, The Coca-Cola Co. KO, HSBC Holdings plc HSBC, SandRidge Energy, Inc. SD and NVE Corp. NVEC.

Here are highlights from Friday’s Analyst Blog:

Top Research Reports for Caterpillar, Coca-Cola and HSBC

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Caterpillar Inc., The Coca-Cola Co. and HSBC Holdings plc, as well as two micro-cap stocks SandRidge Energy, Inc. and NVE Corp.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today's research reports here >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> What Labor Problem? BLS Jobs Jump to +172K

Today's Featured Research Reports

Caterpillar's shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+58.4% vs. +46.3%). The company posted strong revenue and earnings growth in the first quarter of 2026, supported by higher volumes across all segments. Backlog reached a record $63 billion, and management lifted its full-year outlook to low double-digit sales growth.

Construction demand remains solid, driven by infrastructure activity, rental fleet expansion and nonresidential projects. The Power & Energy segment is gaining from rising data-center-related power demand. Resource Industries stands to benefit from mining investments and aging equipment fleet, though timing and product mix may add volatility.

Recent tariff reductions may help ease cost pressures and support demand as customers have been delaying equipment purchases amid higher costs and trade uncertainty. A continued focus on high-margin aftermarket parts and services should further support growth.

(You can read the full research report on Caterpillar here >>>)

Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past six months (+10.1% vs. +9.4%). The company is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.

Coca-Cola projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. Robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.

However, Coca-Cola has underperformed the industry year-to-date. The company faces headwinds from uneven demand and unfavorable mix as consumers shift toward smaller packs and value options, diluting revenue quality and limiting margin.

(You can read the full research report on Coca-Cola here >>>)

HSBC'sshares have outperformed the Zacks Banks - Foreign industry over the past six months (+35% vs. +13.1%). The company's wealth momentum in Asia continues to benefit from higher customer activity, rising balances and net new money, while the completed Hang Seng Bank privatization and ongoing business divestitures, including the agreed Indonesia sale, will simplify the company's operations and support medium-term efficiency.

Also, a robust capital position and global footprint are expected to support its financials. However, the company has guided for higher expected credit losses (ECL) this year because of overlays tied to Middle East events and absorption of an idiosyncratic fraud-related charge.

Operating expenses are expected to remain elevated as the company invests in technology and distribution capabilities. Revenue visibility will depend on volatile rates and activity.

(You can read the full research report on HSBC here >>>)

Shares of SandRidge Energy have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+54.2% vs. +32%). This microcap company with a market capitalization of $577.77 million is driven by its scalable Cherokee development program, which supports production growth through consistent well performance and disciplined execution. A debt-free balance sheet and strong liquidity provide flexibility to fund development, navigate commodity cycles.

Continued development activity is enhancing reserve visibility and extending the company's growth runway. Operational focus on safety, reliability, and emissions management helps support stable cash flows and lower execution risk.

Additionally, a diversified asset base and extensive owned infrastructure improve cost efficiency, strengthen resilience across market conditions, and provide optionality for future growth opportunities. Overall, SandRidge combines financial strength, disciplined capital allocation, and a long-duration development inventory to support long-term value creation.

(You can read the full research report on SandRidge Energy here >>>)

NVE's shares have gained +59.5% over the past year against the Zacks Electronics - Semiconductors industry's gain of +115.4%. This microcap company with a market capitalization of $532.18 million presents a differentiated profile, driven by scalable manufacturing, specialized spintronic technology and strong profitability. Expanded in-house capacity enhances yields and supports growth without significantly increasing fixed costs.

Demand is rising in medical, industrial and automation markets, where miniaturized, low-power sensors enable high-value, repeat design wins. A diversified mix across defense and non-defense markets improves revenue durability, while robust cash generation supports dividends and self-funded growth. Additional upside comes from optionality in spintronic memory and security IP.

However, key risks include margin sensitivity from channel mix, defense revenue volatility, declining contract R&D visibility, scalability limits of a high-touch sales model, exposure to securities portfolio fluctuations and long commercialization cycles for new products.

(You can read the full research report on NVE here >>>)

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The company’s recent results underscore the improving momentum. First-quarter 2026 revenues rose 17.3% year over year to $839 million, exceeding guidance and marking growth across all end markets, channels and geographic regions.

Management highlighted strong AI-related demand, inventory replenishment and market-share gains as key drivers. Even more encouraging, Vishay’s total company book-to-bill ratio reached 1.34 in the first quarter, up from 1.2 in the previous quarter, while backlog expanded 21% to $1.6 billion, representing 5.7 months of demand visibility. For semiconductors, book-to-bill stood at an impressive 1.47, signaling continued order strength heading into the remainder of 2026.

VSH stock has significantly underperformed its peers, Diodes DIOD and Lattice Semiconductor LSCC, so far this year. Over the same period, shares of Diodes have gained 104.8%, while those of Lattice Semiconductor have improved 84.2%.

Image Source: Zacks Investment Research

AI Demand Is Becoming a Major Growth Engine

The biggest catalyst behind Vishay’s recent strength is its expanding exposure to AI infrastructure. Management repeatedly highlighted growing demand for power-management components used in AI servers, networking equipment and data-center infrastructure.

During the fourth quarter of 2025, AI-related power applications were among the primary drivers of revenue growth, with customers increasingly adding Vishay semiconductors and passive components to AI server designs. The company highlighted strong demand for power conversion solutions, multiphase DC-to-DC converter modules, chipset power-management products, AI optical modules and emerging 800-volt power-management architectures.

That momentum continued into 2026. Vishay reported ongoing demand for high-voltage MOSFETs used in AI power applications and noted that customers are increasingly adopting its polymer capacitors, power inductors and current-sense resistors.

The company is also participating in next-generation AI server power supplies, optical communication modules and high-bandwidth network switches. Management highlighted increasing activity from telecom customers supporting AI optical communication networks, including both 800-gigabit and 1.6-terabit switches.

Vishay’s AI opportunity differs from that of its peers. Lattice Semiconductor is capitalizing on AI data-center demand through FPGA and platform-management solutions, which helped fuel 42% year-over-year revenue growth in the first quarter. Diodes is also benefiting from AI server-related applications, contributing to 22% revenue growth. In contrast, Vishay is focused on the power-management layer of AI infrastructure, positioning it to benefit regardless of which AI computing architecture emerges as the market leader.

Estimate Revision Trend for VSH

Although estimates for Vishay’s 2026 earnings have moved down 16.7% to 75 cents per share over the past year, the same for 2027 earnings has improved 52.5% to $1.54 since February 2026. While the negative estimate revision for 2026 primarily reflects the rising raw material cost and higher capital expenditure for capacity expansion, the positive revision for 2027 looks promising.

Image Source: Zacks Investment Research

EV and Industrial Recovery Add Another Layer of Growth

Beyond AI, Vishay continues to benefit from rising electronic content in vehicles. Automotive revenues increased in the first quarter as OEMs ramped up hybrid and EV programs, while the company strengthened relationships with major automakers and Tier 1 suppliers.

Management stated that Vishay is now the top resistor supplier for multiple OEMs launching new EV platforms and expects to support production growth through at least 2028. Design activity remains centered on battery management systems, ADAS, smart cockpits, power steering and electrified drivetrains.

Industrial demand is also recovering rapidly. Industrial Power revenues increased for a fifth consecutive quarter, supported by power transmission, renewable energy, smart-metering projects, factory automation and AI infrastructure investments. The company continues to win smart-grid projects and is seeing growing demand for next-generation power supplies supporting AI servers and data centers.

Defense Spending Creates a Long Runway

Another emerging growth pillar is aerospace and defense. First-quarter aerospace-defense revenues climbed 14.1% sequentially and 16.8% year over year as U.S. and allied nations increased military spending.

Vishay is supplying components for drones, radar systems, low-earth-orbit satellites, communications systems and hypersonic missile programs. Management believes defense demand is still in the early stages of a multiyear expansion, supported by rising defense budgets across the globe.

Valuation Comparison

From a valuation perspective, VSH remains attractive despite its rally. The stock trades at a forward price-to-sales ratio of 2.08, below Diodes’ 2.86 and dramatically below LSCC’s 23.31. While VSH’s multiple sits above its five-year median of 0.87, it remains far below the sector average of 24.85, suggesting investors are paying a reasonable price for accelerating growth.

Image Source: Zacks Investment Research

Challenges Still Exist

Despite the favorable outlook, investors should remain aware of several risks. AI-related demand currently represents one of the strongest drivers of growth, making Vishay increasingly exposed to data-center spending cycles. Any slowdown in AI infrastructure investment could moderate growth expectations.

The company continues to face cost pressures, including elevated raw-material expenses and ongoing investments to support capacity expansion. In addition, growing competition from companies such as Diodes and Lattice could pressure pricing or market-share gains in certain applications. While Vishay’s backlog and book-to-bill ratios remain healthy, the semiconductor industry remains cyclical and inventory corrections can emerge quickly if demand weakens.

Conclusion

Vishay’s strong stock performance appears supported by fundamentals rather than speculation. The company is benefiting from powerful trends in AI infrastructure, EV adoption, industrial automation and defense modernization. Its rising book-to-bill ratio of 1.34, expanding backlog, improving customer engagement and growing market share suggest that demand momentum remains intact heading into the rest of 2026.

Given its Zacks Rank #1 (Strong Buy), expanding AI exposure, improving financial metrics and still-discounted valuation relative to peers and the broader sector, VSH looks like a compelling investment opportunity for investors seeking semiconductor exposure in 2026. This is supported by a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

PWV in Focus

The Dynamic Large Cap Value Intellidex Index is designed to provide capital appreciation while maintaining consistent exposure. The product charges 55 bps in annual fees (see: all the Large Cap Value here).

Why the Move?

The value sector of the market has been an area to watch lately, given the exchange of strikes between Iran and Israel over the weekend, which underscores the volatility of the ceasefire. Additionally, investors rotating out of the AI trade toward more defensive sectors is also a tailwind for the fund.

Historically, value stocks have demonstrated resilience during periods of market uncertainty and have often delivered strong long-term returns. They can also offer lower volatility and more attractive risk-adjusted performance compared with growth and blend stocks. 

More Gains Ahead?

Currently, PWV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 25.63 (as per Barchart.com), which gives cues of a further rally.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Increasingly, a surprising force is highlighting this critical link: the artificial intelligence (AI) revolution. Data centers, the physical backbone of AI, are projected to consume billions of gallons of water annually for cooling and power generation. This immense demand has thrown a harsh but necessary spotlight on the silent stewards of our water cycle — the water utility companies that clean, distribute, and recycle our most precious resource. 

As investors track the surge in AI infrastructure, many are now turning their attention to water utilities and water technology firms that enable this digital age, putting a bright spotlight on exchange-traded funds (ETFs) that hold them.

Before identifying these ETFs, one must understand the connection between AI-driven water demand and ocean preservation, which is precisely where blue economy principles intersect with the financial mainstream.

The Critical Role of Water Companies in the AI & Blue Economy

High-density AI chips require massive cooling, with 75% to 90% of large-scale data centers relying on water-based systems. When data centers over-abstract millions of gallons daily from watersheds, river flows drop, causing saltwater to destroy coastal marine nurseries downstream. Furthermore, discharging untreated, hot cooling water into rivers fuels toxic algal blooms.

This is where water companies — largely divided into two categories, distributors and technology enablers — serve as the ultimate upstream safeguard for the Blue Economy.

With a substantial share of the water used by LLM data centers coming from potable municipal sources, hyperscalers are increasingly collaborating with water utilities and technology enablers to develop wastewater recycling and reuse solutions.

For example, Essential Utilities WTRG committed to investing $26 million in 2025 to design, build and operate a state-of-the-art water treatment facility capable of processing 18 million gallons per day. The facility is being developed specifically to support a 1,400-acre hyperscale data center campus and its associated power-generation requirements in Pennsylvania.

On the other hand, Xylem Inc. XYL, an innovative water solutions provider, in collaboration with Amazon AMZN, has been deploying Xylem Vue, an advanced software platform that applies data and analytics to detect leaks, cut water losses and improve residents’ water supply in Mexico. These smart water upgrades are expected to save more than 1.3 billion liters annually in Mexico.

Similarly, Ecolab ECL, a global provider of water treatment solutions, offers AI-optimized water management software that helps data centers reduce cooling water usage by up to 40%, directly lowering their operational risk. 

These examples demonstrate how AI infrastructure can expand responsibly while enhancing water security, creating opportunities for water companies to benefit financially from the trend.

Forward Looking Outlook

Looking ahead, a study by Cornell University estimates that, globally, AI could use up to 6.6 billion cubic meters of water by 2027, the equivalent of nearly two-thirds of England’s entire annual public water consumption.

While companies around the world are being encouraged to design systems that minimize water consumption, existing water resource plans largely fail to account for the rapid expansion of AI data centers. This has created a widening gap between the growing water demands of LLM data centers and the pace at which water-saving technologies are being developed and deployed.

The result? Environmental pressure to conserve ocean-bound freshwater now aligns perfectly with the financial imperative of AI companies to secure reliable, cheap water. 

This merger of motives is supercharging the prospects for water firms, and the ETFs holding them, making them a resilient defensive play within the volatile tech ecosystem.

4 Water ETFs for Your Watchlist

For investors, the simplest way to gain exposure to the growth trend offered by the companies mentioned above is through water-focused ETFs. As AI’s thirst for water grows, these water funds offer a way to invest in the essential infrastructure that protects both our oceans and digital future.

Consider adding these to your watchlist:

Invesco Water Resources ETF PHO

This fund, with a market value worth $1.99 billion, offers exposure to 37 companies that create products designed to conserve and purify water for homes, businesses, and industries. Waters Corp. holds the first spot in this fund, with 10.01% weightage. 

ECL holds the fourth position in this fund, with 7.32% weightage, while XLY holds the 10th spot with 3.73% weightage. The fund charges 59 basis points (bps) as fees. 

First Trust Water ETF FIW

This fund, with total net assets worth $1.77 billion, offers exposure to 36 companies that derive a substantial portion of their revenues from the potable and wastewater industry. Waters Corp. holds the first spot in this fund, with 4.98% weightage. 

The fund charges 50 bps as fees. 

Invesco S&P Global Water Index ETF CGW

This fund, with a market value worth $994.8 million, offers exposure to 68 water utilities, infrastructure, equipment, instruments and materials companies. American Water Works holds the first spot in this fund, with 7.70% weightage, while XLY holds the second spot with 7.27% weightage.  

WTRG holds the fourth position in this fund, with 5.86% weightage, while ECL holds the eighth spot with 3.98% weightage. The fund charges 58 bps as fees. 

Global X Clean Water ETF AQWA

This fund, with total net assets worth $22.9 million, offers exposure to 40 companies advancing the provision of clean water through industrial water treatment, storage, and distribution infrastructure, as well as purification and efficiency strategies, among other activities. American Water Works holds the first spot in this fund, with 8.22% weightage. 

XYL holds the third position in this fund, with 7.59% weightage, while WTRG holds the seventh spot with 4.73% weightage. The fund charges 50 bps as fees.   

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Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

While a strong jobs market reflects underlying economic resilience, the combination of high-rate anxieties and a severe, localized sell-off in high-flying AI chip stocks triggered a broad tech de-risking event. 

Compounding this market volatility, a fresh exchange of missile strikes between Iran and Israel over the weekend has suddenly threatened the stability of the April ceasefire. This escalating tension has once again clouded the geopolitical landscape and put a spotlight on maritime security surrounding the critical Strait of Hormuz. 

Against this backdrop of macroeconomic headwinds and sudden geopolitical friction, investors wary of high-beta volatility may consider pivoting toward low-leverage stalwarts. 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 HF Sinclair DINO, Siemens Energy SMERY, American Healthcare REIT, Inc. AHR, Par Pacific PARR, and Green Dot GDOT. 

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/Equity

Debt-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 first-quarter 2026 earnings season behind 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 Strategy

Considering 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.

HF Sinclair: It is an energy company that produces and markets light products such as gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products. On May 22, 2026, the company announced the launch of its Sinclair Oil brand’s "DINO-Venture," a 3,000-mile, nine-city summer road trip across the American West featuring community events, promotional offers, and distributor partnerships. 

Running from May 22 through June 15, the tour highlights regional storytelling and seasonal activations before concluding with a Folds of Honor scholarship ceremony in Tulsa, OK. This campaign should act as a low-cost customer acquisition funnel to drive high-margin proprietary fuel sales and mobile app adoption for the company.

The Zacks Consensus Estimate for DINO’s 2026 sales indicates an improvement of 15.6% from the prior-year reported level. The Zacks Consensus Estimate for DINO’s 2026 earnings indicates an improvement of 73.3% from the prior-year reported level. It currently sports a Zacks Rank #1.

Siemens Energy: It focuses on the design, development, manufacture and supply of products, installation and technologically advanced services principally in the renewable energy sector. On June 2, 2026, the company announced that it has agreed to acquire Camlin Group, a Northern Ireland-based specialist in grid monitoring, analytics and asset digitalization technologies. The acquisition will expand Siemens Energy’s digital grid portfolio at a time of accelerated global investment in electricity networks. 

The Zacks Consensus Estimate for SMERY’s fiscal 2026 revenues indicates an improvement of 19% from the prior-year reported actuals. The Zacks Consensus Estimate for SMERY’s fiscal 2026 earnings indicates a solid surge of 197.7% from the prior-year reported actuals. SMERY currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Healthcare REIT.: It is a self-managed real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on medical office buildings, senior housing, skilled nursing facilities, hospitals and other healthcare-related facilities. 

On May 7, 2026, the company reported its first-quarter 2026 results. Its revenues soared 20.4% year over year to $650.8 million, while its earnings per share (EPS) of 13 cents improved from a loss of 4 cents incurred a year earlier.

The Zacks Consensus Estimate for AHR’s 2026 revenues indicates an improvement of 22.4% from the prior-year reported number. The stock boasts a long-term (three-to-five years) earnings growth rate of 14.50% and currently holds a Zacks Rank #2.

Par Pacific: It is a growth-oriented energy company supplying conventional and renewable fuels across the western U.S. On May 5, 2026, Par Pacific announced its first-quarter 2026 results. Its revenues grew 4.5% year over year to $1.82 billion, while its EPS improved to $1.10 from a loss of 57 cents in the first quarter of 2025.  

The Zacks Consensus Estimate for PARR’s 2026 revenues indicates an improvement of 16% from the prior-year reported actuals. The Zacks Consensus Estimate for PARR’s 2026 earnings suggests a surge of 103.8% from the prior-year reported actuals. It currently carries a Zacks Rank #2.

Green Dot: It is a pro-consumer bank holding company and personal banking provider. On May 11, 2026, Green Dot announced its first-quarter 2026 results. Its revenues soared a solid 17.4% year over year to $656.2 million, while EPS improved 98% to 93 cents.

The Zacks Consensus Estimate for GDOT’s 2026 revenues suggests an improvement of 8.3% from the year-ago reported level. The Zacks Consensus Estimate for GDOT’s 2026 earnings implies growth of 19.2% from the year-ago reported level. It currently sports a Zacks Rank #1.   

 

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How It Stacks Up to Competitors

Dutch Bros Inc. BROS is managing cost pressure through operating leverage, more disciplined labor deployment and overhead efficiency rather than a formal multiyear savings program. The company improved company-operated labor costs by 120 basis points as a percentage of shop revenues in the first quarter of 2026, supported by better alignment of staffing with customer demand. Efficiency also showed up in corporate overhead, with adjusted SG&A improving 100 basis points as a percentage of revenues. BROS expects about 80 basis points of adjusted SG&A leverage for 2026, although higher coffee costs, food rollout expenses and increased occupancy costs tied to its build-to-suit lease strategy remain margin headwinds.

McDonald’s Corporation MCD, by comparison, is using scale, supply-chain discipline and ownership optimization to manage margin pressure. The company said its supply-chain teams, supplier partnerships and hedging strategies position it to navigate food, paper and energy inflation in 2026. MCD also acknowledged that U.S. company-operated margins were not acceptable and is reviewing both ownership mix and development returns, including dropping locations that no longer meet return thresholds.

Compared with BROS and MCD, Starbucks’ cost story is more structured and turnaround-driven. BROS is leaning on sales leverage and overhead efficiency, while MCD is using supply-chain scale, disciplined development and ownership optimization. Starbucks, meanwhile, has a defined $2 billion savings plan through fiscal 2028, making cost discipline a more explicit lever in its effort to convert stronger comps into faster EPS growth.

SBUX’s Price Performance, Valuation & Estimates

Shares of Starbucks have gained 5.1% in the past year against the industry’s 10.8% decline.

SBUX’s One-Year Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.21, below the industry’s average of 2.74.

SBUX’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. The EPS estimates for fiscal 2026 have increased in the past 30 days.

EPS Trend of SBUX Stock

Image Source: Zacks Investment Research

SBUX’s Zacks Rank

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

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Its diversified platform and solid capital position enable it to capitalize on growth opportunities while generating attractive returns for shareholders. RNR shares have gained 18.2% over the past year, outperforming the industry's decline of 4.2%. The company currently has a market capitalization of approximately $12.3 billion.

Valuation of RNR

RenaissanceRe appears attractively priced relative to its peers. Its trailing 12-month price-to-book (P/B) ratio of 1.14X is below the industry average of 1.39X, the broader Finance sector average of 4.38X and the Zacks S&P 500 composite average of 8.01X. The discounted valuation, combined with the company's strong fundamentals and growth outlook, enhances its investment appeal. Reflecting its attractive valuation, RenaissanceRe carries a Value Score of A.

Where Do Estimates for RNR Stand?

The Zacks Consensus Estimate for RNR's 2026 earnings is pegged at $40.02 per share, implying 2.4% year-over-year growth, followed by an additional 2.5% increase in 2027. It has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. RNR beat earnings estimates in each of the trailing four quarters, with the average surprise being 33.6%. The consensus estimate for 2026 revenues is pinned at $10.54 billion.

RenaissanceRe Holdings Ltd. Price, Consensus and EPS Surprise

RenaissanceRe Holdings Ltd. price-consensus-eps-surprise-chart | RenaissanceRe Holdings Ltd. Quote

Business Tailwinds for RNR

RenaissanceRe continues to benefit from disciplined underwriting and prudent risk selection. In the first quarter of 2026, underwriting income improved to $588.8 million from a loss of $770.6 million in the year-ago quarter, while the combined ratio improved to 73% from 128.3%. The company's focus on reducing exposure to less attractive business lines and prioritizing profitable growth should continue to support earnings and margin expansion. Reflecting its strong operating efficiency, RenaissanceRe generated a return on capital (ROC) of 18.7%, significantly higher than the industry average of 4.1%, highlighting its ability to generate superior returns from invested capital.

RenaissanceRe continues to strengthen its market position through strategic acquisitions and portfolio optimization initiatives. The acquisition of Validus Re and related businesses from AIG enhanced the scale of its global property and casualty reinsurance platform, while improving diversification, underwriting capabilities and earnings potential. The company has exited certain non-core and higher-risk businesses to improve portfolio quality and concentrate on more attractive risk-adjusted opportunities. These actions are expected to support stronger underwriting performance, enhance earnings stability and drive long-term shareholder value creation.

RenaissanceRe continues to generate strong cash flows, providing the financial flexibility to pursue growth opportunities. Operating cash flow totaled $3.7 billion in 2025 and rose more than fourfold year over year to $687.6 million in the first quarter of 2026. The company ended the quarter with $1.6 billion in cash and cash equivalents, positioning it well to support strategic investments, acquisitions and shareholder-friendly capital deployment.

RNR also remains committed to returning capital to shareholders through dividends and share repurchases. In February 2026, the company raised its quarterly dividend by 2.5% to $0.41 per share. It repurchased $352.5 million of common stock in the first quarter of 2026 and another $104.8 million through April 24, 2026. As of March 31, 2026, $542.5 million remained available under its share repurchase authorization. Its consistent capital-return strategy underscores management's confidence in its earnings power and long-term growth prospects.

Risks for RNR Stock

There are some factors that investors should keep a careful eye on.

Despite strong underwriting performance, RenaissanceRe experienced lower premium volumes in the first quarter of 2026, with gross premiums written and net premiums earned declining 16.3% and 19.7%, respectively. While management's focus on profitability over volume should support long-term returns, continued weakness in premium growth could limit revenue expansion and moderate earnings growth over the near term.

RenaissanceRe maintains a relatively high debt burden compared with the industry. As of March 31, 2026, the company carried approximately $2.3 billion in debt, with a net debt-to-capital ratio of 5.5%, above the industry average of 2.9%. Higher leverage has contributed to rising interest expenses, which increased 28.1% in 2024, 28.9% in 2025 and 17.4% in the first quarter of 2026. These elevated financing costs could pressure margins and reduce earnings flexibility.

Conclusion

RenaissanceRe should continue to benefit from its disciplined underwriting, strong dividend track record, strategic acquisitions, attractive valuation and favorable return on capital. However, pressure on premium growth and elevated leverage could limit upside in the near term. Therefore, it is prudent to retain this Zacks Rank #3 (Hold) stock at present.

Key Picks

Some better-ranked stocks in the broader Finance space are Mercury General Corporation MCY, First American Financial Corporation FAF, and United Fire Group, Inc. UFCS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mercury General’s 2026 earnings is pegged at $11.38 per share, indicating 44.1% year-over-year growth. MCY has witnessed one upward revision in the past 30 days, with no movement in the opposite direction. The consensus estimate for 2026 revenues is pinned at $6.4 billion, implying 8.5% year-over-year growth.

The Zacks Consensus Estimate for First American’s 2026 earnings is pegged at $6.81 per share, indicating 12.6% year-over-year growth. FAF beat earnings estimates in each of the trailing four quarters, with the average surprise being 22%. The consensus estimate for 2026 revenues is pinned at $8.03 billion, implying 7.8% year-over-year growth.

The Zacks Consensus Estimate for United Fire’s 2026 earnings is pegged at $4.69 per share, indicating 2% year-over-year growth. UFCS beat earnings estimates in each of the trailing four quarters, with the average surprise being 68.8%. The consensus estimate for 2026 revenues is pinned at $1.53 billion, implying 10.5% year-over-year growth.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The deal expands Roche’s hematology pipeline while providing opportunities to advance the therapy across immunology and neurology indications. Shares of NRIX are up in pre-market trading on the collaboration news.

Year to date, shares of RHHBY have lost 0.2% against the industry’s growth of 4.5%.

Image Source: Zacks Investment Research

More on RHHBY-NRIX Collaboration

Bexobrutideg (NX-5948) is an investigational, orally bioavailable, brain-penetrant bruton’s tyrosine kinase (BTK) degrader for the treatment of relapsed or refractory B-cell malignancies and diseases in immunology and neurology.

Bexobrutideg employs a novel protein degradation mechanism that eliminates BTK rather than simply inhibiting it, potentially overcoming resistance associated with currently available BTK inhibitors.

The drug is expected to enter phase III testing in second-line chronic lymphocytic leukemia (CLL) later in 2026. Early clinical results suggest the therapy could deliver superior efficacy and tolerability compared with existing BTK inhibitors while potentially overcoming key resistance mechanisms. The collaboration also enables Roche to leverage its leading hematology franchise to accelerate the drug’s development and commercialization.

Under the agreement, Nurix will receive $700 million upfront and could earn up to $2.3 billion in total through development, regulatory, and commercial milestone payments. Roche will fund 60% of development costs, with Nurix covering the remaining 40%.

The companies will jointly commercialize bexobrutideg in the United States, sharing profits and losses equally. Outside the United States, Roche will lead commercialization, while Nurix will receive tiered royalties ranging from the low- to high-teens.

The companies expect the transaction to be completed in the third quarter of 2026.

RHHBY’s Efforts to Diversify Pipeline

While Roche’s performance in the first quarter was weighed down by unfavorable foreign-exchange movements, the company’s underlying operational performance remained solid. Strong growth from key products helped offset declining revenues from legacy drugs.

MS drug Ocrevus and ophthalmology drug Vabysmo continued their stellar performances. Growth in hemophilia treatment Hemlibra and breast cancer drug Phesgo also boosted RHHBY’s top line.

Roche has a strong and diversified pipeline spanning multiple therapeutic modalities.

Bexobrutideg has delivered encouraging results as a monotherapy in clinical trials for B-cell malignancies.

The collaboration adds to Roche’s oncology pipeline and offers potential indications in immunology (chronic spontaneous urticaria) and neurology (multiple sclerosis).

The FDA recently accepted and granted Priority Review to its new drug application for giredestrant, an investigational oral selective estrogen receptor degrader (SERD), for the adjuvant treatment of adults with ER-positive, HER2-negative stage I–III breast cancer. A regulatory decision is expected by Nov. 30, 2026.

A tentative approval of breast cancer candidate giredestrant could serve as a meaningful catalyst for the stock.

While Roche is making efforts to further diversify its broad portfolio, the company remains a late entrant into the highly competitive obesity market, which is currently dominated by other large-cap pharma players, such as Eli Lilly LLY and Novo Nordisk NVO.

Roche’s obesity assets include enicepatide (CT-388) and petrelintide. Roche is rapidly advancing its obesity pipeline, with both enicepatide and petrelintide progressing into phase III trials and a multi-arm phase II combination study set to begin in mid-2026.